1. Inputs Processes Outputs Information Systems Planning Process
Business Strategy
Internal Business Environment
Information Systems Planning Process
External Business Environment
External IS/IT Environment
Internal IS/IT Environment
Tools & Techniques
Current Applications Portfolio

2. The Information Systems Planning Process
The Information Systems Planning process is the set of steps whereby the organization develops its information systems plan.
Aim: to assess the current IS/IT capabilities and how they meet the needs of the organisation.
Eventual outcome: initiatives and projects which will close the gap between where the company’s IS/IT set-up lies currently and where it needs to be.
Uses various tools and techniques to
Create a plan which brings the IS/IT plan into line with this strategy.

3. Phase 1: Establishment of the Planning Process
Phase 2: Reviewing the Current Situation and Identifying Future Direction: Where are we now? Where do we want to be?
A generic model for the Information Systems Planning process consists of three phases
Phase 3: Mapping the Future: How to get from Where we are now to Where we want to be

4. Phase 1 Establishment of the Planning Process
Essential to put the development of the information systems planning process (ISP) into action.
The objective is to
get the support of top management,
gather a chief project team to carry out the ISP process and
create a formal description of the ISP study.
This stage can be divided into four steps:
Step 1: Establishment of planning committee
knowledgeable representatives from user groups, all business managers plus members of IS department
Step 2: Obtaining commitment from senior management
Senior management must be continually involved throughout the project to provide feedback and guidance and to ensure the project’s completion and the implementation of its recommendations.
Step 3: Establishment of project team
A team leader, an executive who will work full time in the study and direct team activities, needs to be selected at this stage to communicate with other executives throughout the ISP process.
Other members should include a representative from each department along with IS analysts.
Step 4: Produce a formal description of the ISP study
the exact nature of the study, e.g. scope, goals etc, the objectives, each member’s responsibilities,mexpected targets and a brief of the techniques that will be followed in conducting the project.

5. Phase 1: Establishment of the Planning Process
Step 1: Establishment of planning committee
Step 2: Obtaining commitment from senior management
Step 3: Establishment of project team
Step 4: Produce a formal description of the ISP study

6. Phase 2 Reviewing the Current Situation and Identifying Future Direction
In this phase we attempt to develop an understanding of where we are today, internal and external, business and IS.
This phase consists of three stages:
Stage 1: Business Strategies and Competitive Assessment
Stage 2: Strategic Analysis Of Information Requirements
Stage 3: IS/IT Opportunity Identification

7. Stage 1: Business Strategies and Competitive Assessment
Phase 1: Establishment of the Planning Process
Step 1: Establishment of planning committee
Step 2: Obtaining commitment from senior management
Step 3: Establishment of project team
Step 4: Produce a formal description of the ISP study
Phase 2: Reviewing the Current Situation and Identifying Future Direction: Where are we now? Where do we want to be?
Stage 1: Business Strategies and Competitive Assessment
Stage 2: Determining Information Needs
Stage 3: IS/IT Opportunity Identification
Phase 3: Mapping the Future: How to get from Where we are now to Where we want to be: Formulation of Strategies and Plan

8. Stage 1: Business Strategies and Competitive Assessment
This is the stage for identifying the overall business strategies of the corporation. The key steps are:
Step 1: Understanding the Business Strategy
Reviewing the organization’s strategic business plan in order to understand the organization’s direction.
Step 2: Understanding the Business Environment Affecting the Organization
SWOT analysis for identifying where strategic opportunities may exist, and how to avoid weaknesses inherent within the organization or threats from outside limiting future growth.
We can use the results of SWOT analysis to identify priorities for action and to gain an understanding of IT resource requirements and future developments.
Step 3: Understanding the External Business Environment
Helps an organization focus attention on the competitive forces.
Managers can use the five competitive forces model to
identify the key forces currently affecting competition,
devise strategy to exploit/defend/neutralise impacts
identify opportunities for IS/IT to support/implement/manage strategy
Step 4: Understanding the Internal Business Environment
Internal business environment needs to be analyzed to identify current status of corporation.
We can use two well-recognized tools or techniques:
Competitive Strategies Model and
the Value Chain Model

