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STRATEGIC INFORMATION
SYSTEM PLANNING
Strategic Issues for the 1990s
1990s Business Forces
• Globalisation
• Worldwide competition
• Productivity requirements
• Volatile environment
Strategic Issues for the 1990s
Increased Connectivity
• Interorganisational business
relationships
• Intraorganisational coordination
for increased efficiency and
effectiveness
• Adaptable organisation
structures
Strategic Issues for the 1990s
1990s Information Technology
Opportunities
• Continued dramatic cost performance and
capacity advances
• New IT architectures encompassing:
- Extensive communications networks
- Accessible distributed databases
- Enhanced human interface workstations
What are the key
objectives of the
organization?
What is its
strategic
direction?
Managerial Issues
CEO
CIO
What objectives and strategies
should IS pursue? What
policies should it establish?
How should investments in IT
be justified?
Managerial Issues
CEO
CIO
What should the role
of the IS function be?
How should it be
organized?
Managerial Issues
CEO
CIO
Why Do We Need SISPs?
How much is it going
to cost to introduce
new e – business
technologies?
How do I know what
technology to introduce
and when , given that
markets are moving
so quickly?
What value can we
create for the
business by
developing and
implementing an
IT strategy?
Why Do We Need SISPs?
How can I keep our
systems flexible and
cost efficient?
Which IT
initiative should
I do first?
I have limited
time,
people and
money.
How can I
implement all
these IT things?
Why SISP?
To ensure that IS both complements and
assists in the achievement of our
business goals.
To ensure that the use of scarce resources
are maximized within a business.
To maximize the benefits of changing
technology.
To take account of the different viewpoints
of business professionals and IT
professionals.
SISP - Aims
Blueprint developed for organization
for the use of ICT which is
Cost effective
Alignment of IS / IT with
organisational goals
Competitive advantage
The Challenge is to Improve
Organisational Performance
The overall aim of SISP is to direct IS
resources to those areas offering the
most important corporate benefits
Corporate Body
Operations
Information
Systems
Finance
Marketing
Distribution
Human
Resources
CustomersCustomers
SuppliersSuppliers
EmployeesEmployees
Regulatory
Agencies
Regulatory
Agencies
Strategic Information Systems
Planning
Overall
Objectives and
Strategies
IS
Plan
Align the IS plan with the overall objectives
and strategies of the organization.
Strategic Information Systems
Planning
Overall
Objectives and
Strategies
IS
Plan
Alignment
A business accomplishes its
objectives by mobilizing all its
units towards realizing its
business scope.
Coordination, perseverance, and
concentration of effort toward a shared set
of objectives.
A business which is aligned is said to be in
a state of “strategic fit.”
Issues in IS/IT that lead to the need
of SISP.
Systems investments are made that do not
support business objectives
Inadequate infrastructure investments made
Problems caused by IS/IT investments becoming a
source of conflict
Loss of control of IS/IT
Systems are not integrated
No means for prioritising investments
No mechanisms for deciding optimum resource
usage
Poor management of information
Misunderstandings between users and IT
specialists
Issues in IS/IT that lead to the need
of SISP.
Localized justification of investments
can produce benefits that are
counterproductive in the overall
business context
Advantages of SISP
Identify important application to invest
Help organization use its IS to carry
out existing business strategy
Help organization define business
strategy
Without SISP, may result:
Missed opportunity
Duplicated systems
Incompatible systems
Wasted resources
Where & When ISP?
Any organization that
has interest in getting
the best out of its IT
investments.
Facing problems
Grabbing
opportunities.
Information
Systems (IS) fail to
satisfy huge,
diverse and
complicated
information
requirements of
their users.
Who Perform SISP?
IS Planners / System Analyst
Variety of stakeholders (i.e. sponsor,
users)
Top management commitment 
successful ISP.
HOW?
Look at business structure, function,
processes, culture
Look at existing IT
Look at available technology.
Carry out interviews.
Develop policies.
Develop application portfolio.
Plan schedules for migration,
implementation etc.
Internal IS / IT
environment
SISP - Inputs & Outputs
Source: Ward et al Figure 3.8
O
U
T
P
U
T
S
I
N
P
U
T
S Strategic
IS / IT
planning
process
Current
applications
portfolio
IT strategy
Applications
portfolio
Models &
matrices
IS management
strategy
Business
IS strategy
Internal business
environment
Planning, approaches,
tools & techniques
External business
environment
External IS / IT
environment
Current Definition of SISP
“The continuous review of computer
technology, applications and
management structure to ensure that
current anticipated information and
process needs of the organization are
met in a way that provides an
acceptable return of investment (ROI), is
sensitive to the dynamic politics and
culture of the organization and is aware
of the sociological environment within
which the organization exists.”
Mc Bride, De Monfort University

