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Strategic Planning for Information Systems

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Discuss the components of business strategic planning ... Identify strengths and weaknesses of various IS strategic planning process ... Boar (1993) ... – PowerPoint PPT presentation

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Title: Strategic Planning for Information Systems


1
Strategic Planningfor Information Systems

2
Learning Objectives
  • Discuss the importance of linking the development
    of IS to the strategic business objectives of the
    organization
  • Discuss the components of business strategic
    planning
  • Discuss factors that are crucial to the success
    of the business strategic planning process
  • Discuss various methods for IS strategic planning
  • Identify strengths and weaknesses of various IS
    strategic planning process
  • Identify critical components of an IS strategic
    planning process
  • Given an IS strategic plan, critique its
    strengths and weaknesses

3
Key Terms
  • Critical success factors (CSFs)
  • Environmental analysis
  • Gap analysis
  • Internal analysis
  • Strategic planning
  • SWOT analysis

4
Outline
  • Strategic Planning for Information Systems
  • Introduction
  • Health-Care Organizational Strategic Planning
    Process
  • Organizing resources
  • Environmental and internal analyses
  • Generating options and developing an enterprise
    strategy
  • Information System Strategic Planning
  • Information system strategic planning methods
  • Developing a customized IS planning methodology
  • The Health Information Managers Role in
    Strategic IS Planning

5
Introduction
  • In order for any organization to be successful
    and competitive, its information resources must
    support critical functions and strategic
    objectives
  • Planning for IS must be based on knowledge of
    health-care organization and its critical goals
    or success factors
  • Goodness of an IS is measured by its
    effectiveness and its efficiency
  • Information engineering is one of the primary
    domains of practice of the HIM.
  • The domain includes tasks associated with
  • Planning
  • Analysis
  • Design
  • Development
  • The tasks include
  • Strategic planning
  • Data modeling
  • Process modeling
  • Data administration
  • Strategic planning involves identifying the goals
    and critical success factors of the enterprise

6
Introduction
Administrator
Practitioner
Patient
Client
Policymaker
Physician
Health Information Manager (Information Broker)
Information Services
  • Information Engineering
  • Strategic Planning
  • Data Modeling
  • Process Modeling
  • Data Administration
  • Interface Design
  • Screen
  • Reports
  • Information Retrieval
  • Search Strategies
  • Database Languages
  • DSS Development
  • DSS Use
  • Information Analysis
  • DSS Use
  • Statistical Analysis
  • Data Presentation
  • Policy Development
  • Security
  • Information Engineering
  • Information Retrieval
  • Information Use

Figure 4-1. Information Engineering Function
7
Health-Care Organizational Strategic Planning
Process
  • Although the particular methods of strategic
    business planning processes may vary, planning
    for strategic positioning of the organization
    usually includes four areas of focus
  • Assessing the enterprises competitive position
  • Determine ways or alternatives for the enterprise
    to move ahead
  • Assessing the feasibility of various alternatives
  • Selecting alternatives and implementing them
  • The culmination of the business strategic
    planning process results in the development of a
    plan that sets the direction of an organization

8
Health-Care Organizational Strategic Planning
Process
  • Hiring a facilitator
  • To be a neutral participant
  • To compensate the lack of internal expertise to
    coordinate the planning process
  • To draw on the variety of expertise within their
    firm
  • To bring a big picture to the planning process
  • Organizing resources
  • The planning team
  • Minimally should include CEO, COO, CFO, CIO, and
    senior vice president or executives of the
    various function areas
  • In some cases, stakeholders may be included
  • Ideally, the team should consists of no more than
    12 individuals

9
Health-Care Organizational Strategic Planning
Process
  • Development of task groups
  • The planning effort is much too complex for the
    planning team to work alone
  • Usually several groups are formed, but at a
    minimum two task groups are formed one to
    perform an external or environmental analysis and
    another to perform an internal analysis
  • Organizing resources
  • Other resources
  • Sufficient clerical support is an absolute
    necessity by conducting exhaustive information
    searches
  • Office equipment to support the process will be
    needed
  • Space for the facilitator and clerical support
    staff to work as well as conference room for
    members to meet

