Post on 08-Apr-2018
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 1
Managing Information Technology
6th Edition
CHAPTER 14
PLANNING INFORMATION
SYSTEMS RESOURCES
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 2
Planning Information Systems
Resources In addition to understanding the technical and
operation issues of the IS organization, IT
managers must also align IT investments with
the organizations strategy
Setting a clear direction for the organizational
information resources is a critical high-level IT
management activity
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The Need for Direction
An organizational plan for the development ofinformation resources helps organizations to:
Share information among diverse parts of the
organization Communicate the future organizational plans to
others
Provide a consistent rationale for making individual
decisions Make decisions about how the business of IS will be
conducted
Plan for and respond to traumatic incidents
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Business and IT Alignment
Alignment of IT strategy with the
organization's business strategy is a
fundamental principle
BusinessStrategy
InformationTechnology
Strategy
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Outputs of the Direction-Setting
Process
Formally developing an overall informationresources plan may be new to manyorganizations
There are several deliverables during the processdirection-setting process
Information resources assessment
Information vision
Information architecture
Strategic IS plan
Operational IS plan
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Outputs of the Direction-Setting
Process
Includes inventorying and critically evaluatingan organizations technical and humanresources in terms of how well they aremeeting the organizations business needs
Information Resources Assessment
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Outputs of the Direction-Setting
Process
An ideal view of the future state of the
organizations information resources
Must be specific enough to provide policy
guidelines for individual decisions
Must focus on the long term
Although some firms combine them, there is a
difference between vision and architecture
Information vision and architecture
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Outputs of the Direction-Setting
Process
A written expression of the desired future about
how information will be used and managed inthe organization
Information Vision
Depicts the way an organizations informationresources will be deployed to deliver that vision
Information Technology Architecture
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Outputs of the Direction-Setting
ProcessInformation resources plans
Contains a set of longer-term objectives thatrepresent measurable movement toward theinformation vision and technology architecture
and a set of associated major initiatives thatmust be undertaken to achieve these objectives
Strategic IS plan
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Copyright 2009 Pearson Education, Inc. Publishing as Prentice Hall 10
Outputs of the Direction-Setting
ProcessInformation resources plans
Contains a set of longer-term objectives thatrepresent measurable movement toward theinformation vision and technology architecture
and a set of associated major initiatives thatmust be undertaken to achieve these objectives
Operational IS Plan
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The Process Of Setting Direction
IS decisions must be
tightly aligned with the
direction of the business
Decisions should impact
the next step in the
process, but that is notalways the case
IS and business planning
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The Process Of Setting Direction
Current performance is compared to a
previous plan, competitors, or a set of past
objectives
Comparisons made using:
Operating data
Survey of internal satisfaction with IS performance
Benchmarks of what is being achieved at other
organizations
Assessment
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The Process Of Setting Direction
Envision an ideal or intended state at some
point in the future
At this point, no definition of how to achieve
the vision is included
Vision
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The Process Of Setting Direction
The process of constructing a viable fit
between the organizations objectives and
resources and its changing market and
technological opportunities
Strategic planning
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The Process Of Setting Direction
Lays out the major actions the organization
needs to carry out in the shorter term to
activate its strategic initiatives
Operational planning
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The Process Of Setting Direction
Needs-based (or project-oriented) planning
Until recently, many IS organizations were not
involved in the organizations business planning These organizations tended to adopt a needs-based
planning
Bottom-up, immediate approach to information resourcesplanning
Used when a specific, urgent business need called for a newsystem
Emphasis on project planning rather than overallorganizational planning
Traditional planning in the IS organization
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Assessing Current Information Resources
Should measure current levels of informationresources use within the organization and
compare it to a set of standards Standards can come from:
Past performance
Technical benchmarks
Industry norms
Best of class estimates from other companies
Measuring IS use
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Assessing Current Information Resources
IT managers should assess the attitudes of
users and IS staff about the performance of
the IS organization in relating its activities tothe needs and direction of the business
Measuring Attitudes of Users
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Assessing Current Information Resources
Should set forth the fundamental rationale (or
reason to exist) for activities of the IS department
Can vary substantially from one organization toanother
IS departments may take on different roles:
Offensive Defensive
Strategic
IS Organizational Mission Statement
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Assessing Current Information Resources
The mission, or role, of the IS organization
should align with the needs of the business
IS Organizational Mission Statement
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Assessing Current Information Resources
Annual assessment of actual performance
compared to previous goals should be conducted
Assessing Performance Against Goals
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Creating an Information Vision
Information vision represents how seniormanagement wants information to be used andmanaged in the future
Steps:1. Speculation on how the businesss competitive
environment will change and how the companyshould take advantage of it
2. Business vision is specified and written3. Implications for information use are outlined
