Information Systems Planning The Alloway technique

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Information Systems Planning - The Alloway
technique
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Todays Dilemma

• I/S tools currently exist to provide all the
  information that a corporation needs
• Companies, however, have difficulty defining the
  information that needs to be in their systems,
  understanding the meaning of the information, and
  how to use it to manage or coordinate the
  business
• Companies have difficulty finding people with the
  skills to redesign their structure, culture and
  roles
• Companies have difficulty defining incentives to
  motivate people to meet organizational and
  personal goals

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I/S as an Enabler

• 85 of all reengineering efforts involve the use
  of information systems as a critical piece of
  the change although not to the degree proposed
  by Hammer and Champy in their book -
  Reengineering The Corporation The Manifesto for
  Change in the 1990s
• Companies must understand I/S and develop an
  organizational structure and architecture and
  that supports the use of I/S to enable change
• The initial critical features that must exist are
  the proper organizational placement of the I/S
  dept, steering committee and a plan

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I/S Steering Committee Functions

• Provides linkage to the business plan
• Reviews project progress
• Assigns project responsibilities
• Provides long term funding continuity
• Fosters interdepartmental communication

• Prioritize projects
• Require the development of an I/S plan
• Provide management education
• Demonstrates manage- ment commitment
• Supports cross functional projects
• Separates maint/deve.

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Three Stage I/S Planning Model

• Strategic Planning
• Strategy set transformation
• Critical success factors
• Alloway technique
• Organizational Info. Requirements
• Bus. info Analysis and Integration Technique
• Ends/Means
• Stage Assessment

• Business Systems Planning
• Resource Allocation
• ROI
• Present Value
• Zero Based Budgeting
• Chargeout

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Strategy Set Transformation

• Study Phase - Top Management
• Identify internal external groups influencing
  firm
• Identify goals of each group
• Organizational Strategy Phase - Middle Mgt
• Identify organizational strategy for achieving
  the desired interface with each group
• MIS Strategy Phase
• Identify alternate MIS Strategies to support
  organizational strategy
• Evaluate alternatives
• Select best

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Business Systems Planning

• What are the major business unit problems?
• Solutions?
• Information role in solutions?
• What are major decisions associated with Mgt
  responsibilities?
• What are the improvements in decisions that will
  result from information improvements?

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IBMs Business Systems Planning

• Phase I
• Done by I/S users
• Defines the current business processes without
  regard to organizational structure
• Identifies current I/S support, systems needed
  priorities
• Data gathered from interviews with managers -
  obtains environment, objectives, key decisions
  and problems and perceived information needs

• Phase II
• Goal is a long range I/S strategic plan for all
  the organizations I/S needs
• Weaknesses of existing systems are noted
• System integration potential is described
• Provides recommended data and system
  architecture, schedule for I/S development,
  procedures, policies and I/S organizational
  structure

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BSP Matrix Analysis

• Process/Organization
• Process/Data Class
• Organization/System
• Process/System
• Data Class/System

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I/S Plan Components

• Executive Summary/ Plan Justification
• Mission objectives
• Strategies
• Profile existing capabilities
• Define information needs
• Develop architecture
• Identify Project priorities/ cost benefit/risk
  analysis

• I/S Organization
• Policies and procedures
• Context for change
• Projects and initiatives
• Resource estimates schedules
• Assumptions/Contingency Plan

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Executive Summary/Plan Justification

• High level summary
• Justification for plan
• Out perform companies without a plan
• Productivity gains/30-55 ROI in three years
• Reduce I/s scoping requirements by 2/3rds
• Produce automated systems with more functionality
  faster
• 40 lower maintenance costs

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Vision/Mission/Goals/Objectives

• Vision 2000 - need catchy name - e.g. use I/S to
  put us in a new business
• Mission - how we will carry out the vision
• Goals - articulates the broad directions of the
  plan
• Objectives - indicates specific areas of focus -
  the what of the plan

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Goals and Objectives

• Goals
• Support the business goals
• Identify and address information needs
• Provide technological tools to enable the
  assembly of timely and consistent information
• Construct systems to facilitate management change
• Develop a plan as I/s strategy responsive to the
  needs

• Objectives
• Implement automated systems where there are
  benefits
• Assure automation efforts across the organization
  are consistent to allow data sharing and
  integrety increase management's access to
  decision support data
• Choose the right technology and manage its growth
  in a cost effective manner to support objectives
  1-3

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Objectives

• Support the business goals
• Support the divisions
• Link business processes/Facilitate communications
• To help organization through the growth stages
• To help individuals do work better
• Provide right amount to right group
• Low cost/risk free
• Keep us on the leading edge

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Develop Strategies - That Stir the Imagination

• Help users help themselves
• Develop flexible systems that support managerial
  functions
• Develop work support rather than MIS systems
• Change the I/S development philosophy

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Profile Existing Capabilities

• Stage assessment
• Anthony three levels of control
• Mc Farlands Strategic Grid
• Benefit/ Beneficiary matrix
• System Architecture diagram

