Information System Plan

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Information System Plan

  1. 1. Information System Plan Management Information System Management Information System
  2. 2. Planning for Information System <ul><li>The complexity of the information resources environment suggests that planning is vital to success. </li></ul><ul><li>The plan describes the structure and content of the information system and how it is to be developed. </li></ul><ul><li>The organization’s strategic plan should be the basis for the MIS strategic plan. </li></ul><ul><li>The overall responsibility of IS planning is the responsibility of Chief Information Officer (CIO) </li></ul>Management Information System
  3. 3. Approaches to organizing and supervising the information system planning effort <ul><li>Planning staff within information systems functions (planning specialists) </li></ul><ul><li>Ad hoc planning groups within information systems </li></ul><ul><li>Planning group with representatives from various functions </li></ul>Management Information System
  4. 4. Review of plan <ul><li>Master plan is reviewed by the steering committee which comprises of executives from major functional areas and is executives. </li></ul><ul><li>The committee also periodically reviews progress against the plan. </li></ul><ul><li>The master plan is integrated in the organizational plan by top management after review and approval. </li></ul><ul><li>Information system policies and procedures are defined. </li></ul>Management Information System
  5. 5. Content of Master development plan/ Information System plan/ Information Resource plan <ul><li>The master plan has two components:- a long-range plan and a short-range plan. The long-range plan provides general guidelines for direction and the short-range plan provides a basis for specific accountability as to operational and financial performance. It consists of the following subheadings:- </li></ul><ul><ul><li>Information system goals, objectives, and architecture </li></ul></ul><ul><ul><li>Inventory of current capabilities </li></ul></ul><ul><ul><li>Forecast of developments against the plan </li></ul></ul><ul><ul><li>The specific plan </li></ul></ul>Management Information System
  6. 6. Master plan <ul><li>Information system goals, Objectives, and architecture </li></ul><ul><ul><li>Organizational goals, objectives, and strategies </li></ul></ul><ul><ul><li>External environment (industry, government regulations, customers, and suppliers) </li></ul></ul><ul><ul><li>Internal organizational constraints such as management philosophy </li></ul></ul><ul><ul><li>Assumptions about business risks and potential consequences </li></ul></ul><ul><ul><li>Overall goals, objectives, and strategy for the information system </li></ul></ul><ul><ul><li>Architecture of the information system </li></ul></ul>Management Information System
  7. 7. Master plan <ul><li>Current capabilities </li></ul><ul><ul><li>Inventory of </li></ul></ul><ul><ul><ul><li>Hardware </li></ul></ul></ul><ul><ul><ul><li>Software (System software, DBMS, etc) </li></ul></ul></ul><ul><ul><ul><li>Application systems (classified on the basis of functional systems, organizational strategy, maintenance need) </li></ul></ul></ul><ul><ul><li>Analysis of </li></ul></ul><ul><ul><ul><li>Expense </li></ul></ul></ul><ul><ul><ul><li>Hardware utilization </li></ul></ul></ul><ul><ul><ul><li>Software utilization </li></ul></ul></ul><ul><ul><ul><li>Personnel utilization (further classification such as job, skill, functional area) </li></ul></ul></ul><ul><ul><li>Status of projects in progress </li></ul></ul><ul><ul><li>Assessment of strengths and weaknesses </li></ul></ul>Management Information System
  8. 8. Master plan <ul><li>Forecast of developments Affecting plan </li></ul><ul><ul><li>Hardware and software technological availabilities should be forecasted with expected impact on existing IS </li></ul></ul><ul><ul><li>Methodology changes should be forecasted </li></ul></ul><ul><ul><li>Environmental developments such as government regulations, tax laws and competitors affecting IS should be stated </li></ul></ul>Management Information System
  9. 9. Master plan <ul><li>Specific plan </li></ul><ul><ul><li>Hardware acquisition schedule </li></ul></ul><ul><ul><li>Purchased software schedule </li></ul></ul><ul><ul><ul><li>System Software </li></ul></ul></ul><ul><ul><ul><li>Applications software </li></ul></ul></ul><ul><ul><li>Application development schedule </li></ul></ul><ul><ul><li>Software maintenance and conversion schedule </li></ul></ul><ul><ul><li>Personnel resources required and schedule of hiring and training </li></ul></ul><ul><ul><li>Financial resources required by object of expenditure </li></ul></ul>Management Information System
  10. 10. Maintenance of master plan <ul><li>IS plan requires updation </li></ul><ul><ul><li>Changing organizational setup </li></ul></ul><ul><ul><li>Changes in technology </li></ul></ul><ul><ul><li>Changing needs of system </li></ul></ul><ul><ul><li>Internal events </li></ul></ul><ul><ul><li>Progress of new systems </li></ul></ul><ul><ul><li>External events </li></ul></ul>Management Information System
  11. 11. Information system growth models <ul><li>The NOLAN stage model </li></ul><ul><ul><li>The organization must go through each stage of growth before it can progress to the next one, thus giving an insight to planning regarding the stage of an IS </li></ul></ul><ul><ul><li>Stages of Information system growth </li></ul></ul>Management Information System Integration of applications Maturity Organizational controls Formalization Experimentation, rising cost Expansion Early use Initiation Description Stages of growth
