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Strategic Information Systems Planning As The Centre of Information Systems Strategies
Strategic Information Systems Planning As The Centre of Information Systems Strategies
International Journal of Research and Reviews in Computer Science (IJRRCS) Vol. 2, No. 1, March 2011
Although the main objective of SISP is generally is an organisational and management solution, based
seen as the identification of new applications, Beynon- on information systems to a challenge posed by the
Davies suggests that SISP can be used to address a environment. To fully understand information systems,
wider range of SISP development enables a manager must understand the broader organisation,
identification of a portfolio of the following priority management, information systems dimensions of
types of systems and related technology projects [15, systems and their power to provide solutions to
20]: challenges and problems in the business environment.
Corrections to existing information systems; [10, 25] Management needs to know what evaluation
Enhancements to existing information systems; methods are already in place for alignment to be
feasible.
Major new information systems development
The strategic planning process in IS/IT planning is
projects;
to input, output and processing activities. [27] Figure 2
Major new infrastructure systems or technologies,
shows the input and output of the planning process.
for example those that attempt to integrate systems The input activities are internal corporate environment,
across the organisation; the external business environment, internal IS/IT, and
Research projects investigating innovative and external IS/IT. Internal business environment is the
potentially rewarding systems and technologies. current corporate strategy, objectives, resources,
processes and culture and values of the business.
2.1Business Strategy and System External business environment is the economic climate,
Alignment industry and competitive environment in which the
organisation operates. Internal/IT environment is the
Today it is widely recognised that information current IS/IT perspective of the business, its maturity,
systems knowledge is essential for managers because the coverage and the contribution of business, skills,
most organisations need information systems to resources and technology infrastructure. The current
survive and prosper. In the modern times, information portfolio of existing systems and application
systems have become an essential part of all types of development, or budgeted but not yet being a part of
business as information systems provide the the internal market, IS/IT. External/IT environment is
opportunity for organisations to integrate with their the tendency of technology and the opportunities and
business strategy. [13] the use of IS/IT by outside bodies.
From a business perspective, an information system
goals. To each of these application portfolios for the the organisation in becoming more competitive. [20]
business unit the information architecture of the Information systems plan is typically prepared for
individual units is developed. The portfolios, such as the whole organisation or for a specific department.
IS / IT is used at later stage to help the units to achieve The plan should have a broad range and involve the
their goals. IT strategy is a policy and strategies for the core activity of the organisation. The plan starts
management of technology and specialist resources. usually from a defining the project scope that involves
Information technology strategy is the supply to the the description of the business requirements. This
demand created by IS strategy as it draws the vision of leads to analysis of the existing environment, and
how the organisation’s demand for information and applications are done, followed by identifying a new
systems will be supported by technology. [25, 28] options and then finally evolution of a strategy and an
Ward and Griffith argue that the IT strategy is IS planning [25].
focusing the IT capabilities and services like “IT Below is a model of the five key stages to develop
operations, systems development and user support”. an information strategy. Figure 3, outlines the inputs
[28] Luftman referred IT strategy as “a set of decisions and outputs of the IS/ IT strategy, that clearly indicates
made by IT and functional business managers that a continuous cycle and with planning needed in order
either enables or drives the business strategy. It leads to get the outputs that will realise the business
to the deployment of technology infrastructure and functions and objectives. [2, 16]
applications, and human competencies that will assist
Information Systems (IS) strategy can be defined as conceptual and directional in contrast to an operational
a strategy to implement information systems that plan which is likely to be a shorter term, tactical,
recognise organisational requirements, in other words, focused, implementable and measurable. In order to
‘demand’ for the information and systems to support put the planning for strategic information systems in
the overall business strategy and its plan to gain or perspective, the evolution of information systems,
maintain the advantage. [25] An IS strategy includes according to the three-era model of John Ward, is
the business needs for the future aligned closely to the pertinent. [28] According to this model, there are three
business strategy. It should also define and prioritise distinct eras of information systems, dating back to the
the investments needed to achieve the application 1960’s.
portfolio. [16]
Relation between information system functions and
business strategy were not of much interest to majority 2.2 Why SISP is required?
direction of firms. Information systems were thought
to be equivalent with business data in support of McBride (2004) suggests a complete overhaul in the
corporate daily tasks. [20] In the 1980' s and the 1990's, planning process is needed and that the critical
however, the growing realisation of the need gave analysis of the classical theory is insufficient for
information systems a strategic importance in the organisations. [9, 25]. He goes further by emphasising
organisation. Consequently, Strategic Information SISP as a process of identifying the IS requirements of
Systems Planning (SISP) became a critical issue. an organisation at a high level by identifying “a
A strategic plan is a different thing as an portfolio of computer-based applications that will
operational plan. The former should be visionary, assist an organisation in executing its business plans
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International Journal of Research and Reviews in Computer Science (IJRRCS) Vol. 2, No. 1, March 2011
and realising its business goals”. [6, 9] detailed plan work must be set. According to
Besides that, Kearns and Lederer (2004) referring to Bhatnagar (2007) this is a typical framework for IS
the research led by Sabherwal et al, (2001), proposed planning:
the formal or sensible procedure that can be suitably • Phase 1: The initial purpose, process and the
under such conditions [14, 20, 23]. King and Teo scope of the IS strategy.
