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Unit 1 Topic 3 The Information Systems Planning Process

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Inputs Processes Outputs Business Strategy Internal Business Environment Information Systems Planning Process External Business Environment External IS/IT Environment – PowerPoint PPT presentation

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Title: Unit 1 Topic 3 The Information Systems Planning Process


1
Inputs
Processes
Outputs
Business Strategy
Internal Business Environment
Information Systems Planning Process
External Business Environment
External IS/IT Environment
Internal IS/IT Environment
Tools Techniques
Current Applications Portfolio
2
The Information Systems Planning Process
  • The Information Systems Planning process is the
    set of steps whereby the organization develops
    its information systems plan.
  • Aim to assess the current IS/IT capabilities and
    how they meet the needs of the organisation.
  • Eventual outcome initiatives and projects which
    will close the gap between where the companys
    IS/IT set-up lies currently and where it needs to
    be.
  • Uses various tools and techniques to
  • Create a plan which brings the IS/IT plan into
    line with this strategy.

3
Phase 1 Establishment of the Planning Process
Phase 2 Reviewing the Current Situation and
Identifying Future Direction Where are we now?
Where do we want to be?
A generic model for the Information Systems
Planning process consists of three phases
Phase 3 Mapping the Future How to get from
Where we are now to Where we want to be
4
Phase 1 Establishment of the Planning Process
  • Essential to put the development of the
    information systems planning process (ISP) into
    action.
  • The objective is to
  • get the support of top management,
  • gather a chief project team to carry out the ISP
    process and
  • create a formal description of the ISP study.
  • This stage can be divided into four steps
  • Step 1 Establishment of planning committee
  • knowledgeable representatives from user groups,
    all business managers plus members of IS
    department
  • Step 2 Obtaining commitment from senior
    management
  • Senior management must be continually involved
    throughout the project to provide feedback and
    guidance and to ensure the projects completion
    and the implementation of its recommendations.
  • Step 3 Establishment of project team
  • A team leader, an executive who will work full
    time in the study and direct team activities,
    needs to be selected at this stage to communicate
    with other executives throughout the ISP process.
  • Other members should include a representative
    from each department along with IS analysts.
  • Step 4 Produce a formal description of the ISP
    study
  • the exact nature of the study, e.g. scope, goals
    etc, the objectives, each members
    responsibilities,mexpected targets and a brief of
    the techniques that will be followed in
    conducting the project.

5
Phase 1 Establishment of the Planning Process
Step 3 Establishment of project team
Step 4 Produce a formal description of the ISP
study
Step 1 Establishment of planning committee
Step 2 Obtaining commitment from senior
management
6
Phase 2 Reviewing the Current Situation and
Identifying Future Direction
  • In this phase we attempt to develop an
    understanding of where we are today, internal and
    external, business and IS.
  • This phase consists of three stages
  • Stage 1 Business Strategies and Competitive
    Assessment
  • Stage 2 Strategic Analysis Of Information
    Requirements
  • Stage 3 IS/IT Opportunity Identification

7
Phase 1 Establishment of the Planning Process
Step 3 Establishment of project team
Step 4 Produce a formal description of the ISP
study
Step 1 Establishment of planning committee
Step 2 Obtaining commitment from senior
management
Phase 2 Reviewing the Current Situation and
Identifying Future Direction Where are we now?
Where do we want to be?
Stage 1 Business Strategies and Competitive
Assessment
Stage 2 Determining Information Needs
Stage 3 IS/IT Opportunity Identification
Phase 3 Mapping the Future How to get from
Where we are now to Where we want to be
Formulation of Strategies and Plan
8
Stage 1 Business Strategies and Competitive
Assessment
  • This is the stage for identifying the overall
    business strategies of the corporation. The key
    steps are
  • Step 1 Understanding the Business Strategy
  • Reviewing the organizations strategic business
    plan in order to understand the organizations
    direction.
  • Step 2 Understanding the Business Environment
    Affecting the Organization
  • SWOT analysis for identifying where strategic
    opportunities may exist, and how to avoid
    weaknesses inherent within the organization or
    threats from outside limiting future growth.
  • We can use the results of SWOT analysis to
    identify priorities for action and to gain an
    understanding of IT resource requirements and
    future developments.
  • Step 3 Understanding the External Business
    Environment
  • Helps an organization focus attention on the
    competitive forces.
  • Managers can use the five competitive forces
    model to
  • identify the key forces currently affecting
    competition,
  • devise strategy to exploit/defend/neutralise
    impacts
  • identify opportunities for IS/IT to
    support/implement/manage strategy
  • Step 4 Understanding the Internal Business
    Environment
  • Internal business environment needs to be
    analyzed to identify current status of
    corporation.
  • We can use two well-recognized tools or
    techniques
  • Competitive Strategies Model and
  • the Value Chain Model