4. Information vision is written
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Designing the IT Architecture
ITArchitecture
Specifies how the technological and human assets
and the IS organization should be deployed in the
future to meet the information vision
Two components:
Technological
Human
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Designing the IT Architecture
Four stages of IT architecture maturity:
1. Business Silos companies seek to maximize
individual business unit or functional needs
2. Standardized Technology companies seek to
enable IT efficiencies through shared services
and application rationalization, resulting in
enterprise-wide IT standardization
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Designing the IT Architecture
Four stages of IT architecture maturity:
3. Optimized Core companies implemententerprise-wide business processes and data
with tightly linked systems and processes (suchas with ERP systems)
4. Business Modularity companies seek globalflexibility with loosely coupled IT-enabled
business process components, which enablelocal differences but also preserve enterprise-wide standards
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Designing the IT Architecture
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The Strategic IS Plan
Strategic IS Plan
Statement of the major objectives and initiatives
that the IS organization and business managers
must accomplish over some time period in order
to enable the information vision and the IT
architecture, and to be aligned with the strategic
plan for the overall business
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The Strategic IS Plan
This planning process includes:
Setting objectives
Conducting internal and external analyses
Establishing strategic initiatives
Most planning processes involve iterations
through these steps
The Strategic IS Planning Process
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The Strategic IS Plan
Setting objectives
Measures are identified for each of the key result
areas for the organization
IS objectives can be established for:
IS department service image
IS personnel productivity
The appropriateness of technology applications
Increased effectiveness
Access to external resources
The Strategic IS Planning Process
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The Strategic IS Plan
Conducting internal and external analyses
Review external environment and internal
capabilities
Called a SWOT (strengths, weaknesses,
opportunities, and threats) analysis
Identifies leverage points or limiting factors fornew strategic initiatives
The Strategic IS Planning Process
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SWOT Analysis
Strengths Weaknesses
Opportunities Threats
SWOTAnalysis
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The Strategic IS Plan
Establishing strategic initiatives
Identifying important initiatives needed to
enhance the role of IT
None of the initiatives is spelled out in enough
detail to be immediately translated into action
These initiatives will be translated into actualprojects in the operational planning step
The Strategic IS Planning Process
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Strategy Agenda
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The Strategic IS Plan
Critical success factors (CSFs)
Information needs and processes critical to the
success of a business function like sales or to theentire organization
Analysis of competitive forces
Competitive advantage can come about bychanging the balance of power between a
business and the other actors in the industry
Tools for identifying IT strategic opportunities
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The Strategic IS Plan
Analysis of competitive forces (contd)
A company can create strategic advantage by:
Raising the stakes for competition in the market
Providing difficult-to-duplicate product/service features
Providing unique product features or customer services
Making it easier for customers to do business with the
company and more difficult to switch to a competitor
More strongly linking with suppliers to obtain lower-
cost, higher-quality materials
Tools for identifying IT strategic opportunities
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The Strategic IS Plan
Value chain analysis
IT can be used in each activity of the value chain
to capture, manipulate, and distribute the datanecessary to support that activity and its linkages
to other activities
Idea-generation and action-planning sessions can
be used to generate strategic applications of IT
Tools for identifying IT strategic opportunities
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The Strategic IS Plan
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The Strategic IS Plan
Scenario planning
Used by business leaders to address an uncertain
future
Alternative scenarios for what the future might
look like are developed
Typically a few major drivers are focused on tocreate a scenario space and then characteristics
of the scenarios are used to help plan for the
future
Tools for identifying IT strategic opportunities
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The Operational IS Plan
The initiatives in the strategic IS plan are
translated into an action plan incorporating:
Precise expected results
Due dates
Priorities
Responsibilities
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The Operational IS Plan
Multiyear operational IS plan developed for up
to a three-year time period
Focus is on project definition, selection, andprioritization
Steps:
1. Define multiyear IS operating objectives
2. IS development or acquisition projects then
defined and selected
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The Operational IS Plan
Portfolio view of IS operational plan allows fora balance between risks and return of IS
projects
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The Operational IS Plan
Shorter-term operational IS plan developed
for up to a one-year period
Focus is on specific tasks to be completed on
projects that are currently underway or ready
to be started
Linked to the firms business priorities by the
annual budget
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Guidelines for Effective IS Planning
1. Early clarification of the purpose of the planningprocess is essential
2. The information resources planning effort
should be viewed as an iterative effort3. The plan should reflect realistic expectations
4. A unified approach to delivering IT servicesshould be used
5. An effective IS plan will also take intoconsideration potential barriers and constraints
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Benefits of Information Resources
Planning
Better IS resource allocation
Communicating budget needs with top
management
Creating a context for IT decisions
Achieving both integration and innovation
Evaluating vendor options Meeting management expectations
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mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.
Copyright 2009 Pearson Education, Inc.Publishing as Prentice Hall