9. Stage 1: Business Strategies and Competitive Assessment
Phase 1: Establishment of the Planning Process
Step 1: Establishment of planning committee
Step 2: Obtaining commitment from senior management
Step 3: Establishment of project team
Step 4: Produce a formal description of the ISP study
Phase 2: Reviewing the Current Situation and Identifying Future Direction: Where are we now? Where do we want to be?
Stage 1: Business Strategies and Competitive Assessment
Step 1: Understanding the Business Strategy
Step 2: Understanding the Business Environment Affecting the Organization
Step 3: Understanding the External Business Environment
Step 4: Understanding the Internal Business Environment

10. Stage 2: Analysis of Information Requirements
The team identifies
opportunities for using information to help the organization gain an advantage over its competitors or avoid a competitive disadvantage
There are two steps in this stage:
Step 1: strategic analysis of information requirements:
Critical Success Factors Analysis is used for interpreting business objectives in terms of actions required to achieve them.
It is an important device for ensuring that managers receive key information (Key Performance Indicators (KPIs)) they need to monitor achievement of corporate goals and objectives.
After helping management identify these factors, this method then concentrates on creating systems to provide information on these factors.
Step 2: enterprise analysis of information requirements:
This approach takes a large sample of managers and asks them
how they use information, where they get the information, what their environment is like, what their objectives are, how they make decisions, and what their data needs are.
One of the underlying goals of Enterprise Analysis of Information Requirements is the design of a data architecture that sustains information systems development activities, making systems mutually supportive and integratable.

11. Stage 1: Business Strategies and Competitive Assessment
Phase 1: Establishment of the Planning Process
Step 1: Establishment of planning committee
Step 2: Obtaining commitment from senior management
Step 3: Establishment of project team
Step 4: Produce a formal description of the ISP study
Phase 2: Reviewing the Current Situation and Identifying Future Direction: Where are we now? Where do we want to be?
Stage 1: Business Strategies and Competitive Assessment
Step 1: Understanding the Business Strategy
Step 2: Understanding the Business Environment Affecting the Organization
Step 3: Understanding the External Business Environment
Step 4: Understanding the Internal Business Environment
Stage 2: Determining Information Needs
Step 1: Strategic analysis of information needs
Step 2: Enterprise analysis of information needs

12. Stage 3: IS/IT Opportunity Identification
This is the stage where IS/IT opportunities are identified to emphasize technological factors in the identification of information systems strategies.
The key steps for identifying new opportunities are:
Step 1: Understanding the Internal IS/IT Environment
At this stage, the current Information Systems are evaluated
Business Technology Audit (Earl’s Systems Audit)
Applications Portfolio: McFarlan and McKenney Strategic Grid
Step 2: Understanding the External IS/IT Environment
The IT environment is analyzed to identify
IT trends in similar business environments and
new capabilities of IT.
IT breakthroughs that have a potentially dramatic effect on the corporate environment should also be identified.
Step 3: Identification of IT opportunities.
Specific IS/IT opportunities that can support the identified information needs are identified at this stage.

13. Stage 1: Business Strategies and Competitive Assessment
Phase 1: Establishment of the Planning Process
Step 1: Establishment of planning committee
Step 2: Obtaining commitment from senior management
Step 3: Establishment of project team
Step 4: Produce a formal description of the ISP study
Phase 2: Reviewing the Current Situation and Identifying Future Direction: Where are we now? Where do we want to be?
Stage 1: Business Strategies and Competitive Assessment
Step 1: Understanding the Business Strategy
Step 2: Understanding the Business Environment Affecting the Organization
Step 3: Understanding the External Business Environment
Step 4: Understanding the Internal Business Environment
Stage 2: Determining Information Needs
Stage 3: IS/IT Opportunity Identification
Step 1: Strategic analysis of information needs
Step 2: Enterprise analysis of information needs
Step 1: Understanding the External IS/IT Environment
Step 2: Understanding the Internal IS/IT Environment
Step 3: Identification of IS/IT Opportunities
Phase 3: Mapping the Future: How to get from Where we are now to Where we want to be: Formulation of Strategies and Plan

