Opportunistic strategy formulation for IS/IT planning

Existing models and frameworks for information systems and information technology (IS/IT) planning are not robust enough to explain or predict strategic gains and many organizations are wary of investing further in their information infrastructure. Because technology is not the only ingredient of success, a complete and rigorous reconsideration of the techniques, options and approaches to IS/IT planning linked to business strategy is needed. It is argued that this can only be achieved through consideration of the recent organizational processes involved for creating a successful IS/IT strategy. This paper reviews aspects of both the literature on business strategy and IS/IT planning and considers case examples from two organizations in which the contrasting outcomes from the same technical innovation illustrate the dynamics of opportunistic strategy formulation.     

Trying to adopt systems development methodologies — a case-based exploration of business users' interests

Information systems methodologies are an important component of the IS infrastructure and a primary device for organizing systems development work. Evidence suggests that methodology adoption and use are problematic. This research seeks to generate insight into business users' interest in adoption through detailed examination of a case. A framework is developed for organizing relevant research findings. The field research methods are described and details of the case reported. The case highlights the role of business managers in methodology adoption and the influence of business pressures originating in the strategic environment. Analysis shows the organizing framework to require extension to include a more direct role for business decision makers. it is argued that previous research has obscured the legitimate concern of business with systems development methodologies. As business increasingly asserts its interest in and control over IS, it will be necessary to give greater consideration to the needs of business in the selection and adoption of methodologies.     

Effects of organizational context and inter-group behaviour on the success of strategic information systems planning: an empirical study

The strategic value of information systems (IS) and the impact of information technology (IT) on business competitiveness has increased the need for effective strategic information systems planning (SISP). However, numerous strategic information systems planning methodologies stress the rational and formal aspects of organizational life, while ignoring the complexity of actual organizational situations which are characterized by human behaviour. Additionally, although numerous researchers have conducted empirical studies examining the relationship between various factors and strategic IS planning effectiveness, many factors have received little attention. This study uses structural equation modeling (SEM) to analyse the effects of organizational context and inter-group behaviour on the success of SISP. A survey of senior IS executives in Taiwan was used to test the relationships between the constructs in the research model. The results showed that certain factors relating to organizational context and inter-group behaviour influenced the success of SISP. Finally, the implications of this finding for IS practice and future research are examined.     

STRATEGIC BUSINESS PLANNING Aligning Business Goals with Technology

For strategic business planning to be successful in the prevailing competitive business environment, current and future technology needs must be considered. In many organizations, it is the responsibility of the IS manager to ensure that the information systems support these business needs. The IS manager must have a clear understanding of the organization's strategic business plan and must tailor IS projects to meet that plan's objectives. Enterprisewide information management and enterprise analysis can help the IS manager understand the business strategy and predict the effects of technology on that strategy.     

The strategic dimension of transactional information systems: some organizational implications

Abstract. Often information systems (IS) are classified in three groups: (a) transactional, used mainly for co-ordination and resource allocation purposes at the operational level of a company; (b) tactical, often employed to support the resource procurement activities typical of middle management; and (c) information systems for strategic decision making, designed to help in the planning and strategy design processes which are the direct responsibility of top management. In general, the amount of care and management attention that companies give to these different types of systems is proportional to their position in this hierarchy: little attention is devoted to the mundane transaction-pushing systems and exquisite care is put into developing the sophisticated decision making aid for the CEO and his/her staff.
The IS/IT literature has been reporting quite commonly cases in which companies have attained or lost great competitive advantages by way of their transactional information systems [for example, Emery Worldwide, Baxter Healthcare ASAP system, and Frontier Airlines]. The aim of this paper is to identify actions that companies can take to realize potential benefits of their IS, in particular from their low-level, transactional IS.
Among other actions, we will conclude that companies would be better off if they: (a) have the IS department at the right place in the organization, staffed with people knowledgeable about the basic nature of the business in which the company is engaged; (b) are sensible to what can be called 'strategic maintenance' of systems, (c) set up a formal procedure for IS planning to ensure coherence between IS plans and business plans, derived, in turn, from business strategy, and (d) keep abreast of the relevant technology.
Several examples taken from European companies are used to illustrate these conclusions.     

