Introduction to System Planning • System Planning is the examination and evaluation of an operation or task in order to identify and implement more efficient methods, usually through the use of computers. • Systems planning can be broken down into three main areas: • The production of a statement of objectives; • Determination of the methods of best achieving these objectives in a cost-effective and efficient way; • The preparation of a feasibility study.
Dimensions of System Planning • Comprehensiveness: the extent as to which an organization attempts to exhaust all necessary measures in integrating strategic decisions. • Formalization: the existence of techniques, policies and written procedures that guide the planning stage. • Focus: the balance between control orientations and creativity. • Top-down flow: should be initiated by the management heads with the help of support staff. • Broad participation: it must involve all functional areas and levels of the organization. • High consistency: should be characterized by constant assessments of the overall strategy.
Corporate Strategic Planning • Ongoing process that defines mission, objectives, and strategies of an organization • Corporate strategy involves: • Mission statement • Objective statements • Description of competitive strategy
Mission Statement Concise statement about the main business of the organization
Statement of Objectives A series of statements that express quantitative and qualitative goals for the future position of an organization
Competitive Strategy • The method by which the organization will attempt to satisfy its mission and objectives • Main types: • Low-cost producer • Product differentiation • Product focus
Information Systems Planning (ISP) • An orderly means of assessing the information needs of an organization and defining systems, databases, and technologies that will best meet those needs • ISP must be done in accordance with the organization's mission, objectives, and competitive strategy.
Approaches to IS Planning • Top-down planning • Attempts to gain a broad understanding of information system needs of the entire organization • Bottom-up planning • Identifies IS development projects based on solving specific operational business problems or taking advantage of specific opportunities
Benefits of Top-Down Planning • Broader perspective • Improved integration • Improved management support • Better understanding But, bottom-up planning can be faster and less costly, so may be beneficial in certain circumstances
Data & Fact Gathering Techniques Under Analysis phase • Review of documentation • Observation of the current system • Using questionnaires to determine user and perhaps customer satisfaction • Review of internal control procedures • Conducting interviews with individual system participants • Presentations • Group Discussions
Project Feasibility • Measure of how beneficial or practical the development of an information system will be to an organization. • Process by which feasibility is measured • Continuing process of feasibility assessment • Tests of feasibility • Technical feasibility • Operational feasibility • Schedule Feasibility • Economic feasibility
Tests of Feasibility • Operational Feasibility • How well will the solution work in the organization? • Technical Feasibility • How practical is the technical solution? • How available are technical resources and expertise?
Tests of Feasibility • Schedule Feasibility • How reasonable is the project timetable? • Economic Feasibility • How cost-effective is the project or solution? • Cost-benefit analysis
Operational Feasibility • Questions to Ask • Is the problem worth solving? • Will the solution to the problem work? • How do end users and management feel about the solution? • Has a usability analysis been conducted?
Technical Feasibility • Questions to Ask • Is the proposed solution practical? • Do we possess the necessary technology? • Do we possess the necessary technical expertise?
Economic Feasibility • Cost-benefit analyses • How much will the system cost? • Development costs • Operation costs • Maintenance and support costs • Do we possess the necessary technology? • Do we possess the necessary technical expertise? • Is the schedule reasonable?