Strategic Information System Planning

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Table of Contents

Introduction
Review of Strategic Information System Planning:
Discussion on the Strategic Information System Planning
Methodologies regarding strategic information system planning
Recommendations
Conclusion
Reference List
Footnotes

Introduction

It is notable that even with the outstanding advancement of the Information Technology and the widespread use of computer science and internet services in the regular works of individuals, the use of Strategic Information System or SIS had not been very widespread in the business organisations even before two decades.

Rather, SIS was considered parallel to the commercial data processing systems, and so, it was merely used at the very low-level operational works to help ordinary works; nevertheless, there has been a mounting awareness to construct information systems of strategic magnitudes at all firms; therefore, at present, “Strategic Information System Planning” is a decisive factor at all levels.

It is important to note that planning for information systems, must, at any stages, start with the detection of the key requirements; however, for effectual outcome, generation of IT-based arrangement must be a reply to the requirement at the convoluted corporate stages; it must be kept in mind that planning for SISP is similar to strategic management planning.

In addition, proper management of SISP also requires aim, preferences, and agreements for information systems to be formalised; moreover, the plan should be sufficiently explicit to facilitate perceptive code of conduct; the users must know about the exact sequence of generation of the idea; additionally, the plan needs to be supple so that the preferences could be accustomed where essential.

SISP is the examination of a firm’s IT procedures by the use of gracious and convenient models; it is also the assessment of hazards and present needs; it generates an action plan indicating the requirements, which are indispensable to line up data use with strategic direction; in addition, SISP could recognise the best targets for buying and settling new SIS.

In order to conduct the research on strategic information system planning, this paper focuses on reviewing SISP, discussing the Strategic Information System Planning, analysing the strategic IS planning techniques, evaluating information system planning techniques, methodologies regarding SISP, recommendations, and conclusion.

Review of Strategic Information System Planning:

Pant and Hsu (1995) pointed out that strategic information system is computer system, which put into practice corporate policies; however, to be more specific, these authors have noted that Strategic Information System Planning (or SISP) is more often practised to react more quickly and smartly to regular trading activities. Rogerson and Fidler (1994) and Pant and Hsu (1995) pointed out in their respective research papers that Strategic Information System Planning helps a firm to automate its regular operational activities in order to attain higher competence, control, success, and efficacy; SISP is purely used to offer the upper administration with adequate, reliable information to help maintain the trading activities effortlessly.

In addition, Rogerson and Fidler (1994) and Pant and Hsu (1995) also added that strategic information system planning technique is used to study all features carefully and to plan innovative directions effectively; on the other hand, these researchers further noted that SISP does not in itself augment commercial productivity either in long term or even in small term period.

Nevertheless, it is very important to note that Bergeron, Buteau and Raymond (1991) suggested wonderfully in their research that strategic information system planning has turned out to be a fundamental and indispensable element for today’s corporations, as it optimistically influences corporate prosperity and expansion; moreover, if aptly managed, SISP could create new markets and new business opportunities in longer period.

According to Fergerson (2012), SISP unswervingly influences the aggressive attitude of a firm, providing it with more benefits than the rival firms do; however, it is vital to state that there are three kinds of information-arrangements, which for example, include financial-arrangements, operational-arrangements, as well as strategic-arrangements; nevertheless, the classifications are not reciprocally distinctive and they frequently overlie each other.

However, it highly essential to state that better focussed financial arrangements and operational arrangements could turn into the strategic arrangements for a specific firm, and Fergerson (2012) has further added that financial arrangements are the crucial mechanisation for the bookkeeping, financial-planning, and investment manoeuvres of firms; it is notable that these features are comparable and omnipresent in every firm.

Armstrong (1982) suggested that SISP is based on two key arguments; the first one suggests that organisational IT infrastructure mechanisms must be connected with the general corporate policy; however, at this point it is vital to scrutinise how corporate leaders’ policy (which could be either market-focused or operations-focused) influence the capacity to acquire competence and purchaser-service advantage from ERP expenditure.

On the other hand, the second one suggests that firms could better manage information system based configuration or competitive-advantage through application of practical, proper, and generous procedures; in addition, it is vital to note that according to Bozarth (2006), such a procedure is particularly pertinent to ERP expenditures, with regard to expenses and long standing influence.