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Three Steps

• Inventory of conditions.
• Identification of system wide fixes.
• Development of the potential for automation
  using
• Anthonys pyramid
• MacFarlands Strategic Grid
• Benefit/Beneficiary Matrix
• Hardware/Communications Diagram

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Legend VB - Visual Basic M - Manual SS -
Spreadsheet AC - Statistical Package TP - Turbo
Pascal DOS - Basic FP - Front Page C - Crystal
Reports
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(No Transcript)
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Levels of Control and Application Portfolio
Coverage
Recognized by Robert Anthony in the 1960s
Strategic Planning
Shows the need for different views of the same
information as you proceed up the organization
Management Control
Operational Control
Transaction Processing
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Overall Goal Setting
Strategic Planning
Service Planning
Financial Planning
Production
Prod. Dev.
Fac. Mgt.
Marketing
Sales
Prod.
Fin. Mgt.
HR
Management Control
Salary benefit Evaluation
Service Develop. plan
Personnel Evaluation
New Product Strategy
Cost-Control Management
Project Management
Inventory Management
Product Development
Cash Management
Market Forecasting
Maintenance Planning
Budget Monitoring
Market Planning
Financial Report
Sales Forecasting
Market Scanning
Sales Planning
Sales Analysis
Quality Control

HRD

Marketing
Sales
Production
Product Dev.
Fin. Mgt.
Facility Management
HR
Operation Control
Advertising Product
Customer Responds
Consumer Research
Account Receivable
Inventory In Hand
Order Processing
Account Payable
Recruitment
User satisfaction
Product Testing
Sales Reporting
Product Pricing
Product Design
Updating Data
Procurement
Maintenance
Profit Plan
Training
Payroll
Hiring
GL
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Application Coverage Portion of Stage Assessment
Complete Coverage (Best of Breed) Attempted
Coverage ( No. of Modules installed) Effectiveness
Discount (Minus user and technical characteristic
s discount) Effective Coverage
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BENEFIT BENEFICIARY MATRIX
Beneficiary
Functional unit
Organization
Individual
Benefits
Boundary Extension

• Formula automation
• Product forcasting

• Sales automation
• Decision making
• Task automation

Efficiency
Work Improvement
Performance Enhancement
Functional Enhancement
Effectiveness
Functional/ Organizational Redefinition
Role Expansion
Process Innovation
Transformation
The firm uses I/S in sales marketing,( customer
history)supporting managers in making decisions,
most clerical workers are using spreadsheet or
word processor to improve both speed and accuracy
by using PC-compaq wich loaded with several
applications I/S goals are developing networking
integrity the firms departments, vendors and
customers. For example Customers inventory
management status is monitored by the firms I/S
system, this will create linkages for the
- customers with sales,production, and shipping
(Supply continuity).
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BENEFIT/BENEFICIARY MATRIX

• Financial control

• Evaluation performance
• Broader marketing
• Business planning
• EIS

• Reporting
• Order processing
• Marketing Sales Scheduling
• Design
• Communication (E-mail)

• Reduce error
• Time save
• Increase job quality
• Increase productivity
• Cost Reduction

• Improve resource
• controlling
• Activity Evaluation
• Timely reporting
• Data collecting

• Service enhancement
• Customer satisfaction
• Product enhancement
• Decision making

• Personnel improvement
• Career change

• Improve job description

• Product development
• Enhance competitiveness

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Benefit/Beneficiary Matrix
Beneficiary
Functional Unit
Individual
Whole Organization
Benefits

• Task mechanization
• Eliminate duplication of work

• Improve credit check process
• Regional cooperation (marketing and information)
• Increase in house sales

• Satisfying cust. exper.
• Info response and sales
• Improve and centralize marketing campaigns
• Establish I/S Standard of Service

Efficiency

• Foster customer relations
• Automated inventory to warehouse
• Sales info to HQ

• Increase job quality (career planning)
• Improve customer relations (drives re-sales)
• Sales bonuses (motivation)

• Customer sharing
• Marketing campaigns
• Update customer DB
• Order entry levels

Effectiveness

• Integration of Systems (credit check order
  entry)
• Role Change to Account Administrator (empower
  order entry clerks)

• Integration of Systems (shipping, billing,
  marketing)
• Reduce relations with resellers (control of sales)

• Customer approach
• Information sharing
• Telemarketing
• Cross-train I/S personnel (no longer only one
  person who can fix hw)

Transformation
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BENEFIT/BENEFICIARY MATRIX

• Eliminate duplication
• Improve response time
• Leverage credit lines

• Evaluation performance
• Broader marketing
• Business planning

• Order processing
• Order tracking
• Credit verification
• Report generation

• Time saving
• Increase job quality
• Increase productivity
• Cost Reduction
• Reduce Training time

• Improve resource
• controlling
• Activity Evaluation
• Timely reporting
• Data collecting
• Information sharing

