Presentation on theme: "3. Introduction to Strategic Information Systems Planning (SISP)"— Presentation transcript:
1 3. Introduction to Strategic Information Systems Planning (SISP) Title: Strategic Information Systems PlanningHistorical development of ISDefine SISP and its purposeBusiness/IS Strategy linkageIS Strategy problemsIS,IT and IMTraditional Vs Sense and Respond Approach
2 IS/IT Issues Strategic Potential of IT Replacing The Legacy Systems of today with ?Linking IT/IS Strategy With Business StrategyIT ArchitectureStrategic Information SystemsSustainable Competitive Advantage
3 Strategic Use Of IS/IT CHANGE WHAT THE COMPANY DOES PRODUCTS SERVICES (Manchester buses - wireless)DELIVERY CHANNELS (www)CHANGE HOW THE COMPANY OPERATESORGANISATIONDECISIONSCOMMUNICATIONSCHANGE PATTERNS OF INVESTMENTMORE INVESTMENT FOR MARKET LEADERSHIP
4 Strategic Potential of IT To gain competitive advantageTo improve productivity and performanceTo enable new ways of managing and organisingTo develop new businessesTo change distribution channels
5 IS Historical Development Historically IS planning has been neglectedSystems have been developed to meet individual function or department needs (applications planning)The companies IS Strategy was simply a dept aggregation...Traditional IS Planning was on a project by project basisNo coherent corporate or SBU IS/IT plan in placeIS had minimal influence on Business StrategyFailuresincompatible systems, poor functional IT and business integration, financial losses, lost business opportunities (for SIS)implementation lags, continuous management fire-fightingcustomer dissatisfactionIf we fail to plan for IS, then we plan to fail with IS !
6 IS Strategy LinkageThe IS Strategy must be linked to the business strategy. Possible linkages areThe IS strategy may be aligned with the business goals by translating them into IS goalsThe IS strategy may impact on the business goals by competitively enhancing themThe IS strategy may require the redesign of business processes in order to achieve the business goalsIS can support business strategye.g. IS can be aligned with one of Porter’s generic strategiesIS can create strategic optionse.g. IS can spearhead revolutionary approaches to the market place or internal operationsNo IS strategy planning is robust unless it is connected to the business strategyConversely no business strategy is complete unless it is connected to the IS strategyIT delivery mechanisms may have to be conceptualised and planned strategicallyIT architecture is therefore a strategic issueOrganisational capability in IT and IS may impact on delivering IS for strategic advantage.The management of information resources is therefore a strategic issue
7 IS Portfolio Mandatory Strategic Traditional Infrastructure Renewal R & DMaintenance
8 IS Strategy Positioning Business StrategyDivisional Strategy Divisional Strategy Divisional StrategyProduction Strategy IS Strategy Marketing StrategyIT Strategy Manual Systems Strategy Communications StrategySoftware Hardware Planning Staffing Data VoicePolicies, implementation decisionsRobson, ch 4, page 96
9 Strategic Information Systems Planning (SISP) DefinitionStrategic systems planning deals with planning for the use of IT for strategic purposes.It attempts to form a view of the future 3 to 5 years out to help determine what should be done now.
10 SISP contin… Objectives To identify strategic applications To develop an organisational IS architectureTo Identify new applications which provide a greater return on investmentTo determine more opportunities for improving information systems provisionTo improve resource requirements forecastingTo improve communications with users
11 SISP contin..Some fundamental reasons why IS planning is difficult include:Business goals and System Plans need to AlignTechnologies are rapidly changingCompanies need portfolios rather than projectsInfrastructure development is difficult to fundResponsibility needs to be jointOther planning issues
12 Traditional Approach Three Levels of Strategy What?IS STRATEGYDivision/FunctionDemand OrientedBusiness FocussedApplicationsIM STRATEGYOrganisation BasedRelationships OrientedManagement FocussedArchitectureWhere?ManagementIT STRATEGYActivity basedSupply orientedTechnology focussedHow?Delivery
13 IS STRATEGYThe long term directional plan which determines what to do with ISIt is concerned primarily with aligning IS development with business needs and with seeking strategic advantage from ISIt is formulated at the level of the SBU or the level of business where specific customer needs, unique competitors and autonomous resources can be delineatedIn large complex organisations there may be more than one IS strategy.
14 IT STRATEGYThe technology framework or architecture which drives, shapes and controls the IT infrastructure to support the IS strategyThe IT strategy is concerned primarily with technology policiesIt deals with questions of architecture,vendor policies and technical standards
15 IM STRATEGYThe management framework( i.e. the policies procedures aims and actions) which guides how the organisation should run IS/IT activities.The IM strategy is concerned withthe role and structure of IT activities in the organisationmanagement controls for IT, performance measurement and management processeswherefore-which way?,who does it?,where is it located?
16 MANAGING THE IT FUNCTION STRATEGIC IM QUESTIONSPlanningWhat IS do our current business strategies require?What Strategic opportunities does IT offer?OrganisationHow will IT affect our organisation structure?How/where can we find more IT staff?How do we retain IT skills?Should we have an IT director at board level?ControlHow much are we spending on IT?How much should we be spending on IT?How can we evaluate IT proposals?How can we manage large IT projects?Answers to these problems/questions?Need to engage in serious strategic thinking...Question? Is there more than one way of thinking in order to answer these questions?
17 Problems in IS Planning Inadequate Business PlansAgreeing PrioritiesLack of Planning ExperienceRate of Business/User ChangeOrganisation StructureDiscovering Competitive AdvantageNo Standards for what an IS strategy plan should contain
18 Traditional IS Planning Assumptions Traditional stance based on assumptions:The future can be predictedTime is available to progress through this 3 part sequenceIS supports and follows the businessTop management knows best, because they have the broadest view of the firmThe company can be viewed as an army:* due to the internet etc, these assumptions no longer hold true
19 Sense and Respond Approach What came out of this is a move towards a new approach:Let strategies unfold rather than plan theme.g. MicrosoftFormulate strategy Closest to the ActionE.g. SkandiaGuide strategy making with a strategic envelopeE.g. ShellBe at the tableTest the futurePut the infrastructure in placeCase Study - Microsoft
20 IT strategic direction SISPWhere are we today?Where do we want to go?How do we get there?Assessment ofcurrent technology & IT organisationBusiness directionsIT deployment planProjectsQuick HitsIT opportunitiesIT strategic directionBenchmarking competitors and IT trendsIT organisational alignment planIT architecture
21 Toolkits for Strategic Planning There is a range of tools and techniques which have been developed to assist in formulating an explicit business strategySimilarly there is a range of tools, techniques and principles to guide management in exploiting IS for strategic advantage.