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Information Systems Planning
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Opening Case: Kmart
Issue: whether & how extending e-business capabilities would revive the
companys competitive position The IT initiatives must be based onplanning issues
Aligning information systems with businessstrategyDeciding what projects to do, etc.
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The Process of InformationSystem Planning
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Challenges in Business Planning
Foreseeing and assessing opportunities Assuring consistency with organizationalplans and objectivesBuilding systemsMaintaining information systemperformanceCollaborating with IT professionals
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Principles for IS Planning
Support the firms business strategy withappropriate technical architecture
Evaluate technology as a component of alarger systemRecognize life cycle costs, not justacquisition costs
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Design information systems to bemaintainable
Recognize the human side of technologyuseSupport and control the technical system
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Planning Role of the IS and UserDepartments
The IS department is responsible forproducing the IS plan in conjunction withthe user departmentsChief information officer (CIO)
Leads the IS function, and is responsible formaking sure that the IS plan supports thefirm's business plan
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User roles in IS planning roles:Sponsors senior managers who make sure
resources are allocated for building andmaintaining the systemChampions individuals that recognize theimportance of an IS, and exert effort to make
sure that others share that recognitionIS steering committees make sure that theIS reflects business priorities
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Allocating Resources BetweenNew and Old ISs
Maintaining existing ISs and supportingusers
User support projectsEnhancementsBug fixes
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New development, infrastructure, andother projects
Major new applications projectsIT infrastructureResearch projects
Pilot project
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Project Roles of IT Professionals
Project managers ApplicationprogrammersSystem analystsProgrammer-analystTechnical writers
Computeroperators
DatabaseadministratorsSystem managers
SystemprogrammersUser support staff
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Strategic Alignment ofBusiness and IT
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Figure 11.3
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Consistency With BusinessPriorities
Critical success factors (CSF) thethings that must go right for a business tosucceed
Identify the firms primary mission and theobjectives that determine satisfactory overall
performanceExecutives identify a relatively small numberof CSFs
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Reengineering and Downsizing
Business process reengineering (BPR) thefundamental rethinking and radical redesign
of business processes to achieve dramaticimprovements in critical measures of
performance
Difficult and riskyDownsizing improve process efficiency byreducing the number of people involved in the
process
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Enterprise-wide andInterorganizational Systems
Interorganizational systems reflect thecustomer and supplier aspects of the
integration issues addressed by ERPsystemsIntegration between ERP packages andsupply chain management
Virtual organizations major aspects ofcore processes are outsourced tocompanies that specialize in these areas
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Information System Architecture
The basic bluepr in t showing how thefirms data processing systems, networks,
and data are integratedMust incorporate legacy systemsOld, and often obsolete systems that are stillin use
Computing platformThe basic types of computers, operatingsystem, and network
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Centralization vs. Decentralization
Location of hardware and dataCorporate headquarters
Regional processing centersSite processing centersDepartment processors
Work group processorsIndividual workstations
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Standards, ownership, and guidelines foraction
Position of the IS staff
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Describing a Business-drivenInfrastructure Figure 11.5
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Outsourcing
A long-standing practice in IS departments Application service provider (ASP)
Operate a firms application on remote serverson a WAN
Advantage: the firm no longer needs to install
and maintain the softwareDisadvantage: the firm has less control overthe application, and may have difficultytransferring to another ASP if needed
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International Issues
Technical incompatibilitiesSocial and political issuesTelecommunication issues
Transborder data flow
Economic issues
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Selecting Systems to Invest In
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Cost/Benefit Analysis
The process of evaluating proposedprojects by comparing estimated benefits
and costsKey issues:
Tangible and intangible benefits
Tendency to understate costsTiming of costs and benefits
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Risks
Desired benefits are not achievedThe project is late and/or over budgetThe systems technical performance isinadequateUser acceptance is lowShifting priorities reduce the projectsimportance, etc.
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Financial Comparisons
Some common criteria used for comparingand ranking projects:
Net present value (NPV)Internal rate of return (IRR)Payback
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Project Management Issues
Division of labor between the ISdepartment and users
Keeping the project on scheduleGoals, deliverables, schedulesChallenges in information system projects
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Systems Analysis Revisited
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Information Sources for AnalyzingSystems
InterviewsInputs, outputs, and documentation ofexisting systemsOn-site observationQuestionnairesBenchmarking