CHAPTER 3.

PLANNING FOR MIS

Session 10 : Planning for Information (a) Information system objectives and architecture (b) Inventory of existing information systems (c) Forecast of developments affecting the plan (d) Specific plan

Business Case 14 : System development at ISRO

3.1. Introduction : Complexity of the information resource environment suggests that the planning for information systems is vital for their success. Companies that plan tend to achieve better results than those that do not or plan poorly.

Information systems without planning create chaos and confusion rather than supporting the managerial decision making. Therefore, it is essential - plan & guide in initial development of information systems and making subsequent changes in these systems.

3.2. Planning for Information :

An information system plan describes the structure and content of the information systems and how these can be developed. Since all projects relating to information systems cannot be developed and implemented concurrently, priorities must be set. An allocation process must be worked out.

Fundamental concept of IS planning is that the organisation's strategic plan should be the basis for the information system strategic plan. Therefore, there should be integration of information system plan to organisational plan.

An information system plan has two parts - long range and short range. The long-range plan, which usually covers three to five years, provides general guidelines for direction. The short-range plan provides a basis for specific accountability as to operational and financial performance. Since the short-range plan is derived out of the longrange plan, both the plans should be fully integrated.

An information system plan usually, contains the following four sections : 1. Information system objectives and architecture. 2. Inventory of existing information systems. 3. Forecast of developments affecting the plan. 4. Specific plan.

Information System Objectives and Architecture :

At the starting level of a plan, its objectives should be defined

who are responsible for developing the plan are clear

what they have to achieve through planning exercise.

Factors to be considered While defining the information system objectives : 1. Organisational objectives (particularly the long term). 2. Organisational strategies to achieve those objectives, 3. External environment affecting the operation of the organization (such as nature of industry, government regulations, customers, suppliers), 4. Internal organisational constraints (such as management philosophy, organisational culture, etc.), and

5. Assumptions about business risks and potential consequences.

Inventory of Existing Information Systems : Inventory of existing information systems indicates the current status of information systems in use. Inventory includes such items as : hardware, software, and applications (if the information systems are computerized); analysis of expenses, hardware and software utilization, personnel utilization; and assessment of strengths and weaknesses of the existing information systems.

Forecast of Developments Affecting the Plan While developing an IS plan, it is necessary that future developments which may affect the implementation of the plan are taken into account. Such developments may be in the area of information technology, methodology, and environment. Information technology has the greatest influence on the effectiveness of any information system. Therefore, how information technology, both in terms of hardware and Software, would shape in future should be given adequate consideration.

Specific Plan After determining the above three factors, the organization can draw a specific plan for information systems. At the initial level, a specific plan may be prepared for a longer term, say up to five years. Based on this, plan may be prepared for shorter term, say for the next year or two years. However, these two-period plans should not be prepared independent of each other but both of these should be fully integrated. This integration can be achieved if the shorter-term plan is derived from the longer-term plan.

The specific plan should include :

hardware acquisition schedule, purchased software schedule for both system software and application software, application software development schedule, software maintenance and conversion schedule, personnel resources required and their recruitment and training schedule, and financial resources required-capital expenditure for acquiring hardware, software, and other accessories; operating expenditure for operations, maintenance, and new development.