The strategic use of information systems; Strategic information systems planning

12 important questions on The strategic use of information systems; Strategic information systems planning

What is strategic alignment?

A high degree of fit between the priorities, activities of the IS function and the strategic direction of the firm

What are the six key IS decisions  (managers must be involved in?)

  • How much should we spend on it; role of IS in the organization
  • Which business process should receive the it dollars; which business processes are most important
  • Which it capabilities need to be company wide; cost/benefits of standardization and flexibility
  • How good does our IT need to be; make decisions about the degree of service they NEED and are willing to pay for
  • What security and privacy risks will we accept; make good decisions
  • Whom do we blame if an IT initiative fails?; clearly identify and assign responsibility for IS projects

What is strategic IS planning?

A partnership between those with technical skills, the information systems group and general and functional managers.

Main objective: Define how the firm plans to use and manage IS resources to fulfil its strategic objectives
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What are th e advantages of the IS planning process?

  • plans enable communication; shared view
  • Plans enable unity of purpose; specify the objectives and have clear responsibilities which are agreed upon
  • Plans simplify decision making over time; Create a context for decision making

What is the strategic IS planning process?

  • Strategic business planning; mission and vision, future directions (BSC)
  • Information systems assessment; what do we have (IS) and how well does that fit our needs?
  • IS vision; An articulation of the ideal states for IS and the available resources
  • IS guidelines: set of statements; how the firm should use it technical and organization resources
  • Strategic initiatives; long term proposals to identify new system, new projects or directions for the IS function

What is the CSF method?

The limited numbers of areas which managers must effectively control to ensure that the firm will survive and trhive
The CSF's ensure that the planning team is able to prioritize
The CSF focus on business objectives not on IS

What is the strategic impact grid?

Its main advantage is its ability to enable simultaneous evaluation of the firms current and future IS needs.

It is about two dimensions:
  • current need for reliable IS
  • future need for new Is functionalities

Current need; focusses on day to day operations and functionality of existing systems
Future need; the strategic role new It capabilities play

What are factors affecting grid selection if we look at reliable is?

Loss of bussiness while offline, can we go back to manual operations etc.

What are the factors affecting grid selection if we look at new IS?

Will new systems or improvements promise cost reductions or efficiency improvements? Will new stuff promise gaps between competitiveness,can the firm survive without major new systems?

What are information systems guidelines?

KNow how you are going to get there; it is a set of statements specifying how the firm should use its technical and organizational IS resources to achieve tie IS vision (also know as IS architecture)

Purpose
  • communication; coordinating and align the statements
  • Establish responsibility
  • Guide future decision making

What are technical IS guidelines?

Adressing future decisions pertaining to;
hardware and software
Networking services
Storage and protection

DO NOT specify vendor, particular platforms or applications since the guidelines are relatively general

What are organizational IS guidelines?

Adress decisions refering to;
HRM
Organization of IS function
Reporting and hierarchial structures

Focus on;
IT governance
Outsourcing and vendors relationship
HRM decions

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