Bozarth (2006) suggested that six elements could better describe a tremendous strategic information system planning procedure; however, these elements are discussed in the table below:

Six elements of strategic information system planning procedure
(I) Inclusiveness	Bozarth (2006) has pointed out that this refers to the level to which a firm makes an effort to turn thorough and all-encompassing while taking and putting together tactical choices
(II) Conventionalization	It is important to note that conventionalization refers to the survival of arrangements, practices, dealings, and strategies, which direct the scheduling practice of a firm
(III) Concentration	The author has noted that this can be described as a stability amid originality and management directions, which are intrinsic in the tactical preparation scheme; however, a pioneering direction accentuates pioneering resolutions to handle prospects and threats; in addition, an integrative direction accentuates power, as applied during financial plans, resource allotment, as well as benefit administration
(IV) Top to down surge	The upper management, along with the full-time support of the subordinate staff, must instigate the strategic information system planning
(V) Broad contribution	Although the preparation surge is top to down, contribution should engage numerous purposeful regions as well as key stakeholder in all stages of the firm
(VI) Elevated constancy	Regular conferences and evaluations of general approaches should differentiate the Strategic Information System Planning; moreover, it is vital to note that the commendation in the SISP narrative is further present in the everyday administration narrative; on the other hand, the companies should institute an official top to down scheduling procedure in order to tie information scheme policy to corporate requirements as they shift towards development in their administration direction, scheduling, union, and organisation phases of information technology

Table 1: Six elements of strategic information system planning procedure. Source: Self generated from Bozarth (2006).

It is highly essential to state the fact that in order to carry out Strategic Information System Planning successfully throughout the firm’s operational activities, it is vital for them to focus on a number of other factors which are necessary to ensure that the strategic information system planning has been conducted in the aptest way for that particular firm.

As a result, at this stage of the paper, it is highly essential to have a glance at the number of other factors, which are vital for the proper planning process; however, the following table has been used in this purpose for convenience:

Phases	Activities
Expansion of an early contract regarding the tactical scheduling attempt	Basahel and Irani (2009) has pointed out that it is vital to deal with the rationale of the endeavour, settle on favoured stepladders in the progression, agree on outward appearance and phase of news, and deal with responsibility, tasks, and devotion of the deliberate scheduling organization team
Recognition and amplification of authorizations	Basahel and Irani (2009) has pointed out that it is vital to distinguish and amplify the authorizations; in order to do so, it is significant to categorize and elucidate the outwardly obligatory official and unceremonious authorizations, which are positioned over the concerned firm from a number of different spheres
Progression and illumination of the key visions and standards of the concerned firm	According to Basahel and Irani (2009), focusing on the enlargement and illumination of the firm’s vision and standard is very significant to make sure that the entire team is in accord with the core business principles for better outcomes
Outer circumstantial consideration	The authors have further added that under any situation, it is essential to keep an eye on the outer incidental contemplation; as a result, the examination of the surroundings in regard to the outer association must be continuously encouraged in long run for finding out the prospects and dilemmas, together with governmental, financial, societal, and scientific drifts
Inner circumstantial evaluation	Cheong, Corbitt and Pita (2011) pointed out that evaluation of the firm’s strengths, weaknesses, opportunities, and threats must be circulated throughout the corporate hierarchy; in addition, further scrutiny is needed in regards of resource and capabilities, current policy, as well as existing performance
Tactical subject recognition as well as policy improvement and reputable portrayal of the firm in the upcoming years	An abridgment of the earliest levels is necessary to resolve elementary strategy queries influencing the firm’s permissions, visions and significance, product orientation, customers, stakeholder, expenditure, investments, and administration or secretarial devise; nevertheless, the tactics should be created to handle the matters discovered in the preceding stages

Table 2: Factors, which are vital for the proper planning process. Source: Self-generated from Basahel and Irani (2009).

Gottschalk (1999) has noted that SIS actions should consider the company’s policy and a range of outer aspects (such as arrangement of rivals and vendors, and the prominence of the schemes previously in the corporation); moreover, at this stage, it is essential to note that the ensuing scheme must encompass three unified stages; information system, information management, and information technology.

Earl (1993) pointed out that the task of Strategic Information System Planning is a very difficult job from an overall viewpoint; however, throughout past twenty years, the IT infrastructures of firms have developed because of the progression of the scientific world and for the enhanced use of computer-based systems; as a result, use of this planning process is now widespread.

