Strategic Information Systems Planning

Prof. Rushen Chahal

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

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 Business planning

Hierarchy of Planning Information Flow - I

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

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 IT supply planning

Hierarchy of Planning Information Flow - II

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

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Issues of IS Planning - I
Driving forces

External business factors External technical factors Internal business factors Internal technical factors
Goal alignment: business and IS Strategic systems: IT for competitive advantage Planning: strategic IS/IT planning Education of senior management: role in IS/IT

IS Management

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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

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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

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

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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

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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

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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

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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

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

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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

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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
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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

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

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

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