Management Information Systems, 13TH ED.
MANAGING THE DIGITAL FIRM
Kenneth C. Laudon ● Jane P. Laudon
continued
Learning Track 3: Enterprise Analysis (Business Systems
Planning)
Establishing Organizational Information Requirements
To develop an effective information systems plan, the organization must have a clear understand-
ing of both its long– and short–term information requirements. Two principal methodologies for
establishing the essential information requirements of the organization as a whole are enterprise
analysis and critical success factors.
ENTERPRISE ANALYSIS (BUSINESS SYSTEMS PLANNING)
Enterprise analysis (also called business systems planning) argues that the firm’s information
requirements can be understood only by examining the entire organization in terms of organiza-
tional units, functions, processes, and data elements. Enterprise analysis can help identify the key
entities and attributes of the organization’s data.
e central method used in the enterprise analysis approach is to take a large sample of manag–
ers and ask them how they use information, where they get their information, what their objec-
tives are, how they make decisions, and what their data needs are. e results of this large survey
of managers are aggregated into subunits, functions, processes, and data matrices. Data elements
are organized into logical application groups—groups of data elements that support related sets of
organizational processes.
Figure 1 is an output of enterprise analysis conducted by the Social Security Administration as
Chapter 14: Managing Projects
Chapter 14 Learning Track 3 2
continued
STRATEGIC ANALYSIS OR CRITICAL SUCCESS FACTORS
e strategic analysis, or critical success factors, approach argues that an organization’s informa-
tion requirements are determined by a small number of critical success factors (CSFs) of manag–
ers. If these goals can be attained, success of the firm or organization is assured. CSFs are shaped
FIGURE 1 Process/Data Class Matrix.
This chart depicts which data classes are required to support particular organizational processes and
which processes are the creators and users of data.
Chapter 14 Learning Track 3 3
continued
by the industry, the firm, the manager, and the broader environment. New information systems
should focus on providing information that helps the firm meet these goals.
TABLE 1 Critical Success Factors and Organizational Goals
Example Goals CSF
Profit concern Earnings/share Automotive industry
Return on investment Styling
Source: Rockart (1979)
FIGURE 2 Using CSFs to Develop Systems
The CSF approach
relies on interviews
with key manag–
ers to identify their
CSFs. Indivi-dual CSFs
are aggregated to
develop CSFs for the
Chapter 14 Learning Track 3 4
e strength of the CSF method is that it produces less data to analyze than does enterprise analy-
sis. Only top managers are interviewed, and the questions focus on a small number of CSFs rather
than requiring a broad inquiry into what information is used in the organization. is method
explicitly asks managers to examine their environments and consider how their analyses of them