Chapter 3: Strategic IS Planning

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Chapter 3: Strategic IS Planning

  1. 1. Chapter 3 Strategic Information Systems Planning
  2. 2. Agenda <ul><li>Hierarchy of planning information flow </li></ul><ul><li>Issues of IS planning </li></ul><ul><li>Planning model </li></ul><ul><li>Planning process framework </li></ul>
  3. 3. Hierarchy of Planning Information Flow - I <ul><li>Business planning </li></ul><ul><ul><li>Input: external impacts, threats, and opportunities </li></ul></ul><ul><ul><li>Input 2: IT strategy potential </li></ul></ul><ul><ul><li>Output 2 : business strategy </li></ul></ul><ul><li>Business IS/IT demand planning </li></ul><ul><ul><li>Input: IS/IT perspective </li></ul></ul><ul><ul><li>Input 1: business strategy </li></ul></ul><ul><ul><li>Input 2: tactics, infrastructure </li></ul></ul><ul><ul><li>Output 1: IT strategy potential </li></ul></ul><ul><ul><li>Output 2: IT needs, priorities, policies </li></ul></ul>
  4. 4. Hierarchy of Planning Information Flow - II <ul><li>IT supply planning </li></ul><ul><ul><li>Input: user needs, resources </li></ul></ul><ul><ul><li>Input 1: IT needs, priorities, policies </li></ul></ul><ul><ul><li>Input 2: effectiveness </li></ul></ul><ul><ul><li>Output 1: tactics, infrastructure </li></ul></ul><ul><ul><li>Output 2: IT plans </li></ul></ul><ul><li>Development and Implementation </li></ul><ul><ul><li>Input: user satisfaction </li></ul></ul><ul><ul><li>Input 1: IT plan </li></ul></ul><ul><ul><li>Output 1: effectiveness </li></ul></ul>
  5. 5. Issues of IS Planning - I <ul><li>Driving forces </li></ul><ul><ul><li>External business factors </li></ul></ul><ul><ul><li>External technical factors </li></ul></ul><ul><ul><li>Internal business factors </li></ul></ul><ul><ul><li>Internal technical factors </li></ul></ul><ul><li>IS Management </li></ul><ul><ul><li>Goal alignment: business and IS </li></ul></ul><ul><ul><li>Strategic systems: IT for competitive advantage </li></ul></ul><ul><ul><li>Planning: strategic IS/IT planning </li></ul></ul><ul><ul><li>Education of senior management: role in IS/IT </li></ul></ul>
  6. 6. Issues of IS Planning - II <ul><li>Scope </li></ul><ul><ul><li>IT supply: technology as a means of delivery (resources) </li></ul></ul><ul><ul><li>IS demand: business needs expressed as information systems requirements </li></ul></ul><ul><ul><li>Corporate IS/IT management strategy and corporate IT strategy vs. business unit IS strategy and business unit IT strategy </li></ul></ul><ul><ul><ul><li>Vertical and horizontal consolidation and coordination </li></ul></ul></ul>
  7. 7. Issues of IS Planning - III <ul><li>Characteristics of selected approach </li></ul><ul><ul><li>Overview, top-down, flexible, and modular </li></ul></ul><ul><ul><li>Consistency and clear checkpoints </li></ul></ul><ul><ul><li>Interactive communication </li></ul></ul><ul><ul><li>Documentation, diagram, and deliverable </li></ul></ul><ul><ul><li>Rational decision </li></ul></ul><ul><ul><li>Human oriented </li></ul></ul>
  8. 8. Issues of IS Planning - IV <ul><li>Resources </li></ul><ul><ul><li>Management sponsor </li></ul></ul><ul><ul><li>Commitment from Steering committee </li></ul></ul><ul><ul><li>Automated support facilities </li></ul></ul><ul><ul><li>Physical facilities </li></ul></ul>
  9. 9. Planning Model -I <ul><li>Inputs </li></ul><ul><ul><li>The internal business environment </li></ul></ul><ul><ul><ul><li>Business strategy, objectives, resources, processes, culture, and values </li></ul></ul></ul><ul><ul><li>The external business environment </li></ul></ul><ul><ul><ul><li>Economic, industrial and competitive climate </li></ul></ul></ul><ul><ul><li>The internal IS/IT environment </li></ul></ul><ul><ul><ul><li>IS/IT perspective, maturity, business coverage and contribution, skills, and resources, and technological infrastructure </li></ul></ul></ul><ul><ul><li>The external IS/IT environment </li></ul></ul><ul><ul><ul><li>Technology trends, opportunities, and usage </li></ul></ul></ul>
