CHAPTER 13 Setting a Direction for Information Resources 13.1 © Prentice Hall 2002 INFORMATION RESOURCE PLANNING • ASSESSMENT OF CURRENT INFORMATION RESOURCES • INFORMATION VISION & INFORMATION TECHNOLOGY ARCHITECTURE • STRATEGIC & OPERATIONAL IS PLANS MUST MOVE TOWARD DESIRED ARCHITECTURE 13.2 * © Prentice Hall 2002 WHY SET A DIRECTION? • SHARED UNDERSTANDING AMONG IS PROFESSIONALS & USERS • COMMUNICATES FUTURE TO OTHERS • PROVIDES CONSISTENT RATIONALE FOR DECISIONS * 13.3 © Prentice Hall 2002 INFORMATION RESOURCES ASSESSMENT • CRITICAL EVALUATION OF INVENTORY OF HARDWARE, SOFTWARE, PEOPLE • LOOKS AT QUALITY OF RESOURCES • HELPS MEET BUSINESS NEEDS OF ORGANIZATION * 13.4 © Prentice Hall 2002 INFORMATION VISION & ARCHITECTURE • INFORMATION: Written expression of desired future for information use & management • TECHNOLOGY ARCHITECTURE: Depicts way information resources should be deployed * 13.5 © Prentice Hall 2002 INFORMATION RESOURCES PLANNING PROCESS ASSESS BUSINESS VISION FOR BUSINESS BUSINESS OPS PLAN & BUDGET BUSINESS STRATEGIC PLAN IS OPS PLAN & BUDGET VISION: HOW BUSINESS SHOULD USE INFO ASSESS INFO USE & MANAGEMENT 13.6 IS STRATEGIC PLAN INFORMATION ARCHITECTURE © Prentice Hall 2002 ASSESSING CURRENT INFORMATION RESOURCES • MEASURE USE & ATTITUDES • REVIEW IS ORGANIZATIONAL MISSION • EFFICIENCY: Uses minimum resources to do its job • EFFECTIVENESS: Helps users spend time doing right things • COMPETITIVENESS: Helps ensure organization’s competitive position * 13.7 © Prentice Hall 2002 CREATING INFORMATION VISION • SPECULATE: How will competitive environment change? • CURRENT SYSTEM: Can it do future job? • IDENTIFY CHANGES: How must IS change to allow company to take advantage of future environment? * 13.8 © Prentice Hall 2002 ELEMENTS OF INFORMATION TECHNOLOGY ARCHITECTURE • TECHNOLOGY COMPONENT: – – – – HARDWARE SOFTWARE NETWORK DATA • HUMAN COMPONENT: – PERSONNEL – VALUES/CULTURE – MANAGEMENT SYSTEM 13.9 * © Prentice Hall 2002 STRATEGIC IS PLAN • SET OF LONG RANGE GOALS WHICH DOCUMENT MOVEMENT TOWARD INFORMATION VISION & ARCHITECTURE • ASSOCIATED MAJOR INITIATIVES TO ACHIEVE GOALS * 13.10 © Prentice Hall 2002 STRATEGIC IS PLAN • SET OBJECTIVES • CONDUCT INTERNAL & EXTERNAL ANALYSES • ESTABLISH STRATEGIC INITIATIVES • CRITICAL SUCCESS FACTORS • ANALYZE COMPETITIVE FORCES • VALUE CHAIN ANALYSIS * 13.11 © Prentice Hall 2002 CRITICAL SUCCESS FACTORS • FOR SPECIFIC INDUSTRY OR FUNCTION • LIMITED IN NUMBER • IF EXECUTED WELL, WILL LEAD TO SUCCESS • SHORT OR LONG-TERM • PROVIDE OPPORTUNITIES FOR IT * 13.12 © Prentice Hall 2002 VALUE CHAIN ANALYSIS • ACTIVITIES THAT ADD VALUE FOR THE CUSTOMER • PRIMARY ACTIVITIES (PRODUCT): – – – – – INBOUND LOGISTICS OPERATIONS OUTBOUND LOGISTICS MARKETING & SALES SERVICE * 13.13 © Prentice Hall 2002 OPERATIONAL IS PLAN PRECISE SET OF SHORT TERM PROJECTS TO BE EXECUTED BY IS DEPARTMENT & USER-MANAGERS IN SUPPORT OF STRATEGIC IS PLAN * 13.14 © Prentice Hall 2002 OPERATIONAL IS PLAN • LONG TERM: Two-to-three years, project definition, selection, prioritization. Based on anticipated changes in business • SHORT TERM: One year, linked to annual budget. Focuses on completing current projects, beginning new ones. Immediate hardware, software, staffing needs * 13.15 © Prentice Hall 2002 BENEFITS OF INFORMATION RESOURCES PLANNING • • • • • • • BETTER IS RESOURCE ALLOCATION COMMUNICATES WITH TOP MANAGEMENT HELPS VENDORS CREATES CONTEXT FOR DECISIONS ACHIEVES INTEGRATION & DECENTRALIZATION EVALUATES OPTIONS MEETS MANAGEMENT EXPECTATIONS * 13.16 © Prentice Hall 2002 CHAPTER 13 Setting a Direction for Information Resources 13.17 © Prentice Hall 2002