1. Planning Information Systems
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.
Know how IS planning should be carried out.
Debate the importance of integrating IS planning into overall organizational planning.
Appreciate the many complex factors faced by IS planners.

3. 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.

4. 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

5. Three 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

6. 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

7. History of Information Systems Planning
Figure 14.5 Advances in IS planning since the 1970s

8. Prerequisites for Information Systems Planning
Recognize IT as an indispensable resource
Understand that IT is a complex resource
Regard IT as owned by the entire organization
Regard ISs as a source for gaining strategic goals
View ISs as a tool to control power

9. 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

10. 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.

11. A Sample Mission Statement
Figure 14.8 The mission statement of a university IS organization

12. 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

13. Information Systems Planning
Strategic and Tactical Information Systems Planning
IS strategic plan details what is to be achieved
IS tactical plan describes how goals will be met and by when

14. Two Approaches to Strategic Planning
Figure 14.9 Rigid and dynamic planning

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

16. Information Systems Planning
Figure Hardware planning

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

18. IS Planning Activities Can Be Driven by a Variety of Sources

19. Who Initiates IT Projects?

20. The Champion
High-ranking officer who commands sufficient political clout to include IS in planning
Most effective champions are not IS professionals
AKA Project Sponsor, Evangelizer…

21. 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

22. The Systems Analyst as an Agent of Change
Motivate
Educate
Train

23. 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

24. Two Real World Examples
Susan’s Training Wheels: MAX
Current Hitachi Consulting Methodology

25. MAX - A Project Framework
MAX = Methodology Analysis / Exchange
Information Technology toolkit
Business Process Redesign / Reengineering toolkit
Provides Structure to the “Black Art” of consulting
Forum for information sharing

26. Phase I: Build the Foundation
Establish link between process and technology
Determine business needs that drive technology requirements
Challenge the “As-Is” environment
Build the business case for process and technology improvement

27. MAX Methodology Phase I: Analysis & System Selection
100 Project Management and Facilitation
200 Change Management
300 Project Design & Kick-Off
400 As-Is Analysis & Requirements Definition
500 Software Selection & Analysis Summarization
700 Planning: Design & Implementation
Develop
Decision
Framework
Assess Current
Technical
Architecture
Conduct
Technical
Gap Analysis
Review Contracts &
Standard Licenses
Finalize
Technical
Architecture
Design
Research
Packages
Market analysis
AA Analysis
Purchase Required
Hardware
Understand
high level
system
requirements
Site Visits /
Check References
Develop &
Conduct
RFI/ RFP
Process
Finalize
Vendor
List
Plan &
Prepare
for
Vendor
Demos
Screen
Leading
Candidates
Conduct
Vendor
Demos
Select
Final
Package
Negotiate
Software
Contract
Develop
Selection
Approach
Develop
Phase II
Plan:
Initiatives
Charters &
Objectives
Performance
Targets
Quick Hits
Phasing
Schedule
Team Structure
Staffing/
Resources
Benefits
Cost Summary
Selection
Team
Kick-off
Translate Business
Requirements into
System Functions & Features
PROCESS SYSTEM
Strategic Planning
Analysis
Approach
& Schedule
Focus
Interviews
Brown
Papers
Process
Specific
Diagnostics
Best Practices Review
Admin &
Logistics
Set-up
Summarize
Key
Findings
from
Analysis
Activities
Prioritize
Opportunities
Validate
As-Is
Findings
Analysis
Team
Kick-Off
PAVA
Key
Proc.
Root
Cause
Analysis
Refine Analysis Plan
RACI
Analysis
DILO
AA Project
Team
Prep
Develop
Business
Case
Project
Resource
Plan
Activity Effort Analysis
Opportunity Valuation
Customer Assessment
600 Performance Measurement &
Benefits Tracking

28. Project Management and Change Management
Ongoing throughout all work streams

29. Project Design & Kick-off
What
Preparation for Process Analysis/Redesign
Front-end work for technology selection
Goal
Establish project scope, objectives & schedule
Orient team to methodology
Deliver
Scope and approach
Project management infrastructure
Project team assignments
Project plan
Milestones
Deliverables
Research
Packages
Market analysis
AA Analysis
Understand
high level
system
requirements
Develop
Selection
Approach
Selection
Team
Kick-off
Analysis
Approach
& Schedule
Admin &
Logistics
Set-up
Analysis
Team
Kick-Off
AA Project
Team
Prep
Project
Resource
Plan

