AdvMIS – Module 2 Module 2 – Information Systems Planning Issues 2.1 – IS Planning 2.2 – Short and Long Range Technology P...
AdvMIS – Module 2 2.1 – IS Planning IS Infrastructure Includes: -hardware -software -networks -data -IS personnel
AdvMIS – Module 2 Developing the IS Infrastructure Non-IS Manager’s Role: 1. Suggest needs for information and systems wit...
AdvMIS – Module 2 <ul><li>The IS Plan </li></ul><ul><li>Begins with comparison of Business Strategic Plan to  current IS i...
AdvMIS – Module 2 Challenges of Implementing IS Plan 1. Business Strategy is not always determined 1 st -IS possibilities ...
AdvMIS – Module 2 2.2 – Short and Long Range Technology Planning Drivers of Technology Decisions Application Decisions -Of...
AdvMIS – Module 2 Software Planning Licenses for Commercial Software -IS Plan must consider current state of licenses and ...
AdvMIS – Module 2 Software Planning (continued) Upgrading to Support Future Business Requirements -Do current applications...
AdvMIS – Module 2 Hardware Planning Changes to hardware driven by: -application demands -hardware lifecycles -external for...
AdvMIS – Module 2 Hardware Planning (continued) Upgrading (continued) Full Replacement: Advantages: Common standard for PC...
AdvMIS – Module 2 Hardware Planning (continued) Upgrading (continued) Staggered Upgrading Advantages: Evens out investment...
AdvMIS – Module 2 Hardware Planning (continued) Purchase Options: Brand name vs. White box Brand Name (IBM, HP, Dell) Adva...
AdvMIS – Module 2 Hardware Planning (continued) Purchase Options: Brand name vs. White box White Box Advantages: Lower uni...
AdvMIS – Module 2 <ul><li>Standards </li></ul><ul><li>Reasons </li></ul><ul><li>Limit the range of technologies in use – l...
AdvMIS – Module 2 <ul><li>Technology Scanning </li></ul><ul><li>Important to stay in touch with emerging technologies </li...
AdvMIS – Module 2 <ul><li>2.3 – Data and Information Management Issues </li></ul><ul><li>IS plans must recognize specific ...
AdvMIS – Module 2 <ul><li>Data Integrity </li></ul><ul><li>Information must be </li></ul><ul><ul><li>- presented in a mean...
AdvMIS – Module 2 <ul><li>Data Security </li></ul><ul><li>Concerns the protecting of confidentiality of data </li></ul><ul...
AdvMIS – Module 2 <ul><li>Data Security  (continued) </li></ul><ul><li>Customer Privacy </li></ul><ul><li>In Canada, Priva...
AdvMIS – Module 2 <ul><li>Data Security  (continued) </li></ul><ul><li>Personal Information Protection and Electronic Docu...
AdvMIS – Module 2 <ul><li>Data Integration </li></ul><ul><li>Data integration is ability to combine data from different so...
AdvMIS – Module 2 <ul><li>Data Integration (continued) </li></ul><ul><li>Challenges in Data Integration: </li></ul><ul><li...
AdvMIS – Module 2 <ul><li>Improving Data Integrity, Security and Integration </li></ul><ul><li>Technological Solutions </l...
AdvMIS – Module 2 <ul><li>2.4 – IS Economics </li></ul><ul><li>Different financial approaches to evaluating IS investments...
AdvMIS – Module 2 <ul><li>Value of Intangible Benefits </li></ul><ul><li>From Table 12.1 – Intangible benefits of IS inclu...
AdvMIS – Module 2 <ul><li>Value of Intangible Benefits (continued) </li></ul><ul><li>How do we set a value to an intangibl...
AdvMIS – Module 2 <ul><li>IS costs </li></ul><ul><li>Consist of -hardware </li></ul><ul><ul><ul><ul><ul><li>-software </li...
AdvMIS – Module 2 <ul><li>IS costs (continued) </li></ul>
AdvMIS – Module 2 <ul><li>IS costs (continued) </li></ul><ul><li>According to Gartner study, nearly one-half of cost of PC...