9
Phase 1 Establishment of the Planning Process
Step 3 Establishment of project team
Step 4 Produce a formal description of the ISP
study
Step 1 Establishment of planning committee
Step 2 Obtaining commitment from senior
management
Phase 2 Reviewing the Current Situation and
Identifying Future Direction Where are we now?
Where do we want to be?
Stage 1 Business Strategies and Competitive
Assessment
Step 1 Understanding the Business Strategy
Step 2 Understanding the Business Environment
Affecting the Organization
Step 3 Understanding the External Business
Environment
Step 4 Understanding the Internal Business
Environment
10
Stage 2 Analysis of Information Requirements
  • The team identifies
  • opportunities for using information to help the
    organization gain an advantage over its
    competitors or avoid a competitive disadvantage
  • There are two steps in this stage
  • Step 1 strategic analysis of information
    requirements
  • Critical Success Factors Analysis is used for
    interpreting business objectives in terms of
    actions required to achieve them.
  • It is an important device for ensuring that
    managers receive key information (Key Performance
    Indicators (KPIs)) they need to monitor
    achievement of corporate goals and objectives.
  • After helping management identify these factors,
    this method then concentrates on creating systems
    to provide information on these factors.
  • Step 2 enterprise analysis of information
    requirements
  • This approach takes a large sample of managers
    and asks them
  • how they use information, where they get the
    information, what their environment is like, what
    their objectives are, how they make decisions,
    and what their data needs are.
  • One of the underlying goals of Enterprise
    Analysis of Information Requirements is the
    design of a data architecture that sustains
    information systems development activities,
    making systems mutually supportive and
    integratable.

11
Phase 1 Establishment of the Planning Process
Step 3 Establishment of project team
Step 4 Produce a formal description of the ISP
study
Step 1 Establishment of planning committee
Step 2 Obtaining commitment from senior
management
Phase 2 Reviewing the Current Situation and
Identifying Future Direction Where are we now?
Where do we want to be?
Stage 1 Business Strategies and Competitive
Assessment
Step 1 Understanding the Business Strategy
Step 2 Understanding the Business Environment
Affecting the Organization
Step 3 Understanding the External Business
Environment
Step 4 Understanding the Internal Business
Environment
Stage 2 Determining Information Needs
Step 1 Strategic analysis of information needs
Step 2 Enterprise analysis of information needs
12
Stage 3 IS/IT Opportunity Identification
  • This is the stage where IS/IT opportunities are
    identified to emphasize technological factors in
    the identification of information systems
    strategies.
  • The key steps for identifying new opportunities
    are
  • Step 1 Understanding the Internal IS/IT
    Environment
  • At this stage, the current Information Systems
    are evaluated
  • Business Technology Audit (Earls Systems Audit)
  • Applications Portfolio McFarlan and McKenney
    Strategic Grid
  • Step 2 Understanding the External IS/IT
    Environment
  • The IT environment is analyzed to identify
  • IT trends in similar business environments and
  • new capabilities of IT.
  • IT breakthroughs that have a potentially dramatic
    effect on the corporate environment should also
    be identified.
  • Step 3 Identification of IT opportunities.
  • Specific IS/IT opportunities that can support the
    identified information needs are identified at
    this stage.

13
Phase 1 Establishment of the Planning Process
Step 3 Establishment of project team
Step 4 Produce a formal description of the ISP
study
Step 1 Establishment of planning committee
Step 2 Obtaining commitment from senior
management
Phase 2 Reviewing the Current Situation and
Identifying Future Direction Where are we now?
Where do we want to be?
Stage 1 Business Strategies and Competitive
Assessment
Step 1 Understanding the Business Strategy
Step 2 Understanding the Business Environment
Affecting the Organization
Step 3 Understanding the External Business
Environment
Step 4 Understanding the Internal Business
Environment
Stage 2 Determining Information Needs
Stage 3 IS/IT Opportunity Identification
Step 1 Understanding the External IS/IT
Environment
Step 2 Understanding the Internal IS/IT
Environment
Step 3 Identification of IS/IT Opportunities
Step 1 Strategic analysis of information needs
Step 2 Enterprise analysis of information needs
Phase 3 Mapping the Future How to get from
Where we are now to Where we want to be
Formulation of Strategies and Plan
14
Phase 3 Mapping the Future
  • How to get from Where we are now to Where we want
    to be
  • Based on the analysis of business strategies,
    information needs and IS/IT opportunities we can
    now
  • formulate three strategies, dealing with systems,
    technology and management and
  • develop the information systems plan.
  • The two steps in this stage are
  • Step 1 Formulation of Strategies
  • Step 2 Formulation of Information Systems Plan

