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Chapter 3

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

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Chapter 3

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  1. Chapter 3 Strategic Information Systems Planning

  2. Agenda • Hierarchy of planning information flow • Issues of IS planning • Planning model • Planning process framework

  3. 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

  4. 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

  5. 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

  6. 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

  7. 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

  8. Issues of IS Planning - IV • Resources • Management sponsor • Commitment from Steering committee • Automated support facilities • Physical facilities

  9. 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

  10. 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

  11. 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

  12. 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

  13. Planning Framework - I • Initiate planning process • Confirm objectives, scope, deliverables, resources, risk, and team • Plan tasks, schedule, roles, and responsibilities, and milestones

  14. 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

  15. 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

  16. 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

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

  18. Points to Remember • Hierarchy of planning information flow • Issues of IS planning • Planning model • Planning process framework

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