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E. Wainright Martin Carol V. Brown Daniel W. DeHayesJeffrey A. Hoffer William C. Perkins
MANAGINGMANAGINGINFORMATIONINFORMATIONTECHNOLOGYTECHNOLOGY
FIFTH EDITION
CHAPTER 14
SETTING A DIRECTION FOR INFORMATION RESOURCES
© 2005 Pearson Prentice-Hall Chapter 14 - 2
WHY SET A DIRECTION FOR INFORMATION RESOURCES?
Page 559
To share information among diverse parts of the organization
To communicate the future to others
To provide a consistent rationale for making individual decisions
Planning discussions help business managers and IS professionals in making decisions about how the “business” of IS will be conducted
© 2005 Pearson Prentice-Hall Chapter 14 - 3
THE OUTPUTS OF THE DIRECTION-SETTING PROCESS
Page 560
Information Resources Assessment
Information resources assessment – includes inventorying and critically evaluating these resources in terms of how well they are meeting the organization’s business needs
© 2005 Pearson Prentice-Hall Chapter 14 - 4
OUTPUTS OF THE DIRECTION-SETTING PROCESS
Page 560
Information Vision and Architecture
Is an ideal view of the future
Not the plan on how to get there
Must be flexible enough to provide policy guidelines for individual decisions
More than just fluff
Must focus on the long term
© 2005 Pearson Prentice-Hall Chapter 14 - 5
OUTPUTS OF THE DIRECTION-SETTING PROCESS
Page 560
Information Vision and Architecture
Information vision – a written expression of the desired future about how information will be used and managed in the organization
© 2005 Pearson Prentice-Hall Chapter 14 - 6
OUTPUTS OF THE DIRECTION-SETTING PROCESS
Page 560
Information Vision and Architecture
Information vision – a written expression of the desired future about how information will be used and managed in the organization
Information technology architecture – depicts the way an organization’s information resources will be deployed to deliver that vision
© 2005 Pearson Prentice-Hall Chapter 14 - 7
OUTPUTS OF THE DIRECTION-SETTING PROCESS
Page 560
Information Resources Plans
Strategic IS plan – contains a set of longer-term objectives that represent measurable movement toward the information vision and technology architecture and a set of associated major initiatives that must be undertaken to achieve these objectives
© 2005 Pearson Prentice-Hall Chapter 14 - 8
OUTPUTS OF THE DIRECTION-SETTING PROCESS
Page 560
Information Resources Plans
Strategic IS plan – contains a set of longer-term objectives that represent measurable movement toward the information vision and technology architecture and a set of associated major initiatives that must be undertaken to achieve these objectives
Operational IS plan – is a precise set of shorter-term goals and associated projects that will be executed by the IS department and by business managers in support of the strategic IS plan
© 2005 Pearson Prentice-Hall Chapter 14 - 9
THE PROCESS OF SETTING DIRECTION
Assessment
Vision
Strategic Planning
Operational Planning
Page 561 Figure 14.1 The Information Resources Planning Process
© 2005 Pearson Prentice-Hall Chapter 14 - 10
THE PROCESS OF SETTING DIRECTION
Strategic Planning – the process of constructing a viable fit between the organization’s objectives and resources and its changing market and technological opportunities
Page 561 Figure 14.1 The Information Resources Planning Process
© 2005 Pearson Prentice-Hall Chapter 14 - 11
THE PROCESS OF SETTING DIRECTION
Operational Planning – lays out the major actions the organization needs to carry out in the shorter term to activate its strategic initiatives
Page 561 Figure 14.1 The Information Resources Planning Process
© 2005 Pearson Prentice-Hall Chapter 14 - 12
THE PROCESS OF SETTING DIRECTION
Page 562
Needs-based IS planning or project-oriented IS planning: Bottom-up, immediate approach to information resources planning Used when a specific, urgent business need called for a new
system Emphasis on project planning rather than overall organizational
planning
Traditional Planning in the IS Organization
© 2005 Pearson Prentice-Hall Chapter 14 - 13
ASSESSING CURRENT INFORMATION RESOURCES
Page 563
Information resources assessment: Must measure current levels of information resources use within the organization
and compare it to a set of standards
Standards can come from: Past performance Technical benchmarks Industry norms “Best of class” estimates from other companies
Measuring IS Use and Attitudes
© 2005 Pearson Prentice-Hall Chapter 14 - 14
ASSESSING CURRENT INFORMATION RESOURCES
Page 563
IS mission statement: Should set forth the fundamental rationale (or reason to
exist) for activities of the IS department Can vary substantially from one organization to another
Reviewing the IS Organizational Mission
© 2005 Pearson Prentice-Hall Chapter 14 - 15 Page 565