10
Health-Care Organizational Strategic Planning
Process
  • Internal analysis
  • To gain an understanding about the way the
    organization functions with a goal to develop a
    factual portrait of the organization
  • The most significant outcome is identifying the
    critical success factors (CSFs)
  • CSFs are the limited number of areas in which
    results will ensure successful competitive
    performance for a business
  • Environmental and internal analyses
  • Environmental analysis
  • Changes in the economy, demographics, politics,
    legislation, or other factor will directly
    determine opportunities and threats
  • The external analysis usually includes an
    assessment of the health-care industry
    specifically as well as the organizations direct
    competitors

11
Internal Analysis
OrganizationCSFs
BusinessUnit CSFs
BusinessUnit CSFs
BusinessUnit CSFs
BusinessUnit CSFs
Figure 4-2. Relationship Among Business Unit and
Organizational Critical
Success Factors
12
Health-Care Organizational Strategic Planning
Process
  • Environmental and internal analyses
  • Bringing the external and internal analyses
    together
  • The summary document reports results of internal
    and external analyses by emphasizing areas of
    agreement and disagreement and identifying goals,
    CSFs, strengths and weaknesses, and providing an
    assessment of implications of trends for future
    direction and success of the organization
  • Various tools and techniques used to compare and
    analyze the results of internal and external
    analyses
  • Gap analysis
  • Situation or SWOT analysis
  • Driving force
  • Competitive forces
  • Value chain analysis
  • Summary paper preparation
  • To focus on the SWOT for the enterprise by
    providing a realistic appraisal of the true state
    of the organization

13
Bringing the external and internal analyses
together
  • Driving force analysis
  • Concentrate on how best to optimize the one most
    important focus of the business
  • Competitive forces analysis
  • Focus on the organizations CSFs in relation to
    new entrants to the market place, substitute
    products or services, customers, and suppliers
  • Value chain analysis
  • A way of looking at the contribution of various
    primary and secondary functions of a business
    unit to the development of a product
  • Gap analysis
  • A structured analysis that results in the
    identification of discrepancies between the way
    the organization sees itself and its true
    position facing its competitors and other driving
    forces in the external environment
  • Situation or SWOT analysis
  • Help the organization assess its current position
    in relation to the competitive market

14
SWOT Analysis by CSF
15
SWOT Analysis by Functional Area and Efficient
Operation CSF
16
An Example
17
Health-Care Organizational Strategic Planning
Process
  • Generating options and developing an enterprise
    strategy
  • The planning team should generating a small
    number of options for pursuing and evaluating
    these options in terms of required resources,
    costs, risks, and value
  • Options should link to the goals and CSFs
    previously identified through the internal and
    external analyses
  • The final part of strategic planning is the
    development of the enterprise strategy itself in
    which all elements of the process are brought
    together and organized in a plan for action

18
IS Strategic Planning
  • IS strategic planning (ISSP) methods
  • Provide for the development of an information
    model critical to the development of
    enterprise-wide IS
  • Stress the importance of integrating the IS plan
    with the overall business strategic plan
  • Do not stress evaluating the IS unit as a
    critical business unit
  • Development of the information model is
    accomplished through entity relationship diagram
  • An entity (patient, physician, supplier,
    physician order, and nursing progress note) is
    anything about which data can be stored
  • Martin and Leben (1989)
  • Process (1) Performing a linkage analysis (2)
    Creating an overview entity relationship
    enterprise model (3) Performing a technology
    impact analysis (4) Performing CSF analysis (5)
    Performing goal and problem analysis (6)
    Refining the entity relationship diagram (7)
    Clustering entities into business areas (8)
    Establishing priorities for business area analysis

19
IS Strategic Planning
  • IS strategic planning (ISSP) methods
  • Goldberg Sifonis (1994)
  • Called dynamic planning
  • Tightly integrating IS planning into the overall
    strategic business planning, that is both are
    planned at the same time
  • Alignment occurs after options have been
    generated in the overall strategic planning
    processes
  • The strength is that IS planning is intricately
    entwined in the total strategic business planning
    of the organization
  • More conceptual and doesnt specifically provide
    for information modeling techniques that are
    crucial to the development of enterprise-wide IS

