2 Learning Objectives Discuss the major issues addressed by IS planning. Demonstrate the importance of aligning information systems plans with business plans.Explain the four-stage model of information systems planning.Describe several different methodologies for conducting strategic information systems planning.
3 IT planning is essential for both planners & end-users for several reasons:End-users do IT planning for their own units.End-users must participate in the corporate IT planning and therefore must understand the process.Corporate IT planning determines how the IT infrastructure will look. This in turn determines what applications end-users can deploy.
4 IT PlanningA Strategic information systems plan identifies a set of computer-based applications that will help a company reach its business goals.IT planning identifies the applications portfolio, a list of major, approved IS projects that are consistent with the long-range plan.Planning and control systems for IT started in the late 1950s and early 1960s.Initial mechanisms addressed operational planning, and eventually shifted to managerial planning and resource allocation.
5 Basic IT planning addresses the following four general issues: IT Planning IssuesBasic IT planning addresses the following four general issues:Aligning the IT plan with the organizational business planDesigning an IT architecture for the organization in such a way that users, applications, and databases can be integrated and networked together.Efficiently allocating information systems development and operational resources among competing applications.4. Planning information systems projects so that they are completed on time and within budget and include the specified functionalities.
6 Problems with IS Planning Often an expensive and time consuming processPitfall of allowing IT planning to become an end in itself.Beware of methodologiesSolutionsPrepare to implement planPlan quicklyDemonstrate the usefulness of the plan
7 IT Planning Stages Four-Stage Model of IT Planning Description Strategic IT planningEstablishing the relationship between the overall organizational plan and the IT plan.Information requirements analysisIdentifying broad, organizational information requirements to establish a strategic information architecture.Resource allocationAllocating both IT application development resources and operational resources.Project planningDeveloping a plan that expresses schedules and resource requirements for specific information systems projects.
8 Stage 1: Strategic Information Planning Strategic information planning (SIP) must be aligned with overall organizational planning and with e-business.To accomplish this alignment, the organization must execute the following:Set the IT mission.Assess the environment.Assess existing systems’ availabilities and capabilities.Assess organizational objectives and strategies.Set IT objectives, strategies, and policies.Assess the potential impacts of IT.An organization would conduct the same six steps for e-business.
9 The Relationship Among Business, IS Strategy and IT Strategy Business StrategyWhere is the business going and whyIT Impact and potentialBusiness DecisionsObjectives and DirectionChangeIS StrategyWhat is requiredBusiness BasedDemand OrientationApplication FocusedIT StrategyHow it can be deliveredActivity BasedSupply OrientationTechnology FocusedImpact approach vs. Alignment approach.
10 Business Systems Planning The Business systems planning (BSP) model, developed by IBM, is a top-down approach that starts with business strategies.It deals with two main building blocks as the basis of the information architecture;Business processesData classesThe recognition that processes could be a more fundamental aspect of business than departments or other organizational arrangements broke new ground.
11 BSP Business Strategy Business Processes Business Application Data ClassesOrganization databasesInformation Architecture
12 CSF & Scenario Planning The critical success factors (CSF) approach was developed to help identify the information needs of managers.The fundamental assumption is that in every organization there are three to six key factors that must be done very well to be successful.Therefore organizations must continuously measure performance in these areas.Sample questions asked in the CSF approach are:What objectives are central to your organization?What are the critical factors that are essential to meeting these objectives?What decisions or actions are key to these critical factors?What variables underlie these decisions, and how are they measured?
14 Stage 2: Information Requirements Analysis The goal of the second stage of the model is to ensure that the various information systems, databases, and networks can be integrated to support the requirement identified in stage 1.Step 1: Define underlying organizational subsystems.Step 2: Develop subsystem matrix.Step 3: Define and evaluate information requirements for organizational subsystems.Step 4: Define major information categories and map interview results into them.Step 5: Develop information/subsystem matrix.
15 Stage 3: Resource Allocation Resource allocation consists of developing the hardware, software, data communications, facilities, personnel, and financial plans needed to execute the master development plan defined in Stage 2.This stage provides the framework for technology and labor procurement, and identifies the financial resources needed to provide appropriate service levels to users.Funding requests from the ISD fall into two categories;Request for spending far exceed the available fund.Those necessary to stay in businessThose for improving the information architecture
16 Stage 4: Project Planning Project Planning provides an overall framework within which specific applications can be planned, scheduled, and controlled.This stage is associated with systems development and project management.
17 PM Development GoalsScheduleWithin BudgetAccording to specification
18 Aggregate Project Plan MinorProcesschangeExtensiveProcesschangeR & DProjectsBreakthroughprojectsExtensiveProcesschangePlatform ProjectsDerivativeprojectsMinorProcesschange
19 Selecting Projects Factors Is the project potentially profitable. What is the return on investmentDoes the firm has the skill and knowledge to complete the project successfully.Is it in line with the organization strategyCan it be completed within the time limit
20 Why do projects still fail Dependencies are missedRequirements changeThings take longerTechnology fails to live up to expectationsPeople leave
21 IT Planning; methods, stages, and outputs Methods Stages OutputsBSP (IBM)CSFSWATStrategic Information PlanningEnvironment assessmentAlignment plansIT strategy, policyCurrent System assessmentImpact analysisFive-step processInformation Requirement AnalysisDirection for application portfolio.ROICost benefit AnalysisIT ArchitectureLegacy system reengineeringAllocation of Resources, BudgetsDirection for specific application: Cost, time, specification.PERTMilestonePM MethodsProject Management
22 Managerial IssuesImportance. IT planning is one of the most challenging and difficult tasks facing all of management.Organizing for planning. What should be the role of the ISD? How should IT be organized? Staffed? Funded?Fitting the IT architecture to the organization is important.
23 Managerial Issues (cont.) IT architecture planning. IT specialists & business users must jointly determine the present and future needs for the IT architecture.Ethical and legal issues.IT policy. IT architectures should be based on corporate guidelines.IT strategy. Leadership, listening and experimentation are important.Integration. The role of IT in redesign and BPR.Failures. Very big projects have a tendency to fail when expectations exceed real capabilities.