Information Systems

Planning & Evaluation

Learning Objectives
1. Discuss the role of planning in the business use of
information technology, using the scenario
approach and planning for competitive advantage
as examples.

2. Discuss the role of planning and business models

in the development of business/IT strategies,
architectures, and applications.
3. Change management for end user resistance to
the implementation of new IT-based business
strategies and applications.
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Organizational Planning Process

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Strategic Planning
Definition:
 Development of an organization’s mission,
goals, strategies, and policies
 Involves Strategic Visioning: Understanding Customer;
customer value; competition;value chain
 Techniques Used: Team building; scenario modeling;
Consensus creating exercises.

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Operational Planning
Definition:
 Planning done on a short-term basis to
implement and control day-to-day operations

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Scenario Approach
Definition:
 Teams of managers and other planners
participate in what management author Peter
Senge calls microworld, or virtual world,
exercises

 Microworld - simulation exercise that is a

microcosm of the real world

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Trends Shaping Strategic Planning

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Planning for Competitive Advantage using
IT
 Betting on new IT innovations can mean
betting the future of the company.

 Evaluation of potential benefits.

 Possible risks of failure OR likelihood of not

achieving full potential.
 Technique used: SWOT Analysis;Strategic
opportunity Matrix
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Strategic Opportunities Matrix

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Business Model
Definition:
A conceptual framework that expresses the
underlying economic logic and system that
prove how a business can deliver value to
customers at an appropriate cost and make
money

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Business Model Components
 Customer Value – Is the firm offering its customers something
distinctive or at a lower cost than its competitors?

 Scope – To which customers is the firm offering this value? What

is the range of products/services offered that embody this value?

 Pricing – How does the firm price the value?

 Revenue Source – Where do the dollars come from? Who pays

for what value and when? What are the margins in each market
and what drives them? What drives value in each source?
 Connected Activities –
 Implementation –
 Capabilities –
 Sustainability –

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Business/IT Planning Process

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Business/IT Planning Process
Components
 Strategy Development – developing business
strategies that support a company’s business vision

 Resource Management – developing strategic plans

for managing or out-sourcing a company’s IT
resources

 Technology Architecture – making strategic IT

choices that reflect an information technology
architecture designed to support a company’s e-
business and other business/IT initiatives
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Strategic Positioning Matrix
Strategic Role of Internet

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Business/IT Strategies
 Cost and Efficiency Improvements – use
Internet as a fast, low-cost way to
communicate and interact with customers,
suppliers, and business partners

 Performance Improvement in Business

Effectiveness – widespread internal use of
Internet-based technologies to improve
information sharing and collaboration within
the business and with trading partners

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Business/IT Strategies
 Global Market Penetration – build e-
commerce websites with value-added
information services and extensive online
customer support

 Product and Service Transformation – use

the Internet for electronic commerce
transaction processing with customers at
company websites, and e-commerce auctions
and exchanges for suppliers
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What is IT Architecture?
 A conceptual design that includes:

 Technology Platform – networks, computer

systems, system software and integrated
enterprise application software
 Data Resources – databases
 Applications Architecture – business
applications
 IT Organization – organizational structure of
the IS function and distribution of IS specialists

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Business Application Planning
Definition:
 Includes the evaluation of proposals made by
the IT management of a company for using
information technology to accomplish the
strategic business priorities developed earlier
in the planning process.
 Business case of investment; building the
application; implementing the application of
IT; etc.

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Business Application Planning

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E-business Architecture Planning

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Implementation
Definition:
 A process that carries out the plans for
changes in business/IT strategies and
applications that were developed in the
planning process

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Nolan Stage Model
Stage1 Stage2 Stage3 Stage 4
Initiation Expansion Formalization Maturity

Time

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THE NOLAN STAGE MODEL
 Stage 1-initiation stage-in this, the technology is
placed in the organization's few applications in the
organization are computerized; minimum planning;
small number of users;

 Stage-2 expansion stage-rapid and uncontrolled

growth in the number; variety of IT applications take
place

 Stage-3 formalization or control stage because in this

stage organizations gain control over the
technology’s resources by implementing formal
control processes and standards. Controls also lead
to barriers in attaining potential benefits.
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Stage-4
 Nolan has described this growth stage as maturity or
integration stage as by this stage organizations gain
sufficient experience and maturity in IS/IT
applications.
 In this stage, applications are integrated ,controls are
adjusted.
 Planning is well established and so, we call this stage
as the stage of perfection also.

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Improved Nolan Model
 In 1979, Modified model divided Maturity stage in
three stages named 4,5 &6.
 Stage 4:Integration In this the use of new
technology increases rapidly, providing new benefits.
 Stage 5- Data administration In this controls are
further lowered to encourage development of
systems which contribute to strategic advantage of
the organization.
 Stage 6- Maturity In the enhanced growth model
this stage is termed as the maturity stage which
indicates the application portfolio is complete and
matches the objectives of the org.

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Applications of Nolan Stage Model
 A manager can do IS planning.
 The manager can find in which stage the
organization is & accordingly apply the right
strategy.
 The manager can speed-up the process of
rollout of MIS by planning the stages.
 Leads to risk management associated with IS
planning.
 It is proactive approach to IS planning.

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Scope and Level of Business
Change

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Dimensions of Change
Management

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Change Management Process

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MIS Evaluation
A highly researched & yet complex area in IT
Approaches to MIS Evaluation:
 Cost Benefit Analysis;
 User Attitude Survey;
 Service –Level Monitoring;
 Computer Performance Evaluation;
 Compliance Audits;
 Quality Assurance Review;
 MIS Personnel Productivity Review;

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Evaluation Models for CB Analysis
 Net Benefit Analysis
 Present value Analysis
 Net Present Value;
 Payback Methods
 Cash-flow Analysis;
 Break-even Analysis;

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 End of Session
Any Qs

Exercise:
Analyze a company on the Nolan Stage Model
1. Identify the stage in which the company is placed.
2. What are the parameters that you have considered for IS adoption.
3. What are recommended strategies for the IS plan for the company.

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