Strategic Planning of Information Technology and Its Application in Organization

Transcription

1 Strategic Planning of Information Technology and Its Application in Organization Taghi Mousapour, Misagh Atef Zafarmand, Ali Atayi, Seyed Gholamreza Aleyasin, Arash Saadat, & Jalil Emami M.A. Student of Business Management, Rasht Branch, Islamic Azad University, Rasht, Iran Abstract Strategic planning is future planning of an organization and information technology strategic planning for the organization is the document that Information architecture of organization determine in light of strategic considerations as the mission, goals and priorities of organization and implementation plan necessary determine for achieving systems and databases in enterprise-wide. In other words, information technology strategic planning is charter and programming macro-organization in the field of information systems and overall information technology. The purpose of this article is a basic introduction to enterprise architecture approach to strategic planning of information systems. Keywords: IT Architecture, Enterprise Architecture, IT Strategic Planning, Information, IT Systems Planning 1- Introduction Although information and communication technology (ICT) increases the ability of people, however, most of these improvements cant improved in different aspects of human life. Mechanism and Specific macro strategic planning is needed to achieve the main objective in applying ICT. Most important program necessary in order to achieve these objectives is macro program or ICT Master Plan. Different approaches are used for planning. Currently dominant approach for developing long-term planning or ICT Master Plan is enterprise architecture approach or information technology architect. 2-Definitions Strategic Planning: According to Peter Drucker Strategic planning is continuous process of systematic decision and risk taker and with maximum knowledge of the future result that systematically organize effort required for the decision making and the results of these decisions against the expectations measures through organized systematic feedback (Stueart,1998,p41). IT Strategic Planning: it is the document that information architecture of organization determines in light of strategic considerations as the mission, goals and priorities of organization and Implementation plan necessary determine for achieving systems and databases in enterprise-wide (Behan, 1990). Enterprise Architecture: Terms architecture evokes public meaning in our minds that is result of its history in human civilization. Perhaps architecture be the fundamental structure from systems of components and communication both internal and external and the principles governing their design and development (ansi/ieee, 2000). However, enterprise 36

2 refers to the set of organization that has common objectives and operations. This may include all or distinct part in organization or functional domains of system or even a set among organization (cio Council, 2001). Enterprise Architecture defined such: It is an organizational plan that describes the mission structure and information needed for organization and describe technologies necessary to support them and defines the transition process to implement these technologies (cio Council 2001). In this paper we define the enterprise architecture include The general structure of the information technology planning system that making better use of information technology leads to achieve strategic business (Perks & Beveridge 2003). 3- Information Technology and Information Systems Planning (IT / ISP) Organized planning of infrastructure and portfolio of information systems is needed for enterprise at all levels. Comprehensive planning of the IT in organization identify infrastructure needs in all dimensions (technological, managerial, human, etc) and appropriate to guide organization in design and implementation of information systems and using IT tools (Davis and Olson,1985). IT strategic planning as a first step in the process of enterprise architecture include determining vision and objectives of the mission, determining strategy requirements and preparing document by strategic information technology. The purpose of strategic planning of information technology is alignment between applications of IT with business strategies of the organization (Moemeni, 1993). Implementation of IT planning with major goals of the organization is one of raised challenges in the IT / ISP that following will increase organization productivity. Based on studies done IT / ISP is one of the most important issues for IT managers and senior managers in recent years (Kraft et al, 1991). 4 - Achievement of Strategic Planning of Information Technology The most important achievements of strategic planning of information technology will be as follows: Savings in investment in information technology and its targeted Providing a suitable field for implementing integrated information systems To transform and modernize the existing infrastructure of the organization information technology along coordination with the latest technologies. Issues considered in strategic planning of information systems must be identified and investigated. Identify gaps and holes of available condition with optimal architecture Identify and investigate barriers Design choices and possible alternatives A comparative analysis of the alternatives and selecting best option Implementation of ICT policies and strategies Identify the resources required to achieve the optimal situation 37

3 Description and identification of priority projects and provide necessary information to produce their RFP (Murdick,1986). 5 Approaches of information Strategic Planning In the following we will describe several strategic planning approaches of information: 5-1- Mac Farlan & Mac Keni strategic network Figure 1 is the same network that the Boston Consulting Group and General Electric had established and is appropriate to select communication strategy of the company. F.W.Mac Farlan & J.L Mac Keni (1982) has identified four categories of companies that information technology has different strategic effects on them. They include strategic, turnaround, factory, and support (Ward 2002 P: 42) Turnaround Strategy IT : The programmed focuses Centrally guide or free market Strategy IT : Members Scarce resource Factory Strategic Strategy IT : Conducting benefit The programmed focuses Strategy IT : Scarce resource Members, free market Necessary loss Support Figure 1) Matrix of Strategic Information Technology 5-2- Parsons Communication Strategy A major goal of IS planning is to ensure match needs of the company for information technology with framework of company for managing information technology to emphasize the importance of consistency, companies must be aware of communication strategy of information business plan (Parsons,1983). L. Giorgi Parsons suggested 6 strategies that provide extensive management framework to guide the use of information technology in company. Each of the six different strategies design an approach that companies can establish goals and policies for information technology, evaluate projects, allocation of resources and to determine performance standards. The extent to which companies consciously chose each of the six strategies is varies (Zahedi, 2001). Some companies do not have any specific strategy. These companies are usually less success to meet company needs with the random strategy of applying of information technology (IT) and because managers, users and internal IS departments have no common framework for action, IT are ineffective performance. 6 Parsons Strategies are: The centrally planned Conducting benefit Free Market 38

