1. Identifying and Selecting Systems Development Projects

2. Contemplative Questions From where do IS project ideas come? From where do IS project ideas come? What is corporate strategic planning, and how does it relate to Information Systems planning? What is corporate strategic planning, and how does it relate to Information Systems planning? What activities occur before projects are identified and selected? What activities occur before projects are identified and selected?

3. Main Issues Sources of projects Sources of projects Management and business units Management and business units Managers who want to make a system more efficient or less costly Managers who want to make a system more efficient or less costly Formal planning groups Formal planning groups Projects are identified by Projects are identified by Top management Top management Steering committee Steering committee User departments User departments Development group or senior IS staff Development group or senior IS staff Top-Down Identification Top-Down Identification Senior management or steering committee Senior management or steering committee Focus is on global needs of organization Focus is on global needs of organization Bottom-up Identification Bottom-up Identification Business unit or IS group Business unit or IS group Don’t reflect overall goals of the organization Don’t reflect overall goals of the organization

4. Identifying and Selecting IS Development Projects Classifying and Ranking IS Development Projects Classifying and Ranking IS Development Projects Performed by top management, steering committee, business units of IS development group Performed by top management, steering committee, business units of IS development group Value chain analysis is often used Value chain analysis is often used Method to analyze an organization’s activities to determine where value is added and costs are incurred Method to analyze an organization’s activities to determine where value is added and costs are incurred What if you are a member of the steering committee— What if you are a member of the steering committee— What information is important to you? What information is important to you? What determines your success or failure? What determines your success or failure? Why not fund every project? Why not fund every project?

5. Value Chain Analysis

6. Deliverables and Outcomes Primary Deliverable Primary Deliverable Schedule of specific IS development projects Schedule of specific IS development projects Outcomes Outcomes Project Acceptance Project Acceptance Project Rejection Project Rejection Delay Delay Refocus Refocus End-User Development End-User Development Proof of Concept Proof of Concept

7. Why bother with planning? Consider the technological environment Consider the technological environment Is planning beyond 3 years a waste of time? Is planning beyond 3 years a waste of time? What about 5 years? What about 5 years? The book says The book says “Improperly planned projects result in systems that cannot be shared across an organization” “Improperly planned projects result in systems that cannot be shared across an organization” “As business processes change, lack of integration will hamper strategy and business process changes” “As business processes change, lack of integration will hamper strategy and business process changes” What do you think? What do you think?

8. Corporate Strategic Planning Corporate Strategic Planning Corporate Strategic Planning Process of developing and refining models of the current and future enterprise as well as a transition strategy Process of developing and refining models of the current and future enterprise as well as a transition strategy Is this important to IS planning? Why or why not? Is this important to IS planning? Why or why not? Planning results in several outcomes Planning results in several outcomes Mission Statement Mission Statement Objective Statement Objective Statement Competitive Strategy Competitive Strategy

9. Outcomes of Corporate Strategic Planning Corporate Strategic Planning Corporate Strategic Planning Mission Statement Mission Statement A statement that makes it clear what business a company is in A statement that makes it clear what business a company is in Objective Statement Objective Statement A series of statements that express an organization’s qualitative and quantitative goals for reaching a desired future position A series of statements that express an organization’s qualitative and quantitative goals for reaching a desired future position Objectives are critical success factors Objectives are critical success factors Competitive Strategy Competitive Strategy The method by which an organization attempts to achieve its mission and objectives The method by which an organization attempts to achieve its mission and objectives

10. Information Systems Planning (ISP) Information Systems Planning (ISP) Information Systems Planning (ISP) An orderly means of assessing the information needs of an organization and defining the systems, databases and technologies that will best satisfy those needs An orderly means of assessing the information needs of an organization and defining the systems, databases and technologies that will best satisfy those needs Three key activities: Three key activities: Describe the Current Situation Describe the Current Situation Describe the Target (or Future) Situation Describe the Target (or Future) Situation Develop a Transition Plan and Strategy Develop a Transition Plan and Strategy

11. 1. Describing the Current Situation Approaches Approaches Top-down Planning Top-down Planning Generic methodology that attempts to gain a broad understanding of the information system needs of the entire organization Generic methodology that attempts to gain a broad understanding of the information system needs of the entire organization Bottom-up Planning Bottom-up Planning Generic methodology that identifies and defines IS development projects based upon solving operational business problems or taking advantage of some business opportunities Generic methodology that identifies and defines IS development projects based upon solving operational business problems or taking advantage of some business opportunities

12. Examples of Terms Locations: Denver, Chicago, Tokyo, Singapore Units: VP Manufacturing, Purchasing Clerk, Sales Representative Processes: Customer Billing, Materials Forecasting, Performance Appraisal

13. Exercises Exercise #1. Create a conceptual data model for the following organizational terms: Exercise #1. Create a conceptual data model for the following organizational terms: Locations Locations Units Units Functions Functions Processes Processes Data Data Information Systems Information Systems Exercise #2. Create a few matrices using the above terms as rows and columns. What do the cells tell you? Exercise #2. Create a few matrices using the above terms as rows and columns. What do the cells tell you? Exercise #3. Suppose you are employed by an IT vendor. Your boss asks you to visit a new client and “find out as much as you can about them”. Would the above terms help you? In what order would you ask about them? Exercise #3. Suppose you are employed by an IT vendor. Your boss asks you to visit a new client and “find out as much as you can about them”. Would the above terms help you? In what order would you ask about them?

14. 1. Describing the Current Situation Approaches Approaches Top-down Planning Top-down Planning Generic methodology that attempts to gain a broad understanding of the information system needs of the entire organization Generic methodology that attempts to gain a broad understanding of the information system needs of the entire organization Bottom-up Planning Bottom-up Planning Generic methodology that identifies and defines IS development projects based upon solving operational business problems or taking advantage of some business opportunities Generic methodology that identifies and defines IS development projects based upon solving operational business problems or taking advantage of some business opportunities

15. 2. Describing the Target Situation Update list of organizational locations, functions, etc. to reflect desired locations, functions, etc. Update list of organizational locations, functions, etc. to reflect desired locations, functions, etc. Matrices are updated to reflect future states Matrices are updated to reflect future states Planners focus on differences between current lists and matrices and future lists and matrices Planners focus on differences between current lists and matrices and future lists and matrices

16. 3. Developing a Transition Strategy Broad, comprehensive document that looks at both short and long-term organizational development needs Broad, comprehensive document that looks at both short and long-term organizational development needs Consists of a series of projects Consists of a series of projects

17. Electronic Commerce Applications From a planning perspective, Internet projects are no different than other projects From a planning perspective, Internet projects are no different than other projects Frequently E-Commerce applications can be categorized as: Frequently E-Commerce applications can be categorized as: Intranet Intranet Internet-based communication to support business activities within a single organization Internet-based communication to support business activities within a single organization Extranet Extranet Internet-based communication to support business-to- business activities Internet-based communication to support business-to- business activities Value chain analysis is useful here also, especially in view of value chain reconfiguration Value chain analysis is useful here also, especially in view of value chain reconfiguration

18. Internet Development Electronic Data Interchange (EDI) Electronic Data Interchange (EDI) The use of telecommunications technologies to transfer business documents directly between organizations The use of telecommunications technologies to transfer business documents directly between organizations Internet vs. Intranet/Extranet Apps Internet vs. Intranet/Extranet Apps Intranet/Extranet – Developer knows how application will be run and used Intranet/Extranet – Developer knows how application will be run and used Internet – Developer faces various unknowns Internet – Developer faces various unknowns Both are challenging, although the challenges can be quite different Both are challenging, although the challenges can be quite different