MIS - Systems Planning - Complete

8/3/2019 MIS - Systems Planning - Complete

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Management Information

Systems

The MIS Function and Information

Systems PlanningProf. Rushen Chahal


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The MIS Function and

Information Systems Planning Organization of the MIS Function MIS Specialists

Establishing Organizational MISRequirements

Evaluating the Relative Worth of MIS

Applications Linking Business and systems planning


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The MIS Function and

Information Systems Planning Cost-Benefit Analysis Methods of Acquiring IS

The MIS Development Process Agents Involved in an MIS Project

Who Initiates A Project?


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Organization of

the MIS Function MIS is responsible for providing andcoordinating computer-base information

services: developing

operating

maintaining

facilitating the acquisition

adaptation of software & hardware


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Organization of the MIS

Function A distributed MIS organization FIGURE17.1

Corporate MIS: Responsible for:

infrastructure- telecommunications networks,

corporate data center

corporate STANDARDS

interacting with vendors to gain discounts &for scanning


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Establishing Organizational MIS

Requirements To be effective competitor: a vision

a model a framework


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Requirements A. Contents of an MIS Master Plan First MIS is a major corporate asset

provides benefits

uses resources- Money

The planning process provides support forbusiness objects

the planning process allocates resourcesbased upon priorities

in THEORY the MIS plan should be alignedwith the Corporate business strategy


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Requirements A linkage between MIS & Business Plans has: the corporate business plan states the

informational needs

the MIS plan refers to the requirements of thebusiness plan

the MIS plan is checked against the business plan

non-MIS managers participate in the MIS planning

process MIS managers participate in the business planning

process

Corporate and MIS calendars are in sink with each

other


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Requirements The MIS plan is reviewed periodically The conceptual contents o the plan


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Requirements B. Derivation of the MIS Requirements Derived directly from the business plan


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Requirements C. The Strategic Cube the cube provides aframework

basic questions: Will it face increasing customer power?

Are there fewer customer who are larger?

Is the firm to pursue a differentiating strategy?

Does the firm have a track record forinnovation?


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The Strategic Cube

CustomerPower

SupplierPower

PresentCompetitors

PotentialCompetitors

SubstituteProducts

COMPETITIVECOMPETITIVE

FORCES TOFORCES TO

CONTEND WITHCONTEND WITH

STRATEGIESSTRATEGIES

TACTICSTACTICS

StrategicAlliance

Merger orAcquisition

Internal Growth

InternalInnovation


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Requirements D. Strategy Set Transformations 1. Identify the organizational stakeholder

customers

employees

suppliers

2. Develop goals, strategies, objectives to fit

each group of stakeholder


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Requirements D. Strategy Set Transformations (cont) 3. Determine the needed informational

requirements for the strategies

Example from text:

Stakeholder: Customer

Strategy: improve service

Innovation: Confirm orders within one hour


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Requirements E. Approaches to Planning (cont) 2. The basic set of approaches:

Business Systems Planning (BSP)

Critical Success Factors (CSF)

Investment strategy analysis

Scenario approach

Linkage analysis planning Creative problem solving

Enterprise Analysis

The Architecture approach

The crystal Ball Approach


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17.3 Establishing

Organizational MISRequirements BSP developed by IBM

Philosophy: Data is a corporate resource(Enterprise data)

Goal: discover a stable informationarchitecture that supports all processes of thebusiness.

Objective: to assure the data necessary tosupport the business plan are available andthat a stable information system architectureis developed.


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Key Components of IS Planning with BSP

Defining

Business

Processes

Reviewing

Info. Res.

Management

Analyzing

Current Systems

Support

Defining

Business

Data

Developing

Recom-

mendations

Defining

Info. Sys.

Architecture

Reporting

Results

Interviewing

Executives

Defining

Findings and

Conclusions

Determining

Architecture

Priorities

Crucial Steps


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Requirements BSP (cont) 1. Defining the business process

identify the activities

identify the decisions

identify the systems, processes, flows

2. Defining Business data

classes of data (customers, employees, places,objects)

determine data usage

Example: Inventory record- SKU, Name, quantity

on hand, lead time


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Requirements BSP (cont) 3. Define information architecture

Creating processes

Using processes


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17.3 Establishing

Organizational MISRequirements Critical Success Factors (Rockart, 1979)

A method for defining executive informationneeds.