• Service enhancement
• Customer satisfaction
• Decision making

• Personnel improvement
• Job enhancement
• Improved customer relationships

• Effective Account Mgmt
• system

• Increase market share
• Enhance competitiveness
• Increase in house sales

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USPS Field IT Structure
Headquarters
ISSCs
Central Management Facility
District Offices (85)
Area Offices
Medium and Large Associate Offices (7,000)
4000 servers 700 LANs 75,000 Workstations
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District Office Components (85)
ccMail gateway
Netware 4.X and NT Servers
HP OpenView Console
Technical Support Staff (7)
Technical Support Staff Workstations (7)
DEC VAX
RAID
Tape
Tape
UPS
UPS
Network Printer
Postal Routed Network
Router
DSU/CSU
LAN Hub
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Associate Office Components (7000 Post Offices)
Administrative workstation
DBCS/CSBCS
DUC
ETC
POS IV
Vending
Associate Office Server
...
...
Network Printer
LAN Wiring and Workstation Outlets
Hub/Router
Uninterruptable Power Supply
Postal Routed Network
DSU/CSU
Tape Backup
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Project Priorities

• Cost/benefit
• Risk
• Impact on Business goals
• Departmental short term needs
• Mandated
• Data creating system
• Experience with the technology
• Compatibility
• Leading edge

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Cost/Benefit Methodology Steps

• The request
• The payback criteria
• The ratings
• Strategic goals
• Coverage
• Cost/Benefit
• Risk
• Mandated
• Creates data
• Comparison with other projects
• Quarterly/Bi annual Risk/Reward reviews
• Cancellation criteria

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Discussion Exercise

• Do your user communities look at a complete
  systems portfolio, or do they consider one
  project at a time.
• Does your firm have a new I/S project
  cost/benefit evaluation methodology?
• Have you utilized or seen similar techniques?
  Describe them and indicate how they were used?
• How would you use these techniques in your
  company?

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I/S Organization

• Steering Committee
• Placement in the organization
• Staffing levels
• Training
• Service level agreements
• Help desk/Information Center
• User teams
• Compensation
• Programmers hanbook

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Context for Change

• Provide vision of the future after systems have
  been implemented
• Indicate how change will be managed
• Assure employees that they will drive the change
• Provide timetable and milestones
• Provide incentives and disincentives

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Projects /Initiatives/Resource Estimates/Schedules

• Resource Estimates
• Understand the difference between business case
  and project plan estimates
• Do not over commitment scarce resources
• Let uses report progress
• Document changes - use release concept for scope
  creep item
• When its done, leave

• Projects/Initiatives
• Phase projects to lower risk and to spread the
  benefits
• Include training/data access and policy update
  programs
• Do not include base staff and infrastructure
  investments
• Leave time between projects to celebrate
• Require Users to be on teams

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The Alloway Technique

• The Missing Link
• Aligns I/S and Corporate Strategies

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Comparison with other I/S Requirements Planning
Techniques

• Survey rather than interview
• Quicker and less costly
• Defines short and long term needs
• Statistically based
• No I/S jargon - business based

• Structured methodology
• Developed at MIT
• Thoroughly tested
• More objective
• Has benchmarks
• Will give you more than you are looking for
• Is dangerous in the wrong hands

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The Gap
Performance
Asks The Same Questions Twice - Queries Clients
I/S
Priority
The Hope is low priority projects are given high
performance and vice versa
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Multiple Perspectives
Planning Levels Objectives, Strategies,
Architectures, Tactics
Topics/Attributes New System Demand, User
capabilities, Project Selection Criteria,
Technology types
Business Levels Management Levels, Common
Activities, I/S Usage
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Survey Orientation/Usefulness

• Company should have a business strategy
• Made for a fairly large organization, with many
  systems, high level of potential integration
• Organization should be mature - I/S steering
  committee, cost/benefit analysis, I/S plan,
  technology based survey experience
• Be project rather than information center based
• Be open to change (e.g. system design,
  organization, methods to accomplish mission,etc.)

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Classifies/Evaluates System Types

• MIS/Formated Report
• Work Support
• Data Exchange (
  cooperative/distributed processing)
• User support ( ad hoc report/forms system
  development )
• Office automation

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Evaluates System Performance

• Function ( does it do what you need)
• Usability ( ease of use by your department)
• Response ( input turnaround time, report delivery
  )
• Support ( training, problem resolution )
• Quality/Productivity
• Overall

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Measures Pent up Demand and Process
Identification/Integration Needs

• Pent Up Demand
• assistance in analyzing business needs
• support in preparing new system proposals
• increasing the new system development effort
• developing new systems successfully
• analysis of organization changes necessary to use
• managing backlog

• Process Integration
• to do your job successfully you depend on other
  people for their completion, information,
  cooperation, cooperation, coordination
• Rate how much you depend on other people for each
  activity listed
• Then rate the quality of the support of the you
  actually receive.

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No Excuses Case Exercise

• Is Cypress in Control?
• Would you consider Cypress a flexible and
  creative organization?
• Describe and critique their management systems?
• Comment on the I/T systems they used - contrast
  them with the ones that exist today?

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Learning Results

• Business Modeling
• Leadership
• Quality The Mindset and the Problem Solving Tools