4 Monopoly Scarce resources Necessary Loss Critical Success Factors John Rokart and colleagues (1977) began developing a method for defining the information needs of executives. Their methods are a critical success factor. This approach focuses on each manager and their current information needs. Method of critical success factors can be used to help companies to identify information systems that they need to be used. For each executive director, critical success factors are a number of guide fields that these fields move to in order to growth and development correctly. Each executive director shall usually consider less than 10 of them. Moreover, they are very dependent on time. Key issues must receive the same attention from executive director (Mcleod, 1998). Rokart found that there is fourth source to identify these factors. The first source is industry of business. Each industry has critical success factors that are related to with each company in the industry. The second source is company itself and its position within the industry, acts and practices of large companies and dominated in an industry provide most likely one or more of the critical success factors for small firms in the industry. In addition, several companies may have same factors but at the same time have different preferences for factors. The third source of critical success factors is environment such as consuming practices, economics, and political factors of the country (or countries) that company is in it. The fourth source is transient organizational factors - means areas of activity that are not normally considered to it. However, should be considered to them. In addition to these four sources, Rokart found two critical success factors. One of them is Monitoring- Means to maintain ongoing operations. Second is building- means following progress of the program to change that was started by the executive director. Rokart sees differ to the critical success factors of the organization to other organization and from time period to other time period and from manager to other manager Business Systems Planning BUSINESS SYSTEMS PLANNING =BSP is another methodology for planning which is created by IBM company. This approach is the most popular approach to planning. The main philosophy of business systems is that data is a source of company. From a general point of view, therefore the organization must be managed. So that can to best serve to organization's goals and support from decision making activities. "Data of Institute" is the term used for the complete set of company data. In practice, the term is used for those companies that allow data to be computed. As administrative systems organizations develop, more of data of organization will be a computer-based. It is very difficult to define a wide range of data so that many organizations do not attempt in this case. Although organizations have attempted to define the data that have used most from business systems related to IBM Company. 39

5 The purpose of business systems is that discovered a proven architecture of Information that supports all business processes. When data needs of a business process (such as shopping) were identified As long as the process remains unchanged, framework of information will remain constant. Also business systems planning from this framework of information are used as a basis for planning of future information systems Nolan stages of growth model Stages of growth model of information technology in an organization (Fig. 2) can be used as a framework for the evaluation of information systems feature (Information Systems = IS) in the organization (nolan, 1979). The main emphasis of Nolan is that IS departments in a company passes among six stages of development. As the organization grows in six stages, Ability of their systems, methods for their control and their perceptions become more comprehensive and more advanced. Progressed to maturity stage allows company that Less effort to keep the information systems and their efforts more focused use of information technology to provide operational and strategic benefits (Ward 2002) Figure 2) Stages of I/S growth 5-6- Analysis of Investment Strategy It is another framework to support planning system based on some traditional techniques of investment analysis and portfolio planning. DAVID NORTON, Nolan manager & et al explain approach used in company to help customers in determining their investment strategy for information systems. Norton expected that four major types from information system applications used in the 90s: 1. Common procedures - Processing of internal interactions, as has been stated in many of today's data processing systems 2. Professional support systems: such as engineering support, supporting management decision and similar activities 3. Automated physical 4. Systems that employ users outside the company such as customers and suppliers. Costs will be done for providing basic technical infrastructure for these using and developing these applications. Telecommunications networks and database standard and 40

6 systems of other software are primary examples. In order to create the framework for investment strategy is set a two-dimensional table (According to Norton) that four types of systems and infrastructure is in rows and columns of business functions components such as R & D, production, marketing and other functions, and the service and support (figure 3). Norton showed that there are many differences in the ways in which companies are investing in information systems. Norton says that doing such analysis can help to the cause or causes of action sufficient and appropriate to use of technology. This issue allows to managers that now look at the investment and then decide where should be put in order to align information systems investments with business strategy. portfolio s organizationa l Professiona l Physica l externa l Infrastructur e I/S strategy R & D produce marketin g Service Support users Figure 3) Products and customers of information systems The Four-Stage Model of IT / ISP The four-stage model of information technology planning is infrastructure of, information systems basket development in organizations that properly aligned with organizational strategies, and has the ability to create competitive advantage for organizations (Curtin, 1998). Strategic IT planning: Creating relationship between strategic planning and IT planning of organizations Information requirements analysis: understanding basic system needs of organization to develop strategic information architecture Resource allocation: Simultaneously allocation of resources to develop IT planning and operational resources Project Planning: Executive planning to develop systems designed and resource allocation necessary to develop these systems 7 - Available view for Macro projects Enterprise Resource Planning (ERP) IT Strategy Total System Management Information Systems (MIS) 41