AdvMIS – Module 2 <ul><li>IS costs (continued) </li></ul><ul><li>Reasons for High TCO </li></ul><ul><ul><li>-Decentralized...
AdvMIS – Module 2 <ul><li>End-User Costs </li></ul><ul><li>Contributed to: </li></ul><ul><ul><ul><li>- futz time – non-wor...
AdvMIS – Module 2 <ul><li>Moore's Law </li></ul>
AdvMIS – Module 2 <ul><li>Moore's Law (continued) </li></ul>
AdvMIS – Module 2 <ul><li>Metcalfe's Law </li></ul><ul><li>“ The usefulness, or utility of a network equals the square of ...
AdvMIS – Module 2 <ul><li>Network Effects in IS decision making </li></ul><ul><li>Several other reasons for power of netwo...
AdvMIS – Module 2 <ul><li>2.5 – IS Human Resource Planning </li></ul><ul><li>Skills of IS Professional </li></ul><ul><li>-...
AdvMIS – Module 2 <ul><li>IS careers </li></ul><ul><li>- challenge for organizations to provide rewarding career opportuni...
AdvMIS – Module 2 <ul><li>Skills updating </li></ul><ul><ul><li>- continuing need for IS employees to upgrade their skills...
AdvMIS – Module 2 <ul><li>Challenges in skills updating (continued) </li></ul><ul><ul><li>- if skills training not availab...
AdvMIS – Module 2 <ul><li>2.6 Developing an IS strategic plan </li></ul><ul><li>Issues associated with IS planning can be ...
AdvMIS – Module 2 <ul><li>Who needs to be involved in strategic planning? </li></ul><ul><li>- Senior management – provides...
AdvMIS – Module 2 <ul><li>How is planning done? </li></ul><ul><li>- Enterprise analysis – focuses on documenting existing ...
AdvMIS – Module 2 <ul><li>When is planning done? </li></ul><ul><li>- Long range planning – cycles of around 3 to 5 years <...
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Slides - Module2

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Slides - Module2

  1. 1. AdvMIS – Module 2 Module 2 – Information Systems Planning Issues 2.1 – IS Planning 2.2 – Short and Long Range Technology Planning 2.3 – Data and Information Management Issues 2.4 – IS Economics 2.5 – IS Human Resource Planning 2.6 – Developing an IS Strategic Plan
  2. 2. AdvMIS – Module 2 2.1 – IS Planning IS Infrastructure Includes: -hardware -software -networks -data -IS personnel
  3. 3. AdvMIS – Module 2 Developing the IS Infrastructure Non-IS Manager’s Role: 1. Suggest needs for information and systems within department 2. Participate in determining the costs and benefits of the system that will support your department 3. Participate in priority setting of opportunities to be pursued 4. Include the costs of IS projects in your departmental budget
  4. 4. AdvMIS – Module 2 <ul><li>The IS Plan </li></ul><ul><li>Begins with comparison of Business Strategic Plan to current IS infrastructure </li></ul><ul><li>Leads to definition of new systems development plans and overall management plans for function </li></ul><ul><li>Ends with budgeting for implementation of plan </li></ul>
  5. 5. AdvMIS – Module 2 Challenges of Implementing IS Plan 1. Business Strategy is not always determined 1 st -IS possibilities may drive business strategy 2. Determining the time horizon for planning -Long term planning cannot be more than 3 to 5 years 3. Plan cannot be simply implemented when completed -Needs to be adjusted over time as business realities change
  6. 6. AdvMIS – Module 2 2.2 – Short and Long Range Technology Planning Drivers of Technology Decisions Application Decisions -Off-the-shelf vs. In-house vs. Implementation on a third party system Hardware Lifecycles -Need to maintain basic level of computer hardware & networking equipment Customer and Supplier Demands & Other External Forces -Changes to accommodate changes made to customer/supplier systems -Obsolescence of hardware due to lack of supplier support
  7. 7. AdvMIS – Module 2 Software Planning Licenses for Commercial Software -IS Plan must consider current state of licenses and requirements for license renewal Custom-designed Applications -needs to be done within a systems development project -decisions need to be made on how to develop and implement application
  8. 8. AdvMIS – Module 2 Software Planning (continued) Upgrading to Support Future Business Requirements -Do current applications have capability to support future requirements? Open Source vs. Proprietary -Is open source application available to meet requirement? -If so, what are the cost savings and is there commercial support?
