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Establishing A Planning Process

Establishing A Planning Process. The planning process includes technical and organizational aspects The IS strategy brings together the business aims of the company and the implementation of computer systems.

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Establishing A Planning Process

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  1. Establishing A Planning Process • The planning process includes technical and organizational aspects • The IS strategy brings together the business aims of the company and the implementation of computer systems. • The IS strategy plan is a plan for the development of systems towards some future vision of the role of IS in the organization.

  2. Establishing A Planning Process • The IS planning process is an integral part of the development of business strategy • The business strategy and IS plans are developed to plan for the effective use of the finite resources of the business. • Since the resources are limited, there are some problems and constraints of strategicIS planning

  3. Problems in Strategic IS Planning • By the end of 1980s the need for organizations to have “strategic plans” for their IS investments was generally understood. • In 1990s, “Improving IS strategic plans” was one of the top issues of IS and non-IS managers. • http://edtech.sandi.net/etsp/ • http://www.itu.int/sg_is/strategic_plan2003.html • http://sfwater.org/detail.cfm/MSC_ID/52/MTO_ID/NULL/MC_ID/5/C_ID/1663/holdSession/1

  4. Problems in Strategic IS Planning • Typical problems of IS strategic planning were: • Top management did not understand how IS offered strategic advantages • Top managers did not view information as a business resource • Top management demand to see a financial justification for investments • Top managers were“action oriented” with short term focus.

  5. Problems in Strategic IS Planning • Business Problems due to IS/IT finances: • Loss of control of IS/IT investments • Having shorter than expected business life • Resource constraints • Poor users –IT/IS staff relationships • Length of time involved • Examples : Large scale ERP projects

  6. Problems in Strategic IS Planning • The outcome of planning varies with • The opportunities • The degree to which top management is involved • At the beginning, it is important to distinguish between IS objectives and implementation issues.

  7. Problems in Strategic IS Planning • Objectives for IS are the same as those for business • Improvement in productivity • Product differentiation • Customer service improvement • It is a continuous evolving process

  8. Strategic IS Planning • It is a learning process • The following questions need to be answered : • What is the purpose of strategic IS planning? • What is the scope of the plan ? • What are the objectives ? • What resources are required ? • How should the process steered ?

  9. Strategic IS Planning • Strategic Plans : Time horizon 3-5 years • Tactical - 1-2 years • Operational - 6 months - 1 year • Tactical plans deal with development projects and infrastructure • Operational plans guide day-to-day activities

  10. The Planning Process

  11. The Planning Process • There are a number of sources of stimuli for strategic planning for IS. These are • External Business Factors • External Technical factors • Competitive threats based of IS • New Products or markets created by IS / IT • Changes in major cost factors • Legistative demands or pressure from stakeholders

  12. The Planning Process • Internal Business Factors • The business taken over by a new owner or manager • Major rationalizations caused by downturn in the economy • Restructuring • New products and markets • Recognition of the importance of strategic planning • Internal Business Factors • Factors may arise from the need to cut costs • To improve the relationship between IS and the business   

  13. The Planning Process Triggers • IS failure • (new) threats or opportunities • (unsolicited) demands for service • Financial factors • Changes in mission or goals • Reengineering in Business Environment

  14. The Planning Process In the Initiation Phase, Define • What is the environment like? • How will the plan be used? • How will progress be effected and controlled? • Who will lead? • Who are the stakeholders? • Who will approve it? • What is the time horizon? • What is the scope?

  15. The Planning Process • Management sponsor • Steering committee • Planning Team • Input from IS • Input from Business • Consultants (methods & expertise) • Tools and support

  16. The Planning Process Tasks: • Align business and IS objectives • Identify strategic applications • Meet statutory / political requirements • Arrange Organizational Training Processes • Define an IS architecture • Allocate IS/IT resources • Develop prioritization scheme for project portfolio

  17. The Planning Process Tasks: • Align IT investments with Bus. Strategy • Identify new high payback applications • Improve communications with users • Increase visibility of IS and Information architecture

  18. The Planning Process Why is IS planning is hard? • Demand keeps changing • Supply keeps changing • Impacts (both good and bad) are massive • Often there is a shortage of resources

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