30. As-Is Analysis and Requirements Definition
400 As-Is Analysis & Requirements Definition
What
Assessment and analysis of current business processes
Identify underlying information technology needs
Goal
Identify business requirements
Highlight technological deficiencies
Identify potential solution providers
Deliver
Process flows and analyses
Baseline performance metrics
Gaps in information technology and processes
Develop
Decision
Framework
Assess Current
Technical
Architecture
Develop &
Conduct
RFI/ RFP
Process
Finalize
Vendor
List
Screen
Leading
Candidates
Translate Business
Requirements into
System Functions & Features
Focus
Interviews
Brown
Papers
Process
Specific
Diagnostics
PAVA
Key
Proc.
Refine Analysis Plan
RACI
Analysis
DILO
Activity Effort Analysis
Customer Assessment

31. Software Selection and Analysis Summarization
500 Software Selection & Analysis Summarization
What
Identification of key process deficiencies and opportunities
Evaluation and selection of software package(s) to support redesign
Goal
Confirm sources and causes of operational problems
Select appropriate technology to support proposed process changes
Deliver
Root Cause Analysis
Gap Analysis
Vendor demos
Site visits and reference checks
Conduct
Technical
Gap Analysis
Review Contracts &
Standard Licenses
Site Visits /
Check References
Plan &
Prepare
for
Vendor
Demos
Conduct
Vendor
Demos
Select
Final
Package
Translate Business
Requirements into
System Functions & Features
Strategic
Planning
Best Practices
Review
Summarize
Key
Findings
from
Analysis
Activities
Validate
As-Is
Findings
Root
Cause
Analysis
Opportunity Valuation

32. Planning: Design and Implementation
700 Planning: Design & Implementation
What
Preparation for Phase II Process Design
Acquisition of information technology
Goal
Identification of Phase II Design project components and objectives
Completion of technical architecture and infrastructure
Deliver
Cost-benefit Analysis
Phase II plans and charters
Software contract negotiation
Prioritized opportunities
Staffing and resource estimates
Finalize
Technical
Architecture
Design
Purchase Required
Hardware
Negotiate
Software
Contract
Develop
Phase II
Plan:
Initiatives
Charters &
Objectives
Performance
Targets
Quick Hits
Phasing
Schedule
Team Structure
Staffing/
Resources
Benefits
Cost Summary
Strategic
Planning
Best Practices
Review
Prioritize
Opportunities
Develop
Business
Case

33. Sample Service Offering: Software Selection
Phase II:
Analyze Situation
Work plan
Schedule
CARE documentation
etc. ??
Phase III:
Design Solution
Phase IV:
Develop Solution
Work plan
Schedule
CARE documentation
etc. ??
Phase V:
Deliver Solution
Work plan
Schedule
CARE documentation
etc. ??
Phase VI:
Support and Improve Solution
Phase I:
Mobilize Project
Determine pre-selected S/W packages
Assess As-Is business environment
ID high-level opportunities
Evaluate solutions
Common Tasks
Identify solution gaps
Finalize solution recommendation
Confirm decision approach
Assess As-Is processes
Determine business req.
Identify technical gaps
Determine system req.
Finalize cost estimates
Assess As-Is technical & application architecture
Conduct vendor reference calls
Train project team
Determine technical req.
Finalize implementation plan
Finalize solution alternatives
Send initial communication
Identify org skills gaps
Research S/W packages
Develop Cost analysis
Contract negotiations
Determine Org. Readiness
Create high-level business case
Create detailed business case
ID key stakeholders
Determine IT org technical capacity
Create Communication Strategy
Create Communication Plan
Pricing Tool
Common Tools
Focus Interview Script
Microsoft project
Demo Script
Implementation Work Plan
Implementation Resource Model
Primary Activity Value Analysis (As-is)
Primary Activity Value Analysis (To-be)
Performance Review Form
Vendor demonstration
Process Mapping (As-is)
Process Mapping (To-be)
Demo Scorecard
Vista
Technical Architecture (As-is)
Technical Architecture (To-be)
Cost Summary
Stakeholder Analysis
Application Architecture (As-is)
Application Architecture (To-be)
Vendor reference scripts
Change Survey
Business Case Model
Org Skills Matrix
Problem Solving Methodology