  9. 9. AdvMIS – Module 2 Hardware Planning Changes to hardware driven by: -application demands -hardware lifecycles -external forces Upgrading Typical upgrade cycle for PC’s currently is 2-3 years Two approaches to handling PC upgrading -Full replacement every 3 years -Staggered upgrading – replace one-third each yr.
  10. 10. AdvMIS – Module 2 Hardware Planning (continued) Upgrading (continued) Full Replacement: Advantages: Common standard for PC’s Support for PC’s is cheaper Disadvantage: Effort is great in upgrade year but non-existent in other yrs. Investment all in one year
  11. 11. AdvMIS – Module 2 Hardware Planning (continued) Upgrading (continued) Staggered Upgrading Advantages: Evens out investment over time Can devote portion of IS organization to maintaining & upgrading PC infrastructure – stable demand for service vs. peaks and valleys Disadvantage: End up with multiple H/W and Operating Systems to support Not all users require upgrades as often as others
  12. 12. AdvMIS – Module 2 Hardware Planning (continued) Purchase Options: Brand name vs. White box Brand Name (IBM, HP, Dell) Advantages: Use fewer different component configurations Better Tech support Disadvantages: Higher unit cost
  13. 13. AdvMIS – Module 2 Hardware Planning (continued) Purchase Options: Brand name vs. White box White Box Advantages: Lower unit cost Disadvantages: Mix of components may lead to instability Tech support may be less than brand name or non-existent
  14. 14. AdvMIS – Module 2 <ul><li>Standards </li></ul><ul><li>Reasons </li></ul><ul><li>Limit the range of technologies in use – lower costs </li></ul><ul><li>Better integration of applications </li></ul><ul><li>Fewer problems in ensuring adequate performance </li></ul><ul><li>Business Considerations </li></ul><ul><li>Organizations typically find using same hardware and software applications across the board is better than having best applications in each area </li></ul>
  15. 15. AdvMIS – Module 2 <ul><li>Technology Scanning </li></ul><ul><li>Important to stay in touch with emerging technologies </li></ul><ul><li>Key is not to be always correct but to quickly recognize when wrong and take appropriate steps to correct situation </li></ul><ul><li>Sometimes done by a separate group within IS organization but not formally managed </li></ul><ul><li>Benefits are hard to measure and may not be realized for years </li></ul><ul><li>Danger is that vendors often publicize new technologies well before they are able to deliver products (vaporware) </li></ul>
  16. 16. AdvMIS – Module 2 <ul><li>2.3 – Data and Information Management Issues </li></ul><ul><li>IS plans must recognize specific challenges of data management, that is </li></ul><ul><li>Data integrity </li></ul><ul><li>Data security </li></ul><ul><li>Data integration </li></ul>
  17. 17. AdvMIS – Module 2 <ul><li>Data Integrity </li></ul><ul><li>Information must be </li></ul><ul><ul><li>- presented in a meaningful format </li></ul></ul><ul><ul><li>-available to the people who need it </li></ul></ul><ul><ul><li>-at the appropriate level of detail for decision at hand </li></ul></ul><ul><ul><li>-correct </li></ul></ul><ul><li>Maintaining data integrity is challenging and costly </li></ul><ul><li>Technological solutions for data integrity are expensive </li></ul><ul><li>More the use of computer-based systems, the greater the problem of data integrity </li></ul>
  18. 18. AdvMIS – Module 2 <ul><li>Data Security </li></ul><ul><li>Concerns the protecting of confidentiality of data </li></ul><ul><li>Applies to customer data </li></ul><ul><ul><ul><ul><ul><li>employee data </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>suppliers </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>any other stakeholders </li></ul></ul></ul></ul></ul>
