33 3. IS Planning Issues Scope of IS planning Barriers in IS planning Overview of IS planning Inputs to IS planning Process of IS planning Outputs from IS planning Success factors for IS planning

34 Scope of IS Planning IS planning is usually carried out for each strategic business unit –It is aligned with the business planning process of the strategic business unit Definition of IS strategy –An understanding of the business objectives of an organization, the information needed to support those objectives, and the implementation of IS to provide that information

35 Barriers in IS Planning Problems related to management –Failure to get top management support –Lack of a clear cut business plan to guide the IS planning process –Failure to translate the IS plan into action items –Failure to review the IS plan with management so as to obtain commitment Problems related to IS planning process –Inability to form a sufficiently qualified IS planning team –Failure to adequately prepare for IS planning tasks –Failure to anticipate important new technological developments –Inability to realistically assess the strengths and weaknesses of the IS group

36 Overview of IS Planning External business environment Internal business environment External IS environment Internal IS environment Business IS strategies IS management strategy IT strategy IS planning tools and techniques Inputs to IS planning Outputs from IS planning Process of IS planning

37 Inputs to IS Planning External business environment –economic, social, political, legal, and ecological climate of the organization Internal business environment –current objectives, strategies, resources, processes, and culture of the organization External IS environment –technological climate (opportunities and threats) of the organization Internal IS environment –current IS maturity, business coverage, business contribution, skills, resources, applications portfolio, and technological infrastructure

38 Process of IS Planning Inputs to IS planning Formulate information and systems architecture Initiate IS planning process Understand environments and interpret business needs Other planning activities Previous outputs from IS planning Formulate IS management strategy and IT strategy Prepare migration plans Formulate business IS strategies Impact on business strategy Outputs from IS planning

39 Outputs from IS Planning Business IS strategies –describe how strategic business units will deploy IS to achieve business objectives –business model, applications portfolio, and information infrastructure –demand for IS (needs for business information) IS management strategy –ensure consistent IS policies throughout organization –IS vision, vendor policies, investment policies, human resource policies, and accounting policies IT strategy –outline policies to manage resources –human resources, financial resources, information resources, and applications development –supply of IS (provision of business information)

40 Success Factors for IS Planning Top management support –Sponsor and steering committee Organizational readiness –Current portfolio of IS applications and strength of technology infrastructure –Opportunities for some early winners –Adequate preparation for IS planning Quality of IS planning team –Knowledge of business objectives, strategies, processes, and culture –Good communication and interpersonal skills –Authority to make decisions and implement plans Automated support facilities Physical facilities