Unit 6: Strategic Information Strategy Planning (SISP)

This unit explores Strategic Information Strategy Planning (SISP) as a concept and presents some of the objectives in creating a strategic information systems plan. It discusses who is involved in the planning process, the deliverables, the process and frameworks that can be used and presents some ideas on what makes for a successful strategy. Unit 6: Strategic Information Strategy Planning (SISP) ................................................................................1 6.0 Introduction and Unit Guide ..........................................................................................................1 6.0.1 Introduction ............................................................................................................................1 6.0.2 Unit Guide ..............................................................................................................................1 6.1 Information Strategy planning (SISP)............................................................................................3 6.1.1 Objectives for IS/IT strategy formulation and planning (Ward & Peppard P150) ................3 6.2 Processes and Frameworks.............................................................................................................4 6.2.1 The IS/IT Strategic Model......................................................................................................4 6.3 The Planning Process .....................................................................................................................6 6.3.1 Deliverables from the IS/IT planning process........................................................................6 6.3.2 Who does the planning? .........................................................................................................6 6.3.3 What is the process for planning? ..........................................................................................7 6.4 Successful strategies.......................................................................................................................9 6.4.1 A Simple Successful Strategy - The Naskapi Hunting Strategy ..........................................10 6.4.2 IS planning phases and tasks................................................................................................10 6.4.3 Strategic Information Systems Planning: too little or too much? Newkirk, Lederer, etc. ...11 6.4.4 Conclusions ..........................................................................................................................12

6.0 Introduction and Unit Guide

6.0.1 Introduction
This unit explores Strategic Information Strategy Planning (SISP) as a concept and presents some of the objectives in creating a strategic information systems plan. It discusses who is involved in the planning process, the deliverables, the process and frameworks that can be used and presents some ideas on what makes for a successful strategy.

6.0.2 Unit Guide

This unit is a mixture of theory and practice and should be completed before proceeding on to any of the other units. Resources required for this unit

The following journal article

SISPM Unit 6

Strategic Information Strategy Planning (SISP)

Newkirk, Lederer, et al, 2003. Journal of Strategic Information Systems. Strategic Information Systems Planning: too little or too much? Vol 12 2003 (201-228). Available from: http://dx.doi.org/doi:10.1016/j.jsis.2003.09.001

The following book: Strategic Planning for Information Systems, J. Ward and J. Peppard, 3rd Edition, March 2003, Wiley ISBN 0-470-84147-8

SISPM Unit 6

Strategic Information Strategy Planning (SISP)

6.1 Information Strategy planning (SISP)

This session explores the concept of Strategic Information Systems Planning (SISP) and discussed some of the objectives for IS/IT strategy formulation and planning.

6.1.1 Objectives for IS/IT strategy formulation and planning (Ward & Peppard P150)
To build a robust information management framework for the long term management of information and its supporting technologies and to: Identify current and future information needs for the organisation that reflect close alignment of business and IS/IT strategies, objectives and functions. Recognise that the needs of the business will evolve, and that long term needs are likely to change. Equip the IS function to be responsive to fast changing business needs, and to be able to meet urgent requirements. Determine policies for the management, creation, maintenance, control and accessibility of the corporate information resource. Reposition IS/IT function more centrally to the business with representatives at top management level. Ensure that a sound information systems architecture is created so that high quality systems can be built and maintained. Identify a portfolio of skills that will be required over the lifetime of the plans, and develop migration plans to overcome weaknesses and exploit the skills in the IS function. Determine an effective and achievable organisational structure for the IS/IT function. Ensure that the IS/IT function is outward looking and not focused internally on technological issues, also that the aims of the function are not only clearly linked to business needs but are also widely communicated. Ensure that there is an acceptance of a shared responsibility between IS/IT and business people for the successful exploitation of information and technology.

Task 6.1 Read Ward and Peppard, Chapter 3, Developing an IS/IT Strategy: Establishing Effective Processes, pages 118 to 151, for discussion of the wider context for SIS development.

Exercise 6.1 a. The IS/IT strategy process is depicted as having evolved from a technology focus to a strategic focus. What are the 5 stages that W & P outline in this evolution? b. Earl has identified 5 main types of approach to the changing focus and increasing maturity of the IS/IT strategy. What are they? c. What was the most frequently found reason for failing to obtain top-management commitment discussed by Lederer and Mendelow?

