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Chapter 14

Planning Information Systems

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Learning Objectives When you finish this chapter, you will

Recognize different approaches to business planning in general and IS planning in particular.

Know how IS planning should be carried out.

Debate the importance of integrating IS planning into overall organizational planning.

Appreciate the many complex factors faced by IS planners.

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Why Plan? What is Planning?

An IS plan is a statement of how management foresees its ISs in the future.

IS plan includes: Activities planner believes will help achieve

goals. Program for monitoring real-world progress. Means for implementing changes in the

plan.

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Why Plan?

Business Planning Define organization’s goals and

objectives Determine resources needed to attain

objectives Create policies to govern the acquisition,

use, and distribution of resources Provide for any changes in objectives

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Three Approaches to Planning

1. Top-down Planning Focuses on organizational

goals first, then on the needs of business units

2. Bottom-up Planning Focuses on needs of business

units first, then on organizational goals

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Approaches to Planning

3. Planning by Critical Success Factors

Executives define critical success factors first so planning can address resources to support those factors Critical success factor:

issues identified as critically important to business success

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History of Information Systems Planning

Figure 14.5 Advances in IS planning since the 1970s

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Prerequisites for Information Systems Planning Recognize IT as an indispensable

resource Understand that IT is a complex

resource Regard IT as owned by the entire

organization Regard ISs as a source for gaining

strategic goals View ISs as a tool to control power

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Key elements of an IS Plan Corporate mission

statement Vision for IT within

organization IS strategic and tactical

plans Operations plan to

achieve mission and vision

Budget to ensure resources are available

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Information Systems Planning

The Corporate and IS Mission Statements The corporate mission statement details

the purpose of the organization and its overall goals.

IS mission statement outlines the purpose of ISs in the organization.

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A Sample Mission Statement

Figure 14.8 The mission statement of a university IS organization

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Information Systems Planning

The IT Vision Wish list of what IS managers would like

to see in terms of hardware, software, and communications, to contribute to goals of the organization

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Information Systems Planning

Strategic and Tactical Information Systems Planning IS strategic plan details what is to be

achieved IS tactical plan describes how goals will

be met and by when

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Two Approaches to Strategic Planning

Figure 14.9 Rigid and dynamic planning

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Information Systems Planning

Important Factors in IS Tactical Planning Flexibility Compatibility Connectivity Scalability Standardization Total Cost of Ownership

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Information Systems Planning

Figure 14.10 Hardware planning

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IS Planning Initiatives

Four groups of people who initiate new or improved ISs from different perspectives Top management IS professionals Line managers Users

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IS Planning Activities Can Be Driven by a Variety of Sources

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Who Initiates IT Projects?

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The Champion

High-ranking officer who commands sufficient political clout to include IS in planning

Most effective champions are not IS professionals

AKA Project Sponsor, Evangelizer…

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The Champion A successful champion is a leader who can:

Promote the vision of IT in the organization Inspire top management and subordinates alike Remove barriers to realizing vision Focus on both short-term and long-term

objectives Be a torchbearer for making change happen Drive accountability to lowest organizational

level

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The Systems Analyst as an Agent of Change

Motivate

Educate

Train

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The Systems Analyst as an Agent of Change

Planning almost always deals with change, which people tend to resist.

Systems analysts must convince users that the new system will help them in their work. Explain how a new system will improve

business performance Train individuals in the use of the new

system

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Two Real World Examples

1. Susan’s Training Wheels: MAX

2. Current Hitachi Consulting Methodology

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MAX - A Project Framework

• MAX = Methodology Analysis / Exchange

• Information Technology toolkit

• Business Process Redesign / Reengineering toolkit

• Provides Structure to the “Black Art” of consulting

• Forum for information sharing

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Phase I: Build the Foundation

• Establish link between process and technology

• Determine business needs that drive technology requirements

• Challenge the “As-Is” environment

• Build the business case for process and technology improvement

100 Project Management and Facilitation

200 Change Management

MAX Methodology Phase I: Analysis & System Selection

500 Software Selection & Analysis Summarization

300 Project Design & Kick-Off

400 As-Is Analysis & Requirements Definition

700 Planning: Design & Implementation

PR

OC

ES

S

S

YS

TE

M

AA Project Team Prep Project

ResourcePlan

Analysis Team

Kick-Off

Refin

e An

alys

is Pl

anAdmin & Logistics

Set-up

Analysis Approach

& Schedule

RACI Analysis

PAVA Key Proc.

Focus Interviews

DILO

Brown Papers

Process Specific

Diagnostics

Activity Effort Analysis

Customer Assessment

600 Performance Measurement & Benefits Tracking

Prioritize OpportunitiesRoot

Cause Analysis

Validate As-Is

Findings

SummarizeKey

Findingsfrom

AnalysisActivities

Opportunity Valuation

Best Practices Review

Develop Business

Case

Develop Decision

Framework

FinalizeVendor

List Negotiate Software Contract Develop

Phase II Plan:

•Initiatives•Charters & Objectives

•Performance Targets

•Quick Hits•Phasing•Schedule

•Team Structure•Staffing/ Resources•Benefits Schedule

•Cost Summary

Translate Business Requirements into

System Functions & Features

Screen Leading

Candidates

Develop & Conduct RFI/ RFPProcess

Purchase Required Hardware

Finalize Technical

Architecture Design

Plan & Prepare

for Vendor Demos

ConductVendor Demos

Select Final

Package

Review Contracts & Standard Licenses

Site Visits /Check References

ConductTechnical

Gap Analysis

Strategic Planning

Assess Current Technical

ArchitectureUnderstandhigh level system

requirements

Develop Selection Approach

ResearchPackages

• Market analysis• AA Analysis

SelectionTeam

Kick-off

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Project Management and Change Management

• Ongoing throughout all work streams

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Project Design & Kick-off

What• Preparation for Process

Analysis/Redesign• Front-end work for technology

selection

Goal• Establish project scope, objectives &

schedule• Orient team to methodologyDeliver• Scope and approach• Project management infrastructure• Project team assignments• Project plan

– Milestones– Deliverables

300 Project Design & Kick-Off

AA Project Team Prep Project

ResourcePlan

Analysis Team

Kick-Off

Admin & Logistics

Set-up

Analysis Approach

& Schedule

Understandhigh level system

requirements

Develop Selection Approach

ResearchPackages

• Market analysis• AA Analysis

SelectionTeam

Kick-off

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As-Is Analysis and Requirements Definition

What• Assessment and analysis of current

business processes• Identify underlying information

technology needsGoal• Identify business requirements• Highlight technological deficiencies• Identify potential solution providersDeliver• Process flows and analyses• Baseline performance metrics• Gaps in information technology and

processes

400 As-Is Analysis & Requirements Definition

Refin

e An

alys

is Pl

an

RACI Analysis

PAVA Key Proc.

Focus Interviews

DILO

Brown Papers

Process Specific

Diagnostics

Activity Effort Analysis

Customer Assessment

Develop Decision

Framework

FinalizeVendor

List

Translate Business Requirements into

System Functions & Features

Screen Leading

Candidates

Develop & Conduct RFI/ RFPProcess

Assess Current Technical

Architecture

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Software Selection and Analysis Summarization

What• Identification of key process

deficiencies and opportunities• Evaluation and selection of software

package(s) to support redesign Goal• Confirm sources and causes of

operational problems • Select appropriate technology to

support proposed process changes Deliver• Root Cause Analysis• Gap Analysis• Vendor demos• Site visits and reference checks

500 Software Selection & Analysis Summarization

Root Cause

Analysis

Validate As-Is

Findings

SummarizeKey

Findingsfrom

AnalysisActivities

Opportunity Valuation

Best Practices Review

Translate Business Requirements into

System Functions & Features

Plan & Prepare

for Vendor Demos

ConductVendor Demos

Select Final

Package

Review Contracts & Standard Licenses

Site Visits /Check References

ConductTechnical

Gap Analysis

StrategicPlanning

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Planning: Design and Implementation

What• Preparation for Phase II Process Design • Acquisition of information technology

Goal• Identification of Phase II Design project

components and objectives• Completion of technical architecture

and infrastructure

Deliver• Cost-benefit Analysis• Phase II plans and charters• Software contract negotiation• Prioritized opportunities• Staffing and resource estimates

700 Planning: Design & Implementation

Prioritize Opportunities

Best Practices Review

Develop Business

Case

Negotiate Software Contract Develop

Phase II Plan:

•Initiatives•Charters & Objectives

•Performance Targets

•Quick Hits•Phasing•Schedule

•Team Structure•Staffing/ Resources•Benefits Schedule

•Cost Summary

Purchase Required Hardware

Finalize Technical

Architecture Design

StrategicPlanning

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• Work plan• Schedule• CARE

documentation

• etc.

• ??

Phase VI:

Support and

Improve Solution

Phase I:Mobilize Project

Phase II:Analyze Situation

• Work plan• Schedule• CARE

documentation

• etc.

• ??

Phase III:

Design Solution

Phase IV:

Develop Solution

• Work plan• Schedule• CARE

documentation

• etc.

• ??

Phase V:Deliver Solution

Sample Service Offering: Software Selection

Common Tasks

Common Tools

Send initial communication

Train project team

Microsoft project

Performance Review Form

Vista

Confirm decision approach

Create Communication Strategy

ID high-level opportunities

Determine technical req.

Determine business req.

Create high-level business case

Primary Activity Value Analysis (To-be)

Process Mapping (To-be)

Problem Solving Methodology

Business Case Model

Determine system req.

Finalize solution alternatives

Technical Architecture (To-be)

Application Architecture (To-be)

Create Communication Plan

Conduct vendor reference calls

Develop Cost analysis

Identify technical gaps

Evaluate solutions

Identify solution gaps

Create detailed business case

Demo Script

Vendor demonstration

Demo Scorecard

Cost Summary

Vendor reference scripts

Finalize solution recommendation

Finalize implementation plan

Finalize cost estimates

Contract negotiations

Determine Org. ReadinessID key stakeholders

Change Survey

Stakeholder Analysis

Pricing Tool

Assess As-Is processes

Research S/W packages

Assess As-Is technical & application architecture

Focus Interview Script

Primary Activity Value Analysis (As-is)

Process Mapping (As-is)

Technical Architecture (As-is)

Application Architecture (As-is)

Assess As-Is business environment

Determine pre-selected S/W packages

Determine IT org technical capacity

Org Skills Matrix

Identify org skills gaps

Implementation Work Plan

Implementation Resource Model