14. Phase 3 Mapping the Future
How to get from Where we are now to Where we want to be
Based on the analysis of business strategies, information needs and IS/IT opportunities we can now
formulate three strategies, dealing with systems, technology and management and
develop the information systems plan.
The two steps in this stage are:
Step 1: Formulation of Strategies
Step 2: Formulation of Information Systems Plan

15. Formulation of Strategies
IS strategy is concerned primarily with aligning IS development with business needs and with seeking strategic advantage from IT. It determines requirements to meet business needs, i.e. the applications to be developed. It is the long-term, directional plan which decides what to do with IT.
IS Strategy (Business Focused)
What?
Applications
deals with what to do with information
Step 1
Formulation of Strategies
Future applications portfolio
The applications to be developed

16. deals with what to do with information
IS strategy is concerned primarily with aligning IS development with business needs and with seeking strategic advantage from IT. It determines requirements to meet business needs, i.e. the applications to be developed. It is the long-term, directional plan which decides what to do with IT.
IS Strategy (Business Focused)
What?
Applications
deals with what to do with information
IT strategy relates to how these requirements are going to be delivered and is technology focused. It is primarily concerned with technology policies, tackling issues of architecture, risk, vendor polices, and technical standards.
How?
Delivery
IT Strategy (Technology Focused)
designates how technology is to be applied in the delivery of information
Future applications portfolio
The applications to be developed

17. deals with what to do with information
IS strategy is concerned primarily with aligning IS development with business needs and with seeking strategic advantage from IT. It determines requirements to meet business needs, i.e. the applications to be developed. It is the long-term, directional plan which decides what to do with IT.
IS Strategy (Business Focused)
What?
Applications
deals with what to do with information
Wherefore?
IM strategy comprises the policies, and procedures for managing IS and IT.
The overarching strategy that makes possible the implementation of both IS and IT strategies.
IM Strategy (Management Focused)
the management framework which guides the organisation how to run its IS/IT activities
Management
IT strategy relates to how these requirements are going to be delivered and is technology focused. It is primarily concerned with technology policies, tackling issues of architecture, risk, vendor polices, and technical standards.
How?
Delivery
IT Strategy (Technology Focused)
designates how technology is to be applied in the delivery of information
Future applications portfolio
The applications to be developed

18. Relationship between the Business, Information Systems, Information Technology and Information Systems Management Strategies.

19. Step 2: Formulation of Information Systems Plan
The aim in this step is
to generate a strategic blueprint, an Information Systems Plan (information systems specification and documentation) based on the outputs derived from the previous phase.
The Information Systems Plan should:
establish an organisation’s long-term infrastructure
that will allow information systems to be designed and implemented efficiently and effectively
be directed at ensuring an effective ‘fit’ between
an organisation and its information systems
be specific enough
to enable understanding of each application and
to know where it stands in the order of development.
be flexible
so that priorities can be adjusted if necessary.

20. The necessary core elements of an Information Systems Plan are:
A clear statement of the IS objectives
that give a clear sense of direction - where the organisation wishes to be.
An inventory and assessment of both current capabilities and problems resulting from current practices - where the organisation is now.
The recommended
IS, IT and IM strategies
Portfolio of systems
Application portfolio analysis helps to ‘map’ balance required of new investments and maintenance of existing investments
State of existing portfolio of systems
Prioritised set of new systems, required refurbishments
Portfolio of systems needs to be aligned with business strategy

21. Analysis explaining the rationale for the recommendations.
A change management plan
describing actions that will facilitate the adoption of the strategic information plan.
A human resources plan
identifying newly required IS skills and the new roles and responsibilities of those who will use the skills.
A migration plan including
an overall approach,
key projects, and their order of implementation with the costs, benefits, and risks of each project.
It must identify long and short-term actions and resource allocations.
A description of the process for annually updating the strategic information plan.
An appendix of reference materials on which the strategic information plan is based including
detailed analyses, diagrams, and charts.