15
IS strategy is concerned primarily with aligning
IS development with business needs and with
seeking strategic advantage from IT. It
determines requirements to meet business needs,
i.e. the applications to be developed. It is the
long-term, directional plan which decides what to
do with IT.
IS Strategy (Business Focused)
What?
Applications
deals with what to do with information
Step 1 Formulation of Strategies
Future applications portfolio
The applications to be developed
16
IS strategy is concerned primarily with aligning
IS development with business needs and with
seeking strategic advantage from IT. It
determines requirements to meet business needs,
i.e. the applications to be developed. It is the
long-term, directional plan which decides what to
do with IT.
IS Strategy (Business Focused)
What?
Applications
deals with what to do with information
IT strategy relates to how these requirements are
going to be delivered and is technology focused.
It is primarily concerned with technology
policies, tackling issues of architecture, risk,
vendor polices, and technical standards.
Delivery
How?
IT Strategy (Technology Focused)
designates how technology is to be applied in the
delivery of information
Future applications portfolio
The applications to be developed
17
IS strategy is concerned primarily with aligning
IS development with business needs and with
seeking strategic advantage from IT. It
determines requirements to meet business needs,
i.e. the applications to be developed. It is the
long-term, directional plan which decides what to
do with IT.
IS Strategy (Business Focused)
What?
Applications
deals with what to do with information
Wherefore?
IM strategy comprises the policies, and
procedures for managing IS and IT. The
overarching strategy that makes possible the
implementation of both IS and IT strategies.
IM Strategy (Management Focused)
the management framework which guides the
organisation how to run its IS/IT activities
Management
IT strategy relates to how these requirements are
going to be delivered and is technology focused.
It is primarily concerned with technology
policies, tackling issues of architecture, risk,
vendor polices, and technical standards.
Delivery
How?
IT Strategy (Technology Focused)
designates how technology is to be applied in the
delivery of information
Future applications portfolio
The applications to be developed
18
Relationship between the Business, Information
Systems, Information Technology and Information
Systems Management Strategies.
19
Step 2 Formulation of Information Systems Plan
  • The aim in this step is
  • to generate a strategic blueprint, an Information
    Systems Plan (information systems specification
    and documentation) based on the outputs derived
    from the previous phase.
  • The Information Systems Plan should
  • establish an organisations long-term
    infrastructure
  • that will allow information systems to be
    designed and implemented efficiently and
    effectively
  • be directed at ensuring an effective fit
    between
  • an organisation and its information systems
  • be specific enough
  • to enable understanding of each application and
  • to know where it stands in the order of
    development.
  • be flexible
  • so that priorities can be adjusted if necessary.

20
The necessary core elements of an Information
Systems Plan are
  • A clear statement of the IS objectives
  • that give a clear sense of direction - where the
    organisation wishes to be.
  • An inventory and assessment of both current
    capabilities and problems resulting from current
    practices - where the organisation is now.
  • The recommended
  • IS, IT and IM strategies
  • Portfolio of systems
  • Application portfolio analysis helps to map
    balance required of new investments and
    maintenance of existing investments
  • State of existing portfolio of systems
  • Prioritised set of new systems, required
    refurbishments
  • Portfolio of systems needs to be aligned with
    business strategy

21
  • Analysis explaining the rationale for the
    recommendations.
  • A change management plan
  • describing actions that will facilitate the
    adoption of the strategic information plan.
  • A human resources plan
  • identifying newly required IS skills and the new
    roles and responsibilities of those who will use
    the skills.
  • A migration plan including
  • an overall approach,
  • key projects, and their order of implementation
    with the costs, benefits, and risks of each
    project.
  • It must identify long and short-term actions and
    resource allocations.
  • A description of the process for annually
    updating the strategic information plan.
  • An appendix of reference materials on which the
    strategic information plan is based including
  • detailed analyses, diagrams, and charts.

