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 Planning

@ Planning is the most challenges task faced by management. In

organizational planning we decide what goal they want to achieve,
deciding what action to take to achieve that goal, team building etc.

The result of this planning process is what we call plan. Thus plan is a
action statement, plan leads to action produce result. E.g. Strategic planning
@ Strategic planning: it deals with the development of an organization¶s goals,
strategies and policies.

Example of strategic questions in planning.

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@ To design information system planning first to create a steering
committee composed of key mangers representing major
functional units within the organization. The function of steering
committee are as follows.

To educate members of the committee on the strength and

weakness, opportunities and threats of use of IT.

To communicate the status and plans for the use of IT within the
organization among the members of the committee and their
respective functional units.

To allocate available resources, setting priorities as needed.

To evaluate overall performance and success of the IS in

operation under development.
Problem of IS Planning

@ Aligning the IS plan with the overall strategic and objectives of

the organization.

@ Designing an information system architecture for the organization

in such a way that various database can be integrated.

@ Completing information system projects on time and according to

budget.
 Design of information system architecture

@ Information system architecture refers to overall structure of all the information

system in organization.

@ The information architecture also includes database and supporting software.

@ An information system architecture for organization should guide long range

development as well as short range information system demand.

@ Failure for architectural planning problem faced by most banks today. in bank
various system saving, housing loans, car loans, FD are usually not integrated.
Consequently these various system treat one customer with several accounts as
several different customers instead of one customer with several relationship.
@ Allocation of development resources.
@ Completion of project on time and according to budget :
Few information system projects are completed on time or within
budget. Project plan are not accurate, time and resources are
generally underestimated.

Under pressure to finish a project on time or within the budget,

certain promise features are allowed to slip. This reduction in
system quality frequently leads to user dissatisfaction.
'asic four stage model for IS Planning

@ Strategic Planning
@ Organizational information requirement analysis.
@ Resource allocation
@ Project Planning
    
   
    


  
 
    

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 Strategic Planning

@ Strategic planning is the first stage of the IS planning model.

@ It establish the relationship between the overall organizational plan and IS plan.
@ To accomplish this, organization must do the following.

Set IS mission.
Asses the environment.- current IS capabilities, New opportunities, current
business environment, new technology, stage of IS maturity.
Assess organizational objectives and strategies- review strategic organization
plan, identify major claimant group and their objectives.
Set IS policies, objectives and strategies- organization structure, resources
allocation mechanism, management processes.
@ The following methodologies are very useful for IS planning.
Competitive strategy, customer resource life cycle, 'SP, CRF
 Competitive strategy

@ Competitive strategy identifies five major competitive forces faced by all

organizations.
1. The competitors within its industry.
2. The threat of new entrants in markets.
3. Threat by substitute products which might capture the market share.
4. The bargaining power of customers.
Following are approaches that an organization may use to formulate
competitive strategy.
@ 'e a low cost supplier- IT can be very useful by reducing clerical &
inventory cost.
@ Differentiate products or services: e.g. pharmacy can keep records for
customers on all tax deductible purchase and supply that information to
customer for use in preparing tax.
@ Following questions can be used to generate strategic ideas for
use of Information system.

Can IS be used to provide a unique product or service?

E.g. retailer can use gift suggestion system. The customer enter
the detail of gift recipient such as age, sex, hobbies and place of
residence. The gift giver also indicate an acceptable price range.
'ased on market research and store availably the system give the
customer a list of suggestions and their location in the store.
Can a more customized products or service be provided?
E.g. JCPenny use IS to order customize men¶s suits. System
linked JCPenny, distributors, garment makers and textile mills
allow customer to select fabric, size at JCPenny store and get a
custom made suit in week.
Customer Resource Life cycle

@ CRLC focus directly on the relationship with the customer. The

idea behind CRLC is that an organization differentiate itself from
its competitors in the eyes of customers.

Establish Customer requirements.

Fiberglass use data on energy efficiency to help builders evaluate
insulation requirements for new building design. evaluation
meeting minimum standard of energy efficiency are provided free
of charge to builders.

Pace an order.
Distributors such as GE, Arrow electronics have established
round the clock order entry system that accept a customer entered
order without human intervention.
Gas station are using debit card network that immediately debit
customer bank account for purchase made with card. Also
providing discount on per-gallon on cash purchase.

Accounting for purchase.

Many retail pharmacies providing detail accounting of their
customer drug purchase for income tax purpose.
Organizational Information Requirement
Analysis

@ Second stage for IS planning is organizational information

requirements analysis ( OIRA).

@ OIRA is a higher level of information requirement analysis ,

aimed at developing an overall information architecture for the
organization.

@ It ensure that various IS and database can be integrated to support

decision making and operation of the organization.

@ The first phase of ORIA consists of assessing current and

projected information needs to support decision making and
operation of the organization.
@ Second phase of OIRA consists of assembling a master
development plan. This plan is derived from information
architecture and defines specific information system projects, the
development schedule.

