Chapter 12 Planning Information Systems Resources
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Chapter 12
Planning Information Systems Resources
Objectives and Overview
The main purpose of this chapter is to describe an IS planning process that aligns the IS function with the
business. A multi-step planning process is described, and examples of deliverables are provided. Several
tools for identifying strategic IT opportunities for the business are also introduced.
The chapter opens with a discussion of the benefits of an IS resource planning process, which include
creating a context for making IS resource decisions and obtaining approvals for IT capital investments.
1. Assessing the current information resources in relation to the IS mission
3. Designing an IT architecture based on a high-level model
5. Formulating short-term operational IS plans based on the strategic IS plan
This chapter therefore addresses high-level IS planning that most students will not have directly
experienced. The intent is to help students under -step process that could be used as
a benchmark in the future, as well as to provide some experience with well-established tools for strategic
analysis: critical success factors (CSFs),the competitive forces model of Porter (introduced in the e-
Teaching Suggestions
We begin the lecture on this chapter by documenting the importance of IS-business alignment, and how
an IS planning process that is aligned with business planning helps achieve this goal. Recent publications
on internal business alignment, as well as alignment with business partners, can be used to provide
examples relevant for the students in the course (e.g., see MIS Quarterly Executive special issue
September 2007).
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Case Study IV-1, The Clarion School for Boys, Inc. Milwaukee Division: Making Information
Case Study IV-3, IT Infrastructure Outsourcing at Schaeffer (A): The Outsourcing Decision
In the cases following the Part I chapters, there are several case studies with examples of IT architecture
decisions:
Case Study I-1, IMT Custom Machine Company, Inc.: Selection of an Information Technology
Platform
Case Study 1-
Platform
Case Study I-2, VoIP.biz, Inc.: Deciding on the Next Steps for a VoIP Supplier
Review Questions
1. This chapter emphasizes that an IS plan should be linked to the strategic plan for the overall
organization. Why is this important?
2. How does an information vision differ from an IT architecture?
An information vision is a written expression of the desired future about how information will be used
3. Describe the five basic steps in information resource planning, and some ways that business
managers might participate in each step?
1. Information resources assessment: This includes inventorying and critically evaluating an
2. Establishment of an information vision: An information vision is a written expression of the
3. Establishment of an IT architecture for that vision: The IT architecture is an ideal view of the
4. Formulation of an IS strategic plan: This is
information resources from their current status toward the desired vision and architecture.
5. Formulation of short-term operational IS plans: This plan translates the strategic plan into
4. Why is it important to assess business user attitudes, not just their use of information?
5. Comment on the differences between the IS mission statements by IS and business managers in
Figure 12.3. What are some conclusions that could be drawn from these differences?
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6. How would you respond to the criticism that a proposed IT architecture is not feasible based on
An IT architecture must be based on a thorough review of major technology trends, and it must be
7. How could the performance results in Figure 12.4 be used in the remaining IS planning steps?
8. Figure 12.5 suggests that companies evolve their IT architectures through different maturity
stages. Why might an organization wish to stay in an earlier stage for the long term?
9. Contrast the critical success factors (CSFs) and SWOT (i.e., strengths, weaknesses, opportunities,
and threats) approaches for assessing opportunities as part of a strategic IS planning process.
Under what circumstances might one of these approaches be more useful than the other?
SWOT analysis is a combination of external environment review and internal evaluation of the
organization in terms of what areas the organization is strong and where it is not, plus its ability to take
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10. Why might companies today develop IS operational plans that cover only one year?
Discussion Questions
1. In addition to the reasons listed in the chapter, what other issues or events might cause an
organization that does not have a formal IS vision to recognize the need for developing one?
2. What are the major implications for the business manager if an assessment of current practices
indicates substantial inconsistency in the information vision and IT architecture for the company?
What are the major implications for the IS leaders?
If the vision is not aligned with the IT architecture, this is a clear indication that the IS organization is not
3. What are the implications for changes in technology and personnel as an organization moves
from stage 1 to stage 2 and stage 2 to stage 3 in the IT architecture maturity model in Figure 14.5?
Moving from stage 1 to 2 implies a more integrated approach to IT architecture. While in stage 1,
4. What are some important IT management challenges that would likely be encountered in
working toward the Modular architecture in Figure 14.5?
5. Through which media (text, pictures, etc.) can an information vision and architecture be
represented? What are the advantages of each approach?
6. Given the rapid rate of change in both information technologies and business environments, do
you believe that extensive information resource planning efforts are worthwhile for most
organizations? Why or why not? Under what circumstances might they not be?
As indicated in the text, IT investments form a large portion of total capital investments for many
7. business strategic
plan, instead of being driven by it. Can you think of an example where this might be the case?
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8. Do you believe that strategic advantages obtained by the effective use of IT are sustainable? Why
or why not?
9.
help with the evaluation of a capital investment request that is exceedingly difficult to quantify?