Chapter 4 Information Systems Planning Presented by Aaron Brandon Jenna

Information systems planning model Information Input Planning Process Resources Participant Education and Training Planning Output Planning Outcome Organizational / External Environment InputProcessOutputOutcome

Types of Planning StrategicTacticalOperational 3-5 years1-2 years6 months- 1 year Vision architecture, business goals Resource allocation, project selection Project Management, meeting time and budget targets

6 Planning Approaches Stages of Growth Critical Success Factors Competitive Forces Model Value Chain Analysis E-Business Value Matrix Linkage Analysis Planning

Stages of Growth 1)Early Successes 2)Contagion 3)Control 4)Integration

Critical Success Factors Used to help companies identify information systems they need to develop Should be listed in the company’s charter Measurable performance factor: monitoring and building Four sources for CSF –Industry –Company –Environment –Temporal

Competitive Forces Model Industry Competitors New Entrants BuyersSubstitutesSuppliers

Value Chain Analysis Five primary activities that form the sequence of the value chain: 1Inbound logistics 2Operations 3Outbound logistics 4Marketing and sales 5Service Four supporting activities that underlie the entire value chain: 1 Organizational infrastructure 2 Human resources management 3 Technology development 4 Procurement

E-Business Value Matrix Critical to Business Newness of Idea New Fundamentals Low Operational Excellence HighLow Rational Experimentation LowHigh Breakthrough Strategy High

Linkage Analysis Planning Examines the links organizations have with one another with the goal of creating a strategy for utilizing electronic channels Methodology includes the following steps: –Define power relationships among the various players and stakeholders –Map out your extended enterprise to include suppliers, buyers, and strategic partners. –Plan your electronic channels to deliver the information component of products and services.

Traditional Strategy Making Where is the business going and why? (Business Strategy) –Business decisions –Objectives and direction –Change What is required? (Systems Strategy) –Business based –Demand oriented –Application focused How can it be delivered? (IT Strategy) –Activity Based –Supply oriented –Technology focused

Why is Planning so Difficult? Business Goals and systems plans need to align Technologies are rapidly changing Companies need portfolios rather than projects Infrastructure development is difficult to fund