Information Systems Planning Presented by: Heidi Heppner Jon Marvin Jon Marvin

What Is Planning? Developing a view of the future that guides decision making today…  Impossible to tell the future… Therefore a more strategic focus is taken – Where do we want to end up? Therefore a more strategic focus is taken – Where do we want to end up? 3 Types of Planning: Strategic Strategic Tactical Tactical Operational Operational

Planning Difficulties Business goals and systems plans need to align Business goals and systems plans need to align Rapidly changing technology Rapidly changing technology  Technological advances, obsolete technology  Continuous planning/monitor and follow change Companies need portfolios rather than projects Companies need portfolios rather than projects Infrastructure development is difficult to fund Infrastructure development is difficult to fund Responsibility needs to be joint Responsibility needs to be joint  CIO, CEO, CFO, COO input is needed  Systems planning in becoming business planning.

The Changing World of Planning The future can be predicted The future can be predicted  The Internet changes strategies. New unexpected competitors. Time is available Time is available IS supports and follows the business IS supports and follows the business  IS & IT are the business. E-business solutions. Top management knows best Top management knows best  To far removed from customers, suppliers, partners.  Strategy must be formed on the “front lines”. The company can be viewed as an army The company can be viewed as an army  Employee empowerment  Better ideas, increased efficiency and higher employee satisfaction.

Today’s Sense-and-Respond Approach Formulate Strategy Closest to the Action Formulate Strategy Closest to the Action  Planning occurs at edge of company. Up to date. Test the Future Test the Future  IS department tests future technologies.  Provide funding, work with research organizations. Put the Infrastructure in Place Put the Infrastructure in Place  Most critical IT decisions are about infrastructure.  Creating and maintaining common, consistent data definitions, create and install mobile commerce standards among handheld devices, implement e-commerce security and privacy measures, determine operational platforms, such as ERP and supply chain management.

Sense-and-Respond Cont. Don’t plan the whole strategy, let it unfold Don’t plan the whole strategy, let it unfold A step-by-step strategy is more adaptable A step-by-step strategy is more adaptable Guide Strategy – A Strategic Envelope Guide Strategy – A Strategic Envelope can keep your flexible planning within limits can keep your flexible planning within limits Be at the table - IS execs must be involved. Be at the table - IS execs must be involved. A good CIO should attain department credibility and free up staff for planning. A good CIO should attain department credibility and free up staff for planning.

Six Planning Approaches and Techniques Stages of Growth Stages of Growth Critical Success Factors Critical Success Factors Competitive Forces Model Competitive Forces Model Value Chain Analysis Value Chain Analysis Internet Value Matrix Internet Value Matrix Linkage Analysis Planning Linkage Analysis Planning

CLJ: Infrastructure-related problems Limited funding Limited funding Time- 7 years from scratch Time- 7 years from scratch High level of IT control High level of IT control Decision-making authority departing from IS dept. Decision-making authority departing from IS dept. What level to build at. Size of company. What level to build at. Size of company. Consensus between IT and general management. Consensus between IT and general management.CTQ: Should today's companies follow the established and proven infrastructures of similar companies or should they experiment with creating their own personalized infrastructure?

CLJ – Risky Business Assessing Projects goes beyond TCO and ROI. Risk Assessment is crucial - see Internet Value Matrix Assessing Projects goes beyond TCO and ROI. Risk Assessment is crucial - see Internet Value Matrix Improve project flexibility by building in ‘options’ Improve project flexibility by building in ‘options’ Which is better? Options or breaking it into smaller pieces? Any more methods for assessing a project? Which is better? Options or breaking it into smaller pieces? Any more methods for assessing a project? CTQ - Our text suggests using a strategic envelope to keep potential strategies on track. But might this envelope be too confining? And who should define the envelope? Should it just be upper management? CTQ - Our text suggests using a strategic envelope to keep potential strategies on track. But might this envelope be too confining? And who should define the envelope? Should it just be upper management?