Copyright © 2004 Sherif Kamel Information Systems Planning Sherif Kamel The American University in Cairo

Copyright © 2004 Sherif Kamel Outline  Objectives  IS planning – the process  What is an information system plan?  Planning Qs for information systems  IS plan as part of the business plan  Challenges, principles and users role in IS planning  Conclusion

Copyright © 2004 Sherif Kamel Objectives  Improved organisational performance through IS/IT o Alignment of IS/IT with organisational goals o Competitive advantage  Establish a rational and flexible platform for the future  Provide basis for budgeting and context for medium term decisions regarding infrastructure development and renovation

Copyright © 2004 Sherif Kamel Information systems planning the process  The work of planning, building and managing information systems includes: o Identifying the customer o Determining the product of the business process o Finding a balance between  Business process  Participants  Information  Technology  Results expected by the customer

Copyright © 2004 Sherif Kamel What is an information system plan?  Information systems planning is the part of business planning concerned with deploying the firm’s information systems resources including: o People o Hardware o Software

Copyright © 2004 Sherif Kamel Planning Qs for Information Systems  At the strategic level… o What are the expectations? o Which vendors will perform major functions that are outsourced? o What needs to be done to accomplish the desired goals? o What are the major completion dates? o What technology will be used or needs to be available to do the work? o What capacities need to be present so that the firm can compete in the future? o How will business processes change in terms of detailed operation and controllable results?

Copyright © 2004 Sherif Kamel Planning Qs for Information Systems  At the project level… o Who will work on each project? o Who will decide how the business process will operate? o Who will support and manage the IS after it is in operation? o What capabilities are required for the IS? o What will be the individual steps in the project? o When the individual steps will be completed? o How will the system development techniques be used to produce the desired results? o How will the different units work together in the project?

Copyright © 2004 Sherif Kamel IS plan as part of the business plan Competition Resources Ambitions History Ability to change Business Plan Sales and marketing plan Production plan Finance plan Human resources plan Information system plan Goals Objectives Priorities

Copyright © 2004 Sherif Kamel It is important to…  Align business goals and systems plans  Continuously change Materials (hardware and software)  Sharing responsibility both (top-down and bottom-up)  Clarify the strategy  Understand that IS is part of the organizational structure at large and not a support function or service

Copyright © 2004 Sherif Kamel Challenges in IS planning  Difficulty in foreseeing and assessing opportunities o It is usually difficult to foresee who IS innovations will develop  SABRE reservation system of American Airlines o IS should be reviewed periodically and should be designed to be flexible and extendable  Difficulty assuring consistency with organizational plans and objectives o Issue of developing an information architecture and infrastructure that spans across departmental boundaries within an organization

Copyright © 2004 Sherif Kamel Challenges in IS planning  Difficulty in building systems o IS are complex and involve many organizational, political and technological tradeoffs; failures in IS development include:  London stock exchange  Bank of America o It requires consistent and rational IS investment and visionary management

Copyright © 2004 Sherif Kamel Challenges in IS planning  Difficulty maintaining IS performance o Customer expectations is key including:  Cost, quality, responsiveness and reliability of products and services produced  Business processes within IS may lack productivity, flexibility of security  Problems could arise from occasional inaccuracy  Difficulty collaborating with system builders o Business and IT professionals frequently disagree o While IT professionals analyze and design useful IS, business professionals are more into non-systematic solutions and business processes

Copyright © 2004 Sherif Kamel Principles in IS planning  Support the firm’s business strategy with appropriate technological architecture, standards and policies  Evaluate technology as a component of a larger system  Recognize life cycle costs, not just acquisition costs  Design IS to be maintainable  Recognize the human side of technology use  Support and control the technological system

Copyright © 2004 Sherif Kamel User roles in IS planning  Sponsors o Senior managers recognizing the importance of an information system and make sure resources are allocated for building and maintaining the IS  Most important resource is people = users of the IS  Champions o Individuals who recognize the importance of IS and exert efforts to make sure that the IS is recognized as vital by others in the organization (promoters of the technology and innovations)  IS steering committees o Experts who make sure that IS effort reflects business priorities across the organization

Copyright © 2004 Sherif Kamel Conclusion  IS plans… o must look towards the future o must be intrinsic to business planning o penetrates many aspects of our life  Information systems is… o high-expenditure activity o critical to many organisations o needed by our economic context o affect all levels of management o involve many stakeholders o affected by the management style