20
IS Strategic Planning
  • IS strategic planning (ISSP) methods
  • Outputs derived from (1) an IS management
    strategy that manages IT supply and demand and
    (2) a business IS strategy that states how IS
    will be deployed to support business functions
  • Attempt to integrate a view of the IS unit as a
    critical business unit with its function as a
    support unit
  • Recognize the importance of using tools and
    techniques such as CASE and entity relationship
    models
  • Ward et al. (1990)
  • A strategic IS planning process described in a
    framework of inputs and outputs
  • Inputs include (1) an internal business
    environment (2) an external business
    environment (3) an internal IS environment
    assessment (4) an external IS environment
    assessment

21
IS Strategic Planning
  • IS strategic planning (ISSP) methods
  • Advocate using the tools and techniques employed
    in business planning to assess the IS business
    unit, evaluating the organization in which the
    unit residues, developing options, and developing
    a grand plan for the IS unit
  • Emphasize evaluation of the IS unit from the
    standpoint of a critical unit
  • Do not emphasize the importance of information
    modeling
  • Boar (1993)
  • View the IS department as a strategic unit and as
    a collection of related business having (1) a
    distinct mission (2) a clear set of customers or
    market (3) a set of competitors (4) a set of
    products (5) a profit and loss responsibility
    and (6) a distinct management team

22
IS Strategic Planning
  • Developing a customized IS planning methodology
  • Each ISSP method has its own specific philosophy,
    steps, techniques, and methods
  • A general framework of ISSP elements is provided
    by drawing from the various methodologies and
    should be considered for incorporation in any
    ISSP effort

23
IS Strategic Planning
  • Developing a customized IS planning methodology
  • Top management understanding and support
  • Without the support from executive management, no
    IS strategic planning will be successful
  • Top management must understand the value of ISSP
    process in two perspectives
  • New business opportunities can be identified and
    exploited by the use of IT
  • IT should be deployed do that the critical
    business functions are enhanced
  • View of IS as a strategic business unit
  • Not merely a support unit for other business
  • Strategic planning techniques and analyses used
    to develop overall business plan must also be
    applied to IS unit
  • An external analysis for IS should also be
    assessed

24
IS Strategic Planning
  • Developing a customized IS planning methodology
  • Integration of the strategic plans of the
    business and IS
  • IS planning should be integrated into the
    business strategic planning process (Goldber
    Sifonis 1994)
  • In the worst case, at least the IS can support
    the business requirements of high priority areas
  • An understanding of the competitive forces,
    threats, and opportunities from a business-wide
    perspectives will be useful in identifying areas
    in which IT can provide competitive advantage
  • Development of an enterprise-wide information
    model
  • The model of entity relationships that provides
    the foundation for integration of all enterprise
    IS
  • Its a high-level general description of the
    relationship between organization entities
  • An entity is any person, object, or abstraction
    concept about which data are stored
  • This type of modeling ensures that all
    enterprise-wide IS conforms to the same data
    definitions so that data can be easily exchanged
    from one IS to another within the organization

25
IS Strategic Planning
  • Developing a customized IS planning methodology
  • Conclusion
  • Table 4-3 provides an outline of functions that
    may be used for ISSP development
  • Not necessary performed sequentially, for example
    the internal and external IS analyses and
    identification of strategic goals and threats can
    be performed concurrently
  • Table 4-4 is a generic outline for an IS plan.
    Actually IS plan will vary from organization to
    organization

26
Table 4-3.Elements of Development of an ISSP
27
Table 4-4. Generic Outline of an Information
System Strategic Plan
28
The Health Information Managers Role in
Strategic IS Planning
  • The health information manager possesses a skill
    in data retrieval and knowledge of databases that
    can be helpful to external analyses efforts
  • Participate in both overall business planning
    strategy and the IS strategic planning process
  • Internal and external business analyses
  • Internal and external analyses of IS unit
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