Part 2 Information Systems Planning

Information Systems Planning in an organization 2 Need for planning Improperly planned projects result in systems that cannot be shared across an organization As business processes change, lack of integration will hamper strategy and business process changes

Advantages of IS planning 3 1. Allow to construct ISs that support the whole organisation 2. Allow integration of different tools 3. Avoid data redundancy 4. Reduce maintenance costs because planned system will require less revision 5. Plans enable communication To enable and support intra-organizational communication To create a shared mental image of team members’ role 6. Plans enable unity of purpose To specify the objective of IS deployment Clear responsibilities are agreed upon 7. Plans simplify decision making over time To create a context for decision making

Description of three process that play significant role in project selection 4 Value chain analysis Information System Planning Corporate Strategic Planning

Information Systems Planning in an organization 5 Information system planning ” is different from “ project planning ” Information System Planning (ISP) is the process by which a company (organisation) analyses its information needs and plan its project carefully ISP is an orderly means of assessing the information needs of an organisation and defining the systems, databases, and technologies that will best satisfy those needs

Information Systems Planning in an organization 6 ISP requires support of top management and its commitment to reach desired objectives. Techniques used to capture information system needs, include Interviewing managers and executives Reviewing corporate documents Analysing competitors, markets and products Three key activities: Describe the Current Situation Describe the Target (or Future) Situation Develop a Transition Plan and Strategy 5.6

Information Systems Planning in an organization 7 Information Systems Planning 1. Describing the Current Situation There are two approaches to describe current situation needs Top-down Planning Generic methodology that attempts to gain a broad understanding of the information system needs of the entire organization Bottom-up Planning Generic methodology that identifies and defines IS development projects based upon solving operational business problems or taking advantage of some business opportunities 5.7

Information Systems Planning in an organization 8 1. Describing the Current Situation (Continued) Include : Planning team is chartered to model existing situation. Identification of Organizational: Locations Units Functions Processes Data Information Systems 5.8

Information collected about current situation 9 Locations where the company operates Business unit that operate within a company Functions = cross organisational collection of activities used to perform day-to-day business operation. Processes of a company Data underlying processes Information system represent automated and non automated systems used to support business processes.

Information Systems Planning in an organization Describing the Target Situation Define situation and update list of organizational locations, functions, etc. to reflect desired locations, functions, etc. Planners focus on differences between current lists and future lists and

Information Systems Planning in an organization 11 3-Developing a transition strategy and plans Plans reflect both short-term and long-term organisational development needs Plans include organisational mission, information inventory, mission and objectives of IS, constraints, long-term plans and short-term plans Selected projects are those derived from ISP and that fulfil the gap between current and desired situation

Corporate Strategy Planning (CSP) 12 Effective deployment of resources require clearly understanding of organisational missions, objectives & strategy Corporate Strategy Planning is a top-down process of three steps CSP is an ongoing process that defines the mission, objectives and strategies of an organisation CSP is a process that is frequently subject to change It requires constant surveillance

Process of corporate strategy planning 13 Analysis of strategic position: what is the current position? Desired strategic position: what are the objectives Design of the possible strategies to achieve desired goals Steps:

ISP and Corporate Strategy Planning 14 Desired situation for informational needs Listing of manual & automated processes Listing of manual & automated data Technology inventory Human resources inventory Schedule of projects to transit from current to desired Project 1 Project Current enterprise Future enterprise Strategic plan Current situation for informational needs Listing of manual & automated processes Listing of manual & automated data Technology inventory Human resources inventory

Strategic Alignment A high degree of fit and consonance between the priorities and activities of the IS function and the strategic direction of the firm Careful planning is critical for strategic alignments, especially for firms in highly competitive environments.

