Strategic Information Systems Planning

1
Chapter 3

• Strategic Information Systems Planning

2
Agenda

• Hierarchy of planning information flow
• Issues of IS planning
• Planning model
• Planning process framework

3
Hierarchy of Planning Information Flow - I

• Business planning
• Input external impacts, threats, and
  opportunities
• Input 2 IT strategy potential
• Output 2 business strategy
• Business IS/IT demand planning
• Input IS/IT perspective
• Input 1 business strategy
• Input 2 tactics, infrastructure
• Output 1 IT strategy potential
• Output 2 IT needs, priorities, policies

4
Hierarchy of Planning Information Flow - II

• IT supply planning
• Input user needs, resources
• Input 1 IT needs, priorities, policies
• Input 2 effectiveness
• Output 1 tactics, infrastructure
• Output 2 IT plans
• Development and Implementation
• Input user satisfaction
• Input 1 IT plan
• Output 1 effectiveness

5
Issues of IS Planning - I

• Driving forces
• External business factors
• External technical factors
• Internal business factors
• Internal technical factors
• IS Management
• Goal alignment business and IS
• Strategic systems IT for competitive advantage
• Planning strategic IS/IT planning
• Education of senior management role in IS/IT

6
Issues of IS Planning - II

• Scope
• IT supply technology as a means of delivery
  (resources)
• IS demand business needs expressed as
  information systems requirements
• Corporate IS/IT management strategy and corporate
  IT strategy vs. business unit IS strategy and
  business unit IT strategy
• Vertical and horizontal consolidation and
  coordination

7
Issues of IS Planning - III

• Characteristics of selected approach
• Overview, top-down, flexible, and modular
• Consistency and clear checkpoints
• Interactive communication
• Documentation, diagram, and deliverable
• Rational decision
• Human oriented

8
Issues of IS Planning - IV

• Resources
• Management sponsor
• Commitment from Steering committee
• Automated support facilities
• Physical facilities

9
Planning Model -I

• Inputs
• The internal business environment
• Business strategy, objectives, resources,
  processes, culture, and values
• The external business environment
• Economic, industrial and competitive climate
• The internal IS/IT environment
• IS/IT perspective, maturity, business coverage
  and contribution, skills, and resources, and
  technological infrastructure
• The external IS/IT environment
• Technology trends, opportunities, and usage

10
Planning Model -II

• Output
• Executive summary conclusion and recommendations
• Supporting evidence
• IS/IT management strategy
• Common and consistent policies and procedures for
  the corporate
• Scope and rationale, IS/IT organization,
  investment and prioritization policies, vendor
  policies, human impact policies and education, IS
  accounting policies

11
Planning Model -III

• Output
• Business IS strategy application portfolios and
  services needed by the corporate and strategic
  business units to achieve business objectives
• Business environment and IS/IT environment
• Business IS demand
• Information needs and conceptual information
  systems
• Application portfolio required, upgrading,
  future, analysis, priorities, costs and benefits
• Business information models
• Business conclusions
• Business recommendations

12
Planning Model -IV

• Output
• IT strategy policies and procedures for
  technology and special resources
• Application portfolio management
• Organization of IS/IT resources and
  administration
• Information resources and services
• Investment, prioritization, and benefit
• Application development
• Technology

13
Planning Framework - I

• Initiate planning process
• Confirm objectives, scope, deliverables,
  resources, risk, and team
• Plan tasks, schedule, roles, and
  responsibilities, and milestones

14
Planning Framework - II

• Understand the current situation and interpret
  business needs
• Analysis of the business strategy, objectives,
  critical success factors, critical problems, and
  processes in terms of SWOT and needs
• Evaluation of the current IS/IT operation in
  terms of systems, information, resources,
  organization, skills and services for improvement
• Innovative analysis and identification of
  potential internal and external usages of IS/IT

15
Planning Framework - III

• Determine the business IS strategy
• IS demand for the corporate and strategic
  business units in terms of current, required and
  future
• Define information and systems architecture
• The analysis of IS/IT and processes needs for
  building proposed business model for corporate

16
Planning Framework - IV

• Formulate IT supply proposal
• Deliverables from the IS planning process
• Clear direction for the IS objectives
• IS/IT and business development
• Prepare outline plans and a business case for
  approval

17
Question

• How do you apply this IS/IT planning process to
  an e-business?

18
Points to Remember

• Hierarchy of planning information flow
• Issues of IS planning
• Planning model
• Planning process framework