Strategic IS Planning

Dr. Rajiv Kumar

ASB Coimbatore

Note: Content of this PPT has been copied from various sources
Strategic IS Planning
• An ongoing process
• to keep current as business and technology changes
• Enables IS to help the organization meet its business objectives
Why IS Strategic Planning process
initiated?
• To meld the systems and processes of two previously separate
organizations
• application systems and processes vehicles for providing customers with a
common face
• consistent information to manage the newly merged company
• leverage synergies, reduce overhead costs
Why IS Strategic Planning process
initiated?...
• A small and growing company experiencing quality problems,
losing its competitive edge
• IS applications a roadblock to improving the quality

• Assess the current IS state

• planning an input for direction
• creating a vision for the future
Why IS Strategic Planning process
initiated?...
• Business frustrated with the response of IS
• applications not able to keep pace with changes in business
• planning determines
• the cause of the problems
• link IS closer to business
• determine the proper solution
Why IS Strategic Planning process
initiated?...
• A manufacturing division under pressure to implement a
vendor-supplied application package
• may not be the best fit for the unique business requirements
• planning to determine the best solution
Why IS Strategic Planning process
initiated?...
• Endless backlog of IS projects
• planning to prioritize projects
• align IS priorities with business priorities
• determine whether to build upon and invest in the current systems
• start over with a new set of business applications
Why IS Strategic Planning process
initiated?...
• Planning to determine ways to reduce costs and gain
efficiencies
• leverage or consolidate multiple data centers
• rationalize redundant business applications
• A high-growth company restructured business to operate on a
global basis
• how to integrate information
• to manage new world-wide business
Why IS Strategic Planning process
initiated?...
• A firm completed its business planning process
• documented its vision, mission, objectives
• develop an IS Strategy
• align with the newly stated business direction
Why IS Strategic Planning process
initiated?...
• IS grew over time without a plan
• high costs, redundant systems
• planning to obtain a complete inventory
• understand current environment
• identify redundant systems
Benefits of IS Planning
• Management of a critical, expensive asset
• IS a critical business function
• An expensive asset
• Demand planning, capacity and resource planning, monitoring – like
any other asset?
• Doing more with less – IS budget is squeezed
• Business appetite for new applications and improved processes ↑
• Planning balances the conflicting forces
• manage the direction
• rather than being reactionary
Benefits of IS Planning…
• Relationship between business and IS
• business obtain an understanding of current IS
• IS an understanding of business direction
• identify how technology can assist with the firm’s objectives
• mutual understanding working through the process 
alignment with the business goals
Benefits of IS Planning…
• Aligning IS direction to the business direction
• IS activities provide optimal support for business goals and
objectives
• true alignment
 IS strategy and business strategy developed concurrently
• technology enables the business strategy
• embed IS strategy within business strategy
Business Value and Alignment

Business Strategy

IS Strategy

Technology People Processes

Metrics

Business Value and Alignment

 IS Planning

Top-Down Planning
Approaches Inside-Out Innovation

CSF Approach Value Chain

Bottom-Up Evaluation
Approaches

System Audit
Gap Analysis
Matrix