Chapter 3

Strategic Information Systems Planning

Agenda

• Hierarchy of planning information flow

• Issues of IS planning

• Planning model

• Planning process framework

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

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

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

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

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

Issues of IS Planning - IV

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

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

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

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

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

Planning Framework - I

• Initiate planning process– Confirm objectives, scope, deliverables,

resources, risk, and team– Plan tasks, schedule, roles, and responsibilities,

and milestones

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

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

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

Question

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

Points to Remember

• Hierarchy of planning information flow

• Issues of IS planning

• Planning model

• Planning process framework