Six Key IS Decisions 1. How much should we spend on IT? What the role of IS and technology should be 2. Which business processes should receive the IT dollars? What business processes are most important 3. Which IT capabilities need to be companywide? The cost/benefits of standardization and flexibility 4. How good do our IT services really need to be? The degree of service the firm needs and are willing to pay for 5. What security and privacy risks will we accept? 6. Whom do we blame if an IT initiative fails? Allocate resources and assign responsibility for IS projects

Strategic IS Planning A partnership between Those with technical skills The information systems group General and functional managers Objective: Define how the firm plans to use and manage IS resources to fulfill its strategic objectives

Strategic IS Planning Process Gathering information about the current availability and performance of IS resources Providing a roadmap for decision-making about information systems

Strategic IS Planning Process Strategic business planning IS assessment IS vision IS Guidelines Strategic Initiatives An Iterative Process

Strategic Business Planning Know Who You Are An organization's mission and future direction, performance targets, and strategy. Effective IS planning can only occur when there is a clear understanding of the firm: What makes it successful The business strategy Its future goals and objectives

Information Systems Assessment Know Where You Start The process of Taking stock of the firm’s current IS resources Evaluating how well they are fulfilling the needs of the organization IS resources Technical resources: hardware, software and networking components of the IT infrastructure Data and information resources: databases and other information repositories Human resources: skills, attitudes, preconceptions, reporting structures and incentive systems of IS professionals and the user community Output: a snapshot of the current “state of IS resources” in the organization.

Information Systems Vision Know Where You Want To Go Based on the role that information systems should play in the organization Defines the ideal state the firm should strive for, in its use and management of its resources More IT-intensive firms: IS may play a strategic role Less IT-intensive firms: IS may be a “necessary evil”

Information Systems Vision The Information Systems Vision The Firm’s Business Strategy The IS vision is unique and highly specific to a given firm. Two analytical tools: Critical Success Factors (CSF) methodology Strategic impact grid aligned and reflect

Critical Success Factors The limited number of areas which managers must effectively control to ensure that the firm will survive and thrive It ensures that the planning team is able to prioritize It focuses on business objectives, not on information systems

The Strategic Impact Grid It enables simultaneous evaluation of the firm’s current and future information systems needs.

The Strategic Impact Grid Current need for reliable information systems Focuses on current day-to-day operations and the functionalities of the existing systems Future needs for new information system functionalities Focuses on the strategic role that new IT capabilities play for the organization The strategic impact grid defines what the use of information systems resources should be going forward.

Support Quadrant IS are not mission critical for current operations New systems promise little strategic differentiation The firm: Views IS as a tool to support and enable operations Considers IS to offer little potential to significantly benefit the organization Is generally conservative in IS investments

Factory Quadrant Even a small disruptions to IS infrastructure can endanger the firm’s well-being and future viability. A limited potential for new systems and functionalities to make a substantial contribution. The firm: Closely monitors its current systems Needs to be willing to fund their maintenance and upgrade. But takes a conservative stance toward future investments.

Turnaround Quadrant IS are not mission critical for current operations New IS or new functionalities of existing systems will be critical for the business’ future viability and success. The firm: Is readying to change its information systems posture Needs to engage in some reorganization

Strategic Quadrant IS are critical to the firm’s current operations New IS or new functionalities of existing systems is critical for the future viability and prosperity of the business. The firm: should be extremely proactive with respect to information systems and IT investments.

Information Systems Guidelines Know How You Are Going To Get There Information systems architecture A set of statements specifying how the firm should use its technical and organizational IS resources to achieve the IS vision Purposes Enable communication Establish responsibility Guide future decision making

Purposes of IS Guidelines Communication To simplify tactical and operational decision-making To ensure that future decisions are aligned with the information systems vision Identify responsibilities To set expectations for behavior Long range decision support Must be general enough to provide direction over a number of years Must be actionable

Technical IS Guidelines Address future decisions pertaining to The hardware and software infrastructure Networking services The storage and protection of organizational data and information Do not specify vendor, particular platforms or applications They are relatively general

Organizational IS Guidelines Address those decisions that pertain to Human resources The organization of the IS function Reporting and hierarchical structures Focus on IT governance issue Outsourcing and vendors relationships Human resource decisions

Information Systems SWOT Know How Well Equipped You Are To Get There SWOT analysis focused on the firm’s current IS resources and capabilities Remember IS planning is iterative The IS vision may need to be revised according to the result of the SWOT analysis. The firm should be clear about what to do during the current planning cycle after Having read the SWOT analysis Given the proposed vision and the guidelines

Proposed Strategic Initiatives From Planning To Action Long-term (three to five year) proposals that identify new systems and new projects or new directions for the IS organization. These initiatives need to Identify a set of future avenues for exploitation of the IS resources Be tightly aligned with the IS vision and the proposed role of IS in the organization

Any Questions?