22
Phase 1 Establishment of the Planning Process
Step 3 Establishment of project team
Step 4 Produce a formal description of the ISP
study
Step 1 Establishment of planning committee
Step 2 Obtaining commitment from senior
management
Phase 2 Reviewing the Current Situation and
Identifying Future Direction Where are we now?
Where do we want to be?
Stage 1 Business Strategies and Competitive
Assessment
Step 1 Understanding the Business Strategy
Step 2 Understanding the Business Environment
Affecting the Organization
Step 3 Understanding the External Business
Environment
Step 4 Understanding the Internal Business
Environment
Stage 2 Determining Information Needs
Stage 3 IS/IT Opportunity Identification
Step 1 Understanding the External IS/IT
Environment
Step 2 Understanding the Internal IS/IT
Environment
Step 3 Identification of IS/IT Opportunities
Step 1 Strategic analysis of information needs
Step 2 Enterprise analysis of information needs
Phase 3 Mapping the Future How to get from
Where we are now to Where we want to be
Formulation of Strategies and Plan
Step 1 Formulate Strategies
Step 2 Develop Information Systems Plan
23
Information Systems Planning Process
Phases Stages
Reviewing the current situation and Identifying Future Direction Where are we now? (A) Where do we want to be? (B) Business Strategies and Competitive Assessment
Determining Information Needs
IS/IT Opportunity Identification

Business Strategy
Internal Business Environment
External Business Environment
Tools Techniques SWOT Analysis Competitive
Forces Framework Competitive Strategies
Framework Value System Analysis Critical Success
Factors Analysis Business Systems
Planning Business-Technology Audit Applications
Portfolio Analysis
External IS/IT Environment
Internal IS/IT Environment
Information Needs
Current Applications Portfolio
24
IS Strategy (Business Focused)
Business Strategy
What?
Applications
Internal Business Environment
Information Systems Planning Process
External Business Environment
Wherefore?
IM Strategy (Management Focused)
Management
External IS/IT Environment
Internal IS/IT Environment
Delivery
How?
IT Strategy (Technology Focused)
Tools Techniques
Future applications portfolio
Current Applications Portfolio
A Conceptual Model for Information Systems
Planning
25
In order for a organisation to develop an
Information Systems plan, it needs to answer the
following three questions
What position is the organisation taking at
present? (current status A where we are now)
What path should it take to reach the objective?
(implementation how best can we get there)
What position does it plan to take in the future?
(objective B where we want to be)
Information Systems Planning is the process of
answering the above questions specifically in
relation to Information Systems.
26
A comprehensive Information Systems Planning
process needs to adopt three approaches to
Information Systems Planning
  • Top-down (IS-led) approach
  • focusing on information needs and flows which
    support decision making processes.
  • Bottom-up (IT-led) approach
  • with the focus on searching for productivity
    improvements based on IT utilization.
  • Inside Out (Innovation-led) approach
  • identifying opportunities to use information
    systems to gain competitive advantage.
  • This top-down, bottom-up, and inside-out approach
    tackles three issues
  • The clarification of the business needs and
    strategy in information systems terms.
  • The evaluation of current information systems
    provision and use.
  • Innovation of new strategic opportunities
    afforded by IT.

27
A comprehensive Information Systems Planning
process needs to be both
  • Alignment based
  • links with business planning in a unidirectional
    way (align IS objectives with organizational
    goals and enabling managers to identify IS to
    support current business strategies)
  • and
  • Impact based
  • links with business planning in a bi-directional
    way (attempting to influence organisational
    strategy and enabling managers to identify IS for
    competitive advantage).
  • Thus it focuses on IS as a way to assist business
    goals as well as identifying strategic
    opportunities enabled by IT.

28
The process emphasizes IT opportunities in the
process of generating IS strategies
  • Firstly, the currently used IS is carefully
    assessed and the IT environment is analyzed to
    identify IT opportunities.
  • Secondly, the identified IT opportunities are
    integrated with the business strategies to
    establish overall IS strategies.
  • The overall strategies are used to determine the
    specific plans for IS implementation.
  • Information system planning should be an integral
    part of business planning.
  • The planning process is continuous in nature, and
    should facilitate a partnership between the
    business and IT
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