Planning for Information Technology and Systems

1
Chapter 12

• Planning for Information Technology and Systems

2
Agenda

• Strategic IT Planning
• IT Planning Dilemma

3
IT Planning Sequence
Strategic Planning
Strategic Plan
TacticalPlan
Management Control

Operational Control
Operational Plan
4

• Level of Management

Strategic
Operational
Tactical
Systems Importation
Tactical Prioritizing
Strategic Prioritizing
Program Maint.
Reengi-neering
Short Range
Long Range
Planning Horizon
5
IT Goal Alignment

• Need to align IT goals to firms goals
• Core processes
• Core competencies
• Marketing strategies
• Policies on
• Architecture centralized, decentralized,
  distributed, client/server, end-user
• Outsourcing, in house, and off the shelves
• Development priorities
• Legacy systems

6
Need for IT Planning

• Align IT goals to organizations goals
• Top-down
• Time horizon
• Top - long term (5 years or beyond)
• Middle - intermediate term (1 or 2 years)
• Bottom - short term (3-6 months)

7
IT Planning Cycle

• Develop Mission Statement
• e.g, 15 market share
• Increase sales volume by 10
• Identify strategic units
• Define Critical Success Factors (CSF)

8
IT Planning Cycle

• Identify IT enhancing CSFs
• Consider industry and technological trends
• Categorize potential IT
• New versus redesign
• Matches strategic goals
• Potential ROI
• Potential risk

9
IT Planning Cycle

• Set IT portfolio strategy
• Eliminate non-strategic contenders
  
• Allocate resources to IT with high ROI or low
  level of risk
• Leave 5 to 15 of technology budget for Research
  and Development (RD)

10
Agenda

• Strategic IT Planning
• IT Planning Dilemma

11
IT Planning Dilemma

• IT planning should conform to firms strategic
  goals
• Yet, such goals will be constrained if they do
  not stretch to meet future enabling technologies
• Therefore, strategic goals depend on IT goals
• But, IT goals must conform to strategic goals

12
IT Planning Dilemma

Strategic Plans
DRIVE
DRIVE
IT Plans
13
Solution

• Periodic interaction between strategic and IT
  planning processes
• Dynamic planning
• Short intervals
• Adaptable plans
• CIO part of executive planning process
• Seat at head table

14
Technology Transfer

Corporate Planning
Directions
Opportunities
IT Department Planning
Technology Scouting
15
Points to Remember

• Strategic IT Planning
• IT Planning Dilemma

16
Discussion Questions

• Does your organization do IT strategic planning?
• If not, why not?
• If so, do what steps do they follow?
• How do they handle the planning dilemma?
• What do you think of this top-down IT planning
  model?
• Is it workable?
• What is it missing?
• Can goals always be measurable?

17
Assignment

• Review chapters 8-12 technology 3
• Read chapter 13
• Group assignment
• Research paper