Systems Development: Investigation and Analysis - Principles of Information Systems - page 491

Information Systems Planning
The term information systems planning refers to translating strategic and organizational
goals into systems development initiatives (see Figure 12.3). 19 Proper IS planning ensures
that specific systems development objectives support organizational goals. Long-range plan-
ning can also be important and result in getting the most from a systems development effort.
It can also align IS goals with corporate goals and culture, which is discussed next. 20 Hess
Corporation, a large energy company with over 1,000 retail gasoline stations, uses long-range
planning to determine what computer equipment they need and the IS personnel needed to
run it. 21 According to Hess's CIO, “It became pretty clear that we needed to lay out a long-
term strategy that would allow us to figure out how IT could support our business strategy
over the next five years.”

information systems planning
Translating strategic and
organizational goals into systems
development initiatives.

Figure 12.3

Strategic plan

Information Systems Planning
Information systems planning
transforms organizational goals
outlined in the strategic plan into
specific systems development
activities.

IS planning

Systems development
initiatives

Aligning Corporate and IS Goals
Aligning organizational goals and IS goals is critical for any successful systems development
effort. Because information systems support other business activities, IS staff and people in
other departments need to understand each other's responsibilities and tasks. Determining
whether organizational and IS goals are aligned can be difficult, so researchers have increas-
ingly tackled the problem. Most corporations, for example, have profits and return on
investment (ROI), first introduced in Chapter 2, as primary goals. Procter & Gamble (P&G)
uses ROI to measure the success of its projects and systems development efforts. 22 P&G
produces Tide, Pringles, Pampers, and many other consumer products. The huge consumer-
products company has a $76 billion annual supply chain. ROI calculations help companies
like P&G prioritize systems development projects and align them with corporate goals. Pro-
viding outstanding service is another important corporate goal. 23 Coca-Cola Enterprises,
which is Coca-Cola's largest bottler and distributor, decided to use online services from
Microsoft and SharePoint to speed its systems development process. 24 According to the
company CIO, “This is not a head-count reduction for us. Services are complementary to
our IT strategy.”
Specific systems development initiatives can spring from the IS plan, but the IS plan must
also provide a broad framework for future success. The IS plan should guide development
of the IS infrastructure over time. Another benefit of IS planning is that it ensures better use
of IS resources—including funds, personnel, and time for scheduling specific projects. The
steps of IS planning are shown in Figure 12.4.

Developing a Competitive Advantage
In today's business environment, many companies seek systems development projects that
will provide them with a competitive advantage. Thinking competitively usually requires
creative and critical analysis. By looking at problems in new or different ways and by intro-
ducing innovative methods to solve them, many organizations have gained significant
competitive advantage.
Creative analysis involves investigating new approaches to existing problems. By looking
at problems in new or different ways and by introducing innovative methods to solve them,
many firms have gained a competitive advantage. Typically, these new solutions are inspired

creative analysis
The investigation of new approaches
to existing problems.