IS

1. INFORMATION SYSTEMS
PLANNING

2. CHAPTER OUTLINE
.
4.4. Evaluating information systems
4.3. Identifying specific information
4.2. Identifying specific processes
4
4.1. Aligning organizational goals
and Information technology
4.5. Planning for what you can’t live without

3. INFORMATION SYSTEM PLANNING
Aligning organizational goals and
Information technology
Identifying specific information
Identifying specific processes
Evaluating information systems
Planning for what you can’t live
without
INFORMATION SYSTEM PLAN
•What systems to develop
•When to develop those
systems
•Changes to existing systems
•Contingency plans for
disaster
1
2 3
4
5

4. 4.1.Aligning organizational goals and
information technology

5. PURPOSE – METHODS - RESULTS
 Purpose
◦ To ensure that the IT goals and strategies of
your organization are in harmony with its
business goals and strategies
 Usefull methods
◦ Competitive forces model
 Result
◦ A clear view of how IT systems support your
organization’s goals and strategies

6. Porter’s Competitive Forces Model

7. GOALS OF USING PORTER’S FIVE FORCES
MODEL
1.An extremely useful tool for business
people to use when evaluating the relative
attractiveness of an industry in terms of
the following five forces.
2. PORTER’S FIVE FORCES MODEL as a
useful tool for business people to use when
thinking about business strategy and the
impact of IT

8. Strategies for Competitive Advantage
 Cost Leadership
 Differentiation
 Innovation
 Operational Effectiveness
 Customer-orientation

9. 4.2. Identifying specific processes

10. PURPOSE – METHODS - RESULTS
 Purpose
◦ To identify specific business processes within
the organization that require IT system
support
 Usefull methods
◦ Value chain
 Result
◦ A preliminary list of the IT systems your
organization needs

11. THE COMPONENTS OF AVALUE
CHAIN

12. GOALS OF USING THEVALUE CHAIN
 To identify business processes that
◦ add the most value (Value-added processes)
◦ add the least (or even take away) value (Value-
reducing processes)
 To focus then organization’s IT efforts on
◦ Further adding value by augmenting best
processes and/ or
◦ Eliminating or reducing the value-reducing
processes.

13. How to identify processes that add value?
 Identify processes that add value?
◦ Create the value-added value chain to identify
the largest value-added processes
 Making decisions?
◦ Add even more value to those processes that
add the most value by development of a
computer-based design system to reduce the
time it takes to create and manufacture new
ties.

14. How to identify processes that reduce
value?
 Identify processes that reduce value?
◦ Create the value-reduced value chain to identify
those processes that reduce the most value
 Making decisions?
◦ Further decrease the ineffectiveness of the
processes that reduce value by development of a
new IT system to get timely product
information to the sales force.

15. 4.3. Identifying specific information

16. PURPOSE – METHODS - RESULTS
 Purpose
◦ To identify specific information needs within the
organization that require IT systems support
 Methods
◦ Information architecture
◦ Critical success factors
◦ Business system planning
 Result
◦ A preliminary list of the IT systems the organization
needs.

17. Information architecture for identifying
information requirement
 Why to create an information
architecture?
◦ To define what information the organization
needs, which people within the organization
need that information.
◦ To unite two of the organization’s most
important resources: Information and people.

18. Critical Success Factors for identifying
information requirement
 What are CSF?
◦ A critical success factor is a factor critical to
organizational success.
 Why to define CSF?
◦ To help managers and knowledge workers
define information requirements
◦ To define INFO systems that support the
defined information needs.
◦ To align organizational goals and IT system
planning.

19. BUSINESS SYSTEM PLANNING FOR
IDENTIFYING INFORMATION REQUIREMENT
Why BSP?
To identify organization-wide information
needs in term of:
◦ ORGANIZATIONAL UNITS
◦ FUNCTIONS
◦ PROCESSES
◦ DATA ELEMENTS
To help identify key entities & attributes
organization’s data

20. 4.4. Evaluating IT systems
 Purpose
◦ To evaluate the preliminary list of IT systems
your organization needs, based on the
application of organizational criteria
 Usefull methods
◦ Cost-benefits analysis
◦ Risk analysis
 Result
◦ A final list of which IT systems your organization
must develop and when it must develop them

21. 4.5. Planning for what you can’t live
without
 Purpose
◦ To examine the possibilities of losing an IT
system and formulating procedures to minimize
the damage
 Useful methods
◦ Information unavailability curve
◦ Disaster recovery curve
 Result
◦ A list of IT systems critical to your organization
and a contingency plan based on how quickly you
can afford to recover those systems.

22. REFERENCES
[1] CarolV. Brown, DanielW. DeHayes, Jeffrey A. Hoffer, E.Wainright
Martin,William C. Perkins, 2009, Managing InformationTechnology,
Pearson Prentice Hall.
[2] James A. O’Brien, George M. Marakas. 2006, Management
Information Systems, 7/E, McGraw-Hill.
[3] Kenneth C. Laudon, Jane P. Laudons. 2006, Management
Information Systems: Managing the Digital Firm, 9/E, Prentice Hall
Publishing House.
[4] Rainer and Cegielski, IntroTo Information Systems, 3rd Edition.
[5] Stephen Haag, Maeve Cummings,Amy Phillips. 2007, Management
Information Systems for the Information Age, McGraw-Hill
[6]Turban et all. 2008, InformationTechnology for Management
Transforming Organizations in the Digital Economy, 6th Edition,WILEY,
USA.