Information system plan

1. Information System Plan
Management Information System
1
Management Information System

2. Planning for Information System
• The complexity of the information resources
environment suggests that planning is vital to
success.
• The plan describes the structure and content of
the information system and how it is to be
developed.
• The organization’s strategic plan should be the
basis for the MIS strategic plan.
• The overall responsibility of IS planning is the
responsibility of Chief Information Officer (CIO)
Management Information System 2

3. Approaches to organizing and supervising the
information system planning effort
• Planning staff within information systems
functions (planning specialists)
• Ad hoc planning groups within information
systems
• Planning group with representatives from
various functions
Management Information System 3

4. Review of plan
• Master plan is reviewed by the steering
committee which comprises of executives from
major functional areas and is executives.
• The committee also periodically reviews progress
against the plan.
• The master plan is integrated in the
organizational plan by top management after
review and approval.
• Information system policies and procedures are
defined.
Management Information System 4

5. Content of Master development plan/ Information
System plan/ Information Resource plan
• The master plan has two components:- a long-range
plan and a short-range plan. The long-range plan
provides general guidelines for direction and the short-
range plan provides a basis for specific accountability
as to operational and financial performance. It consists
of the following subheadings:-
– Information system goals, objectives, and architecture
– Inventory of current capabilities
– Forecast of developments against the plan
– The specific plan
Management Information System 5

6. Master plan
Information system goals, Objectives, and
architecture
– Organizational goals, objectives, and strategies
– External environment (industry, government
regulations, customers, and suppliers)
– Internal organizational constraints such as
management philosophy
– Assumptions about business risks and potential
consequences
– Overall goals, objectives, and strategy for the
information system
– Architecture of the information system
Management Information System 6

7. Master plan
• Current capabilities
– Inventory of
• Hardware
• Software (System software, DBMS, etc)
• Application systems (classified on the basis of functional systems,
organizational strategy, maintenance need)
– Analysis of
• Expense
• Hardware utilization
• Software utilization
• Personnel utilization (further classification such as job, skill,
functional area)
– Status of projects in progress
– Assessment of strengths and weaknesses
Management Information System 7

8. Master plan
• Forecast of developments Affecting plan
– Hardware and software technological availabilities
should be forecasted with expected impact on
existing IS
– Methodology changes should be forecasted
– Environmental developments such as government
regulations, tax laws and competitors affecting IS
should be stated
Management Information System 8

9. Master plan
• Specific plan
– Hardware acquisition schedule
– Purchased software schedule
• System Software
• Applications software
– Application development schedule
– Software maintenance and conversion schedule
– Personnel resources required and schedule of hiring
and training
– Financial resources required by object of expenditure
Management Information System 9

10. Maintenance of master plan
• IS plan requires updation
– Changing organizational setup
– Changes in technology
– Changing needs of system
– Internal events
– Progress of new systems
– External events
Management Information System 10

11. Information system growth models
• The NOLAN stage model
The organization must go through each stage of growth before it can progress to the next
one, thus giving an insight to planning regarding the stage of an IS
Stages of Information system growth
Management Information System 11
Integration of applications
Maturity
Organizational controls
Formalization
Experimentation, rising cost
Expansion
Early use
Initiation
Description
Stages of growth

12. NOLAN stage model

13. NOLAN six stage model
Application portfolio complete and matches organizational
objectives
VI
Slack due to focus on strategically important systems
V
Use of databases for integration
IV
High controls, planning given importance
III
Greater slack due to encouraged use, integration and lack of
planning
II
Low control. Some slack. No planning
I
Level of control or slack
Stage

14. NOLAN six stage model
Transition point

15. NOLAN alternative model
Due to technological changes the growth curve
shifts as follows
Technology
Shift

16. Assumptions of NOLAN model
• Organizational learning
• Stages cannot be skipped
• Other than the natural process, these
processes can be planned, coordinated, and
managed to move through the stages
effectively and efficiently

17. Advantages and disadvantages of
NOLAN model
• Advantages
– Evolutionist model as it focuses on development
• Disadvantages
– Lack of specificity as it does not define the
mechanism for change

18. Three stage model of the planning process
• It clarifies the generic planning activities, the order of
activities, and the alternative techniques and methodologies
that apply
Strategic planning
Organizational
information
requirements
analysis
Resource Allocation
Strategy set
transformation
Strategy Grid
Strategic fit
Derivation from
organizational
plan
Business system
planning
Critical success
factors
Ends/ means
analysis
Comparative cost/
benefit
Portfolio approach
Chargeout
Steering committee
ranking

19. Strategic planning stage
• McFarlan-McKenney Strategic Grid
Support Turnaround
Factory Strategic
Strategic impact of planned application development portfolio
Strategic
impact of
existing
operating
applications
LOW HIGH
HIGH

20. Strategic fit
• Each organization has a culture which
reinforces values, norms, and beliefs about
the organization. Goals, objectives, and
strategy for information systems should fit
with the culture in order to avoid high
resistance and high risk of failure.

21. Strategy Set Transformation
• Explicate the organization’s strategy set
– Delineate the organization structure for users
– Identify goals of claimants
– Identify organizational goals and strategies for each claimant group
• Validate the organizational goals from management
• Transform organizational strategy set into the information
system strategy set
– Identify IS objectives for each organizational strategy
– Identify IS constraints from organizational strategy
– Identify IS design strategy based on organizational attributes

22. Analysis of Organizational information requirements
• Information requirements are required at the
organizational level for information system
planning, identifying applications, and
planning an information architecture.
• More detailed information requirements are
required for detailed design of applications.

23. Quiz
1. The end users for Transaction processing systems are used by
a. Middle management
b. Operational staff
2. Which of the following is not a primary function of management
a. Planning d. Controlling
b. Organizing e. Scheduling
c. Directing
3. Which of the following is not a component of MIS
a. Users d. Customer
b. Input and output devices
c. Software / Procedures
4. Which of the following is the correct sequence for three stage model of planning process
a. Strategic planning >> Organizational information requirement analysis >> resource allocation
b. Organizational information requirement analysis >> Strategic planning >> resource allocation
c. Resource allocation >> Strategic planning >> Organizational information requirement analysis
5. McFarlan-McKenney Strategic Grid helps make strategic decisions for the organization
a. True
b. False
6. The master plan includes the following plan
a. Long-range plan
b. Short-range plan
c. Both long-range and short-range
7. Which of the following considers the time factor for cost
a. Net Present Value
b. Internal rate of return
c. Portfolio or Risk Management
8. The specific plan, in the master plan contains plans about
a. Department wise details
b. Details for the whole IS
9. Which stage shows the highest growth in the Nolan four stage model
a. I c. III
b. II d. IV
10. The Master development plan and Information resource Plan the same.
a. True
b. False