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Planning for Information
Technology and Systems
Prof. Rushen Chahal
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Agenda
Strategic IT Planning
IT Planning Dilemma
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StrategicPlanning
Strategic PlanStrategic PlanStrategic PlanStrategic Plan
Management
Control
TacticalTactical
PlanPlan
TacticalTactical
PlanPlan
Operational
ControlOperational PlanOperational PlanOperational
PlanOperational Plan
IT PlanningSequence
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Level of Management
OperationalOperationalOperationalOperational
TacticalTacticalTacticalTactical
ShortShortRangeRangeShortShortRangeRange
Planning HorizonPlanning HorizonPlanning HorizonPlanning
Horizon
StrategicStrategic
LongLongRangeRangeLongLong
RangeRange
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IT Goal Alignment
Need to align IT goals to firms goals Core processes
Core competencies Marketing strategies
Policies on: Architecture: centralized, decentralized,
distributed, client/server, end-user
Outsourcing, in house, and off the shelves
Development priorities
Legacy systems
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Need for IT Planning
Align IT goals to organizations goals
Top-down
Time horizon
Top - long term (5 years or beyond)
Middle - intermediate term (1 or 2 years)
Bottom - short term (3-6 months)
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IT Planning Cycle
Develop Mission Statement
e.g, 15% market share
Increase sales volume by 10%
Identify strategic units
Define Critical Success Factors (CSF)
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IT Planning Cycle
Identify IT enhancing CSFs
Consider industry and technological
trends
Categorize potential IT
New versus redesign
Matches strategic goals
Potential ROI
Potential risk
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IT Planning Cycle
Set IT portfolio strategy
Eliminate non-strategic contenders
Allocate resources to IT with high ROI
or low level of risk
Leave 5 to 15% of technology budget
for Research and Development (R&D
)
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Agenda
Strategic IT Planning
IT Planning Dilemma
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IT Planning Dilemma
IT planning should conform to firms
strategic goals
Yet, such goals will be constrained ifthey do not stretch to
meet future
enabling technologies
Therefore, strategic goals depend on IT
goals
But, IT goals must conform to strategic
goals
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IT Planning Dilemma
IT Plans
Strategic Plans
DRIVEDRIVE DRIVEDRIVE
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Solution
Periodic interaction between strategic
and IT planning processes
Dynamic planning Short intervals
Adaptable plans
CIO part of executive planning process Seat at head table
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Technology Transfer
Corporate Planning
ITDepartment Planning
Technology Scouting
DirectionsDirections OpportunitiesOpportunities
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Points to Remember
Strategic IT Planning
IT Planning Dilemma
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Discussion Questions
Does your organization do IT strategic
planning?
If not, why not? If so, do what steps do they follow?
How do they handle the planning dilemma?
What do you think of this top-down IT
planning model? Is it workable?
What is it missing?
Can goals always be measurable?
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Assignment
Review chapters 8-12 & technology 3
Read chapter 13
Group assignment Research paper
