· Mod 11: For Your Success

Learning Outcomes

1.  Assess current information resources in relation to information systems mission.

2.  Create an information vision for how information is used and managed in the future.

· Mod 11: Readings Required

·  Big Data and Cloud Computing: IBM. (2012, August 2). Competing for the individual: How small & medium businesses can capture the big data opportunity. Retrieved from http://www.youtube.com/watch?v=dLG8xEhj6Lo

I. Planning

One of the first steps in planning is to create an information vision. An information vision is an expression of the desired future that explains how information will be used and managed in an organization. The vision needs to be specific enough to guide policy decisions. Developing a vision requires both an understanding of the future direction of the business and the role information can play in enabling the future business strategy. The focus of the information vision is on long-term success.

Another aspect involved in planning is the information technology architecture. The IT architecture depicts the way an organization’s information resources will be deployed and the way to deliver its vision. The IT architecture also specifies how both technical and human assets of the IS organization will be deployed in the future to meet the information vision. The technology assets include hardware/operating systems; application software; networks and data. The human assets consist of personnel, values/culture of the organization and the management system.

There are four stages of IT architecture maturity (Ross, 2003).

  1. Application Silos – When companies group functions or business units together to maximize their potential.
  2. Standardized Technology – When companies share services and applications for the purpose of enabling IT efficiencies. Typically, enterprise wide, IT is standardized.
  3. Rationalized Data – When companies link processes, systems and data. An example is an ERP system.
  4. Modular – When companies have local enterprise-wise standards, but have global flexibility with more loosely coupled IT enabled business process components.

Figure 12.5


Click image to enlarge it
Changing Resource Allocation across Architecture stages, Ross, (2003), shows the four stages of architecture maturity as they relate to applications, infrastructure and data.
(Source: Figure taken from Ross, 2003.)

As an IT manager, you will need to become familiar with IT capabilities and business metrics as they relate to the IT architecture stages. IT capabilities related to the four IT architecture stages start with IT applications serving isolated business needs in the application silo stage. In the standardized technology stage, IT capabilities become firm-wide technology standards. In the rationalized data stage, IT capabilities become focused on writing core processes. Finally, in the modular stage, modules enable business model extensions.

Building a business case for IT using the four-stage model starts with ROI of applications. It then investigates reduced IT costs and interoperability. The third stage looks into improved business performance and integration. The final stage looks at the speed to market or strategic agility.

Formulating the strategic plan involves long-term objectives, very often three to five years out. These objectives represent movement toward the Information Visions and IT Architecture. These objectives are always quantifiable so progress can be measured as the plan moves forward. Strategic planning also includes outlining any major initiatives that must be undertaken to achieve the objectives.

There are four key steps in the strategic IS planning process:

  1. Setting objectives
  2. Conducting an external analysis
  3. Conducting an internal analysis
  4. Establishing strategic initiatives

Setting objectives involves determining measures to be used for each of the key result areas. IS objectives may be established for a number of things. Examples include the IS department service image and personnel productivity.

Conducting the internal and external analyses include reviewing the external environment and internal capabilities of the organization. Many organizations will use a SWOT (strengths, weaknesses, opportunities and threats) analysis approach. The goal is to identify leverage points or roadblocks that may hinder strategic initiatives.

The last step is establishing strategic initiatives. The goal is to establish high-level initiatives for IS organization that will be translated into projects as part of the operational IS plan.

II. Tools

Identifying strategic IT opportunities can be quite a challenge. There are some tools you can use to help. Three key tools are as follows:

  1. Using critical success factors (CSFs)
  2. Analyzing competitive forces
  3. Conducting value chain analyses\

Critical success factors include information needs or processes that are critical to the success of either the entire organization or an individual business unit. Porter’s five forces model can be used to analyze potential changes in competitive advantage because of change in power between business, its competitors and other stakeholders in the industry. Examples of creating competitive advantage include providing difficult-to-duplicate products or services, or possibly raising the stakes for competition in the market.

Value chain analysis is based on the value chain of primary and support activities in a business. Analysis involves an examination of how data can be captured, manipulated and distributed to better support each activity and the links between each of the activities. An excellent way to generate ideas for strategic applications of IT is to have action-planning sessions with both business and IT managers.

There are different support activities for each area within a business, such as planning models for the firm infrastructure or automated personnel scheduling for human resources management. Other examples include computer-aided design and electronic market research for the technology department. A final example includes using online procurement of parts for the procurement department.

Primary activities for inbound logistics may be an IT application that automates the warehouse. Flexible manufacturing would be an example of an operational primary activity. Outbound logistics may use automated order processing.

Scenario planning is used by leaders to problem solve and address uncertain futures. During the scenario-planning phase, alternative scenarios for what might happen are developed. Often times, a few major initiatives or drivers are identified to create a matrix based on different high, low, and values of those drivers. Characteristics of the scenarios are used to help with future planning.

The operational IS plan outlines the major initiatives the organization ultimately needs to continue operating in the short term in order to achieve the longer-term strategic initiatives. Typically action plans for one or more years based on the strategic plan and focusing on prioritized projects are created. The operational plan specifies current and newly defined IS projects, including expected benefits and risks, due dates and stake holder responsibilities.

Some guidelines for effective IS planning are as follows:

  1. Early clarification of the purpose of the planning process is critical.
  2. The information resources planning effort should be viewed as an iterative process.
  3. The plan should have realistic expectations.
  4. A unified approach to delivering IT services should be used.
  5. An effective IS plan will also take into consideration potential barriers and constraints.

After reading through the 10-Trends for 2010, article, how many of those trends have really changed in the last several years? Have businesses really included those trends in their plans? Productivity and workflow tools are certainly an added value. What are the top 10 trends for the current year? You may want to start a discussion thread brainstorming the top 10 trends for the coming year. What do your classmates think? You’ll never know unless you ask.

Assignment 11:

Case Study: Making Information Systems Investments

Click the link below to read a case study from the 7th edition of Managing Information Technology.

The Clarion School for Boys, Inc.—Milwaukee Division: Making Information Systems Investments

The case study provides an example of the practical and political difficulties encountered in IS planning and also provides an example of assessing current IS resources.

Develop a detailed outline of a long-range information system plan for Clarion—Milwaukee.

A long-term plan should include the following sections:

1.  Statement of precise objectives

2.  Analysis of current and future environment, including business, information technology, and user information

3.  Proposed information technology action plan, including hardware, applications, personnel, network, and facilities

4.  Resource and funding needs justification

5.  Implementation plan

6.  Organizational change

7.  Training

Label each section clearly.

Note: special consideration should be made to adoption of innovative, emerging, or IT trends.

Your outline should be 2 pages in length and well-written. Please be sure to incorporate the questions into your responses. Use Saudi Electronic University academic writing standards and APA style guidelines, citing references as appropriate.