UNIT - 3

INFORMATION SYSTEM PLANNING

Information System Plans

Planning is the key to success in developing a good IS. IS planning brings to focus the reason
for existence of the IS and helps the developers to undertake the task of development of IS in a
structured manner. Organizations undertake planning for IS for several reasons. Typically IS,
plans have a hierarchy with different levels of management handling different plans.

Flow Chart to Identify the Need for a New Information System

Long Range Information System Planning

This sort of plan does not go into project specific details but rather focuses on the expectations
of users from the system. Typically, this kind of planning is done with a time horizon of five to ten
years in mind. Broad characteristics of information systems based on the needs of the users are
dealt with in this plan along with the technology trends in the information technology space and
long-term objectives of the organization. The long-term plan requires greater detailing than a
strategic plan and is normally prepared by senior executives in the organization which is then
approved by the top management. Ideally, senior executives from different departments are
involved in this process. The following step-wise course of action is normally taken to prepare a
long-range information systems plan:
Collecting background data
All kinds of data that helps in creating a background or perspective for the planning with regard
to the technology scenario, organization objectives, changing needs of the users, competition
scenario, potential set of information services in future, availability of resources in future,
suitability of organizational culture, etc., is collected and presented as a background.

Analyzing the broad long-term needs

Based on the prepared background, analysis of the overall long-term information system need
of the organization is defined. This entails an analysis of demand on resources for such
information systems and the means to provide them.

Developing the long-range plan document

Formally documenting the above steps into a plan of action results in the creation of this
document. This document typically contains information about the objectives, resources to be
made available for the IS, future trends in demand for information within the organization, risks
and opportunities in developing the IS and organizational issues pertaining to installation of
such IS.

The short-range information system planning

The time horizon for such a plan ranges from a few months to a year. Operational details and
short-term goals and objectives are detailed out in this document. Normally the personnel of the
information systems department are involved in the preparation of such a plan. It includes
maintenance plan for existing systems, development plans for top priority systems, technical
support required for the development, operations plan, training plan, staffing plan and financial
plan containing practices and procedures for relevant issues, all in the short term of about a
year.

The presence of an information system in a company and in the present government is crucial.
This IT technology provides advantages especially in improving efficiency and effectiveness of
performance, such as accelerating bureaucracy, faster decision making, optimizing resources,
saving operational costs, and others.

In line with these benefits, the need for information system development also increased. An
information system will be more complex in order to further simplify the tasks performed by
human labor. Thus, in the end more human energy will be used to complete more substantial
affairs.

What is Information System?

The system is a collection of various elements or entities that are used to process input into an
output. Inputs and outputs can be either raw or intact data into information — depending on the
processing designed to work in the system.
Meanwhile, information is the result of data processing used for a particular purpose. As for
what data means is raw facts that have not been processed and can not provide stimulus for
users to take action.

Thus, an information system can be interpreted as a set of interconnected elements to process

a given input into a particular output produced. The next stage of an information system is a MIS
(Management Information System) which has a higher complexity with the final goal being used
for the needs of analysis and decision making.

What is Information Systems Development?

As the name suggests, information system development or commonly known as SLC (Systems
Life Cycle) or SLDC (Software Development Life Cycle) is a process of making and changing
the system and the model and methodology used. In other words, an SDLC is the preparation of
a new system to replace the old system, both in whole and only partially.

Development of information systems is generally done because of problems that cannot be

accommodated by the old system. For example, the hospital where you work make an overhaul
SIMRS (Sistem Informasi Manajemen Rumah Sakit/Hospital Management Information System)
because of applications that previously could not do bridging with BPJS. Considering the fact
that the government has required it, then inevitably the hospital must adjust the SIMRS it
already has.

As for carrying out an information system development, the related team will consist of several
personnel, namely the project coordinator, system analyst and design, network designer,
programmer, technician (hardware), administrator, software tester, graphic designer, and
documentary.

System Development Approaches

Developing a successful information system for business application is a challenging task.

