Professional Documents
Culture Documents
la Toma de Decisiones
Tema 6 - Capitulo 8
IT Planning
& BPR
1
Learning Objectives
! Discuss the major issues addressed by IS planning.
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 6 Diapositiva 2
Learning Objectives (cont.)
! Distinguish the major Web-related issues and understand
application portfolio selection.
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 6 Diapositiva 3
Case: How TruServ planned its IT
Problem:
! The merger of Cotter & Co. and TruServ in 1997 required combining
the information systems of the two companies.
Solution:
! A strategic IT plan was created and addressed issues such as;
" the company’s Intranet and extranet
" e-procurement
" EC applications
Results:
! The plan has remained fluid. It has been reevaluated and updated with
new business goals every six months since its inception.
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 6 Diapositiva 4
IT Planning
IT planning is essential for both planners & end-users
for several reasons:
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 6 Diapositiva 5
IT Planning (cont.)
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 6 Diapositiva 6
IT Planning Issues
Basic IT planning addresses the following four general issues:
1. Aligning the IT plan with the 3. Efficiently allocating information
organizational business plan systems development and
operational resources among
competing applications.
2. Designing an IT architecture
for the organization in such a
way that users, applications, 4. Planning information systems
and databases can be projects so that they are completed
integrated and networked on time and within budget and
together. include the specified
functionalities.
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 6 Diapositiva 7
Four-Stage Model of IT Planning
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 6 Diapositiva 8
IT Planning Stages
Major IT Planning Activity Description
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 6 Diapositiva 9
Stage 1: Strategic Information Planning
# Strategic information planning (SIP) must be aligned with overall
organizational planning and with e-business.
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 6 Diapositiva 10
Business Systems Planning
! It deals with two main building blocks as the basis of the information
architecture;
" Business processes
" Data classes
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CSF & Scenario Planning
! The critical success factors (CSF) approach was developed to help
identify the information needs of managers.
" Sample questions asked in the CSF approach are:
• What objectives are central to your organization?
• What are the critical factors that are essential to meeting these objectives?
• What decisions or actions are key to these critical factors?
• What variables underlie these decisions, and how are they measured?
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 6 Diapositiva 12
Stage 2: Information Requirements Analysis
Step 1: Define underlying organizational subsystems.
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Stage 3: Resource Allocation
# Resource allocation consists of developing the hardware, software,
data communications, facilities, personnel, and financial plans needed
to execute the master development plan defined in Stage 2.
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 6 Diapositiva 14
Stage 4: Project Planning
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Infrastructure Considerations
# Broadbent et al. (1996) found the following four infrastructure
relationships;
" Industry—manufacturing firms use less IT infrastructure services than
retail or financial firms.
" Market volatility—firms that need to change products quickly use
more IT infrastructure services.
" Business unit synergy—firms that emphasize synergies (e.g.,
cross-selling) use more IT infrastructure services.
" Strategy and planning—firms that integrate IT and organizational
planning, use more IT infrastructure services.
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IT Architecture Computing
! Centralized computing puts all processing and control authority
within one computer and all other computing devices respond.
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Reengineering Legacy Systems
! Legacy Systems are holdovers of earlier architectures that are
still in use after an organization migrates to a new architecture.
" The decision—to keep, improve, or replace—can present
management with agonizing alternatives.
! Reverse engineering is the process of examining systems to
determine their present status, and to identify what changes are
necessary to allow the system to meet current and future
business needs.
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 6 Diapositiva 18
IT Planning & E-Planning
Some connections between IT planning and e-planning are:
# Web applications may replace traditional IT applications for improving their
operations.
# The ISD and the e-Commerce project may compete for limited resources.
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Applications Portfolio
! Tjan s Portfolio Strategy. Tjan (2001) adopted a business
project portfolio applications approach to create an Internet
portfolio planning.
" The strategy is based on company fit, which can be either low or
high, and the project s viability, which can also be low or high.
" If both viability and fit are low, the project is killed. If both are high,
then the project is adopted, etc.
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Issues in E-Planning
# Who and where? Should the EC initiatives be conducted in a completely
independent division or even a separate company?
# Learn from failures. During 2000/2001 there were many EC failures, both
major initiatives and whole companies.
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Business Processes Across Functional Areas
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Business Process Reengineering
! Business process reengineering (BPR) refers to a situation in
which an organization fundamentally and radically redesigns its
business process to achieve dramatic improvement.
" Initially, attention was given to a complete restructuring of
organizations.
" Later, the concept was changed due to failures of BPR projects
and the emergence of Web-based applications.
" Today, BPR can focus on anything from the complete restructuring
of an organization to the redesigning of individual processes.
" Major objective of BPR = Information Integration.
MTI. Carlos J. Duarte Camacho Sistemas de Información para la Toma de Decisiones. Tema 6 Diapositiva 23
Case: VW of Mexico uses e-Procurement
Problem:
! Facing strong competition and the North American Free Trade
Agreement (NAFTA) environment, Volkswagen of Mexico turned to IT.
Solution:
! In 1996 VW implemented an enterprise resource planning system,
using SAP R/3 software.
! By 1998, the company integrated its entire enterprise system.
Results:
! The company projects that its IT applications will result in $50 million in
cost savings over three years for the dealers.
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The Enabling Role of IT
Old Rule Intervening Technology New Rule
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Tools for BPR
" Simulation and visual " Work analysis
simulation tools " Workflow software
" Flow diagrams " Business process
design
" Application
development tools " Comprehensive
modeling tools
" Integrated tool kits " Other tools
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Mass Customization
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Mass Customization & EC
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Cycle Time Reduction
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BPR Failures
! During the 1990s there were just as many cases of BPR failures as
there were success stories.
! A survey conducted by the PROSCI organization (prosci.com) indicates
a failure rate of 50 to 80%.
! Some of the reasons cited for failures are:
" high risk
" inappropriate change management
" failure to plan for internal politics
" high cost of retooling
" lack of participation and leadership
" inflexible software
" lack of motivation
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Networked Organizations
# Today some organizations are turning away from the hierarchical
organization toward the networked organization.
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Networked Organizations (cont.)
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Empowerment Using IT
! Empowerment is the vesting of decision-making or approval
authority in employees where, traditionally, such authority was a
managerial prerogative.
! Empowerment can be enhanced through IT.
" Empowered employees are expected to perform better.
! In addition to empowering employees, companies are
empowering their customers, suppliers, and other business
partners.
" E.g. Federal Express uses the Internet to empower its customers.
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Virtual Corporations
! A Virtual Corporation (VC) is an organization composed of
several business partners sharing costs and resources for the
purpose of producing a product or service.
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Virtual Corporations (cont.)
! In a VC, the resources of the business partners remain in their
original locations but are integrated.
! In order to function, VCs rely on the following forms of IT;
" Communication/ collaboration among dispersed business partners
• e.g., e-mail, desktop videoconferencing, screen-sharing, etc.
" EDI and EFT
" Intelligent agents
" Modern database technologies and networking
" Intranet/Internet applications
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Managerial Issues
" Importance. IT planning is one
of the most challenging and
difficult tasks facing all of
management.
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Managerial Issues (cont.)
" IT policy. IT architectures should " Failures. Very big projects have a
be based on corporate guidelines. tendency to fail when expectations
exceed real capabilities.
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