Discussion on the Strategic Information System Planning

Pant and Hsu (1995) pointed out that to plan strategic information systems for a firm in the longer period, it is vital to focus on and revive the three-epoch model; this model indicates that some unlike, but overlying decades of information system existed since 1960s; as a result, the link between those decades are discussed in the table below:

Decades	Information systems	Features
1960s	Data Processing or DP was the most common method	The key features were computers, remote from the part of the customers, as well as price lessening utility
1970s to 1980s	Most businesses used Management Information Systems or MIS	At this time, the main purposes that MIS was able to serve were dispersed and unified procedure, synchronized mechanisms through administration service, and user-driven help for the company
1980s to 1990s	The drive was towards Strategic Information Systems or SIS	The key characteristic of this system was networked and incorporated scheme, which were obtainable and accommodating to customers; however, the system was connected to corporate strategy, facilitating the business

Table 3: Decades of information system since 1960s. Source: Self generated from Pant and Hsu (1995).

Basahel and Irani (2009) has amazingly suggested in the research paper that SISP is the currently preferred system among the businesses organisations; however, incorporating this is an extremely tough job as the procedure is profoundly entrenched in commercial-processes; conversely, this must satisfy the requirements of the firm, serving corporate aims and generating benefits as well as meeting data-processing and MIS-requirements.

Rogerson and Fidler (1994) noted that the main thing is that the firms need SIS not merely as a device for lessening expenses, but also as a way to adding value; nevertheless, a number of the benefits of applying a model generated through an SISP for the business organisations has been broadly outlined in the chart below for better understanding:

Key advantages	The advantages of a model generated through the application of strategic information system planning
Flexibility of services	Bozarth (2006) noted that strategic information system planning is flexible; it can expand or condense mechanically and offer resources on-demand for abundant archetypal magnitudes as well as servers; on-demand feature of SISP means that as demand increases or decreases, the capability could much smoothly match up the demand; additionally, there is no need to over-provision for the peaks. During the functional stages, it could approve a firm’s expert team to inflate, categorise, and function swiftly without any danger, without thinking about the position or infrastructure; moreover, Bozarth (2006) also noted that it could provide associates of the firm with straightforward access to a cost-effective, lithe technology pedestal for running efficiently in terms of applications aptitude and scalability
Less expenses required	According to Fergerson (2012), use of SISP matches cash-flow more accurately than the conformist techniques; in the past, organising all these required immense investments; in addition, other risk factors were present as well, which comprised crumple of IT for lower user-acceptance; however, the author noted that now, SISP can transfer organisations from capital investment to an operational expenditure level
More responsive business conduct	Armstrong (1982) has pointed out that strategic information system planning could progress receptiveness; moreover, the pace at which the new system performs most of the tasks in all stages remains a key benefit of the SISP; with an apt SISP firms could be efficient at adding more storage, network-bandwidth, memory, computing power, and using IT amenities to fluently affix, amend, or mutate a function at short time
Instant recovery of the system in case of any breakdown	Gottschalk (1999) noted in his research paper that by applying an apt SISP, the job of managing technicalities is transferred on the technology-provider; the firm’s responsibility is to give built-in data-protection, fault lenience, self-healing, and malfunction revitalisation, whereas in preceding technologies, failure recovery charges were more than the cost of set up, in new model, this could be lower
Easy to use and control irrespective of method and position	Earl (1993) pointed out that through the application of a model generated through SISP, it will be rather unproblematic to assist end-users to contact systems, despite their position or the tool they are using; any staff could punctually come online, far-off headquarters could be instantaneously connected, temporary groups could be readily set-up on-site, and variable access could be instantly facilitated
Less impact over the environment	A number of researchers of the present era have noted that a model generated through the application of strategic information system planning would produce no environmental impact at long run; however, if a firm uses the conventional methods, they would have to conduct many things manually and as a result, they would leave carbon footprint or even any other kind of pollution on the environment

Table 4: Advantages of a model generated through the application of strategic information system planning. Source: Self generated from Bozarth (2006), Fergerson (2012), Armstrong (1982), Gottschalk (1999), and Earl (1993).

Strategic IS Planning Techniques:

Basahel and Irani (2009) pointed out that it is necessary to have a detailed framework to formulate an effectual strategic information system that contains planning techniques to provide enhanced flexibility to implement the aggregate processes in order to reach goals of the organisation.

In addition, Rogerson and Fidler (1994), Basahel and Irani (2009), Bozarth (2006), Pant and Hsu (1995), and Fergerson (2012) suggested that the framework for SISP would integrate significant analysis, essential to construct the IS-strategy that would circumvent profound facts along with unambiguous system requirements for the reason that those details can clarify the necessary techniques for entire SISP development progression.

On the other hand, Rogerson and Fidler (1994), Basahel and Irani (2009), Bozarth (2006), Pant and Hsu (1995), and Fergerson (2012) have further added that thus, the procedure required to undertake sundry approaches comprise of numerous jobs to engender apt resolution; however, there is no doubt that in order to attain success the entire task should be carried out watchfully.