STRATEGIC BUSINESS PLANNING Aligning Business Goals with Technology

Abstract

For strategic business planning to be successful in the prevailing competitive business environment, current and future technology needs must be considered. In many organizations, it is the responsibility of the IS manager to ensure that the information systems support these business needs. The IS manager must have a clear understanding of the organization's strategic business plan and must tailor IS projects to meet that plan's objectives. Enterprisewide information management and enterprise analysis can help the IS manager understand the business strategy and predict the effects of technology on that strategy.     

A refinement framework to support validation and maintenance of knowledge-based systems

In this article, we argue that a refinement tool capable of assisting the maintainer of a Knowledge-Based System (KBS) with updating and upgrading of its knowledge base can substantially expand the scope of his activities and prolong the life of the system. We show that refinement tasks involved in KBS maintenance are similar to those taking place at the development stage, and thus a uniform refinement framework can be designed to support both activities. After defining refinement tasks expected to take place at different stages of a KBS's life cycle, we present a refinement framework capable of supporting them. It utilizes a small number of domain-independent heuristics to search for possible rule revisions which are expected to eliminate errors detected during KBS validation. An extended example is given to illustrate how different refinement tasks are carried out.     

Rapid business and IT change: drivers for strategic information systems planning?

Today's organizations increasingly plan new information systems (IS) to better compete. Through such planning, they attempt to align their IS strategy and their business strategy. This study tested the impact of business and information technology (IT) change on strategic information systems planning (SISP) horizon, of horizon on the planning itself, and of the planning on the alignment of IS strategy and business strategy. A questionnaire defined business change, IT change, and alignment as multi-item scaled questions, and planning horizon as a single, nonscaled one. It defined a multi-item scaled SISP measure as both a second-order construct and as single-order constructs for its individual phases. A postal survey collected data from 161 IS executives. Constructs were extensively validated. The analysis used structural equation modeling, and surprisingly found that business change predicted longer SISP horizons, but IT change predicted neither longer nor shorter ones. Planning horizon predicted SISP itself (as a second-order construct and as all of its phases), and such planning (as a second-order construct, and as strategic awareness and strategy conception phases) predicted alignment of IS strategy and business strategy. These findings suggest that practitioners more carefully assess their own degree of caution in setting planning horizons in response to business and IT change. In fact, the findings suggest it may not be necessary for practitioners to shorten planning horizons in a rapidly changing environment.     

A study of subsidiaries’ views of information systems strategic planning in multinational organisations

This research examines information systems strategic planning (ISSP) in multinationals from the perspective of the subsidiaries. The research was carried out through interviews with the IT and business managers in subsidiaries of nine large American, European, and Japanese multinationals. The evidence from this study reveals that, in the majority of these organisations, IS planning is either centralised or moving towards centralisation. The main focus of IS planning, in many of these organisations, is to control cost and achieve scale economies. As centralisation increases IT tends to control the planning process and, as a result, IS planning becomes more tactical than strategic and is dominated by IT infrastructure planning. Project implementation was the main criterion used to measure IS planning success. However, due to the dominant role of IT, the subsidiary business managers are often less satisfied with the IS planning approach compared with the subsidiary IT managers. The level of involvement of business managers and their satisfaction with ISSP was related to the degree of decentralisation of responsibility for IS planning.     

