Chapter 14 Planning Information Systems

2 Learning Objectives When you finish this chapter, you will  Recognize different approaches to business planning in general and IS planning in particular.  Understand how IS planning methods evolved.  Know how IS planning should be carried out.

3 Learning Objectives  Recognize the importance of integrating IS planning into overall organizational planning.  Appreciate the many complex factors faced by IS planners.

4 Why Plan? What is Planning?  An IS plan is a statement of how management foresees its ISs in the future.  IS plan includes:  Activities planner believes will help achieve goals.  Program for monitoring real-world progress.  Means for implementing changes in the plan.

5 Why Plan? Business Planning  Define organization’s goals and objectives  Determine resources needed to attain objectives  Create policies to govern the acquisition, use, and distribution of resources  Provide for any changes in objectives

6 Why Plan? Figure 14.1 Business planning

7 Approaches to Planning Top-down Planning  Focuses on organizational goals first, then on the needs of business units Bottom-up Planning  Focuses on needs of business units first, then on organizational goals Holistic planning goal driven

8 Approaches to Planning Figure 14.2 Top-down, or goal-driven, planning considers the organization as a whole.

9 Approaches to Planning Figure 14.3 In bottom-up planning, the process starts with consideration of individual concerns.

10 Approaches to Planning Planning by Critical Success Factors  Executives define critical success factors first so planning can address resources to support those factors  Critical success factor: issues identified as critically important to business success

11 Approaches to Planning Figure 14.4 Business planning by critical success factors

12 Information Systems Planning Figure 14.5 Advances in IS planning since the 1970s

13 Information Systems Planning Key elements of an IS Plan  Corporate mission statement  Vision for IT within organization  IS strategic and tactical plans  Operations plan to achieve mission and vision  Budget to ensure resources are available

14 Information Systems Planning Figure 14.6 The steps of information systems planning

15 Information Systems Planning Prerequisites for Information Systems Planning Figure 14.7 Prerequisites for effective IS planning

16 Information Systems Planning The Corporate and IS Mission Statements  The corporate mission statement details the purpose of the organization and its overall goals.  IS mission statement outlines the purpose of ISs in the organization.

17 Information Systems Planning Figure 14.8 The mission statement of a university IS organization

18 Information Systems Planning The IT Vision  Wish list of what IS managers would like to see in terms of hardware, software, and communications, to contribute to goals of the organization Strategic and Tactical IS Planning  IS strategic plan details what is to be achieved  IS tactical plan describes how goals will be met and by when

19 Information Systems Planning Figure 14.9 Rigid and dynamic planning

20 Information Systems Planning Important Factors in IS Tactical Planning  Flexibility  Compatibility  Connectivity  Scalability  Standardization  Total Cost of Ownership

21 Information Systems Planning Figure Hardware planning

22 Information Systems Planning Figure Total cost of ownership per laptop computer

23 IS Planning Initiatives Four groups of people who initiate new or improved ISs from different perspectives  Top management  IS professionals  Line managers  Users

24 IS Planning Activities Figure IS planning can be driven by a variety of sources.

25 IS Planning Activities Figure A survey of 100 CEOs and other executives shows that IT projects are initiated by business unit managers and IT managers, but also by top executives.

26 The Champion High-ranking officer who commands sufficient political clout to include IS in planning Most effective champions are not IS professionals.

27 The Champion A successful champion is a leader who can:  Promote the vision of IT in the organization.  Inspire top management and subordinates alike.  Remove barriers to realizing vision.  Focus on both short-term and long-term objectives.  Be a torchbearer for making change happen.  Drive accountability to lowest organizational level.

28 The Systems Analyst as an Agent of Change Figure Systems analysts facilitate change by motivating, educating, and training.

29 The Systems Analyst as an Agent of Change Planning almost always deals with change, which people tend to resist. Systems analysts must convince users that the new system will help them in their work.  Explain how a new system will improve business performance  Train individuals in the use of the new system

30 Ethical and Societal Issues Codes of Ethics for IS Professionals IS professionals can find themselves in situations where the interests of different constituencies collide. Many organizations do not provide adequate guidelines for resolving conflicts of interest.

31 Ethical and Societal Issues Codes of Ethics for IS Professionals IS organizations with codes of ethics  Association of Computing Machinery  Data Processing Management  International Federation for Information Processing  British Computer Society  Canadian Information Processing Society  Institute for Certification of Computer Professionals