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Strategic information system planning

  • 2. Strategic Issues for the 1990s 1990s Business Forces • Globalisation • Worldwide competition • Productivity requirements • Volatile environment
  • 3. Strategic Issues for the 1990s Increased Connectivity • Interorganisational business relationships • Intraorganisational coordination for increased efficiency and effectiveness • Adaptable organisation structures
  • 4. Strategic Issues for the 1990s 1990s Information Technology Opportunities • Continued dramatic cost performance and capacity advances • New IT architectures encompassing: - Extensive communications networks - Accessible distributed databases - Enhanced human interface workstations
  • 5. What are the key objectives of the organization? What is its strategic direction? Managerial Issues CEO CIO
  • 6. What objectives and strategies should IS pursue? What policies should it establish? How should investments in IT be justified? Managerial Issues CEO CIO
  • 7. What should the role of the IS function be? How should it be organized? Managerial Issues CEO CIO
  • 8. Why Do We Need SISPs? How much is it going to cost to introduce new e – business technologies? How do I know what technology to introduce and when , given that markets are moving so quickly? What value can we create for the business by developing and implementing an IT strategy?
  • 9. Why Do We Need SISPs? How can I keep our systems flexible and cost efficient? Which IT initiative should I do first? I have limited time, people and money. How can I implement all these IT things?
  • 10. Why SISP? To ensure that IS both complements and assists in the achievement of our business goals. To ensure that the use of scarce resources are maximized within a business. To maximize the benefits of changing technology. To take account of the different viewpoints of business professionals and IT professionals.
  • 11. SISP - Aims Blueprint developed for organization for the use of ICT which is Cost effective Alignment of IS / IT with organisational goals Competitive advantage
  • 12. The Challenge is to Improve Organisational Performance The overall aim of SISP is to direct IS resources to those areas offering the most important corporate benefits Corporate Body Operations Information Systems Finance Marketing Distribution Human Resources CustomersCustomers SuppliersSuppliers EmployeesEmployees Regulatory Agencies Regulatory Agencies
  • 14. Align the IS plan with the overall objectives and strategies of the organization. Strategic Information Systems Planning Overall Objectives and Strategies IS Plan
  • 15. Alignment A business accomplishes its objectives by mobilizing all its units towards realizing its business scope. Coordination, perseverance, and concentration of effort toward a shared set of objectives. A business which is aligned is said to be in a state of “strategic fit.”
  • 16. Issues in IS/IT that lead to the need of SISP. Systems investments are made that do not support business objectives Inadequate infrastructure investments made Problems caused by IS/IT investments becoming a source of conflict Loss of control of IS/IT Systems are not integrated No means for prioritising investments No mechanisms for deciding optimum resource usage Poor management of information Misunderstandings between users and IT specialists
  • 17. Issues in IS/IT that lead to the need of SISP. Localized justification of investments can produce benefits that are counterproductive in the overall business context
  • 18. Advantages of SISP Identify important application to invest Help organization use its IS to carry out existing business strategy Help organization define business strategy
  • 19. Without SISP, may result: Missed opportunity Duplicated systems Incompatible systems Wasted resources
  • 20. Where & When ISP? Any organization that has interest in getting the best out of its IT investments. Facing problems Grabbing opportunities. Information Systems (IS) fail to satisfy huge, diverse and complicated information requirements of their users.
  • 21. Who Perform SISP? IS Planners / System Analyst Variety of stakeholders (i.e. sponsor, users) Top management commitment  successful ISP.
  • 22. HOW? Look at business structure, function, processes, culture Look at existing IT Look at available technology. Carry out interviews. Develop policies. Develop application portfolio. Plan schedules for migration, implementation etc.
  • 23. Internal IS / IT environment SISP - Inputs & Outputs Source: Ward et al Figure 3.8 O U T P U T S I N P U T S Strategic IS / IT planning process Current applications portfolio IT strategy Applications portfolio Models & matrices IS management strategy Business IS strategy Internal business environment Planning, approaches, tools & techniques External business environment External IS / IT environment
  • 24. Current Definition of SISP “The continuous review of computer technology, applications and management structure to ensure that current anticipated information and process needs of the organization are met in a way that provides an acceptable return of investment (ROI), is sensitive to the dynamic politics and culture of the organization and is aware of the sociological environment within which the organization exists.” Mc Bride, De Monfort University

Editor's Notes

  1. Technological, economical, social cultural, political dimensions connect individuals, govt and firms across national borders