Tools to align goals and information systems

When the links between IS buying decisions and corporate goals are explicitly defined, IS managers can see the consequences of their decisions in advance and can justify their expenditures. Unfortunately, if an organization practices strategic planning at all, a gap often exists between its strategic statements and the corresponding information systems. Several things create this gap. To begin with, users often provide incomplete, incorrect or inconsistent information to the analysts responsible for turning needs and wants into computerized reality. However, even with the best information, the task of translating strategic statements does not easily lend itself to IS solutions. IS planning tools can help bridge the gap by aligning a company's strategic statements with its information systems. However, the company must first define its goals as inputs to the planning tools. Models, reports and other outputs from the planning tools can then guide further development that is consistent with the company's overall mission     

Case study: The effect of IS maturity on information systems strategic planning

We present a longitudinal study of the information systems strategic planning process (ISSP) within a large Australian organization and review the changes and developments that have taken place within this organization over a period of four years. We discuss ISSP with regard to its strategic relevance, factors affecting IS strategic planning, key issues in ISSP, the effects of infusion and diffusion levels, together with the effect of IS maturity on ISSP and ISSP on IS maturity. Our study shows that the adoption of ISSP methodologies has had numerous benefits within the organization.     

Using knowledge-based systems for estimating risks inherent in a proposed KBS project

Abstract: This article describes the development of a knowledge-based system (KBS) for guiding both technical and non-technical managers in estimating the risks inherent in proposed KBS development projects. The work described here is part of an ongoing research project studying the use of KBS both to teach and to do KBS development. So far, as part of this research project, over the past two years close to 150 non-technical and technical full-time business managers have developed some 75 KBS prototypes in conjunction with an MBA course in strategic planning. Based on replies to a survey of this test group, 17% of the KBS developed were reportedly used at work, 14% led to promotions, pay raises, or new jobs, and 14% led to participation in other KBS development projects at work. All but two of the survey respondents reported that their work on the KBS development project led to a substantial increase in their job knowledge or performance. The KBS work described here extends research work described by Cullen and Bryman [1988], Slagle and Wick [1988], Cohen and Howe [1988], Dologite [1988, 1989], and Mockler [1989(A) and (B)].     

Patterns in the organization of transnational information systems

Access to new markets for products, services, raw materials, and skills has always been a powerful incentive for organizations to expand internationally. Recently, the establishment of global alliances to leverage core competencies has led organizations to seek new ways of conducting business; these have demanded a rethinking of organizational structures, processes, and culture. One of the fundamental tasks has been the establishment of appropriate information technology (IT) platforms to co-ordinate business processes and provide coalition mechanisms for global business.This paper proposes five important dimensions of transnational strategy: the configuration of value chain activities, the co-ordination of such activities, centralization, strategic alliances, and market integration. These dimensions define the manner in which the value-added activities of the firm are dispersed and co-ordinated across nations, the hierarchical structures responsible for decision making, the strength of the external alliances of the firm and the managerial philosophy of global business conduct. These dimensions can be used to define a taxonomy of transnational strategy.A basic proposition is that a firm’s transnational strategy will be reflected in the design of its information systems (IS). In order to address this proposition, a two-stage questionnaire study was conducted. Respondents included 150 multinational corporations from 20 countries and 25 industries.The study has implications for practitioners when evaluating existing transnational business strategies and designing effective transnational information systems. It should also help researchers in determining factors that impact on the design of transnational IS.     

Information systems planning: Lessons from strategic planning

IS planning has changed considerably since its inception as an operational planning tool, expanding its scope to address key business objectives and forging a link with strategic business planning. A great deal of attention is currently focused on identifying and developing strategic information systems. Strategic planning has also become more broadly-focused over time, as simple forecasting techniques have been replaced by a variety of adaptive approaches that emphasize industry structure analysis and environmental dynamics. However, strategic planning has come under fire recently for failing to live up to its promises. As these two disciplines become more closely aligned, planners can learn from the experiences of strategic planners and, hopefully, avoid a similar crisis of confidence.     

CENTRALIZED STRATEGIC PLANS

Centralized IS strategic planning may seem out of step with the business trends of decentralization, streamlining, and flexibility; however, reports of its demise are premature. There are some compelling reasons for organizations not to retire their centralized IS planning initiatives but rather to reenergize and leverage these efforts.     