  19. 19. AdvMIS – Module 2 <ul><li>Data Security (continued) </li></ul><ul><li>Customer Privacy </li></ul><ul><li>In Canada, Privacy of Customer Info is mandated by Law </li></ul><ul><li>Two Statutes: </li></ul><ul><li>Privacy Act – regulates government agencies </li></ul><ul><li>PIPEDA – regulates the protection of customer info by all companies in Canada (effective – January, 2004) </li></ul>
  20. 20. AdvMIS – Module 2 <ul><li>Data Security (continued) </li></ul><ul><li>Personal Information Protection and Electronic Documents Act (PIPEDA) </li></ul><ul><li>Based on 10 fair information principles </li></ul><ul><li>Organizations need to ensure that </li></ul><ul><ul><li>1. data collected and maintained is consistent with the fair information principles </li></ul></ul><ul><ul><li>2. organizational processes comply with the act </li></ul></ul>
  21. 21. AdvMIS – Module 2 <ul><li>Data Integration </li></ul><ul><li>Data integration is ability to combine data from different sources to produce more complex views of organizations and people </li></ul><ul><li>Examples: -Enterprise Resource Planning systems </li></ul><ul><ul><ul><ul><ul><li>-Customer data warehouses </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>-Click pattern tracking on a web site </li></ul></ul></ul></ul></ul>
  22. 22. AdvMIS – Module 2 <ul><li>Data Integration (continued) </li></ul><ul><li>Challenges in Data Integration: </li></ul><ul><li>Integration remains difficult and costly to achieve due to: </li></ul><ul><ul><li>1. Lack of commonly accepted definitions of data </li></ul></ul><ul><ul><ul><li>ie. - “sales” field could mean gross or net sales </li></ul></ul></ul><ul><ul><ul><ul><li>- part numbers with different code lengths </li></ul></ul></ul></ul><ul><ul><li>2. Scale of problem </li></ul></ul><ul><ul><ul><li>ie. - thousands of data elements & records to deal with </li></ul></ul></ul><ul><ul><ul><ul><li>- cost & difficulty to convert data from legacy systems </li></ul></ul></ul></ul>
  23. 23. AdvMIS – Module 2 <ul><li>Improving Data Integrity, Security and Integration </li></ul><ul><li>Technological Solutions </li></ul><ul><ul><li>- Use of more integrated views of organizational data </li></ul></ul><ul><ul><li>- Use of database management system to create more integrated systems </li></ul></ul><ul><ul><li>- Design and use of user-input programs </li></ul></ul><ul><li>Human Solutions </li></ul><ul><ul><li>- Educate users about meaning and importance of data quality </li></ul></ul><ul><ul><li>- Get users to recognize importance of integrated information </li></ul></ul><ul><ul><li>- Provide training in use of applications & maintaining data integrity </li></ul></ul>
  24. 24. AdvMIS – Module 2 <ul><li>2.4 – IS Economics </li></ul><ul><li>Different financial approaches to evaluating IS investments </li></ul><ul><li>(Chapter 12.2) </li></ul><ul><li>Variants of a cost-benefit analysis </li></ul><ul><li>ie. determine costs associated with a particular IS, then determine benefits against which costs are compared </li></ul><ul><li>Techniques include ROI, NPV, cost-benefit ratios, profitability indexes, internal rate of return </li></ul>
  25. 25. AdvMIS – Module 2 <ul><li>Value of Intangible Benefits </li></ul><ul><li>From Table 12.1 – Intangible benefits of IS include </li></ul><ul><ul><li>- Improved asset utilization </li></ul></ul><ul><ul><li>- Improved resource control </li></ul></ul><ul><ul><li>- Improved organizational planning </li></ul></ul><ul><ul><li>- Increased organizational flexibility </li></ul></ul><ul><ul><li>- More timely information </li></ul></ul><ul><ul><li>- Increased organizational learning </li></ul></ul><ul><ul><li>- Legal requirements attained </li></ul></ul><ul><ul><li>- Enhanced employee goodwill </li></ul></ul><ul><ul><li>- Increased job satisfaction </li></ul></ul><ul><ul><li>- Improved operations </li></ul></ul>
