strategic information system planning
Post on 16-Jul-2015
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Strategic Issues for the 1990s
1990s Business Forces• Globalisation• Worldwide competition• Productivity requirements• Volatile environment
Strategic Issues for the 1990s
Increased Connectivity• Interorganisational business
relationships• Intraorganisational coordination
for increased efficiency and effectiveness
• Adaptable organisation structures
Strategic Issues for the 1990s1990s Information Technology
Opportunities• Continued dramatic cost performance and
capacity advances• New IT architectures encompassing:
- Extensive communications networks- Accessible distributed databases - Enhanced human interface workstations
What are the key objectives of the
organization?What is its strategic
direction?
Managerial Issues
CEOCIO
What objectives and strategies should IS pursue? What
policies should it establish? How should investments in IT
be justified?
Managerial Issues
CEOCIO
Why Do We Need SISPs?
How much is it going to cost to introduce new e – business
technologies?
How do I know what technology to introduce and when , given that markets are moving
so quickly?
What value can we create for the business by
developing and implementing an
IT strategy?
Why Do We Need SISPs?
How can I keep our systems flexible and cost efficient?
Which IT initiative should
I do first?
I have limited time,
people and money.
How can I implement all
these IT things?
Why SISP?
To ensure that IS both complements and assists in the achievement of our business goals.To ensure that the use of scarce resources are maximized within a business.To maximize the benefits of changing technology.To take account of the different viewpoints of business professionals and IT professionals.
SISP - Aims
Blueprint developed for organization for the use of ICT which is
Cost effective
Alignment of IS / IT with organisational goals
Competitive advantage
The Challenge is to Improve Organisational Performance
The overall aim of SISP is to direct IS resources to those areas offering the
most important corporate benefits
Corporate Body
Operations
InformationSystems
Finance
Marketing
Distribution
HumanResources
CustomersCustomers
SuppliersSuppliers
EmployeesEmployees
RegulatoryAgencies
RegulatoryAgencies
� Align the IS plan with the overall objectives and strategies of the organization.
Strategic Information Systems Planning
Overall Objectives and
Strategies
IS Plan
Alignment
A business accomplishes its objectives by mobilizing all its units towards realizing its business scope.
Coordination, perseverance, and concentration of effort toward a shared set of objectives.
A business which is aligned is said to be in a state of “strategic fit.”
Issues in IS/IT that lead to the need of SISP.
Systems investments are made that do not support business objectives
Inadequate infrastructure investments madeProblems caused by IS/IT investments becoming a source of conflict
Loss of control of IS/ITSystems are not integratedNo means for prioritising investmentsNo mechanisms for deciding optimum resource usagePoor management of informationMisunderstandings between users and IT specialists
Issues in IS/IT that lead to the need of SISP.
Localized justification of investments can produce benefits that are counterproductive in the overall business context
Advantages of SISP
Identify important application to invest
Help organization use its IS to carry out existing business strategy
Help organization define business strategy
Without SISP, may result:
Missed opportunity
Duplicated systems
Incompatible systems
Wasted resources
Where & When ISP?
Any organization that has interest in getting the best out of its IT investments.
Facing problems
Grabbing opportunities.
Information Systems (IS) fail to satisfy huge, diverse and complicated information requirements of their users.
Who Perform SISP?
IS Planners / System Analyst
Variety of stakeholders (i.e. sponsor, users)
Top management commitment successful ISP.
HOW?
Look at business structure, function, processes, culture Look at existing IT Look at available technology. Carry out interviews. Develop policies. Develop application portfolio. Plan schedules for migration, implementation etc.
Internal IS / IT environment
SISP - Inputs & Outputs
Source: Ward et al Figure 3.8
OUTPUTS
INPUTS Strategic
IS / IT planning process
Current applications
portfolio
IT strategy
Applicationsportfolio
Models &matrices
IS management strategy
BusinessIS strategy
Internal business environment
Planning, approaches, tools & techniques
External business environment
External IS / IT environment
Current Definition of SISP
“The continuous review of computer technology, applications and management structure to ensure that current anticipated information and process needs of the organization are met in a way that provides an acceptable return of investment (ROI), is sensitive to the dynamic politics and culture of the organization and is aware of the sociological environment within which the organization exists.”
Mc Bride, De Monfort University
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