They are key areas or activities that mustwork right in order for the organization to besuccessful.

They are time dependent and therefore mustbe measured .


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CSF Methodology for Establishing

Organizational IS Requirements

Obtain

CSFs

of Manager A

Obtain

CSFs

of Manager C

Obtain

CSFs

of Manager B

Combine Individual

CSFs intoOrganizational CSFs

Derive Informational

Requirements to

Support CSFs

Use CSFs to Redesign

the Organization and

Use Informational

Requirements to

Plan IS


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Requirements 1. Sources for the CSF's industry:

the company

the environment social

legal

technological

economic political

Temporal: areas of the organization which do notnormally need concern, but are currentlyunacceptable (The open can of worms).


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Planning, Dev., & Operation of Info. Sys.

Determination of Long-Term Information

Requirements of the Organization

Identification of Projects and

Setting of Priorities

TasksTasks Responsibility of Responsibility of

StrategicPlanning

Tactical andOperationalPlanning

Chief Info. Off. (CIO)

Corp. and IS Planners IS Steering Comm. IS Steering Comm.

IS Mgr. and Planners in Collaboration with User Mgmt.

System Analysis System Analysis

System Design System Design

Programming Programming

Installation Installation

System Operation

and Maintenance

System Operation

and Maintenance

System

Termination

System

Termination

SystemsDevelopmentProjects

SystemsMaintenanceProjects

SystemsTermination

Projects

Project Teams(Development Teams),with User Participantsas Appropriate

Operations Personneland End Users

Mainteanance Teams

IS Personnel andEnd Users

...


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Other Methods

Investment Strategy Analysis

A strategy based upon portfolio planning andinvestment analysis.

Four major types of systems for the 1990's

1. Institutional procedures- the processing ofinternal transactions, as represented by many oftoday's mainline systems

2. Professional support system- engineeringsupport (CAD) Managerial decision-makingsupport (DSS, GSS)

3. Physical automation


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Other Methods

4. Systems that serve users outside the company,i.e. customers and suppliers. EDI, Voice mail, 800numbers, Fax

5. Basic infrastructure telecommunications networking

data base

office automation & DSS


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Other Methods

Alpha Company 1. Renovate existing manufacturing systems around

data base technology

2. Invest heavily in increasing the productivity of

engineers 3. Foster innovation among the professional staff

4. Invest heavily in CAD/CAM

Beta Company

1. Create new systems only when old ones fail 2. BE A FOLLOWER

3. Invest only when IT has a bottom line impact


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Other Methods

Scenario Planning (WHAT IF)

The scenarios help identify problems andmanage assumptions.

They also provide flexibility in the plans and ameans of escape if necessary.


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Other Methods

1. Elements of a scenario

the business environment the effects of deregulation

shifting towards a service economy ; away from MASSproduction

Mergers and acquisitions

increased foreign competition

National budget deficits

Interest rates (not in 1992) Changes in the strength of the US dollar

unemployment

corporate down sizing


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Other Methods

Government & society information accuracy

privacy (see Scientific American August, 1992)

access to information

property rights

people changes

Financial considerations ROI

TECHNOLOGY speed of change

quick obsolescence


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Other Methods

2. Creating Scenarios

a. deterministic : spreadsheet what if analysis Lotus 123

b. Cross-impact analysis: a model of major eventsand trends. Data can come from Delphi studies.


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Other methods

Creative problem Solving

Couger's Method; a 1992 Working paper

the 5 phases

1. fact finding

2. problem finding

3. idea finding

4. solution finding 5. acceptance finding


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Other Methods

Creative problem Solving (cont)

divergence-convergence activities

recursiveness (iterative) and non-linearity

using creativity techniques in each phase

EBS

alternative selection


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Other Methods

The Architecture Building Approach

The blue print for the information technologyinfrastructure.