An integrated approach toward strategic information systems planning

Within the competitive global environment, information has become a key resource for increasing a corporation's competitiveness by changing the nature or conduct of business. Accordingly, corporations are now seeking a method for information systems planning to maximize their strategic effectiveness.Strategic Information Systems Planning (SISP) refers to the process of creating a portfolio for the implementation and use of IS to maximize the effectiveness and efficiency of a corporation, so that it can achieve its objectives. An investigation of SISP, however, showed that only 24% of planned applications were actually developed (Int. J. Comput. Appl. Technol., 8 (1995), 61; MIS Quarterly, September (1988), 445). This figure clearly shows that enhancements are required for current SISP processes. In particular, this paper focuses on SISP methodologies, which provide support for overall SISP processes.The paper initially identifies four general SISP methodology problems: lack of support for Information Technology Architecture, under-emphasis on information technology opportunities, duration of SISP, and lack of support for business process reengineering. Next, it proposes an integrated SISP methodology which solves the above problems while retaining the advantageous qualities of current SISP methodologies. Finally, a case study is added to show how the methodology actually works in practice.     

An empirical study of information technology enabled business process redesign and corporate competitive strategy

Business process redesign (BPR) has been widely touted as a means for leveraging the power of information technology to change business processes radically, resulting in substantial improvements in organizational effectiveness and efficiency. This study represents an early attempt at examining the strategic nature of the phenomenon. Because BPR is radical change and has the ability to alter both the competitive and operational nature of the corporation, it is critical that BPR be coordinated with corporate strategy. Through a survey of information system executives, the relationships between corporate competitive strategy and three types of BPR – intrafunctional, interfunctional and interorganizational – were examined. It was found that organizations following a cost strategy tended to do more BPR projects on interfunctional processes. Furthermore, the positive effect of a cost strategy on interfunctional BPR was found to be strengthened by the degree of integration of IS and business planning. It was also found that while interorganizational BPR was not related to a specific strategy, it was strongly related directly with IS–business planning integration.     

The effectiveness of strategic information systems planning under environmental uncertainty

Researchers have suggested that more extensive strategic information systems planning (SISP) in an uncertain environment produces greater planning success. Managers must decide whether, and if so when, to perform such SISP. Our study tested the effect of SISP phases on planning success in more and less uncertain environments.A questionnaire assessed SISP in terms of strategic awareness, situation analysis, strategy conception, strategy formulation, and strategy implementation planning phases. It inquired about environmental uncertainty as dynamism, heterogeneity, and hostility. Finally, it measured SISP success as a composite of alignment, analysis, cooperation, and capabilities. One hundred and sixty-one IS executives provided data in a postal survey.More extensive strategy formulation uniformly predicted successful planning in more uncertain environments, whereas strategic awareness generally predicted it in less uncertain ones. Strategy conception predicted it in neither more nor less uncertain environments. More extensive planning is thus not uniformly successful in either environment but depends on the nature of the uncertainty.     

Strategy implications of IS planning: Executives’ perceptions on firm performance

This paper aims to explore the effect on business performance of both Information Technology (IT) and business strategy. All data were obtained form 294 IS executives in Greek Small-Medium Enterprises (SMEs) and analyzed using Ordinal Regression Analysis. As the results of this survey indicate, SMEs cannot increase business value without strategic planning. IT executives should be aware of IT issues because this can be an obstacle for the organization and will prevent them achieving their planning goals and increasing the value of the business.     

Contextual determinants and performance implications of information systems strategy planning within South African firms

While studies have shown the effect of context on IS planning as important, the incorporation of contextual factors has not been systematic and the categorization of factors has not been made explicit and some factors have only been superficially examined. My study examined the interrelationships amongst four domains of context and considered their influence on IS planning. The corresponding impact of planning on performance was also assessed. Data was collected from 116 South African companies and results revealed that the internal IS context mediated the effects of environmental and organisational level variables on IS planning practice. Results further showed that IS planning intensity and degree of integration with business planning was strongly influenced by managerial planning expertise, and had positive effects on business management's commitment to IS as well as on IS contribution to business performance. Results have important implications in organisational IS planning and performance.