7 Enterprise Architecture Business process reengineering (BRP) Master Plan IT Architecture 6 - Enterprise Architecture Approach for Developing Macro Plan of ICT According to "John Zachman" theorist of organizational architecture "necessary change to updating provides quality orientation and acceleration of change conditions that we will have to go into the enterprise architecture. In 21st century architecture is determining factor in the success or failure and or destruction of organizations (zachman, 1997). In 1996, America Congress passed a law that became known to Klinger-Kohn law. According to this law, all federal departments and agencies were required to adjust their IT architecture. Responsibility for the development, modification and implementation of integrated IT architecture in accordance with this law is responsible for CIO Organization. Klinger-Kohn law defined IT architecture as: An integrated framework for the promotion or maintenance available technology and acquiring new information technology to achieve strategic goals of the organization and its resource management Following Klinger-Kohn law that is most important legal document in the required information architecture in the U.S. government, organization of management and budget (OMB) of U.S. guidelines were published in 1996 based on the need to coordinate projects and expenditures done by federal agencies, including ministries, agencies, military and universities that use from public budget, have done projects to formulate their information architecture. But clearly the benefits of monitoring the enterprise architecture approach can be grouped into two general categories.(1) public interest relate to the organization's business (2) interest relate to department of information technology and information systems and information technology resources to support the business. Enterprise architecture defines the organization's future in the context of business, plans, information and technology. Enterprise architecture is the following: technical drawings for legal and complete definition of the current state (baseline) organization and favorable environment Enterprise architecture is a bridge between organization strategies and their implementation. Enterprise architecture is a macro view to the mandate of the organization, working process, information entities, communication networks, and hierarchies and order of doing things in an organization with the goal of creating efficient and integrated information systems. The purpose from enterprise architecture design is to provide a work program in layer of information architecture, application architecture and architectural technology. Enterprise architecture design is definition process of architectural layers to provide information needed of organization and functions of the layers of the architecture. 42

8 7- Conclusion A program of comprehensive information system for development and the successful use of information systems in organizations are vital. Strategic planning and major technological prevents to loss by continuing investments that inevitably occurs over many years in the field of information technology and these targeted investments employs in macro plans and strategic of the organization. For this important, planning process of information system should be an integral part of the overall planning organizational efforts. In this paper, some of the most famous approaches for the strategic planning of information systems were described. Any unique method is not the best method and anything is not the most common method used in business. In fact, many companies are benefiting from a combination of these approaches because they deal with different aspects of planning. Enterprise architecture approach is a new approach in which all activities and it support technologies as hierarchical pyramid and in layers of information business of application systems and infrastructure are developed. This approach act beyond methodology of creating information systems and its range include all of information resources and business processes of the organization. This approach is more in large organizations with legacy systems References Awad, E. M. (1988). Management Information System: Concept, structure, and applications. Califonia: The Benjamin Cummings. Behan, Kate, (1990). Understanding information Technology, 2nd ed. Curtin et al. (1998). Information technology: the breaking wave. Boston: Irvin; McGraw-Hill. Davis, G. B., and Olson, M.H. (1985).. Management Information system: Conceptual, foundations, structure, and development. 2nd ed. New York: Mc Graw-Hill. Federal Chief Information Officer (Cio) Council, Federal Enterprise Architecture, Versional, February John Zachman, (1997). Enterprise Architecture: The Issue Of Century , Kraft, Donald; Boyce, Bert R Operations research for libraries and information agencies. Sandiego: academic press. Mcleod, Raymand.(1998).Management information systems. Seventh ed. Newjersy: prentise Hall. Moemeni,H.(1993). Management information systems MIS. Tehran: Alliance. Murdick. R.G., and Munson, J.C. (1986).. MIS Concepts & Design. 2nd ed. London: Primtice Hall. Nolan, R.L. (1979) "Managing The Crisis In Data Processing." Harvard Business Review 57 (March - April), Parsons, Gregory L.(1983). "Fitting Information Systems Technology To The Corporate Needs: The Linking Strategy." Harvard Business School Case Note. Stueart, Robert D. (1998)." Library and Information Center management."fifth edition. Endewood, Colorado : Libraries Unlimited ;INC. 43

9 Ward John, Peppark Joe.(2002). " Strategic Planning for Information Systems." Third Edition. Joun Wiley & Sons, LTD. Zahedi,Sh.(2001). control information technology in infocracy era. Scientific Research Conference Articles collection, monitoring and inspection of the country. Tehran: Tehran University School of Management, General Inspection Organization