• Does management know how much money the company is spending on
• Do managers realize how much each business application is costing?
• Is IS worth maintaining? Do they know the cost per e-mail, the cost per
help desk call, and the cost per server?
• What is the company really getting for its investment, and will the
systems meet the company’s needs in the future? Do managers know the
level of service quality and responsiveness that IS delivers? Do they know
how to manage IS costs through demand planning, capacity and resource
planning, and monitoring as they would any other asset?
• Management must have a clear understanding of the IS environment to
manage this asset as effectively as it would any other business asset.
• Following this IS planning process will significantly improve
communication between business management and the IS
• Business management will obtain an excellent understanding
of current IS, as well as as learn how to identify risks and
• The IS organization will gain a greater understanding of the
business direction and be able to identify how technology can
assist with the company’s objectives.
• Today, technology is integrated into every aspect of a
business, business processes, and business interfaces.
• To ensure IS provides a competitive advantage, a robust planning
• process is required in which the IS department is a true business
partner and identifies business opportunities using technology.
• For example, an insurance company found that the cost of
• a transaction handled in person by an agent could cost $5 to
$13, and a fully automated transaction on the Web costs only
three to six cents, which can provide a tremendous competitive
Planningthe Flow of Informationand
• Information is a valuable resource, and it is important to
maximize its value for the corporation.
• Planning and managing the flow of information throughout
the organization can minimize labor, data redundancy, and
inconsistency, in addition to increasing the quality and
accuracy of the information.
• When systems grow haphazardly over time, islands of
information can develop, resulting in additional labor to
maintain the different systems.
The approval step also consumes a large amount of time, because costs are generally
more than management anticipates.
Management starts asking questions such as, “Do we really need it?” “Are there less
expensive alternatives?” “What are the real benefits to be gained?”
Implementation takes longer than anticipated because it is an inefficiently planned
execution, business process changes, or priorities are not clear.
• Group of students may choose an IS for Planning in real time
• Discuss with teacher for detail
• Marks = 4
• Deadline = 20 days
Change Management (1)
• According to research conducted by Standish Group, as many as
40% of information system development and implementation
projects fail to complete.
Change Management (2)
• As changes are difficult to predict, and tend to occur with growing
frequency, change management is becoming an increasingly
• Regardless of how a new information system is designed and how
its implementation is planned, human potential represents a
factor that should play the key role in dealing with changes.
• It also encounters resistance of the staff to the changes, because
project managers did not foresee staff's response to the changes
occurring under the influence of the new system.
• The dominant activity of the large-scale software industry is the
production of changes to application systems. Most changes are
due to enhancements in functionality.
Change Management (3)
• Due to rigid structure in existing systems and inadequate methods
and tools for change management, implementing necessary
changes consequent on new user requirements are often
impossible within reasonable costs.
• The classical model for describing the software development
process is the so-called waterfall model. New requirements must
be determined, the existing software application needs re-design
• A Practical Guide to Information Systems Strategic Planning, Tylor and
• Change Management in IS Development & Implementation, by Zoran Ćirid
and Lazar Rakovid
• Managing change in IS: Technological Challenges, Dag I.K.
Sjøberg, University of Oslo, Norway