(1997) forward that SISP is competing when the • Phase 2: IS planner should come to terms of
organisations try to use effectively it to improve its IS these directions through in-depth analysis of the
applications, revise business procedure and profit on essence of the information needs, business processes
competitive advantage. [12, 24, 25] and the needful business requirements.
Rogerson and Fidler [12] propose that SISP • Phase 3: IS planner can envisage an IS plan that
provide an understanding of the information needed to would be appropriate for the company. It is from these
realise business objectives and implement the systems. phases that the pre-requisites and considerations
Before setting an information systems framework, should carefully be looked into rather than overlooked
IT/IS professionals should set an IS planning into so that the IS planner would not miss out on
framework that induces all the essential elements something in the process of synthesising the bits of the
needed to be able to come up with an IS strategy that ingredients in successfully formulating an effective IS
would surely work and be coherent in the alignment of strategy that works.
the corporate strategy [12, 25].
As the initial stage in the setting of an IS strategy, a
The relationship over time of the three eras of information systems is shown in the Table 1.
ERA
Table 1 Information System
Characteristics
Data Processing
60's Standalone computers, remote from users, cost reduction function.
(DP)
Management
70's & Distributed process, interconnected, regulated by management service,
Information Systems
80's supporting the business, user driven.
(MIS)
Strategic
80's & Networked, integrated systems, available and supportive to users, relate to
Information Systems
90's business strategy, enable the business - business driven.
(SIS)
• Phase 4: IS planning framework allows an IS • Corporate-Wide Issues – These are issues that
planner to outline a well-documented IS strategic plan have an impact on most aspects of the organisation and
which can examine and explore the features most vital which can radically affect the way the firm conducts
for the organisation. This will lead the planner to its business.
devise an IS strategy plan that shows the right • Industry Drivers – This refer to conditions in the
direction. environment in which the firm functions which impact
all organisations in the industry.
In an organisation, SISP generally started by an • Information Quality – This refers to the standard
accord between the management of systems and the of reporting facilities supplied by the Information
executives. The use of technology should be projected Systems Development (ISD).
well. [9, 25] The decision to carry out SISP must be • Information Management – This refers to a
evaluated well because SISP is expensive and difficult. group of issues relating to how information is
In addition, members of the information systems presented to appropriate users as well as how ISD is
development often do not want to be involved with managed.
business issues, and some senior managers fail to give
the necessary support. Companies which lead usually 3. The Strategic IS/IT Planning Process
SISP are in general mature and have a practical
attitude to helping users get the most from the According to Lederer and Sethi [6, 14] the
information systems [21, 27]. In review, whether an objectives of the strategic planning of information
organisation requires a SISP, Remenyi [21] lists systems are extensively and cover all feature important
circumstances to be considered: for normal functioning of organisations. These goals
include: align Information Technology with business,
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International Journal of Research and Reviews in Computer Science (IJRRCS) Vol. 2, No. 1, March 2011
gain competitive advantage, identify new applications, its business plans and realising its business goals. [20]
increase top management commitment, improve Here the emphasis is to put on the identifying
communication with users, predict IT resource application systems, which support and enhance
requirements and develop information architecture. organisational strategy. SISP provides a framework for
[20] These objectives can be broadly divided into four the effective implementation of these systems. [12] It
aspects. mirrors the business aims of the company by
facilitating an understanding of the information needed
• Alignment – Refers to the results of the to support those aims and the implementation of
linkage of IS strategy and business strategy. computer systems to provide that information. This
• Analysis – Refers to the results of the study will result with a plan for the development of systems
of the internal operations of the organisation towards some future vision of the role of IS in the
• Cooperation – Refers to the results of the general organisation.
agreement about development priorities, The exercise of SISP has focused on the
implementation schedules and managerial identification of suitable IS for the organisation,
responsibilities investment appraisal and implementation planning
• Improvement – Represents the enhancement of with the overall aim of aligning IS strategy with
the potential of the planning system. business strategy. Information security plans cannot
exist in an empty space. Instead, the information
The degree of SISP satisfies these key objectives for security organisation is characteristically part of the
an organisation contribute to evaluation of SISP overall organisational objective. Any objective and
success. A comprehensive review of the recent IS aim that are defined in the information security plan
planning literature reveals that the following factors should be in alignment with those organisational goals.
