IMPORTANCE OF STRATEGIC PLANNING Strategic Planning is the process of identifying long-term organizational goals, strategies and resources. It looks beyond day-to-day activities and focuses on a horizon that is 3, 5, 10, or 20 years in the future.

SWOT analysis it examines a company’s strengths (S), weaknesses (W), opportunities (O), and threats (T).

Information Technology Other Corporate Resources Purpose Vision Values Information Technology Business Operations Other Corporate Resources Mission Statement Objectives Goals Results Stakeholders

Stakeholders include anyone affected by the company’s performance. Mission statement describes the company for its stakeholders and briefly states the company’s overall purpose, services and values. Stakeholders include anyone affected by the company’s performance. Identifies a set of goals that will accomplish the mission. To achieve the goals, the company develop a list of specific objectives.

INFORMATION SYSTEMS PROJECTS System request is the starting point for a project. It might propose enhancement for an existing system, the correction of problems or the development of an entirely new information system.

Reasons for System Projects Improved service : Systems requests often are aimed at improving service to customers or users within the company Better performance : The current system might not meet performance requirements. eg. Allowing mutual fund investors to check balances on a web site, creating online college registration system E.g. Respond slowly to data inquiries. Hardware configuration

More information: The system might produce information that is insufficient, incomplete, or unable to support the company's changing information needs. Stronger controls: A system must have effective controls to ensure that data is accurate and secure. 3. A system that tracks customer orders might not be capable of analyzing and predicting marketing trends. 4. pwords, various levels of user access and encryption or coding of data. Scan a person’s retina to use as fingerprint. E.g. If an invalid customer number is entered, the system should reject the entry and prompt the user to enter a valid number

Reduced cost: The current system could be expensive to operate or maintain as a result of technical problems, design weaknesses, or the changing demands of the business. 5. Possible to adapt newer technology or upgrade. On the other hand, cost-benefit analysis might show that a new system would be more cost effective and provide better support for long-tem objectives.

Factors affecting System Projects User request: As users rely more heavily on information systems to perform their jobs, they are likely to request even more IT services and support. Top Management Directives: Directives from top managers are a prime source of major systems projects. Sales rep might request improvements to the company’s website, or an online system that allows customers to obtain the status of their orders instantly.

Existing system: Errors or problems in existing systems can trigger requests for systems projects. IT Department: Many systems project requests come from the IT department. Economy : Economic activity has a powerful influence on corporate information management. System errors must be corrected Make recommendations based on their knowledge of business operations. it might be strictly technical matters. In a period of economic expansion, firms need to be ready with scalable systems that can handle additional volume and growth.

Competitors : Competition drives many information systems decisions. Technology: Changing technology is a basic force in business and society in general. Government: Federal, state, and local government regulations affect the design of corporate information systems. Competitors : Competition drives many information systems decisions. 6. Rapid growth of telecommunications; scanner technology in supermarket 7. Income tax must be designed to all payroll package 8. If one cellular phone providers offers a new type of service, other firms must match the plan in order to remain competitive

Software & hardware vendors : Most companies have a mix of software and hardware that must work together to support information systems requirements. Customers : Customer service is vitally important, and information systems that interact with customers receive top priority in most firms. Technical support system, online inventory system. Some believe that Automated warehouse is just as important as a successful website

Suppliers : With the growth of electronic data interchange (EDI), relationships with suppliers are critically important. 11. An automobile company might require that suppliers code their parts in a certain manner to match a company’s inventory control system

SYSTEMS REQUEST FORMS Many organisations use a special form for systems requests. When a systems request form is received, a systems analyst or IT manager examines it to determine what IT resources (staff and time) are required for the preliminary investigation.

EVALUATION OF SYSTEMS REQUESTS Many organisations assign responsibility for evaluating systems requests to a group of key managers and users.   Systems Review Committees: A systems review committee provides a variety of experience and knowledge in evaluating systems requests. Smaller company – only one person Larger company – IT director and managers from other department; director must act as consultant. To avoid delay, members use memos, email and teleconferencing to communicate with each other.

