Analysis of Strategic Information Systems Planning - Literature review Example

Client inserts his/her name Client inserts tutor’s name Name of Institution Course title Date of submission Introduction Information is a crucial aspect in the management of any organization. The management of information systems is sometimes similar to strategic planning. Different organizations use different approaches to the management of information systems. This ranges from the business process transformation to the utilization of strategic information systems planning (SISP). Over the years, strategic planning is gaining recognition. The relevance of SSIP and strategic planning in business enterprises defeats the cost considerations. Most of the modern business organizations aim to cut on cost. This is a bad business objective. This is because the motive to cut on cost compromises other business objectives. The essence of strategic business planning is the value addition. The value addition to the system of the organization determines the overall business development of the enterprise. Executive summary It is relevant to employ information technology in the development of business models. This tends to increase acceptability and ease of access to information system. The business environment is very dynamic and competitive. This calls for flexible systems to cope up with the ever changing business environment. The report attempts to explain, collaborate and compare different approaches to information systems. The intersection between business and technology prompts the development of modern business models. This is necessary for the improvement and for strategic reasons. The report focuses on strategic planning, the use and relevance of strategic information systems planning and business process transformation. Overview of the strategic planning According Max McKeon 2012, Strategic planning is a critical factor in the modern world. It is a competitive factor in the business strategy management. Most of the modern enterprises base their success on the efficiency of the information system. This is a deliberate process of an organization definition of the strategy it involves the allocation of the available resources within the control of the organization so as to achieve efficiency. It is an avenue for revenue maximization and a critical factor in the success of the modern business venture. It is worth noting that the business world is very competitive. Organizations prepare vision and mission statements. The key components of the strategic planning are the vision, mission, core values, and strategy. The process of strategic planning requires different approaches. The approaches depend on different issues. The first is the current and future situation. The target is the definition of the goals, objectives and the intent to achieve something at the end of the project (Susan 2000). According to Faheyand Narayman1986, one of the approaches to the strategic planning and implementation of the information system is the business process transformation. The BPT is the act of optimal utilization of the successive business processes to make the organization relevant in the global map. Different businesses call for diverse business processes. It is similar to process re-engineering. The transformation is about efficiency of the business process. The second approach is the SISP. The strategic planning of information systems is the optimal goal of the organization. This assists to overcome the problem of underutilization of the available resources (Lorene 2006). Naismith (1982), on the other hand argues that most business opts for these approaches for different reasons the main reason being the desire to attain a competitive advantage over other businesses. The selection of each of these approaches depends on many factors which will be discussed in the course of the report. Most of the modern enterprises are technology conscious. This means they rely on the information technology to achieve their motives. A clear comparison of the processes indicates a serious common ground. The first common issue is the reliance on information technology. Harold (2002), points out that the advancement of information technology is the leading factor in business transformation. This is common understanding among most businesses. It is good to appreciate that success rely entirely on strategy. This is the rationale for huge investment in information technology. Modern enterprise evolves around the business stratification. The tactical combination of business process transformation (BPT) and strategic information systems planning (SISP) methodologies is crucial for the modern enterprises (Koon1994). Issues that impact the selection of the SISP in the modern business enterprises The selection of the SISP depends on many issues. The size of the enterprise is the first factor. Small business enterprises can employ simple information systems. This is however attracts some inefficiency. Most of the large organization recommends the usage of advanced information system to keep in step with the modern trends. A good system information system can address diverge needs of the organization. The strategic planning of systems can give a competitive edge over the competitors (Bradford & Duncan 2000). Bradford & Duncan (2000) points out that planning course is the configuration of the organization information systems to conform to the best standards. This will improve efficiency in the management of the organization activities. The ease to access information is an emerging issue in modern enterprises. Information system is an integral factor in the modern global world. There is a need for an information system shift. The strategic information systems ought to support the technological advancement and passionate for development within the organization. The integration of the system planning and development is a new culture in modern business world. Planning of the information system is a challenging issue among most managers. The process starts with the need to identify organization needs and or objectives. The system ought to be responsive to ever changing organization needs. There is a conflict between the organization needs and the management needs. Koon 1994 further argues that information systems need to address the conflict of interest in an organization. The managers must rise to the occasion and develop a system needs priority list. Most IT managers choose complex information systems to address organization objectives. Planning of information system resembles strategic planning among the management. The system plan is a clear path to address present, future and emerging issues. A good strategic planning ought to be measurable and flexible. This is necessary to take into account new issues in the business development process (Susan, 2000). McKeon 2012, argues that SISP is the incorporation of different information and system processes. This is through the use information models. The models assist to evaluate risk, requirements and current needs. This result in the formulation of an action plan the SISP aid to identify good business targets necessary for the installation and purchase of information systems. This will boast the investment on information technology. There is a realization that positive application of IT to firm activities is an effective method to increase business performance. Issues that impact the successive implementation of SISP Naismith (1982) points out that successive implementation of SISP require taking care of strategic organization demands. This means the system ought to serve the business targets and goals. Another factor for successive implementation of the SISP is the need to create a competitive advantage. The MIS needs and the data processing procedures in the organization need to be cost effective. This ought to be cost cutting strategy. This is of course is not the main objective. The main factor is the desire to add value to the organization processes. Organization structure determines the implementation of the SISP. A well coordination in the in the functions of the organization is a key determinant. This is because the organizational structure will enhance system conformity. The level of information technology in the organization also enables the SISP to gain acceptability ( Kittler 1986). Koon, (1994) points out that feasibility study of the organization business environment is a prerequisite undertaking SISP. The environment is a function of mission, objectives, and value