System Planning

System Planning is the examination and evaluation of an operation or task in order to identify and implement more efficient methods, usually through the use of computers.

Systems planning can be broken down into three main areas: ◦ The production of a statement of objectives;◦ Determination of the methods of best achieving

these objectives in a cost-effective and efficient way; ◦ The preparation of a feasibility study.

Introduction to System Planning

Comprehensiveness: the extent as to which an organization attempts to exhaust all necessary measures in integrating strategic decisions.

 Formalization: the existence of techniques, policies and written procedures that guide the planning stage.

 Focus: the balance between control orientations and creativity.

Top-down flow: should be initiated by the management heads with the help of support staff.

 Broad participation: it must involve all functional areas and levels of the organization.

High consistency: should be characterized by constant assessments of the overall strategy.

Dimensions of System Planning

Ongoing process that defines mission, objectives, and strategies of an organization

Corporate strategy involves:◦ Mission statement◦ Objective statements◦ Description of competitive strategy

Corporate Strategic Planning

Mission Statement

Concise statement about the main business of the organization

Statement of Objectives

A series of statements that express quantitative and qualitative goals for the future position of an organization

The method by which the organization will attempt to satisfy its mission and objectives

Main types:◦ Low-cost producer ◦ Product differentiation◦ Product focus

Competitive Strategy

An orderly means of assessing the information needs of an organization and defining systems, databases, and technologies that will best meet those needs

ISP must be done in accordance with the organization's mission, objectives, and competitive strategy.

Information Systems Planning (ISP)

Top-down planning◦ Attempts to gain a broad understanding of

information system needs of the entire organization

Bottom-up planning◦ Identifies IS development projects based on

solving specific operational business problems or taking advantage of specific opportunities

Approaches to IS Planning

Broader perspective Improved integration Improved management support Better understanding

Benefits of Top-Down Planning

But, bottom-up planning can be faster and less costly, so may be beneficial in certain circumstances

Review of documentation Observation of the current system Using questionnaires to determine user and

perhaps customer satisfaction Review of internal control procedures Conducting interviews with individual system

participants Presentations Group Discussions

Data & Fact Gathering Techniques Under Analysis phase

Project Feasibility

Measure of how beneficial or practical the development of an information system will be to an organization.

Process by which feasibility is measured Continuing process of feasibility assessment

Tests of feasibility Technical feasibility Operational feasibility Schedule Feasibility Economic feasibility

• Operational Feasibility

b How well will the solution work in the organization?

• Technical Feasibility

b How practical is the technical solution?

bHow available are technical resources and expertise?

Tests of Feasibility

• Schedule Feasibility

b How reasonable is the project timetable?

• Economic Feasibility

b How cost-effective is the project or solution?

bCost-benefit analysis

Tests of Feasibility

• Questions to Ask

b Is the problem worth solving?

bWill the solution to the problem work?

bHow do end users and management feel about the solution?

bHas a usability analysis been conducted?

Operational Feasibility

• Questions to Ask

bIs the proposed solution practical?

bDo we possess the necessary technology?

bDo we possess the necessary technical expertise?

Technical Feasibility

• Cost-benefit analyses

bHow much will the system cost?hDevelopment costshOperation costshMaintenance and support costs

bDo we possess the necessary technology?

bDo we possess the necessary technical expertise?

bIs the schedule reasonable?

Economic Feasibility