1. CHAPTER 14 SETTING A DIRECTION FOR INFORMATION RESOURCES

2. WHY SET A DIRECTION FOR INFORMATION RESOURCES?
To share information among diverse parts of the organization
To communicate the future to others
To provide a consistent rationale for making individual decisions
Planning discussions help business managers and IS professionals in making decisions about how the “business” of IS will be conducted
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3. THE OUTPUTS OF THE DIRECTION-SETTING PROCESS
Information Resources Assessment
Information resources assessment – includes inventorying and critically evaluating these resources in terms of how well they are meeting the organization’s business needs
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4. OUTPUTS OF THE DIRECTION-SETTING PROCESS
Information Vision and Architecture
Is an ideal view of the future
Not the plan on how to get there
Must be flexible enough to provide policy guidelines for individual decisions
More than just fluff
Must focus on the long term
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5. OUTPUTS OF THE DIRECTION-SETTING PROCESS
Information Vision and Architecture
Information vision – a written expression of the desired future about how information will be used and managed in the organization
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6. OUTPUTS OF THE DIRECTION-SETTING PROCESS
Information Vision and Architecture
Information vision – a written expression of the desired future about how information will be used and managed in the organization
Information technology architecture – depicts the way an organization’s information resources will be deployed to deliver that vision
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7. OUTPUTS OF THE DIRECTION-SETTING PROCESS
Information Resources Plans
Strategic IS plan – contains a set of longer-term objectives that represent measurable movement toward the information vision and technology architecture and a set of associated major initiatives that must be undertaken to achieve these objectives
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8. OUTPUTS OF THE DIRECTION-SETTING PROCESS
Information Resources Plans
Strategic IS plan – contains a set of longer-term objectives that represent measurable movement toward the information vision and technology architecture and a set of associated major initiatives that must be undertaken to achieve these objectives
Operational IS plan – is a precise set of shorter-term goals and associated projects that will be executed by the IS department and by business managers in support of the strategic IS plan
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9. THE PROCESS OF SETTING DIRECTION
Assessment
Vision
Strategic Planning
Operational Planning
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Figure The Information Resources
Planning Process
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10. THE PROCESS OF SETTING DIRECTION
Strategic Planning – the process of constructing a viable fit between the organization’s objectives and resources and its changing market and technological opportunities
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Figure The Information Resources
Planning Process
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11. THE PROCESS OF SETTING DIRECTION
Operational Planning – lays out the major actions the organization needs to carry out in the shorter term to activate its strategic initiatives
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Figure The Information Resources
Planning Process
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12. THE PROCESS OF SETTING DIRECTION
Traditional Planning in the IS Organization
Needs-based IS planning or project-oriented IS planning:
Bottom-up, immediate approach to information resources planning
Used when a specific, urgent business need called for a new system
Emphasis on project planning rather than overall organizational planning
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13. ASSESSING CURRENT INFORMATION RESOURCES
Measuring IS Use and Attitudes
Information resources assessment:
Must measure current levels of information resources use within the organization and compare it to a set of standards
Standards can come from:
Past performance
Technical benchmarks
Industry norms
“Best of class” estimates from other companies
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14. ASSESSING CURRENT INFORMATION RESOURCES
Reviewing the IS Organizational Mission
IS mission statement:
Should set forth the fundamental rationale (or reason to exist) for activities of the IS department
Can vary substantially from one organization to another
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15. Reviewing the IS Organizational Mission
Example IS Mission Statement
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Figure IS-Prepared Mission Statement
Example
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16. ASSESSING CURRENT INFORMATION RESOURCES
Assessing Performance versus Goals
Traditional goal:
Reduce cost by increasing operating efficiencies
Scope of IS goals has expanded to include:
Systems to assist in decision making
Ways to help with competitive advantage
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17. Assessing Performance versus Goals
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Table Objectives for the IS Department
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18. CREATING AN INFORMATION VISION
Represents how senior management wants information to be used and managed in the future
Starts with speculation on how the business’s competitive environment will change and how the company should take advantage of it
Business vision is specified and written
Implications for information use are outlined
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19. DESIGNING THE ARCHITECTURE
IT architecture – specifies how the technological and human assets and the IS organization should be deployed in the future to meet the information vision
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20. DESIGNING THE ARCHITECTURE
Components of Architecture
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Figure Elements of an Information
Technology Architecture
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21. THE STRATEGIC IS PLAN
Strategic IS Plan – statement of the major objectives and initiatives that the IS organization and business managers must accomplish over some time period in order to:
move toward the information vision
fit the business strategic plan
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22. THE STRATEGIC IS PLAN The planning process includes:
The Strategic IS Planning Process
The planning process includes:
Setting objectives
Conducting internal and external analyses
Establishing strategic initiatives
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23. THE STRATEGIC IS PLAN Critical success factors
Tools for Identifying IT Strategic Opportunities
Critical success factors
Analysis of Competitive Forces
Value Chain Analysis
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24. Value Chain Analysis Page 575
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Figure Strategic Information Systems
Opportunities in the Value Chain
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25. THE OPERATIONAL IS PLAN
After the strategic plan, initiatives must be:
Identified
Translated into a set of defined IS projects with:
Precise expected results
Due dates
Priorities
Responsibilities
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26. THE OPERATIONAL IS PLAN
The Long-Term Operational IS Plan
Developed for a 3-to-5 year time period
Focuses on project definition, selection, and prioritization
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27. THE OPERATIONAL IS PLAN
The Long-Term Operational IS Plan
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Table IS Long-Range Operational Plan
Project Portfolio
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28. THE OPERATIONAL IS PLAN
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Table Sample 2004 Operational IS Plan
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29. THE OPERATIONAL IS PLAN
The Short-Term Operational IS Plan
Developed for a 1-year time period
Focuses on specific tasks to be completed on projects that are currently underway or ready to be started
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30. GUIDELINES FOR EFFECTIVE PLANNING
Early clarification of the purpose of the planning process
Planning effort should be iterative
Plan should reflect realistic expectations
Process of setting expectations should involve business management
Plans should integrate all applications of IT
Plan will take into consideration the barriers and constraints facing all organizations
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31. BENEFITS OF INFORMATION RESOURCES PLANNING
Better IS resource allocation
Communicating with top management
Helping vendors
Creating a context for decisions
Achieving integration and decentralization
Evaluating options
Meeting expectations of management
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32. ROLES IN THE INFORMATION RESOURCES PLANNING PROCESS
Role of the Business Manager
Active participation
Accept most of responsibility for identifying specific projects that contribute to vision
Stay involved in planning and system development activities
Regularly provide feedback and necessary input
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33. ROLES IN THE INFORMATION RESOURCES PLANNING PROCESS
Role of the IS Professional
Act more in consulting and planning role
Help business managers understand how their ideas for competitive advantage can get built into a new information system
Create a project plan
Combine technical and organizational skills
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