Reviewing the IS Organizational Mission
Figure 14.3 IS-Prepared Mission Statement Example
Example IS Mission Statement
© 2005 Pearson Prentice-Hall Chapter 14 - 16
ASSESSING CURRENT INFORMATION RESOURCES
Page 565
Traditional goal: Reduce cost by increasing operating efficiencies
Scope of IS goals has expanded to include: Systems to assist in decision making Ways to help with competitive advantage
Assessing Performance versus Goals
© 2005 Pearson Prentice-Hall Chapter 14 - 17 Page 565
Assessing Performance versus Goals
Table 14.1 Objectives for the IS Department
© 2005 Pearson Prentice-Hall Chapter 14 - 18 Page 566
Information Vision: Represents how senior management wants information to be used and managed in the
future
Starts with speculation on how the business’s competitive environment will change and how the company should take advantage of it
Business vision is specified and written
Implications for information use are outlined
CREATING AN INFORMATION VISION
© 2005 Pearson Prentice-Hall Chapter 14 - 19 Page 567
DESIGNING THE ARCHITECTURE
IT architecture – specifies how the technological and human assets and the IS organization should be deployed in the future to meet the information vision
© 2005 Pearson Prentice-Hall Chapter 14 - 20 Page 568
DESIGNING THE ARCHITECTUREComponents of Architecture
Figure 14.5 Elements of an Information Technology Architecture
© 2005 Pearson Prentice-Hall Chapter 14 - 21 Page 569-570
THE STRATEGIC IS PLAN
Strategic IS Plan – statement of the major objectives and initiatives that the IS organization and business managers must accomplish over some time period in order to:
• move toward the information vision• fit the business strategic plan
© 2005 Pearson Prentice-Hall Chapter 14 - 22 Page 570
THE STRATEGIC IS PLANThe Strategic IS Planning Process
The planning process includes: Setting objectives
Conducting internal and external analyses
Establishing strategic initiatives
© 2005 Pearson Prentice-Hall Chapter 14 - 23 Page 572-573
Critical success factors
Analysis of Competitive Forces
Value Chain Analysis
THE STRATEGIC IS PLANTools for Identifying IT Strategic Opportunities
© 2005 Pearson Prentice-Hall Chapter 14 - 24 Page 575
Value Chain Analysis
Figure 14.11 Strategic Information Systems Opportunities in the Value Chain
© 2005 Pearson Prentice-Hall Chapter 14 - 25 Page 576
After the strategic plan, initiatives must be: Identified Translated into a set of defined IS projects with:
Precise expected results Due dates Priorities Responsibilities
THE OPERATIONAL IS PLAN
© 2005 Pearson Prentice-Hall Chapter 14 - 26 Page 576
Developed for a 3-to-5 year time period
Focuses on project definition, selection, and prioritization
THE OPERATIONAL IS PLANThe Long-Term Operational IS Plan
© 2005 Pearson Prentice-Hall Chapter 14 - 27 Page 576
THE OPERATIONAL IS PLANThe Long-Term Operational IS Plan
Table 14.2 IS Long-Range Operational Plan Project Portfolio
© 2005 Pearson Prentice-Hall Chapter 14 - 28 Page 576
THE OPERATIONAL IS PLAN
Table 14.3 Sample 2004 Operational IS Plan
© 2005 Pearson Prentice-Hall Chapter 14 - 29 Page 577
THE OPERATIONAL IS PLANThe Short-Term Operational IS Plan
Developed for a 1-year time period
Focuses on specific tasks to be completed on projects that are currently underway or ready to be started
© 2005 Pearson Prentice-Hall Chapter 14 - 30 Page 577-578
1. Early clarification of the purpose of the planning process
2. Planning effort should be iterative
3. Plan should reflect realistic expectations
4. Process of setting expectations should involve business management
5. Plans should integrate all applications of IT
6. Plan will take into consideration the barriers and constraints facing all organizations
GUIDELINES FOR EFFECTIVE PLANNING
© 2005 Pearson Prentice-Hall Chapter 14 - 31 Page 578-579
Better IS resource allocation
Communicating with top management
Helping vendors
Creating a context for decisions
Achieving integration and decentralization
Evaluating options
Meeting expectations of management
BENEFITS OF INFORMATION RESOURCES PLANNING
© 2005 Pearson Prentice-Hall Chapter 14 - 32 Page 579
Active participation
Accept most of responsibility for identifying specific projects that contribute to vision
Stay involved in planning and system development activities
Regularly provide feedback and necessary input
ROLES IN THE INFORMATION RESOURCES PLANNING PROCESSRole of the Business Manager
© 2005 Pearson Prentice-Hall Chapter 14 - 33 Page 579-580
ROLES IN THE INFORMATION RESOURCES PLANNING PROCESSRole of the IS Professional
Act more in consulting and planning role
Help business managers understand how their ideas for competitive advantage can get built into a new information system
Create a project plan
Combine technical and organizational skills
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