STRATEGIC INFORMATION SYSTEM PLANNING

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

What should the role of the IS function be?

How should it be organized?

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

Strategic Information Systems Planning

Overall Objectives and

Strategies

IS Plan

� 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