  26. 26. AdvMIS – Module 2 <ul><li>Value of Intangible Benefits (continued) </li></ul><ul><li>How do we set a value to an intangible benefit? </li></ul><ul><li>Variety of tools to be used: </li></ul><ul><ul><li>involve analyzing specific decisions & scenarios to see how intangible benefit can be connected to more tangible outcome </li></ul></ul><ul><ul><ul><li>ie. relating employee satisfaction to outcomes such as absenteeism, turnover and productivity </li></ul></ul></ul>
  27. 27. AdvMIS – Module 2 <ul><li>IS costs </li></ul><ul><li>Consist of -hardware </li></ul><ul><ul><ul><ul><ul><li>-software </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>-telecommunications </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>-services </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>-personnel </li></ul></ul></ul></ul></ul><ul><li>Last two are often underestimated. Reference Gartner study of Total Cost of Ownership (TCO) in 1996 </li></ul>
  28. 28. AdvMIS – Module 2 <ul><li>IS costs (continued) </li></ul>
  29. 29. AdvMIS – Module 2 <ul><li>IS costs (continued) </li></ul><ul><li>According to Gartner study, nearly one-half of cost of PC ownership hidden in end-user operations. These include: </li></ul><ul><ul><li>formal learning </li></ul></ul><ul><ul><li>informal learning </li></ul></ul><ul><ul><li>peer support </li></ul></ul><ul><ul><li>applications development </li></ul></ul><ul><ul><li>data management </li></ul></ul><ul><ul><li>supplies </li></ul></ul><ul><ul><li>end-user downtime </li></ul></ul><ul><ul><ul><li>etc. </li></ul></ul></ul>
  30. 30. AdvMIS – Module 2 <ul><li>IS costs (continued) </li></ul><ul><li>Reasons for High TCO </li></ul><ul><ul><li>-Decentralized model of PC Purchases </li></ul></ul><ul><ul><li>-PC's purchased under departmental authority with no reference to common standards </li></ul></ul><ul><li>Methods to reduce TCO </li></ul><ul><ul><li>-Definition & adherence to common standards for Hardware & software </li></ul></ul><ul><ul><li>-Adoption of more centralized computing power – makes application development, backup & recovery and data management easier </li></ul></ul><ul><ul><ul><li>eg. “thin client” workstations </li></ul></ul></ul>
  31. 31. AdvMIS – Module 2 <ul><li>End-User Costs </li></ul><ul><li>Contributed to: </li></ul><ul><ul><ul><li>- futz time – non-work time spent by users with PC </li></ul></ul></ul><ul><ul><ul><ul><li>eg. - playing games </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>- surfing non-work related web sites </li></ul></ul></ul></ul></ul><ul><li>Solutions: </li></ul><ul><ul><ul><li>- Implementation of reasonable policies on PC use </li></ul></ul></ul><ul><ul><ul><li>- Use of Technology solutions </li></ul></ul></ul><ul><ul><ul><li>- Clearly communicating expectations for PC use and why </li></ul></ul></ul>
  32. 32. AdvMIS – Module 2 <ul><li>Moore's Law </li></ul>
  33. 33. AdvMIS – Module 2 <ul><li>Moore's Law (continued) </li></ul>
  34. 34. AdvMIS – Module 2 <ul><li>Metcalfe's Law </li></ul><ul><li>“ The usefulness, or utility of a network equals the square of the number of users” </li></ul><ul><li>Significance: </li></ul><ul><li>- The more people on the network, the higher the potential for integration and communication and greater the value of network </li></ul><ul><li>-Demonstrates why most popular technology is not always the best technology – eg. Betamax vs. VHS </li></ul>
