Chapter 14 Planning Information Systems

Management Information Systems, 3rd Edition Effy Oz

Learning Objectives
When you finish this chapter, you will
Recognize different approaches to business planning in general and IS planning in particular. Understand how IS planning methods evolved. Know how IS planning should be carried out.

Management Information Systems, 3rd Edition Effy Oz

Learning Objectives
Recognize the importance of integrating IS planning into overall organizational planning. Appreciate the many complex factors faced by IS planners.

Management Information Systems, 3rd Edition Effy Oz

Why Plan?
What is Planning?
An IS plan is a statement of how management foresees its ISs in the future. IS plan includes:
Activities planner believes will help achieve goals. Program for monitoring real-world progress. Means for implementing changes in the plan.

Management Information Systems, 3rd Edition Effy Oz

Why Plan?
Business Planning
Define organizations goals and objectives Determine resources needed to attain objectives Create policies to govern the acquisition, use, and distribution of resources Provide for any changes in objectives

Management Information Systems, 3rd Edition Effy Oz

Why Plan?
Figure 14.1 Business planning

Management Information Systems, 3rd Edition Effy Oz

Approaches to Planning
Top-down Planning
Focuses on organizational goals first, then on the needs of business units

Bottom-up Planning
Focuses on needs of business units first, then on organizational goals

Management Information Systems, 3rd Edition Effy Oz

Approaches to Planning

Figure 14.2 Top-down, or goal-driven, planning considers the organization as a whole.

Management Information Systems, 3rd Edition Effy Oz

Approaches to Planning

Figure 14.3 In bottom-up planning, the process starts with consideration of individual concerns.

Management Information Systems, 3rd Edition Effy Oz

Approaches to Planning
Planning by Critical Success Factors
Executives define critical success factors first so planning can address resources to support those factors
Critical success factor: issues identified as critically important to business success

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Approaches to Planning

Figure 14.4 Business planning by critical success factors

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Information Systems Planning

Figure 14.5 Advances in IS planning since the 1970s

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Information Systems Planning

Key elements of an IS Plan
Corporate mission statement Vision for IT within organization IS strategic and tactical plans Operations plan to achieve mission and vision Budget to ensure resources are available
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Information Systems Planning

Figure 14.6 The steps of information systems planning

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Information Systems Planning

Prerequisites for Information Systems Planning

Figure 14.7 Prerequisites for effective IS planning

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Information Systems Planning

The Corporate and IS Mission Statements
The corporate mission statement details the purpose of the organization and its overall goals. IS mission statement outlines the purpose of ISs in the organization.
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Information Systems Planning

Figure 14.8 The mission statement of a university IS organization Management Information Systems, 3rd Edition Effy Oz

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Information Systems Planning

The IT Vision
Wish list of what IS managers would like to see in terms of hardware, software, and communications, to contribute to goals of the organization
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Information Systems Planning

Strategic and Tactical IS Planning
IS strategic plan details what is to be achieved IS tactical plan describes how goals will be met and by when
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Information Systems Planning

Figure 14.9 Rigid and dynamic planning

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Information Systems Planning

Important Factors in IS Tactical Planning
Flexibility Compatibility Connectivity Scalability Standardization Total Cost of Ownership
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Information Systems Planning

Figure 14.10 Hardware planning

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Information Systems Planning

Figure 14.11 Total cost of ownership per laptop computer

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IS Planning Initiatives
Four groups of people who initiate new or improved ISs from different perspectives
Top management IS professionals Line managers Users
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Management Information Systems, 3rd Edition Effy Oz

IS Planning Activities

Figure 14.12 IS planning can be driven by a variety of sources.

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IS Planning Activities

Figure 14.13 A survey of 100 CEOs and other executives shows that IT projects are initiated by business unit managers and IT managers, but also by top executives.

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The Champion
High-ranking officer who commands sufficient political clout to include IS in planning Most effective champions are not IS professionals.

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The Champion
A successful champion is a leader who can:
Promote the vision of IT in the organization. Inspire top management and subordinates alike. Remove barriers to realizing vision. Focus on both short-term and long-term objectives. Be a torchbearer for making change happen. Drive accountability to lowest organizational level.

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The Systems Analyst as an Agent of Change

Figure 14.14 Systems analysts facilitate change by motivating, educating, and training.

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The Systems Analyst as an Agent of Change

Planning almost always deals with change, which people tend to resist. Systems analysts must convince users that the new system will help them in their work.
Explain how a new system will improve business performance Train individuals in the use of the new system
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Ethical and Societal Issues

Codes of Ethics for IS Professionals IS professionals can find themselves in situations where the interests of different constituencies collide. Many organizations do not provide adequate guidelines for resolving conflicts of interest.

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Ethical and Societal Issues

Codes of Ethics for IS Professionals
IS organizations with codes of ethics
Association of Computing Machinery Data Processing Management International Federation for Information Processing British Computer Society Canadian Information Processing Society Institute for Certification of Computer Professionals
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