@ Objective of OIRA is avoid nonintegrated system.

'uilding an OIRA

@ Planning model for organizational information requirements

analysis involve five steps :
Define Underlying organizational subsystem.
ßDefine
ß
Develop subsystem matrix.
Develop

Define and evaluate information requirements for

Define
organizational subsystem.
Define major information categories and map interviews into
Define
them.
Develop Information / subsystem matrix.
Develop

Define underlying organizational subsystem

@ First step of an OIRA is to define underlying organizational

processes.
@ Organizational processes is the fundamental organizational
activity necessary for the operation of the organization. e.g
of major processes :

Inventory, Marketing, Advertisements, Sales etc.

E.g. For real estate company these are major processes:

Leasing, Maintenance, Account receivable, credit, Inspection,

Inventory, Marketing, advertising, insurance, sales, audit,
appraisal, legal etc.
 Develop subsystem matrix

@Next phase of the OIRA planning exercise is to relate specific

managers to organizational process.

@Matrix is developed by reviewing the major decision responsibilities

of each middle to top managers and relate them to specific process. e.g
Organizational Manager 1 Manager 2 Manager 3
Processes
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@Matrix indicate that managers who have major decision making

responsibility for each specific process.
Define & evaluate information requirements for
organizational subsystem

@ In this phase of the planning model, managers with major decision

making responsibility for each process are interviewed in groups
in order to obtain information requirements of each organizational
process.

@ Interviews used for OIRA and system design can be 'usiness

system planning , critical success factors, etc.
Define Major information categories and
map interviews into them.

@ The process of categorizing information categories is done in the

same way that the data dictionary for information system was
factored into entities and attributes.
@ The difference is that task is much larger when you are doing an
organizational wise entity-
entity-attribute-
attribute-analysis.
@ 'road categories of information that can be identified as entities (
customer, contracts, vendors) and attributes ( name, address,
phone number) are categorized within their respective entities.
Develop Information / sub system matrix

@ 'y mapping information categories against organizational subsystem,

an information-
information-categories-
categories-by-
by-organizational process matrix can be
developed.

@ During the interview managers are asked about both the importance
and the current availability of different type of information, response
for both importance and availability are recoded as high, medium or
low.
@ Š "

Importance 1 2 3

Availability 3 2 1

Sore is computed for each category of information:

Sore= Importance * Availability

Information categories with highest importance and lowest

availability getting the highest score ( S= 3*3=9)

Information that is least important and readily available get the

lowest score ( S= 1*1=1)
Organizational Information Categories
Processes

Maintenance Warranty Contract Complaint Policy training

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@ Identifying high payoff: by evaluating composite score for

information categories, you can select those categories with the
highest score to consider first in feasibility study.

  
 
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Whether the proposed system was good investment.

Whether technology needed for the system was available and

could be handled by firm information system specialists .

Whether the organization could handle the change introduced by

the system.
Information system planning



Planning

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Model for IS Planning

@ Strategic Planning
@ Organizational information requirement analysis.
@ Resource allocation
@ Project Planning
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Resource allocation

@ Resource allocation is the third stage of the model for information

system planning, consists of developing the hardware, software,
data communication , facilities, financials plans needed to execute
the master development plan defined in OIRA.

@ This stage provide framework for technology , personnel training,

budgeting to provide appropriate level to users.
Project Planning

@ Fourth and final stage of model is project planning provide an

overall framework with which the system development life cycle
can be planned , scheduled and controlled.
Following Questions should be asked at
each stage

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ßAre new opportunities identified?

2. Is the current business environment understood?
3.Are the objectives for allocating IS resources appropriate?
4. Are the function capability objectives appropriate?
5.Are the IS management process appropriate?
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ßIS the overall organizational information architecture
identified?
2. Is there a good understanding of current information needs of
the organization?
3. Is there a good understanding of projected information needs of
the organization?
4. are the major database and their relationship defined?
5.Is there a master IS development plan
@ *  
1. Is there a hardware plan?
2. Is there a software plan?
3. Is there a data communication plan?
4. Is there a facilities plan?
5. Is there a data management plan?
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ßAre project task usually identified adequately?
2. Are projects generally completed on schedule?
3. Are checkpoints defined to monitor progress of the projects?
4. Are project time estimate generally accurate?
 Overview of System development

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Whether the proposed system was good investment.

Whether technology needed for the system was available and could be handled by
firm information system specialists .

Whether the organization could handle the change introduced by the system.
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Information requirement of a system involves identifying who need what
information, where, when and how.

Requirements analysis define the objective of the system and develop a detailed
description of the functions that new system must perform.

Faulty requirements analysis is a leading cause of system failure and high

system development costs.
 System Design

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Parallel Strategy
Direct cutover Strategy
Pilot Study Strategy
Phased Approach strategy
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