Management Information Systems, 4 th Edition 1 Chapter 4 Planning Information Systems
Management Information Systems, 4th Edition 2 Learning Objectives • Describe different approaches to business planning in general and IS planning in particular • Explain how IS planning methods evolved • Outline how IS planning should be carried out • Argue the importance of integrating IS planning into overall organizational planning • Appreciate the many complex factors faced by IS planners
Management Information Systems, 4 th Edition 3 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, 4th Edition 4 Business Planning • Managers must have an idea about: – What position their organization currently holds in the market – What position they want their organization to hold in the market – How they can help get their organization where they want it to be
Management Information Systems, 4 th Edition 5 • Elements of business planning: – Defining an organization’s goals and objectives – Determining the resources needed to attain those objectives – Creating the policies that will govern the acquisition, use, and distribution of those resources – Providing for any changes in objectives that may be needed along the way Business Planning (Cont.)
Management Information Systems, 4th Edition 6 Business Planning
Management Information Systems, 4 th Edition 7 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, 4th Edition 8 Approaches to Planning (Cont.)
Management Information Systems, 4 th Edition 9 Approaches to Planning (Cont.)
Management Information Systems, 4 th Edition 10 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
Management Information Systems, 4th Edition 11 Planning by Critical Success Factors (Cont.)
Management Information Systems, 4 th Edition 12 Information Systems Planning
Management Information Systems, 4th Edition 13 • 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 Information Systems Planning (Cont.)
Management Information Systems, 4 th Edition 14 Information Systems Planning (Cont.)
Management Information Systems, 4th Edition 15 Prerequisites for Information Systems Planning
Management Information Systems, 4th Edition 16 • 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 The Corporate and IS Mission Statements
Management Information Systems, 4 th Edition 17 Information Systems Planning (Cont.)
Management Information Systems, 4th Edition 18 The IT Vision • IS managers’ wish list to contribute to goals of the organization – Hardware – Software – Communications
Management Information Systems, 4 th Edition 19 Information Systems Planning (Cont.) • 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 • Objectives • How • When
Management Information Systems, 4th Edition 20 Information Systems Planning (Cont.)
Management Information Systems, 4 th Edition 21 Important Factors in IS Tactical Planning • Flexibility • Compatibility • Connectivity • Scalability • Standardization • Hardware-software equivalence • Total Cost of Ownership
Management Information Systems, 4th Edition 22 Hardware Planning
Management Information Systems, 4 th Edition 23 IS Planning Initiatives • Four groups of people who initiate new or improved ISs from different perspectives – Management – Line managers – Users – IS professionals
Management Information Systems, 4th Edition 24 IS Planning Activities
Management Information Systems, 4th Edition 25 Dealing with Legacy Systems • Signs of a legacy system – Lacks useful features that newer systems of its type offer – Too slow relative to similar, newer systems – Incompatibility with newer systems with which it is interfaced – Operating costs of the system is significantly higher than a newer system for the same business objectives
Management Information Systems, 4 th Edition 26 • Questions to ask about legacy systems: – How significant is the value that the legacy system provides the business? – Is the system capable, or can it be made capable, of being interoperable and integrated with other systems? – Do other systems depend on it for data? – How high is the cost of operating the system? Dealing with Legacy Systems (Cont.)
Management Information Systems, 4th Edition 27 • Choices for dealing with legacy systems: – Leave them as is – Retire them • Adopting or developing a totally new system – Migrate them • Using large parts of it to build a new system or • Integrating parts into another system • Retain functionality of original system Dealing with Legacy Systems (Cont.)
Management Information Systems, 4 th Edition 28 The Champion • High-ranking officer who commands sufficient political clout to include IS in planning • Most effective champions are not IS professionals
Management Information Systems, 4th Edition 29 The Champion (Cont.) • 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
Management Information Systems, 4 th Edition 30 The Systems Analyst as an Agent of Change
Management Information Systems, 4th Edition 31 • 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 The Systems Analyst as an Agent of Change (Cont.)
Management Information Systems, 4 th Edition 32 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
Management Information Systems, 4th Edition 33 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
Management Information Systems, 4 th Edition 34 Summary • There are different approached to business planning as well as IS planning • IS planning methods have evolved over time • IS planning should be integrated into overall organizational planning • There are complex factors faced by IS planners