Chapter 6
Planning Related IT Processes
Managing the Information
Technology Resource
Jerry N. Luftman
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 1
Chapter Outline
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Importance of planning to management
Levels of IT planning and implications
Strategic-level IT planning
Tactical-level IT planning
Operational-level IT planning
Global considerations in IT planning
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 2
Importance of IT
• Must look across all other functions in
enterprise
• Must integrate business perspectives of
other functions
• Support specific business requirements at
all levels
• Deal with turbulent and dynamic
environments
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 3
Layers of Management Focus
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 4
Components of Business
Strategic Planning
• Define IT mission
• Define IT policies to carry out mission
• Define business processes, information,
and information flows
• Define enterprise requirements for
information throughout strategic time
period
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 5
IT Strategy Planning
• Evaluate alternate implementation of
services, applications, and infrastructure
• Define and prioritize strategic objectives
with IS policies
• Obtain approval for IS strategic plan
• Control information systems strategic plan
against tactical performance
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 6
Application Planning
• Schedule of applications to be built or
modified within set period of time
• Address key functions of enterprise
• Review existing and proposed applications
– Emerging technologies
– Integrated processes
– Improved standards in development or
maintenance
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 7
Considerations in
Applications Planning
• Abandon traditional approaches based on
long-term stability of business environment
• Alignment with strategic business
objectives is paramount
• Applications being considered should
demonstrate:
– Salience
– Worth
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 8
Dimensions of Application Portfolio
• Organization’s dependence upon the
application
• Strategic impact of the application
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 9
Application Portfolio Matrix
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 10
Application Prioritization Matrix
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 11
Application Prioritization Matrix
• Business impact
– Ability of the application to deliver a business
benefit
• Ease of execution
– How many resources the application will
consume
– How difficult it will be for organization to
implement application
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 12
Data Planning
• Dependent on outcome of application plan
• Data architecture may change to include:
– Merging data storage technologies
– Changes to the database architectures by
vendor
– Integrated data processes
– Improved standards in development or
maintenance of data
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 13
Objectives of Data Planning
• Facilitate cost-effective and timely
transformation of raw data into productive
information
• Facilitate reuse of data and information
across the organization
• Protect organization's data and information
assets
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 14
Success Factors of Data Plan
• Develop data models of key processes
• Define underlying shared data used by key
processes
• Develop common definitions of “core” data and
share with functional groups
• Develop common information/data models for key
processes
• Identify how proposed applications identified in
application plan affect data
• Apply appropriate governance for data
management
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 15
System Planning Objectives
• Document which systems are planned for
development
• Document the justification for developing those
systems
• Identify time frames for developing those
systems
• Document impact on IT architecture of
developing those systems
• Document any implications on organization's
disaster recovery plan
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 16
Network Planning Considerations
• Impacts of recent
mergers on network
capacity
• Impact of current
network capacity and
infrastructure of
proposed applications
• Opportunities to
standardize
components/services
• Opportunities to
consolidate existing
services and infrastructure
to enhance network:
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Reliability
Availability
Service responsiveness
Security
Scalability
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 17
Network Planning Considerations
• Security of network
against threats
• Recovery of network
from catastrophes
• Identification and repair
of network
performance issues
• Customer services
• Vendor management
and service agreements
• Cross-border issues
• Hardware upgrade plan
• Software upgrade plan
• Capital investment plan
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 18
Project Planning
• Uses results from application, data,
network, and systems planning processes
• Define technically feasible and
manageable projects
• Reflect strategic goals and direction
• Plans include
– Specification of resources
– Time frames
– Service level requirements
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 19
Service Level Planning
and Management
• Negotiates individual service agreements
• Identifies individual requests for recovery,
security, and audit ability
• Forecasting level and volume of service
agreements
• Develops preventive maintenance plan
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 20
Recovery Planning and Management
• Ensures continuation of business operations in
event of failure/disaster
• Multiple contingency plans
• Consolidate recovery requirements for all service
agreements
• Define business and IT recovery-operating
environment
• Identify variances between operating environments
and agreements
• Develop overall recovery plan
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 21
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 22
Disaster Recovery Plan Elements
• Data recovery
• Technology recovery
• Business-process
recovery
• Crisis management
• Customer-support
operations
• Facilities
• Human resources
• Procedures for key
suppliers and
partners
• Public relations and
damage control
• Protection of
intellectual property
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 23
Elements of a Business-Continuity Plan
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 24
9 Steps to Promote Continuity
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Visualize
Itemize
Prioritize
Categorize
Minimize
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Organize
Rehearse
Sponsor/Champion
Vigilant Monitoring
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 25
Security Issues
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Unauthorized access to systems