1. support communications flows

the flow of formal authority - financialconsolidations of profit and loss centers via acomputer

flows of regulated activities- online bankingsystems

informal communication flows- E-mail, voice mail

work constellations- expert systems

ad hoc decision processes- document retrieval


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Other Methods

The Architecture Building Approach (cont)

2. help people communicate

provide different types of views of the same thing

3. support organizational decision making

help executives rethink how the business shouldbe what kind of structure is needed ?


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Requirements SUMMARY Successful strategy has two main ingredients:

1. Look to the future

2. link system plans to business plans


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Requirements SUMMARY The 3 Stages of developing a plan:

1. Understand the business use a model or framework to help

USE THE RIGHT MODEL OR FRAMEWORK

2. Identify the firms INFORMATION needs

3. Rank the opportunities presented by information

technology in terms of their relative importanceand the relative VALUE added to the business.


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Evaluating the Relative Worth of

MIS Applications strategic: IS activities critical to the currentcompetitive strategy and to future strategicdecisions. IS applications are part of new

strategic direction Factory: IS applications are vital to the

successful functioning of well-defined, wellaccepted activities. Not part of future

strategic operations


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Evaluating the Relative Worth of

MIS Applications Support: IS applications are useful insupporting activities. not vital to criticaloperations and not included as part of future

strategic direction. Turnaround: IS in transition- from support to

strategic. Vital to strategic success.

How does this relate to the Daft WeickModel?

What about Uncertainty/Equivocality?


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Linking Business

and systems planning Using Steering Committees 1. Can consist of

upper management from all divisions andfunctions

Department management from all divisionsand functions

Technical management from all divisions andfunctions

IS, IE, Eng


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Linking Business

and systems planning 2. There job is to: "steer" direct, push, pull, etc. the Organization

investments in the direction that benefits the

company the most; the STRATEGIC direction.

3. How do they do that?

Information scanning


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Linking Business

and systems planning 4. Advantages of steering committeesfrom Drury (1984)

1. Increases the attention of top managementto computing

2. Users become more involved with thesystem

3. The system departments are more awareof user needs

4. There is better long range planning for IS


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Linking Business

and systems planning Other approaches IS mgrs. and analysts

User-group

Multi-department, IS, executive mgmt

Combination


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Cost-Benefit Analysis

A technique for estimating the payoff to beexpected from an information system.

A. Cost benefit Analysis a quantitative support $

Table 17.6 p 693


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B. Basic Stages of Cost benefit analysis

Identification of costs

fixed costs

operational costs (variable costs)

Identify Benefits

Tangible $

cost savings Cost avoidance

revenue increases


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B. Basic Stages of Cost benefit analysis(cont)

Intangible not $

Table 17.7 page 694

Compare and analyze

NVP

IRR ROI

Then PRAY


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Methods of Acquiring IS

1. Internal Development

Pros and Cons Discussion

Techniques

SDLC

Prototyping

SAD


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Methods of Acquiring IS

2. Purchase

Canned vs Custom Discussion

3. External Systems integrator

4. Outsourcing

5. A combination approach


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Agents Involved in

an MIS Project A. The Actors Z-1992 Figure 17.10 p 704

B. The theories From Markus C. The Roles:

The users are interested in systemperformance Yes/NO

Management controls the resources Yes/no

MIS implements a system that SATISFIES theusers' needs as well as the constraints and

objectives from MGT.


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Agents Involved in

an MIS Project D. Problems Encountered: Actors have their own agendas

Users generally do not KNOW what theywant/need

COMMUNICATION can be a problem

cognitive style


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Managing The Application DevelopmentPortfolio

I. How System Projects are begun

A. Reasons for Projects

1. Solve a problem

2. Capitalize on an opportunity

3. Respond to a directive


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Capability: Efficiency improve processing speed

Point of sale systems, Bar coding

ability to handle increased volume

PC vs. manual methods, more PC's, LAN

faster retrieval of information

Bigger, faster data storage, SQL-based DBMS

Canned-software (Order entry, Manufacturing, etc.)