  35. 35. AdvMIS – Module 2 <ul><li>Network Effects in IS decision making </li></ul><ul><li>Several other reasons for power of network effects: </li></ul><ul><ul><li>- don't want to be out of step with competitors </li></ul></ul><ul><ul><li>- risk associated with being alone – often safer to stick with what everybody else is doing </li></ul></ul><ul><ul><li>- don't want proprietary technology to lock you out of markets or opportunities </li></ul></ul><ul><ul><li>- different technology – may be difficult to find support </li></ul></ul>
  36. 36. AdvMIS – Module 2 <ul><li>2.5 – IS Human Resource Planning </li></ul><ul><li>Skills of IS Professional </li></ul><ul><li>- no such thing as generic IS professional </li></ul><ul><li>- different IS jobs require different kinds of skills- skills can be categorized as follows: </li></ul><ul><li>1. Technical skills – including programming, hardware, configuration etc. </li></ul><ul><li>2. Analytical skills – modeling systems requirements (data, process, logic) </li></ul><ul><li>3. Business skills – good understanding of key business issues </li></ul><ul><li>4. Communication skills – required for communication with users etc. </li></ul>
  37. 37. AdvMIS – Module 2 <ul><li>IS careers </li></ul><ul><li>- challenge for organizations to provide rewarding career opportunities to range of employees – otherwise large turnover & job dissatisfaction results </li></ul><ul><li>- biggest challenge is to provide career ladder to IS employees who do not want to go into management – can be accomplished by developing positions of different technical responsibility </li></ul><ul><li>- examples of position titles are technical guru, master & apprentice, chief technical officer etc. </li></ul>
  38. 38. AdvMIS – Module 2 <ul><li>Skills updating </li></ul><ul><ul><li>- continuing need for IS employees to upgrade their skills </li></ul></ul><ul><ul><li>- some updating can be done by hiring new people, but long term, results in stagnation of IS organization </li></ul></ul><ul><li>Challenges in skills updating </li></ul><ul><ul><li>- skills training is expensive & time consuming </li></ul></ul><ul><ul><li>- skilled employees can more easily move to another organization (competition) </li></ul></ul>
  39. 39. AdvMIS – Module 2 <ul><li>Challenges in skills updating (continued) </li></ul><ul><ul><li>- if skills training not available, increased turnover results </li></ul></ul><ul><ul><li>- pressure of day to day job responsibilities may prevent employees from taking time for skills training </li></ul></ul>
  40. 40. AdvMIS – Module 2 <ul><li>2.6 Developing an IS strategic plan </li></ul><ul><li>Issues associated with IS planning can be grouped as 5 questions: </li></ul><ul><li>Why do it? </li></ul><ul><li>What is the content of the plan? </li></ul><ul><li>Who is involved? </li></ul><ul><li>How is planning done? </li></ul><ul><li>When is planning done? </li></ul>
  41. 41. AdvMIS – Module 2 <ul><li>Who needs to be involved in strategic planning? </li></ul><ul><li>- Senior management – provides broad strategic direction </li></ul><ul><li>- Financial management – consumers of IT + provide cost- benefit analysis </li></ul><ul><li>- Senior IS management – lead the planning process </li></ul>
  42. 42. AdvMIS – Module 2 <ul><li>How is planning done? </li></ul><ul><li>- Enterprise analysis – focuses on documenting existing organizational processes & data </li></ul><ul><li>- Strategic analysis – takes top down approach using critical success factors </li></ul><ul><li>- Scenario planning – looks at small number of future possibilities & examines implications for current IS plan </li></ul>
  43. 43. AdvMIS – Module 2 <ul><li>When is planning done? </li></ul><ul><li>- Long range planning – cycles of around 3 to 5 years </li></ul><ul><li>- Budgeting cycle – done as part of yearly budget </li></ul><ul><li>- Ad hoc planning – on projects proposed & accepted from various stakeholders </li></ul>
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