1. © Prentice Hall 2002 13.1 CHAPTER 13 Setting a Direction for Information Resources

2. © Prentice Hall 2002 13.2 INFORMATION RESOURCE PLANNING ASSESSMENT OF CURRENT INFORMATION RESOURCES ASSESSMENT OF CURRENT INFORMATION RESOURCES INFORMATION VISION & INFORMATION TECHNOLOGY ARCHITECTURE INFORMATION VISION & INFORMATION TECHNOLOGY ARCHITECTURE STRATEGIC & OPERATIONAL IS PLANS MUST MOVE TOWARD DESIRED ARCHITECTURE STRATEGIC & OPERATIONAL IS PLANS MUST MOVE TOWARD DESIRED ARCHITECTURE*

3. © Prentice Hall 2002 13.3 WHY SET A DIRECTION? SHARED UNDERSTANDING AMONG IS PROFESSIONALS & USERS SHARED UNDERSTANDING AMONG IS PROFESSIONALS & USERS COMMUNICATES FUTURE TO OTHERS COMMUNICATES FUTURE TO OTHERS PROVIDES CONSISTENT RATIONALE FOR DECISIONS PROVIDES CONSISTENT RATIONALE FOR DECISIONS*

4. © Prentice Hall 2002 13.4 INFORMATION RESOURCES ASSESSMENT CRITICAL EVALUATION OF INVENTORY OF HARDWARE, SOFTWARE, PEOPLE CRITICAL EVALUATION OF INVENTORY OF HARDWARE, SOFTWARE, PEOPLE LOOKS AT QUALITY OF RESOURCES LOOKS AT QUALITY OF RESOURCES HELPS MEET BUSINESS NEEDS OF ORGANIZATION HELPS MEET BUSINESS NEEDS OF ORGANIZATION*

5. © Prentice Hall 2002 13.5 INFORMATION VISION & ARCHITECTURE INFORMATION: Written expression of desired future for information use & management INFORMATION: Written expression of desired future for information use & management TECHNOLOGY ARCHITECTURE: Depicts way information resources should be deployed TECHNOLOGY ARCHITECTURE: Depicts way information resources should be deployed*

6. © Prentice Hall 2002 13.6 INFORMATION RESOURCES PLANNING PROCESS ASSESS INFO USE & MANAGEMENT VISION: HOW BUSINESS SHOULD USE INFO INFORMATION ARCHITECTURE IS STRATEGIC PLAN IS OPS PLAN & BUDGET ASSESS BUSINESS VISION FOR BUSINESS BUSINESS STRATEGIC PLAN BUSINESS OPS PLAN & BUDGET

7. © Prentice Hall 2002 13.7 ASSESSING CURRENT INFORMATION RESOURCES MEASURE USE & ATTITUDES MEASURE USE & ATTITUDES REVIEW IS ORGANIZATIONAL MISSION REVIEW IS ORGANIZATIONAL MISSION EFFICIENCY: Uses minimum resources to do its job EFFICIENCY: Uses minimum resources to do its job EFFECTIVENESS: Helps users spend time doing right things EFFECTIVENESS: Helps users spend time doing right things COMPETITIVENESS: Helps ensure organization’s competitive position COMPETITIVENESS: Helps ensure organization’s competitive position*

8. © Prentice Hall 2002 13.8 CREATING INFORMATION VISION SPECULATE: How will competitive environment change? SPECULATE: How will competitive environment change? CURRENT SYSTEM: Can it do future job? CURRENT SYSTEM: Can it do future job? IDENTIFY CHANGES: How must IS change to allow company to take advantage of future environment? IDENTIFY CHANGES: How must IS change to allow company to take advantage of future environment?*

9. © Prentice Hall 2002 13.9 ELEMENTS OF INFORMATION TECHNOLOGY ARCHITECTURE TECHNOLOGY COMPONENT: TECHNOLOGY COMPONENT: –HARDWARE –SOFTWARE –NETWORK –DATA HUMAN COMPONENT: HUMAN COMPONENT: –PERSONNEL –VALUES/CULTURE –MANAGEMENT SYSTEM*

