1. Chapter 6 Planning Related IT Processes
Managing the Information Technology Resource
Jerry N. Luftman
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 6- Slide 1

2. Chapter Outline Importance of planning to management
Levels of IT planning and implications
Strategic-level IT planning
Tactical-level IT planning
Operational-level IT planning
Global considerations in IT planning
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3. Importance of IT Must look across all other functions in enterprise
Must integrate business perspectives of other functions
Support specific business requirements at all levels
Deal with turbulent and dynamic environments
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4. Layers of Management Focus
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5. Components of Business Strategic Planning
Define IT mission
Define IT policies to carry out mission
Define business processes, information, and information flows
Define enterprise requirements for information throughout strategic time period
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6. IT Strategy Planning
Evaluate alternate implementation of services, applications, and infrastructure
Define and prioritize strategic objectives with IS policies
Obtain approval for IS strategic plan
Control information systems strategic plan against tactical performance
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7. Application Planning
Schedule of applications to be built or modified within set period of time
Address key functions of enterprise
Review existing and proposed applications
Emerging technologies
Integrated processes
Improved standards in development or maintenance
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8. Considerations in Applications Planning
Abandon traditional approaches based on long-term stability of business environment
Alignment with strategic business objectives is paramount
Applications being considered should demonstrate:
Salience
Worth
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9. Dimensions of Application Portfolio
Organization’s dependence upon the application
Strategic impact of the application
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10. Application Portfolio Matrix
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11. Application Prioritization Matrix
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12. Application Prioritization Matrix
Business impact
Ability of the application to deliver a business benefit
Ease of execution
How many resources the application will consume
How difficult it will be for organization to implement application
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13. Data Planning Dependent on outcome of application plan
Data architecture may change to include:
Merging data storage technologies
Changes to the database architectures by vendor
Integrated data processes
Improved standards in development or maintenance of data
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14. Objectives of Data Planning
Facilitate cost-effective and timely transformation of raw data into productive information
Facilitate reuse of data and information across the organization
Protect organization's data and information assets
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15. Success Factors of Data Plan
Develop data models of key processes
Define underlying shared data used by key processes
Develop common definitions of “core” data and share with functional groups
Develop common information/data models for key processes
Identify how proposed applications identified in application plan affect data
Apply appropriate governance for data management
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16. System Planning Objectives
Document which systems are planned for development
Document the justification for developing those systems
Identify time frames for developing those systems
Document impact on IT architecture of developing those systems
Document any implications on organization's disaster recovery plan
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17. Network Planning Considerations
Impacts of recent mergers on network capacity
Impact of current network capacity and infrastructure of proposed applications
Opportunities to standardize components/services
Opportunities to consolidate existing services and infrastructure to enhance network:
Reliability
Availability
Service responsiveness
Security
Scalability
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18. Network Planning Considerations
Security of network against threats
Recovery of network from catastrophes
Identification and repair of network performance issues
Customer services
Vendor management and service agreements
Cross-border issues
Hardware upgrade plan
Software upgrade plan
Capital investment plan
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19. Project Planning
Uses results from application, data, network, and systems planning processes
Define technically feasible and manageable projects
Reflect strategic goals and direction
Plans include
Specification of resources
Time frames
Service level requirements
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20. Service Level Planning and Management
Negotiates individual service agreements
Identifies individual requests for recovery, security, and audit ability
Forecasting level and volume of service agreements
Develops preventive maintenance plan
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21. Recovery Planning and Management
Ensures continuation of business operations in event of failure/disaster
Multiple contingency plans
Consolidate recovery requirements for all service agreements
Define business and IT recovery-operating environment
Identify variances between operating environments and agreements
Develop overall recovery plan
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22. © 2004 Managing the Information Technology Resource, Jerry N. Luftman
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23. Disaster Recovery Plan Elements
Data recovery
Technology recovery
Business-process recovery
Crisis management
Customer-support operations
Facilities
Human resources
Procedures for key suppliers and partners
Public relations and damage control
Protection of intellectual property
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24. Elements of a Business-Continuity Plan
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25. 9 Steps to Promote Continuity
Visualize
Itemize
Prioritize
Categorize
Minimize
Organize
Rehearse
Sponsor/Champion
Vigilant Monitoring
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26. Security Issues Unauthorized access to systems
Unauthorized access to confidential data
Virus attack
Denial of service attacks on Web sites and
Illegal/unwanted use of computer systems/equipment
Illegal use or monitoring of /Internet
Possible physical or virtual destruction of financial/administrative information
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27. Top 10 Triggers of Unethical Employee Behavior
Efforts to balance work and family
Poor internal communications
Poor leadership
Work hours, work load
Lack of mgmt. support
Need to meet sales, budget, profit goals
Little recognition of achievements
Company politics
Personal financial worries
Insufficient resources
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28. Audit Planning and Management
Ensures agreed levels of audit and compliance for systems, application, and services will be met
Evaluate and ensure adequacy of internal systems of control
Securities and Exchange Act of 1934
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29. Fair Information Practices
NO personal record systems with secret existence
Rights of access, inspection, review, and amendment to systems that contain information about individuals
No use of personal information for purposes other than for intent it was gathered
Managers are responsible for reliability and security and can be held accountable
Governments have right to intervene
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30. Corporate Responsibility Audit Steps
Gain CEO commitment
Appoint steering committee to guide
Appoint auditing team to develop questions
Diagnose corporate culture and investigate functional areas
Analyze mission statement
Seek reasons for inconsistent performance
Collect relevant industry information, benchmark studies, competitor’s information
Interview stakeholders involved in functional areas
Compare internal data and external perceptions
Write final report for managers and audit steering committee
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31. Capacity Planning Importance
Reduces customer dissatisfaction
Identify potential bottlenecks
Reduces productivity decline
Ensures systems can handle peak times
Reduces budgetary constraints
Upgrades budgeted ahead of time
Improves stability
Can identify problems ahead of time and avoid or predict them
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32. Organizational IT Capacity Planning
Capacity planning process maturity level
Characteristics
Level 1
Reactive; firefighting
Level 2
Efficient: professional and sophisticated firefighting
Level 3
Fewer fires; analysis of problems, start of process improvement
Level 4
Process includes procedural improvement
Level 5
Process becomes self-correcting
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33. Skills Planning Process
Define manpower requirements
Consolidate manpower required to support project and system plans
Identify existing and planned manpower skills
Establish and evaluate alternate manpower plans
Define effective education plan
Document manpower and education plans
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34. © 2004 Managing the Information Technology Resource, Jerry N. Luftman
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35. Budget Planning and Value Management
Converts systems plans into financial terms
Identifies how funds will be obtained
Identifies how funds will be allocated
Decouple budget planning process from strategic planning process
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36. Vendor Planning and Management
Outsourcing of services and other IT processes
Measure and monitor performance
Determine corrective action if necessary
Make readjustments if necessary
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37. Management Systems Planning and Monitoring
Collect and summarize IT organization data
Compare results to IT organizational objectives and standards
Diagnose deviation or substandard performance
Analyze variance and initiate effectiveness/efficiency improvements
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38. Management Systems Planning and Monitoring
Define detailed requirements based on enterprise policies
Evaluate alternative standards, procedures, methodologies
Design solutions
Publish instructions for use of standards, procedures, and methodologies
Installing solutions
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39. Operational Level IT Planning
Day-to-day administration and execution of processes and plans
Project-related plans
Effective implementation of requirements at strategic and tactical levels
PMBOK
© 2004 Managing the Information Technology Resource, Jerry N. Luftman Chapter 6- Slide 39