22. Stage 1: Business Strategies and Competitive Assessment
Phase 1: Establishment of the Planning Process
Step 1: Establishment of planning committee
Step 2: Obtaining commitment from senior management
Step 3: Establishment of project team
Step 4: Produce a formal description of the ISP study
Phase 2: Reviewing the Current Situation and Identifying Future Direction: Where are we now? Where do we want to be?
Stage 1: Business Strategies and Competitive Assessment
Step 1: Understanding the Business Strategy
Step 2: Understanding the Business Environment Affecting the Organization
Step 3: Understanding the External Business Environment
Step 4: Understanding the Internal Business Environment
Stage 2: Determining Information Needs
Stage 3: IS/IT Opportunity Identification
Step 1: Strategic analysis of information needs
Step 2: Enterprise analysis of information needs
Step 1: Understanding the External IS/IT Environment
Step 2: Understanding the Internal IS/IT Environment
Step 3: Identification of IS/IT Opportunities
Phase 3: Mapping the Future: How to get from Where we are now to Where we want to be: Formulation of Strategies and Plan
Step 1: Formulate Strategies
Step 2: Develop Information Systems Plan

23. Information Systems Planning Process
Phases
Stages
Reviewing the current situation and Identifying Future Direction
Where are we now? (A)
Where do we want to be? (B)
Business Strategies and Competitive Assessment
Determining Information Needs
IS/IT Opportunity Identification
Business Strategy
Internal Business Environment
External Business Environment
Tools & Techniques
SWOT Analysis
Competitive Forces Framework
Competitive Strategies Framework
Value System Analysis
Critical Success Factors Analysis
Business Systems Planning
Business-Technology Audit
Applications Portfolio Analysis
External IS/IT Environment
Internal IS/IT Environment
Information Needs
Current Applications Portfolio

24. A Conceptual Model for Information Systems Planning
Business Strategy
IS Strategy (Business Focused)
What?
Applications
Internal Business Environment
External Business Environment
Information Systems Planning Process
Wherefore?
IM Strategy (Management Focused)
Management
External IS/IT Environment
Internal IS/IT Environment
How?
Delivery
IT Strategy (Technology Focused)
Tools & Techniques
Future applications portfolio
Current Applications Portfolio
A Conceptual Model for Information Systems Planning

25. In order for a organisation to develop an Information Systems plan, it needs to answer the following three questions
What position is the organisation taking at present? (current status: A: where we are now)
What path should it take to reach the objective? (implementation: how best can we get there)
What position does it plan to take in the future? (objective: B: where we want to be)
Information Systems Planning is the process of answering the above questions specifically in relation to Information Systems.

26. A comprehensive Information Systems Planning process needs to adopt three approaches to Information Systems Planning:
Top-down (IS-led) approach:
focusing on information needs and flows which support decision making processes.
Bottom-up (IT-led) approach:
with the focus on searching for productivity improvements based on IT utilization.
Inside Out (Innovation-led) approach:
identifying opportunities to use information systems to gain competitive advantage.
This top-down, bottom-up, and inside-out approach tackles three issues:
The clarification of the business needs and strategy in information systems terms.
The evaluation of current information systems provision and use.
Innovation of new strategic opportunities afforded by IT.

27. A comprehensive Information Systems Planning process needs to be both
Alignment based:
links with business planning in a unidirectional way (align IS objectives with organizational goals and enabling managers to identify IS to support current business strategies)
and
Impact based:
links with business planning in a bi-directional way (attempting to influence organisational strategy and enabling managers to identify IS for competitive advantage).
Thus it focuses on IS as a way to assist business goals as well as identifying strategic opportunities enabled by IT.

28. The process emphasizes IT opportunities in the process of generating IS strategies
Firstly, the currently used IS is carefully assessed and the IT environment is analyzed to identify IT opportunities.
Secondly, the identified IT opportunities are integrated with the business strategies to establish overall IS strategies.
The overall strategies are used to determine the specific plans for IS implementation.
Information system planning should be an integral part of business planning.
The planning process is continuous in nature, and should facilitate a partnership between the business and IT