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Chapter 14Chapter 14

Planning Information Planning Information SystemsSystems

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Why Plan?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.

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Why Plan?Why Plan?

•Business Planning

– Define organization’s 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

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Approaches to PlanningApproaches 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

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

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

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Approaches to PlanningApproaches 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

Business planning by critical success factors

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InformationInformationSystems PlanningSystems Planning

Advances in IS planning since the 1970s

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Key elements of an IS PlanKey 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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The steps of information systems planning

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The Corporate and IS Mission The Corporate and IS Mission StatementsStatements

– 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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The IT VisionThe 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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Strategic and Tactical IS Strategic and Tactical IS PlanningPlanning

– IS strategic plan details what is to be achieved

– IS tactical plan describes how goals will be met and by when

Rigid and dynamic planning

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Important Factors in IS Tactical Important Factors in IS Tactical PlanningPlanning

–Flexibility–Compatibility–Connectivity–Scalability–Standardization–Total Cost of Ownership

Total cost of ownership per laptop computer

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IS Planning InitiativesIS Planning Initiatives• Four groups of people who initiate new or

improved ISs from different perspectives– Top management– IS professionals– Line managers– Users

IS planning can be driven by a variety of sources.

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 ChampionThe 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 ChampionThe 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 The Systems Analyst as an Agent of Changeof 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

Systems analysts facilitate change by

1. motivating,

2. educating, and

3. training.