10. © Prentice Hall 2002 13.10 STRATEGIC IS PLAN SET OF LONG RANGE GOALS WHICH DOCUMENT MOVEMENT TOWARD INFORMATION VISION & ARCHITECTURE SET OF LONG RANGE GOALS WHICH DOCUMENT MOVEMENT TOWARD INFORMATION VISION & ARCHITECTURE ASSOCIATED MAJOR INITIATIVES TO ACHIEVE GOALS ASSOCIATED MAJOR INITIATIVES TO ACHIEVE GOALS*

11. © Prentice Hall 2002 13.11 STRATEGIC IS PLAN SET OBJECTIVES SET OBJECTIVES CONDUCT INTERNAL & EXTERNAL ANALYSES CONDUCT INTERNAL & EXTERNAL ANALYSES ESTABLISH STRATEGIC INITIATIVES ESTABLISH STRATEGIC INITIATIVES CRITICAL SUCCESS FACTORS CRITICAL SUCCESS FACTORS ANALYZE COMPETITIVE FORCES ANALYZE COMPETITIVE FORCES VALUE CHAIN ANALYSIS VALUE CHAIN ANALYSIS*

12. © Prentice Hall 2002 13.12 CRITICAL SUCCESS FACTORS FOR SPECIFIC INDUSTRY OR FUNCTION FOR SPECIFIC INDUSTRY OR FUNCTION LIMITED IN NUMBER LIMITED IN NUMBER IF EXECUTED WELL, WILL LEAD TO SUCCESS IF EXECUTED WELL, WILL LEAD TO SUCCESS SHORT OR LONG-TERM SHORT OR LONG-TERM PROVIDE OPPORTUNITIES FOR IT PROVIDE OPPORTUNITIES FOR IT*

13. © Prentice Hall 2002 13.13 VALUE CHAIN ANALYSIS ACTIVITIES THAT ADD VALUE FOR THE CUSTOMER ACTIVITIES THAT ADD VALUE FOR THE CUSTOMER PRIMARY ACTIVITIES (PRODUCT): PRIMARY ACTIVITIES (PRODUCT): –INBOUND LOGISTICS –OPERATIONS –OUTBOUND LOGISTICS –MARKETING & SALES –SERVICE*

14. © Prentice Hall 2002 13.14 OPERATIONAL IS PLAN PRECISE SET OF SHORT TERM PROJECTS TO BE EXECUTED BY IS DEPARTMENT & USER-MANAGERS IN SUPPORT OF STRATEGIC IS PLAN PRECISE SET OF SHORT TERM PROJECTS TO BE EXECUTED BY IS DEPARTMENT & USER-MANAGERS IN SUPPORT OF STRATEGIC IS PLAN*

15. © Prentice Hall 2002 13.15 OPERATIONAL IS PLAN LONG TERM: Two-to-three years, project definition, selection, prioritization. Based on anticipated changes in business LONG TERM: Two-to-three years, project definition, selection, prioritization. Based on anticipated changes in business SHORT TERM: One year, linked to annual budget. Focuses on completing current projects, beginning new ones. Immediate hardware, software, staffing needs SHORT TERM: One year, linked to annual budget. Focuses on completing current projects, beginning new ones. Immediate hardware, software, staffing needs*

16. © Prentice Hall 2002 13.16 BENEFITS OF INFORMATION RESOURCES PLANNING BETTER IS RESOURCE ALLOCATION BETTER IS RESOURCE ALLOCATION COMMUNICATES WITH TOP MANAGEMENT COMMUNICATES WITH TOP MANAGEMENT HELPS VENDORS HELPS VENDORS CREATES CONTEXT FOR DECISIONS CREATES CONTEXT FOR DECISIONS ACHIEVES INTEGRATION & DECENTRALIZATION ACHIEVES INTEGRATION & DECENTRALIZATION EVALUATES OPTIONS EVALUATES OPTIONS MEETS MANAGEMENT EXPECTATIONS MEETS MANAGEMENT EXPECTATIONS*

17. © Prentice Hall 2002 13.17 CHAPTER 13 Setting a Direction for Information Resources