chain factors. The external environment in which the business operates is key consideration. The external environment refers to the business competitors and regulations in the business industry. The position of the organization in the competition ladder aid to gauge the success of SSIP. The business relationships between SSIP buyers and the system suppliers assist to develop a successive process. The current and future application portfolios ought to support the business system. The prevailing information system organization adds to factors responsible for success. The attitudes and skills of the experts in the implementation of the system, information technology environment and budget are crucial factors in implementing SSIP. Organizations desire to expand their business profiles with time. This is a crucial factor in the development of the implementation strategy. The organizational culture aids to the successive implementation of the information systems. The culture of keeping in step with information technological systems is a culture of success to different organizations (Burkhart and Reus 1993). Burkhart & Reus 1993, further argues that knowledge base in the organization is important in the development and implementation of the SSIP. The ability to know the organization needs is good to achieve strategy implementation. This will assist in the creation of a motivational vision. There is needed to make sufficient communication to the stakeholders. The communication need to be consistent and sufficiently early. Factors involved in the BPT or SISP in the modern information technology systems Various factors need to be under consideration in the development of business process transformation. The first factor is the level of skills and competence of the people in the organization. The high level of skills is crucial to develop and implement the information system within the organization will be possible to install new system that will conform to the requirement of the employees. The organization structure determines the complexity or simplicity of the information system. This is because the chain in command in the organization determines the suitability of the system ( Naismith 1982). Naismith 1982 further argues that modern IT systems require an advanced system of technology. There is a massive transformation of information technology. The need to develop a modern system is the motivation for most organizations to move towards new technology. The knowledge base within the organization is a serious consideration. Reasons for business undertake of BPT or SISP Most of the modern business enterprises desire to increase efficiency in their operations. This prompts movement from manual system to computerized systems. The transformation in the business processes is the desire to achieve optimal results with minimal efforts. Most organizations plan to cut costs. The different transformations in the information technology have prompted the rationale (Bradford & Duncan 2000). The strategic systems aids in keeping par with other market players. The rate of information access is high. The stakeholders within the organization framework can access information necessary for crucial decisions. The success of any business enterprise relies on the business tactic. It is easier to modify the business operations with the advancement of technology. The business models require different specifications. This calls for modification in the business processes. Sometimes the business management team needs to call for outsourcing services. This will pull up their internal capabilities. It is easy for the system to serve a large organization. A well designed system will meet the diverse needs of the organization (Susan 2000). Different business and technology areas call for recent technological systems to remain competitive. The globalization of trade is significant to market dominance in any industry. There are many positive impacts arising from globalization of trade. The application of information technology makes business strategy real. The application of business models is a new technology. The strategic advantage of containerization in the transport industry is ease to the bulk transportation of goods. This technologic know-how propels the business information systems ( Haines 2004). The positive utilization of information system will yield additional revenue to the organization. This is from a reduction in the administration expenses. The shift from the manual to automotive systems is cost cutting measure. Another benefit is the improvement in the access to information within and outside the organization. The managers can access information to make crucial decisions. There employees can also access the information to aid in the efficient running of the organization. The access to information is a secret power of success in the organization (Susan 2000). Emerging trends in the strategic planning and SSIP Allison & Kaye (2005) points out that over the years; there has been an assumption that planning in management is the same as strategic planning. Management is a crucial factor in the implementation of strategic planning. In the traditional strategic planning, there was a typical approach to the process. One of the trends was identification of the situation. A target did follow the situation so as to formulate the proposal. The situation did require an evaluation of the information system can assist to overcome an impending challenge. With time, modern managers have now developed a shift of strategy to conform to the availability of resources. This involves drawing of strategic plans on the basis of the available resources. There is need to close the gap between the current information system and the future expectation in the information system. Relevance of strategic planning Planning is a crucial aspect in the modern business environment. The strategic planning aid in developing business models to give a competitive advantage to the organization over the business opponents. It is very relevant to execute planning as business development strategy. SISP plays a determining role in the selection and subsequent implementation of the business planning (Susan 2000). The SISP technologies are often used to facilitate the transformation of business processes. A Process such as financial engineering employs the use of BPO systems. Bradford & Duncan (2000) points out that there is a significant evolution of information systems. During the 1960s, there was data processing. The common characteristic was the use of remotes. This did aid in the cost reduction objectives. After a decade, there was an emergence of MIS. This had the advantage of high interconnectivity and was user driven. The recent generation was the SISP. There was extensive use of networks. This was in relation to business strategy. There was an extensive integration of systems in this strategy. There was an enabling environment for business to business driven strategies. Current approaches to SISP and strategic planning The approach depends on impact and the system alignment. The impact approach relies on the justification in the use of the IT. The alignment is in regard to attaining of organization objectives. The value chain analysis approach to SISP requires a systematic conjunction to other approaches. Some of the IT products are not tangible (Olsen 2012). Conclusion. In conclusion, management of information and strategic planning are two critical aspects in modern day businesses. A business venture which have implemented strategic information planning (SISP), tend to have an edge over the others in the business environment due to increased efficiency and information dissemination. However, as with all other business programs, SISP has its own disadvantages one of which is the cost of implementation. References. Bradford, & Duncan (2000), Simplified Strategic Planning. Chandler House. Olsen, E (2012), Strategic Planning Kit for Dummies, 2 ed. John Wiley & Sons, Inc. Harold, K (2002), A Strategic Planning Guide. Keineizer printers. Oregon. Koon, T. (1994), "Changing a Company's Strategy and Culture", Long Range Planning, 27, 5 (October 1994), pp: 85-97. Max McKeon (2012), The Strategy Book, FT Prentice Hall. London. Allison, M & Kaye, J (2005), Strategic Planning for Nonprofit Organizations 2nd ed. John Wiley and Sons. Burkhart, L & Reus, S (1993), Successful Strategic Planning: A Guide for Nonprofit Agencies and Organizations. Newbury Park: Sage Publications. 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