SISPM Unit 6

Strategic Information Strategy Planning (SISP)

6.2 Processes and Frameworks

This session gives an overview of the process of developing an IS/IT strategy. A framework that can be used for IS/IT strategy formulation and planning process is presented.

6.2.1 The IS/IT Strategic Model

Units 3 and 4 presented a range of tools that might be used in the process of developing a strategic framework and discussed in outline the approaches that might be followed. The following model shows more clearly some of the components that might be used in the strategy formulation process, the inputs, outputs and essential activities.

Figure 6.1 The IS/IT strategic model Ward & Peppard (page 154) The IS/IT strategic model presented here has distinct similarity to the 3 parts of the information strategy previously presented i.e. IS, IT and IM) Ward and Peppard present a framework for the IS/IT strategy formulation and planning process which comprises the following; initiate strategy process, understand the current situation and interpret business needs, 4

SISPM Unit 6

Strategic Information Strategy Planning (SISP)

determine the business IS strategy, define information and systems architecture, formulate IT supply proposals analytical and creative techniques

Figure 6.2: Framework for IS/IT strategy formulation and planning process - Ward & Peppard (page 157) Task 6.2 Read Ward and Peppard, Chapter 3, Developing an IS/IT Strategy: Establishing Effective Processes, pages 151 to 162

Exercise 6.2 What are the main components of the framework for IS/IT strategy formulation and planning process presented by E & W?

SISPM Unit 6

Strategic Information Strategy Planning (SISP)

6.3 The Planning Process

This session explores the IS/IT planning process. It presents some of the deliverables from the planning process, in terms of both hard and soft outputs, discusses who should be involved in the planning process and provides a framework to assist with the planning process.

6.3.1 Deliverables from the IS/IT planning process

Ward and Peppard (page. 162) recognise that both hard and soft outputs are produced as part of the IS/IT planning process. Hard outputs such as the actual documents that define strategies and plans serve to record the current situation, the vision and rationale for the future and the plans for how this is going to be achieved. The soft outputs are the human factors discussed in Unit 5 that will impact the process such as the skills and expertise of personnel and their awareness and motivation to make the change happen. Ward and Peppard (page 165) provide a basic structure for an IS strategy document which includes the following sections; 1. Purpose of IS strategy 2. Overview/of business strategy 3. Argument for 1. New IS opportunities (CA) 2. Critical improvement areas 4. Summary of opportunities/problem issues 5. Review of current application 6. Future application portfolio 7. Issues arising from IS strategy

6.3.2 Who does the planning?

Possible arrangements for large businesses: specialist planning staff - sometimes known as the Standing Army who may lack reality of IS issues external specialists - can be expensive new team of general IS staff - who may fall away due to the urgent everyday responsibilities coalition team drawn from a number of business areas including IS and some strategic planners steering committees where the diversity of interests can be destructive and members may move on at inconvenient times

For SMEs suggest the senior management team plus external facilitators, if necessary

Whatever the makeup of the group it should be given the necessary resources

SISPM Unit 6

Strategic Information Strategy Planning (SISP)

Task 6.3 Read Ward and Peppard, Chapter 3, Developing an IS/IT Strategy: Establishing Effective Processes, pages 162 to 177

6.3.3 What is the process for planning?

A number of frameworks, models and methods are available to assist with the planning process. Earl suggests there is no one best way and has proposed a multiple methodology

Figure 6.3: Earls multiple methods - Strategic Management & Information Systems, Wendy Robson (1997) (page 193) Units 3 and 4 have presented IS planning phases and tasks together with a range of tools and techniques that might be used as inputs to the process. Ward and Peppard (page 80) suggest they might be used as shown below;

SISPM Unit 6

Strategic Information Strategy Planning (SISP)

Figure 6.4: The inputs and tool kit - Ward & Peppard (page 280) Ward & Peppard suggest the following as an overall framework for determining the business IS strategy Animation Online

SISPM Unit 6

Strategic Information Strategy Planning (SISP)

Figure 6.5: The inputs and tool kit - Ward & Peppard (page 280)

Task 6.4 Read Ward and Peppard, Chapter 6, Determining the Business Information Systems Strategy, pages 276 to 298 Units 8, 10, 12 and 14 will explore first hand the concept of developing a strategy and the use of a framework known as BCCD which incorporates many of the ideas so far presented.