  12. 12. NOLAN stage model
  13. 13. NOLAN six stage model Application portfolio complete and matches organizational objectives VI Slack due to focus on strategically important systems V Use of databases for integration IV High controls, planning given importance III Greater slack due to encouraged use, integration and lack of planning II Low control. Some slack. No planning I Level of control or slack Stage
  14. 14. NOLAN six stage model Transition point
  15. 15. NOLAN alternative model <ul><li>Due to technological changes the growth curve shifts as follows </li></ul>Technology Shift
  16. 16. Assumptions of NOLAN model <ul><li>Organizational learning </li></ul><ul><li>Stages cannot be skipped </li></ul><ul><li>Other than the natural process, these processes can be planned, coordinated, and managed to move through the stages effectively and efficiently </li></ul>
  17. 17. Advantages and disadvantages of NOLAN model <ul><li>Advantages </li></ul><ul><ul><li>Evolutionist model as it focuses on development </li></ul></ul><ul><li>Disadvantages </li></ul><ul><ul><li>Lack of specificity as it does not define the mechanism for change </li></ul></ul>
  18. 18. Three stage model of the planning process <ul><li>It clarifies the generic planning activities, the order of activities, and the alternative techniques and methodologies that apply </li></ul>Strategic planning Organizational information requirements analysis Resource Allocation Strategy set transformation Strategy Grid Strategic fit Derivation from organizational plan Business system planning Critical success factors Ends/ means analysis Comparative cost/ benefit Portfolio approach Chargeout Steering committee ranking
  19. 19. Strategic planning stage <ul><li>McFarlan-McKenney Strategic Grid </li></ul>Support Turnaround Factory Strategic Strategic impact of planned application development portfolio Strategic impact of existing operating applications LOW HIGH HIGH
  20. 20. Strategic fit <ul><li>Each organization has a culture which reinforces values, norms, and beliefs about the organization. Goals, objectives, and strategy for information systems should fit with the culture in order to avoid high resistance and high risk of failure. </li></ul>
  21. 21. Strategy Set Transformation <ul><li>Explicate the organization’s strategy set </li></ul><ul><ul><li>Delineate the organization structure for users </li></ul></ul><ul><ul><li>Identify goals of claimants </li></ul></ul><ul><ul><li>Identify organizational goals and strategies for each claimant group </li></ul></ul><ul><li>Validate the organizational goals from management </li></ul><ul><li>Transform organizational strategy set into the information system strategy set </li></ul><ul><ul><li>Identify IS objectives for each organizational strategy </li></ul></ul><ul><ul><li>Identify IS constraints from organizational strategy </li></ul></ul><ul><ul><li>Identify IS design strategy based on organizational attributes </li></ul></ul>
  22. 22. Analysis of Organizational information requirements <ul><li>Information requirements are required at the organizational level for information system planning, identifying applications, and planning an information architecture. </li></ul><ul><li>More detailed information requirements are required for detailed design of applications. </li></ul>
  23. 23. Quiz <ul><li>The end users for Transaction processing systems are used by </li></ul><ul><ul><li>Middle management </li></ul></ul><ul><ul><li>Operational staff </li></ul></ul><ul><li>Which of the following is not a primary function of management </li></ul><ul><ul><li>Planning d. Controlling </li></ul></ul><ul><ul><li>Organizing e. Scheduling </li></ul></ul><ul><ul><li>Directing </li></ul></ul><ul><li>Which of the following is not a component of MIS </li></ul><ul><ul><li>Users d. Customer </li></ul></ul><ul><ul><li>Input and output devices </li></ul></ul><ul><ul><li>Software / Procedures </li></ul></ul><ul><li>Which of the following is the correct sequence for three stage model of planning process </li></ul><ul><ul><li>Strategic planning >> Organizational information requirement analysis >> resource allocation </li></ul></ul><ul><ul><li>Organizational information requirement analysis >> Strategic planning >> resource allocation </li></ul></ul><ul><ul><li>Resource allocation >> Strategic planning >> Organizational information requirement analysis </li></ul></ul><ul><li>McFarlan-McKenney Strategic Grid helps make strategic decisions for the organization </li></ul><ul><ul><li>True </li></ul></ul><ul><ul><li>False </li></ul></ul><ul><li>The master plan includes the following plan </li></ul><ul><ul><li>Long-range plan </li></ul></ul><ul><ul><li>Short-range plan </li></ul></ul><ul><ul><li>Both long-range and short-range </li></ul></ul><ul><li>Which of the following considers the time factor for cost </li></ul><ul><ul><li>Net Present Value </li></ul></ul><ul><ul><li>Internal rate of return </li></ul></ul><ul><ul><li>Portfolio or Risk Management </li></ul></ul><ul><li>The specific plan, in the master plan contains plans about </li></ul><ul><ul><li>Department wise details </li></ul></ul><ul><ul><li>Details for the whole IS </li></ul></ul><ul><li>Which stage shows the highest growth in the Nolan four stage model </li></ul><ul><ul><li>I c. III </li></ul></ul><ul><ul><li>II d. IV </li></ul></ul><ul><li>The Master development plan and Information resource Plan the same. </li></ul><ul><ul><li>True </li></ul></ul><ul><ul><li>False </li></ul></ul>

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