  10. 10. Planning Model -II <ul><li>Output </li></ul><ul><ul><li>Executive summary: conclusion and recommendations </li></ul></ul><ul><ul><li>Supporting evidence </li></ul></ul><ul><ul><li>IS/IT management strategy </li></ul></ul><ul><ul><ul><li>Common and consistent policies and procedures for the corporate </li></ul></ul></ul><ul><ul><ul><li>Scope and rationale, IS/IT organization, investment and prioritization policies, vendor policies, human impact policies and education, IS accounting policies </li></ul></ul></ul>
  11. 11. Planning Model -III <ul><li>Output </li></ul><ul><ul><li>Business IS strategy: application portfolios and services needed by the corporate and strategic business units to achieve business objectives </li></ul></ul><ul><ul><ul><li>Business environment and IS/IT environment </li></ul></ul></ul><ul><ul><ul><li>Business IS demand </li></ul></ul></ul><ul><ul><ul><ul><li>Information needs and conceptual information systems </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Application portfolio: required, upgrading, future, analysis, priorities, costs and benefits </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Business information models </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Business conclusions </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Business recommendations </li></ul></ul></ul></ul>
  12. 12. Planning Model -IV <ul><li>Output </li></ul><ul><ul><li>IT strategy: policies and procedures for technology and special resources </li></ul></ul><ul><ul><ul><li>Application portfolio management </li></ul></ul></ul><ul><ul><ul><li>Organization of IS/IT: resources and administration </li></ul></ul></ul><ul><ul><ul><li>Information resources and services </li></ul></ul></ul><ul><ul><ul><li>Investment, prioritization, and benefit </li></ul></ul></ul><ul><ul><ul><li>Application development </li></ul></ul></ul><ul><ul><ul><li>Technology </li></ul></ul></ul>
  13. 13. Planning Framework - I <ul><li>Initiate planning process </li></ul><ul><ul><li>Confirm objectives, scope, deliverables, resources, risk, and team </li></ul></ul><ul><ul><li>Plan tasks, schedule, roles, and responsibilities, and milestones </li></ul></ul>
  14. 14. Planning Framework - II <ul><li>Understand the current situation and interpret business needs </li></ul><ul><ul><li>Analysis of the business strategy, objectives, critical success factors, critical problems, and processes in terms of SWOT and needs </li></ul></ul><ul><ul><li>Evaluation of the current IS/IT operation in terms of systems, information, resources, organization, skills and services for improvement </li></ul></ul><ul><ul><li>Innovative analysis and identification of potential internal and external usages of IS/IT </li></ul></ul>
  15. 15. Planning Framework - III <ul><li>Determine the business IS strategy </li></ul><ul><ul><li>IS demand for the corporate and strategic business units in terms of current, required and future </li></ul></ul><ul><li>Define information and systems architecture </li></ul><ul><ul><li>The analysis of IS/IT and processes needs for building proposed business model for corporate </li></ul></ul>
  16. 16. Planning Framework - IV <ul><li>Formulate IT supply proposal </li></ul><ul><ul><li>Deliverables from the IS planning process </li></ul></ul><ul><ul><li>Clear direction for the IS objectives </li></ul></ul><ul><ul><li>IS/IT and business development </li></ul></ul><ul><li>Prepare outline plans and a business case for approval </li></ul>
  17. 17. Question <ul><li>How do you apply this IS/IT planning process to an e-business? </li></ul>
  18. 18. Points to Remember <ul><li>Hierarchy of planning information flow </li></ul><ul><li>Issues of IS planning </li></ul><ul><li>Planning model </li></ul><ul><li>Planning process framework </li></ul>

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