   Evaluation of Projects: The systems review committee must evaluate the requests and set priorities. 4 request: marketing group Technical support group Accounting department Production staff

OVERVIEW OF FEASIBILITY A systems request must meet several tests to see whether it is worthwhile to proceed further. A feasibility study uses three major yardsticks to measure, or predict a system's success: operational feasibility, technical feasibility, and economic feasibility.

 Operational Feasibility: A system that has operational feasibility is one that will be used effectively after it has been developed.   Technical Feasibility: A systems request has technical feasibility if the organization has the resources to develop or purchase, install, and operate the system. If users have difficulty with a new system, it will not produce the expected benefits. Does the mgt support the project? Do users support the project? Do users see the need for change? Will the new system require training for users? if so, is the company prepared to provide the necessary resources? Technical feasibility Does the company have the necessary hardware, software and network resources Does the company have the needed technical expertise? Will the hardware and software environment be reliable?

Economic Feasibility: A systems request has economic feasibility if the projected benefits of the proposed system outweigh the estimated costs involved in acquiring, installing, and operating it. Benefits: Tangible Intangible Companies usually consider total cost of ownership (TCO), w/c includes ongoing support and maintenance cost. To determine TCO, the analyst needs to estimate cost of the following: people, including IT staff and users Hardware and equipment Software Formal and informal training Licenses and fees Consulting expenses Facility cost Estimated cost of not developing the system or postponing the project Tangible benefits that can be measured in dollars. It results from a decrease in expenses, an increase in revenues E.g. a new scheduling system that reduces overtime A sophisticated inventory control system that cuts excess inventory and eliminates production delays intangible benefits are difficult to measure and identified e.g. a user friendly system that improves employee job satisfaction a new web site that enhances the company’s image

PRELIMINARY INVESTIGATION OVERVIEW Interaction With Managers And Users Meet with key managers, users, and IT staff to describe the project.

STEPS: Step 1: Understand the Problem or Opportunity   Step 1: Understand the Problem or Opportunity Step 2: Define the Project Scope and Constraints If the request involves a new IS the SA might develop a business profile. You must understand how the modification will affect business operations Determine which department are involved Define the boundaries Project scope is to allow customers to inquire online about accounts and balances Identify the constraint or requirement, a condition that the system must satisfy or an outcome that the system must achieve - Present vs future - internal vs external - mandatory vs desirable

Constraint Example Present The present system must be operational on January 1, 2016. Future The Web-based sales system must be able to handle transaction volume predicted for the next 3 years.

Constraint Example Internal The human resources system must interface with the current accounting system. External The payroll system must produce output data in a form acceptable to the Internal Revenue Service

The order entry system must run in a UNIX environment. Constraint Example Mandatory The order entry system must run in a UNIX environment. Desirable The purchasing system should provide user-customizable screens. After further investigation, this is desirable only if adding this feature will not delay the project.

Step 3: Perform Fact-Finding Step 4: Determine Feasibility   Step 4: Determine Feasibility Step 5: Estimate Time and Cost to Continue Development Step 6: Present Results and Recommendations to Management 3. techniques; - analyze organization charts - conduct interview - review current document - observe operations - carry out a user survey 6. Present several alternatives The final task in PI is to prepare a report to management

Format of Preliminary Investigation: Introduction System Request Summary Findings Recommendations Time and Cost Estimates Expected Benefits Appendix

Introduction Overview of the report. Contains a brief description of the system, the name of the person or group who performed the investigation, and the name of the person or group who initiated the investigation.

System Request Summary The summary describes the basis of the system request. 3. Findings - Contains the results of your preliminary investigation, including a description of the project’s scope, constraints, and feasibility.

Recommendations For further action, with specific reasons and justification, are explained. Time and Cost Estimates - Describes the cost of acquiring and installing the system, and the total cost of ownership during the system’s useful life.

Expected Benefits Anticipated tangible and intangible benefits, and a timetable that shows when they are to occur. Appendix - Used to attached supporting detail information.