6.4 Successful strategies

This session explores the components of a successful strategy.

SISPM Unit 6

Strategic Information Strategy Planning (SISP)

6.4.1 A Simple Successful Strategy - The Naskapi Hunting Strategy

The Naskapi Indians in Western Canada are successful hunters. Before going hunting they ask the question; Where shall we hunt today? To answer this question they take the shoulder bone of a caribou and hold it over a fire until it cracks. They then hunt in the direction of the crack. This is an example of a simple yet effective strategy. It is successful because; there is a clear objective and everyone is aware of it the all believe in the strategy formulation is quick and simple failure is not personal

6.4.2 IS planning phases and tasks

The remainder of this session explores some of the findings of a paper presented by Newkirk & Lederer (2003). Newkirk, Lederer, et al, 2003. Journal of Strategic Information Systems. Strategic Information Systems Planning: too little or too much? Vol 12 2003 (201-228). Available from: http://dx.doi.org/doi:10.1016/j.jsis.2003.09.001 Newkirk & Lederer (2003) state the following planning phases and tasks; Planning the IS planning process (i.e. Strategic awareness) o Determining key planning issues o Defining planning objectives o Organising the planning team(s) o Obtaining top management commitment Analysing the current environment (i.e. situation analysis) o Analysing current business systems o Analysing current organisational systems o Analysing current information systems o Analysing the current external business environment o Analysing the current external IT environment Conceiving strategy alternatives(i.e. strategy conception) o Identifying new business processes o Identifying new IT architectures o Identifying specific new projects o Identifying priorities for new projects Selecting strategy (i.e. strategy formulation) o Identifying new business processes o Identifying new IT architectures o Identifying specific new projects o Identifying priorities for new projects 10

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Planning strategy implementation (i.e. strategy implementation planning) o Defining change management approach o Defining action plan o Evaluation action plan o Defining follow-up and control procedure

Task 6.5 Newkirk, Lederer, et al, 2003. Journal of Strategic Information Systems. Strategic Information Systems Planning: too little or too much? Vol 12 2003 (201-228). Available from: http://dx.doi.org/doi:10.1016/j.jsis.2003.09.001 P204 IS planning phases and tasks P206 IS planning success measures (1997 Mentzas)

Exercise 6.3 a. What are the main categories of planning success measures that Newkirk, Lederer et al. present? b. Provide a more detailed definition for each of these categories.

6.4.3 Strategic Information Systems Planning: too little or too much? Newkirk, Lederer, etc.
Findings: More SISP is better apart from last phase, strategy implementation planning, where the law of diminishing returns is supported i.e. comprehensiveness increases, success increases until success reaches a maximum and then comprehensiveness increases but success decreases. o Failure to implement plans is researched often and is found to be common (firms feel dissatisfied with IS planning o This stage can lack management support Too little or too much can both be a problem Suggest much further research is needed Key Points: aligning IS/IT with business is important long term planning for IS/IT is not practical certain deliverables and certain considerations in development make for a good strategy planning can be done too little or too much!

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6.4.4 Conclusions
The most meaningful way to differentiate your company from your competition is to do an outstanding job with information Ward & Peppard (page 615) How an organisation handles its information is fundamental and the use of IS/IT has come a long way. From the early approaches to information management presented in units 1 and 2, an era defined by some writers as DP, when IS and IT were seen as separate components which impacted at the operational level to todays view of SIS operating at the strategic and company wide level and recognition of the importance of alignment to business, to external factors such as market and competitor forces(discussed in units 3 and 4). We have presented the idea that IT projects must be viewed as change projects in unit 5 and suggested some ways of implementing these projects in this unit.

Task 6.6 Read Ward and Peppard, Chapter 12, Strategic Planning for Information Systems: Quo Vadis, pages 581 to 608, for a resume of the main points discussed in this section of the module. What is the UH Strategy?

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