Chapter 3 Strategic Information Systems Planning

Agenda Hierarchy of planning information flow Issues of IS planning Planning model Planning process framework

Hierarchy of Planning Information Flow - I Business planning –Input: external impacts, threats, and opportunities –Input 2: IT strategy potential –Output 2 : business strategy Business IS/IT demand planning –Input: IS/IT perspective –Input 1: business strategy –Input 2: tactics, infrastructure –Output 1: IT strategy potential –Output 2: IT needs, priorities, policies

Hierarchy of Planning Information Flow - II IT supply planning –Input: user needs, resources –Input 1: IT needs, priorities, policies –Input 2: effectiveness –Output 1: tactics, infrastructure –Output 2: IT plans Development and Implementation –Input: user satisfaction –Input 1: IT plan –Output 1: effectiveness

Issues of IS Planning - I Driving forces –External business factors –External technical factors –Internal business factors –Internal technical factors IS Management –Goal alignment: business and IS –Strategic systems: IT for competitive advantage –Planning: strategic IS/IT planning –Education of senior management: role in IS/IT

Issues of IS Planning - II Scope –IT supply: technology as a means of delivery (resources) –IS demand: business needs expressed as information systems requirements –Corporate IS/IT management strategy and corporate IT strategy vs. business unit IS strategy and business unit IT strategy Vertical and horizontal consolidation and coordination

Issues of IS Planning - III Characteristics of selected approach –Overview, top-down, flexible, and modular –Consistency and clear checkpoints –Interactive communication –Documentation, diagram, and deliverable –Rational decision –Human oriented

Issues of IS Planning - IV Resources –Management sponsor –Commitment from Steering committee –Automated support facilities –Physical facilities

Planning Model -I Inputs –The internal business environment Business strategy, objectives, resources, processes, culture, and values –The external business environment Economic, industrial and competitive climate –The internal IS/IT environment IS/IT perspective, maturity, business coverage and contribution, skills, and resources, and technological infrastructure –The external IS/IT environment Technology trends, opportunities, and usage

Planning Model -II Output –Executive summary: conclusion and recommendations –Supporting evidence –IS/IT management strategy Common and consistent policies and procedures for the corporate Scope and rationale, IS/IT organization, investment and prioritization policies, vendor policies, human impact policies and education, IS accounting policies

Planning Model -III Output –Business IS strategy: application portfolios and services needed by the corporate and strategic business units to achieve business objectives Business environment and IS/IT environment Business IS demand –Information needs and conceptual information systems –Application portfolio: required, upgrading, future, analysis, priorities, costs and benefits –Business information models –Business conclusions –Business recommendations

Planning Model -IV Output –IT strategy: policies and procedures for technology and special resources Application portfolio management Organization of IS/IT: resources and administration Information resources and services Investment, prioritization, and benefit Application development Technology

Planning Framework - I Initiate planning process –Confirm objectives, scope, deliverables, resources, risk, and team –Plan tasks, schedule, roles, and responsibilities, and milestones

Planning Framework - II Understand the current situation and interpret business needs –Analysis of the business strategy, objectives, critical success factors, critical problems, and processes in terms of SWOT and needs –Evaluation of the current IS/IT operation in terms of systems, information, resources, organization, skills and services for improvement –Innovative analysis and identification of potential internal and external usages of IS/IT

Planning Framework - III Determine the business IS strategy –IS demand for the corporate and strategic business units in terms of current, required and future Define information and systems architecture –The analysis of IS/IT and processes needs for building proposed business model for corporate

Planning Framework - IV Formulate IT supply proposal –Deliverables from the IS planning process –Clear direction for the IS objectives –IS/IT and business development Prepare outline plans and a business case for approval

Question How do you apply this IS/IT planning process to an e-business?

Points to Remember Hierarchy of planning information flow Issues of IS planning Planning model Planning process framework