Basahel and Irani (2009) also added that Mintsberg presented the most effectual model of SISP by integrating stage of growth analysis, whereas the organisational theory is deeply connected with the model with intention to attain at a desired level of organisational development through SISP.

Pant and Hsu (1995) and Fergerson (2012) have added that without the apt application of the Strategic Information System Planning, it would be impossible for the business in modern word to sustain in long run.

At the same time, the SDLC¹ methods always differ in accordance with the associated process of SISP and its concerned advantage and disadvantage are interdependent with the business model that the organisation has put into practice.

On the other hand, diverse strategic IS planning tools are applied considering of their scope, limitation and size where a categorisation of techniques would express their benefits, reward, and drawback associated with the entire implication method that would keep significant contribution in the SISP planning process.

Evaluating Information System Planning Techniques:

In order to evaluate an effective SISP, it is essential to have persuasive tools, a framework for evaluation, and a greater understanding of the techniques of strategic IS planning (where the evaluation processes would emphasis on the evaluation framework to identify the associated gaps and address right solution to mitigate the explored gaps and dilemmas).

Depending on the different criteria and the different strategic levels, the entire SISP would be evaluated by considering the applied methods and frameworks with suitable contents and symbols that would highly ensure trouble-free understanding of the application procedures.

The evaluation process of SISP would also ensure correct assessment of the IS planning techniques, their skeleton, implication of decision making process, and integrated tools (that would support the technical team with a rich explanation of what the management desires and how the process would facilitate the identification of the competitiveness as well as alignment and dimensions of the SISP).

Moreover, the processes of SISP would be evaluated in opposition to the used IS drivers, where it is essential to compare the evaluation tools with ISD² to accelerate the evaluation process focusing on the applied strategy by conducting a detailed analysis of the entire SISP process.

Methodologies regarding strategic information system planning

Palanisamy (2005) has pointed out that in order to find out the deficiencies of addressing the ever-shifting SIS planning needs, it is necessary to focus on six admired SIS-planning methodologies; it is notable that the current SIS methodologies could be chiefly categorised into “impact” and “alignment” models; however, the detailed rationalisation of the methodologies are given in the table below:

Value chain analysis	Value chain analysis is a type of corporate activity analysis; most companies accumulate actions to create patterns, manufacture, sell, distribute, and maintain its items; however, all these actions concentrate on the key value-adding corporate actions that could be made more effectual with IT; nevertheless, it does not concentrate on matters of systems development; it only deals with manufacturing firms
Critical success factors	Palanisamy (2005) noted that this methodology discovers the key information needs for the success of the company; it actually deals with the need of superior administration and it constructs information systems about those needs; it ignores value-adding aspects of SIS; however, it is more investigative method based on managerial control sculpt of decisive decisions
Business systems planning from IBM	Palanisamy (2005) noted that this methodology is procedure-oriented; it unites top-down examination and schedules bottom-up operation; here, the statistics are taken from corporate procedures; however, this system is too comprehensive, lengthy, and expensive, and it does not encompass any tactic for software-design; conversely, the scheduling team needs a high quantity IT knowledge as well
Strategic systems planning (SSP)	Palanisamy (2005) has pointed out that strategic system planning focuses on practical arenas of the company and the information design is taken from the company’s purposeful sculpt; moreover, the statistics are used to spot and plan new appliance methods; in addition, SSP merges top and bottom-up performance through prearranged methods, and build-up response for all system progression troubles
Information engineering (IE)	Palanisamy (2005) noted that information engineering is highly data-oriented and it gives procedure for construction of scheme data, course of action for managing models, and an all-inclusive understanding base; the acquaintance-base gives guiding principles to design and preserve data systems; even though information engineering is an inclusive tactic, it is widespread and the achievement depends on the manager or head
Method from Anderson Consulting	This is an encrusted system, with methodology at the upper level, ‘practices’ in the middle stratum, and equipment partisan methods at the substructure level; most of the assisting methods include DFD, matrix investigation, operational disintegration, centre groups and so on; it is notable that this method is inclusive and automatic materials are given; at the same time, this system is costly, excessively comprehensive, and too protracted

Table 5: Methodologies regarding strategic information system planning. Source: Self generated from Palanisamy (2005).

Recommendations

In order to carry out the Strategic Information System Planning aptly, the business leaders of the firms must first set up planning process, institute a scheduling board, build up obligation amid the upper administration, create a project team, recognise information technology prospect, create corporate revelation and objectives, scrutinise business environment, and boost and endorse the critical success factors.