Unauthorized access to confidential data
Virus attack
Denial of service attacks on Web sites and e-mail
Illegal/unwanted use of computer
systems/equipment
• Illegal use or monitoring of e-mail/Internet
• Possible physical or virtual destruction of
financial/administrative information
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 26
Top 10 Triggers of Unethical
Employee Behavior
1. Efforts to balance
work and family
2. Poor internal
communications
3. Poor leadership
4. Work hours, work
load
5. Lack of mgmt.
support
6. Need to meet sales,
budget, profit goals
7. Little recognition of
achievements
8. Company politics
9. Personal financial
worries
10. Insufficient
resources
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 27
Audit Planning and Management
• Ensures agreed levels of audit and
compliance for systems, application, and
services will be met
• Evaluate and ensure adequacy of internal
systems of control
• Securities and Exchange Act of 1934
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 28
Fair Information Practices
1. NO personal record systems with secret
existence
2. Rights of access, inspection, review, and
amendment to systems that contain
information about individuals
3. No use of personal information for purposes
other than for intent it was gathered
4. Managers are responsible for reliability and
security and can be held accountable
5. Governments have right to intervene
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 29
Corporate Responsibility Audit Steps
• Gain CEO commitment
• Appoint steering
committee to guide
• Appoint auditing team to
develop questions
• Diagnose corporate
culture and investigate
functional areas
• Analyze mission
statement
• Seek reasons for
inconsistent performance
• Collect relevant industry
information, benchmark
studies, competitor’s
information
• Interview stakeholders
involved in functional
areas
• Compare internal data and
external perceptions
• Write final report for
managers and audit
steering committee
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 30
Capacity Planning Importance
• Reduces customer dissatisfaction
– Identify potential bottlenecks
• Reduces productivity decline
– Ensures systems can handle peak times
• Reduces budgetary constraints
– Upgrades budgeted ahead of time
• Improves stability
– Can identify problems ahead of time and avoid
or predict them
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 31
Organizational IT Capacity Planning
Capacity planning process
maturity level
Characteristics
Level 1
Reactive; firefighting
Level 2
Efficient: professional and
sophisticated firefighting
Level 3
Fewer fires; analysis of problems,
start of process improvement
Level 4
Process includes procedural
improvement
Level 5
Process becomes self-correcting
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 32
Skills Planning Process
• Define manpower requirements
• Consolidate manpower required to support
project and system plans
• Identify existing and planned manpower skills
• Establish and evaluate alternate manpower
plans
• Define effective education plan
• Document manpower and education plans
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 33
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 34
Budget Planning and Value Management
• Converts systems plans into financial
terms
• Identifies how funds will be obtained
• Identifies how funds will be allocated
• Decouple budget planning process from
strategic planning process
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 35
Vendor Planning and Management
• Outsourcing of services and other IT
processes
• Measure and monitor performance
• Determine corrective action if necessary
• Make readjustments if necessary
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 36
Management Systems Planning
and Monitoring
• Collect and summarize IT organization data
• Compare results to IT organizational
objectives and standards
• Diagnose deviation or substandard
performance
• Analyze variance and initiate
effectiveness/efficiency improvements
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 37
Management Systems Planning
and Monitoring
• Define detailed requirements based on
enterprise policies
• Evaluate alternative standards,
procedures, methodologies
• Design solutions
• Publish instructions for use of standards,
procedures, and methodologies
• Installing solutions
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 38
Operational Level IT Planning
• Day-to-day administration and execution
of processes and plans
• Project-related plans
• Effective implementation of requirements
at strategic and tactical levels
• PMBOK
© 2004 Managing the Information Technology Resource, Jerry N. Luftman
Chapter 6- Slide 39