are related to the success of the IS planning process To carry out SISP, an organisation generally carries
[20]: out an intensive study. Majority of firms pursue some
predefined and documented methodologies while other
• The need to align the corporate objectives with set their own versions. During the multi-steps study, a
the IS strategy portfolio of applications is defined, along with
• The underlying motivation for the initialisation appropriate priorities.
of the planning process SISP fundamentally tackles four common issues
[20]: (i) aligning IS/IT plans with the organisational
• The level of maturity of the organisation
business plan; (ii) designing IS/IT architecture for an
• The methodology used in developing the IS plan
organisation in such a way that user, applications and
• The framework used for setting IT investment
databases can be integrated and network together; (iii)
priorities
efficiently allocating information systems
• The measurement of effectiveness used for the development; and (iv) operational resource among
IS department competing applications and finally planning
• Preparation of an implementation plan is critical information project in order to complete on time and
to meeting SISP objectives within budget and include the specific functionalities.
Aligning information systems to the organisational
strategy goals has appeared to be a concern for
3.1 SISP with IS Strategies managers over the last decade. Alignment is defined as
“the capacity to demonstrate a positive relationship
SISP is characterised as the process of identifying a between information systems and the accepted
portfolio of computer-based applications that can be financial measures of performance”. [22, 25] One of
implemented and in which it can favourably aligned the most extensively used models of alignment is the
with corporate strategy and can create an advantage Strategic Alignment Model proposed by Henderson
over competitors. [12, 20, 25] SISP is the process of and Venkatraman (1999). This multidimensional
identifying the information systems (IS) requirements model (Figure 4) identifies the internal and external
of an organisation at a high level. It is also the process dimensions and how these can be integrated
of identifying a portfolio of computer-based functionally with the organisational strategy [7, 22, 25].
applications that will assist an organisation to execute
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International Journal of Research and Reviews in Computer Science (IJRRCS) Vol. 2, No. 1, March 2011
:
Strategic Information Systems Planning (SISP) is an substantially to organisations chiefly because it can
activity that assures continuous planning Information identify the most desirable system development
Technology to be implemented within an organisation projects to invest.
in line with business strategies, improve the SISP provides guidance on how the information
organisational effectiveness process, create business systems infrastructure of the organisation should be
opportunities and contribute to organisational developed over time. The plan serves as a road map
competitiveness. [15] An SISP methodology is indicating the direction and rationale of systems
particularly useful for inexperienced developer SISP as development. It also ensures better use of information
it provides systematic guidance to make the IS systems resources, including funds, information
strategic formulation process. systems personnel, and time for scheduling specific
As information is the lifeblood of the organisation, projects. With all these benefits, therefore, it follows
seriously restricted or compromised to the information that Strategic Information Systems Planning is an
is dead or life for the organisation. [20] As McPherson important process that enhances and sustains business
(1996) suggests that, ‘information is vital to the performance.
success of the business and will be accountable for a The strategic information planning process should
significant share of the business’s various indicators of be a complete plan to accommodate the competence of
success, including its cash flow and market value’. the organisational competitiveness. For example,
[quoted in 20] Strategic information systems planning incorporating business strategy should be reflected in
(SISP) plays a vital role in helping to avoid ‘lost the Strategic Information System Planning is an idea to
opportunities, duplicated effort, incompatible systems, increase the capability of SISP outcome. The
and wasted resources’. It looked a different way, the deliverable from the SISP process will be more
process of formulating an information systems plan beneficial to the organisation, especially to the IS/IT
helps to explicitly focus the planners’ attention on department.
‘major opportunities for exploiting information’. [20] SISP plays a vital role in helping to IS strategic
Despite that that the information security ‘policy is failures and lost opportunities, and creating an
the start of security management’ [12], Neil F. Doherty incompatible system. Looking at different ways, the
and Heather Fulford add that “while the caveat that the process of formulating an information systems plan
strategic information systems plan is a critical helps to explicitly focus the planners’ attention on
prerequisite for policy formulation, as it defines the major opportunities for exploiting information.
business context in which information security will be It is important to relate strategic information
managed and therefore the objectives of, and priorities systems planning with all other strategic attributes of
for, security management”. [20] the organisation for survival and prosperity. SISP is
designed to identify what information resources are
4. Conclusion required and how they can be exploited.
Reference
Planning IS beginnings with the identification of
needs. These need may be on the basis problems in the
existing system or based on an opportunity or [1] Beynon-Davies, 2002 P. Beynon-Davies, Information
assuming a directive of business board of directors. So Systems, Palgrave, Basingstoke (2002).
[2] Bhatnagar, Ankit (2007): Strategic Information
a planning requires that goals, are formalised priorities
Systems Planning: Alignment of ‘IS/IT’ Planning
and authorisation of information system projects. SISP and Business Planning, Unitec New Sealand,
is appreciated for its capacity to contribute [WWW Document]
162
International Journal of Research and Reviews in Computer Science (IJRRCS) Vol. 2, No. 1, March 2011