In addition, the business leaders of the firms must then find out the central performance indicators, discover corporate policies, formulate information system scheme, assess fresh IT infrastructure and information quality, appraise and develop the existing IT policy, analyse the IT atmosphere, find out new prospects, and compare and assess the corporate policies and IT opportunities.

On the other hand, it is also vital for the companies to implement operational examination and business process re-engineering, stipulate the technicalities, carry out assessment of the regular developments, sort out procedures requiring modifications, realise and measure current systems, find out and employ highly specialised IT engineers, describe data structural design, derive general IT solutions, and set standards and policies.

It is further essential for the corporate leaders and general managers to take special care to examine the entire system and set explicit requirements for IS development, discover precise components for execution, create of progression for IT expansion, and keep thorough record of the entire working practices.

It is highly crucial for businesses to gain managerial pledge, so the high-level managers or other influential leaders should be quickly selected to guide the entire team according to that pledge.

The business should allow itself with enough time to do adequate homework, and train and educate the team members, as well as amassing statistics regarding company’s tasks and current IT support and generating work schedules accordingly.

On the other hand, the other departments of the firm must employ a responsible person to support and re-evaluate the overall performance of the team, re-evaluate and gather corporate data, and clarify recent IT activities completed and top IT executive issues.

Additionally, the operational procedures should be clearly stated, and the associated partners should clearly find out the firm’s procedures; the firm should structure the foundation of dialogues, characterise the upcoming data design, categorise the data classes based on associations to business operations, analyse present employee’s working attitudes, and know the way in which the SIS support is assisting the firm.

Most essentially, the firm and its responsible leaders should verify executive perceptions, and arrange regular discussions to achieve devotion and confer compassion for any troubles whose resolutions would be given by future schemes; on the other hand, the teams should use the current processes and data classes to invent databases; however, they should regularly sort out the priorities.

The owners of the firm must reassess information reserve, consider the recent strengths, weaknesses, opportunities, and threats of the firm, create apt action plan, arrange that action plan with advice regarding hardware and software, and alter the worn-out conventional methods.

Conclusion

Information technology-based business organisations should be organised through an accommodating technique whereby every phase of life cycle are affianced to bring suppleness, superiority, and efficiency; nevertheless, the technique must be comparable to the incorporation of product life cycle; conversely, the present research works are inclined to back information-planning as an isle isolated from the affluence of firm’s information resources.

It is highly essential at this phase of the paper to note that a completely fresh tactic is necessary for the firms to differentiate the business and to permit amalgamation of the scheduling phase with SIS.

In addition, the firms must recognise and appreciate the advantages of the models, which are generated through the application of Strategic Information System Planning; in addition, it is notable that through implementing those models, firms could attain leading position in market and achieve greater success not only in terms of enhanced profit margins, but also in terms of goodwill.

Reference List

Armstrong, J. S. (1982). The value of formal planning for strategic decisions: Review of empirical research. Strategic Management Journal, 3(3), 197-211.

Basahel, A. & Irani, Z. (2009). Evaluation of Strategic Information Systems Planning (SISP) Techniques: Driver Perspective. Web.

Bergeron, F., Buteau, C. & Raymond, L. (1991). Identification of strategic information systems opportunities: Applying and comparing two methodologies. MIS Quarterly, 15(1), 89-103.

Bozarth, C. (2006).Strategic Information Systems Planning (SISP) – An IS Strategy for ERP Implementation. Web.

Cheong, F., Corbitt, B. & Pita, Z. (2011). A maturity model of strategic information systems planning (SISP): A comprehensive conceptualisation. International Journal of Enterprise Information Systems, 7(3), 1-29.

Earl, M. J. (1993). Experiences in strategic information systems planning. MIS Quarterly, 17(1), 1-24.

Fergerson, B. (2012). Key Stages of Strategic Information System Planning (SISP) Methods and Alignment to Strategic Management Planning Concepts. Web.

Gottschalk, P. (1999). Implementation predictors of strategic information systems plans. Information & Management, 36(2), 77-91.

Palanisamy, R. (2005). Strategic information systems planning model for building flexibility and success. Industrial Management & Data Systems, 105(1), 63-81.

Pant, S. & Hsu, C. (1995). Strategic Information Systems Planning: A Review. Web.

Rogerson, S. & Fidler, C. (1994). Strategic Information Systems Planning: Its Adoption and Use. Information Management & Computer Security, 2(1), 12-17.

Footnotes

Systems Development Life Cycle.
IS Drivers.

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