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Control: Efficiency/Effectiveness Improved accuracy and consistency

automating the process to reduce human error

Computer prompting, error detection, field value

checks Provide better security

Need to know screens

Password protection


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Communication: Effectiveness Enhance communication

Credit card systems, brokerage systems, E-Mail

Integration of business areas: Coordination

CIM, LAN communication, Manufacturing systems

(ACCOUNTING, MATERIALS MGMT &MANUFACTURING)


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Competitive Advantage: Effectiveness: a strategicweapon

Lock in customers

by offering a better price

by providing a unique service

by presenting distinctive products

Examples: American Hospital Supply, Eaasy SaberSystem, MAC

Lock out competitors

This happens when one locks in customers


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Competitive Advantage: Effectiveness: a strategicweapon (cont)

Improve arrangement with suppliers

EDI, long term contracts, the Japanese way, JIT

Quality programs, Shared Data Bases

Form a basis for new products

the value of information, commercial data bases onanything, mailing lists, Market Research, Shop RitePrice Plus, Prodigy, CompuServe.

INNOVATION


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B. Sources of Project Requests

1.Department Managers: Improve control, Power

Form processing systems, QC

2. Senior executives: Strategic, competitiveadvantage EIS, DSS, Market Research , E-Mail,Big systems

3. Systems analysts: Efficiency Speed accuracy,upgrades

4. Outside Groups: Regulatory Special accountingsystems, OSA control


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C. Managing the portfolio direction (cont)

In other organizations Power

Political

Favored son

Fear


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D. Integration

Application should be integrated (yes & no)

Horizontal- (marketing, Manufacturing, accounting)

Vertical- upper level to lower level mgmt Distributed- separate system in different plants

different hardware, software

Integration- External-Internal EDI


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II The Project

A. Project request

WHAT IS THE PROBLEM

DETAILS of THE PROBLEM

IMPACT OF THE PROBLEM (how significant is it)

PROPOSED SOLUTION

JUSTIFICATION (5 C's)

BENEFITS (5 C's)

Who else knows

Intangibles


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B. Preliminary Investigation

(Fig 2.6, 75)

by the team- SA, IE, Mgrs., etc

1. Scope of the study Clarify and understand the project request

Determine size

Assess cost/benefits

Determine feasibility - Technical, operational, economic

Report findings with recommendations


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2. Conducting the investigation Reviewing organizational documents

Conducting interviews

Observations

Questionnaires

Do the work

Experiment

Plant site visits

Vendor demonstrations

Seminar

?


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2. Conducting the investigation (cont) Conferences

Workshops

literature: trade/academic

Personal contacts

KEY: Learn, Understand, Listen, Integrate

Wh I i i A P j ?


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3. Testing Project Feasibility Operational

Is there support/resistance; from or by who

Are current business methods acceptable?

If not a change may be welcomed

Have the user's been involved? If not get theminvolved

Will the system cause harm?

Wh I iti t A P j t?


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3. Testing Project Feasibility (cont) Technical

Does the necessary tech exist? Can it be acquired?

Does the proposed equipment have the right

capacity for the data? Remember Tracks System Does the propose have the right:

response time, interface,

Can the system be expanded?

Are the accuracy, reliability, ease of use, ease of

access, security ok?

Wh I iti t A P j t?


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3. Testing Project Feasibility (cont) Economic

include cost to conduct full systems integration

cost of hardware/software/ other

benefits in terms of reduced costs

opportunity costs


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Wh I iti t A P j t?


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3. Suitable end-user developments

One-time Inquires

Simple reports

Minor changes Presentations

What if analysis

Wh I iti t A P j t?


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4. What should not be handled

High volume transactions

Use of traditional programming languages

(Basic, FORTRAN, etc.) Yeah right!! Changing data values in a Org DB

Applications spanning several departments

Applications requiring formal documentation

Major long-term applications (the New Post office) Applications requiring formal spec's

In time as hardware/software changes thesewill also change

MIS - Systems Planning - Complete

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