System development process includes the activities like understanding, planning, designing,
implementation and maintenance of systems. System development approaches have
undergone reforms as per the changes in software development technology. Software
technology has changed from modular to structure and now to object oriented technology. Basic
goal in system development process is to produce high quality information system for solving
business applications. It provides a framework that is used to structure, plan and control the
process of developing a system. Various methods have been evolved and being practiced over
the years. A few major methods are:

I. System Development Life Cycle method (or traditional method))

II. Structured Analysis Development method

III. Waterfall method

IV. Prototype method

V. Spiral method

VI. Object oriented Development method

Each of these methods has its own strengths and weaknesses. One method may not be
suitable for all type of systems. It depends on technical nature of a system, organizational
requirements, knowledge of developers etc. Basically all these methods follow either linear or
iterative approach or combination of these two approaches for development of systems. In
linear approach, above mentioned activities are followed in a sequence with or without
overlapping of some activities to develop a system. In iterative approach, the activities may or
not be repeated for improvement after getting users feedback.

Role of information technology in an organization

The role of information technology in various sectors has evolved quickly since the last decade
of the 20th century. Modern organizations use information technology throughout most, if not all,
departments and across most functions. The obvious example is email. Email has become
ubiquitous in connecting employees to each other, between departments and between locations
or markets. This is true whether a business is entirely local with a single point of presence or
maintains offices in multiple locations in multiple countries.

improved organizational communication

An important use of technology in business is for communication through platforms such as
conferencing software, email, video chat, company intranets and the internet in general. IT
allows businesses to easily hold virtual meetings with staff and clients around the world without
having to spend time and money on travel. At the same time, employees can access and share
information and collaborate on their work regardless of location; employees can even work
remotely so that the company can save on costs. Companies can also use platforms such as
social media to address customer concerns more efficiently.

more efficient daily operations

Another role of IT in business is to improve the efficiency of operations so that the company can
complete tasks quicker and cheaper. This often happens with the help of enterprise software
and a centralized company database.

Rather than having to get workers to count and monitor inventory, companies can use inventory
management software that checks real-time levels, provides helpful reports to managers and
can even trigger orders when the supply is low. Customer relationship management software
has automated common sales and marketing tasks such as generating leads, sending
promotions and tracking metrics. Companies can also take advantage of fully featured
enterprise resource planning software to make it easier to do accounting tasks, manage human
resources, monitor the supply chain, generate invoices and make supply purchases.
better customer experience
IT also makes it easier to provide a good customer experience through improved customer
service, easier customized marketing and e-commerce. Rather than only being able to reach
the company during business hours, customers can conveniently interact with the company on
its website and through social media, email and custom instant messaging services. Through
tracking customers' previous purchases with marketing software, companies can send
customized promotions that better meet customers' needs and result in more likely sales.
Customers also benefit from being able to purchase products and services from the company's
website, and this also increases the potential for more revenue and growth for the company.

information technology and business decision-making

The role of information technology in management decision-making is seen in tools such as
ERP software and decision support systems that help managers see company performance
data in real time so that they can make more informed decisions. Such software presents an
online dashboard with information about the company's finances, customers, sales and
marketing trends and inventory levels. Managers can use the data to decide which products to
promote or stop selling, where to cut expenses, which customers need support and when to
place supply and materials orders.

Other examples of IT's role in business include the following:

Internet-enabled systems, such as secure entry systems and wireless cameras, help improve
business security and reduce risks of theft and loss of confidential information.

IT allows companies to store important company data in a database in the cloud to reduce
paper waste, increase security and allow for easy backups.

IT allows companies to expand internationally as easily as setting up a multi-language website

that markets to global customers and allows purchases in multiple currencies.

Companies can use online recruitment to find more qualified job candidates and handle most of
the hiring process online.

From enabling telecommuting to reducing energy use through modern systems, IT has a role in
company sustainability that can save money and improve the company's reputation.

Thanks to IT, getting the latest information about your competitors and the market is as easy as
searching Google on your computer or smartphone.