What’s Happening?!Fortune Most Admired CompaniesGlobal Most AdmiredOther RankingsBest for MinoritiesChapter 15 IntroductionChapter ObjectiveBusiness Drivers Influence PlanningTwo Major Planning ChallengesStrategic Planning ModelBeneficiaries of Good Business and IS PlanningBarriers to Apply IS with Business PlanningSlide 13Planning MethodologiesConclusionsChapter 15Questions that the Topic of Planning RaisesImportance of Planning?A Planning Job?PlanningBusiness and IS PlanningSlide 22Slide 23Slide 24Slide 25Slide 26Strategic PlanningSlide 28The objective of business planning is not to control but to guide and direct. The same is true for IS planning but this needs to be directed by plans for the business.Strategy Versus PlanningPlanning FocusSlide 32Criticism of PlanningWorth Remembering!Planning MyopiaSlide 36Traditional Approach in IS PlanningSlide 38Slide 39What to Plan?Slide 41Business - IS PlanningMarion Merrell DowPlan ProcessSlide 45Slide 46Strategic PlanSlide 48Fundamental Strategic Planning IssuesSlide 50Planning MethodsPlanning SessionCompetitive Analysis Question SetSlide 54Planning Session ApproachSlide 56Slide 57The True Benefactors of IS PlanningWhy IS Planning FailsSlide 60Final Thoughts on IS PlaningWhat’s Happening?!What’s Happening?!Intel’s Crystal Ball article in the current issue of InformationWeek.“Our view has evolved from how to build a faster microprocessor to looking at everything that goes around a microprocessor.” Paul Otellini, President and COO.PeopleSoft was named enterprise software leader by two healthcare industry publications.Best Software, Inc. was named worldwide market leader for small business CRM solutions by Gartner Group with a 25% share.Fortune Most Admired CompaniesFortune Most Admired Companies1. Wal-Mart Stores2. Berkshire Hathaway3. Southwest Airlines4. General Electric 5. Dell Inc.6. Microsoft7. Johnson & Johnson8. Starbucks9. FedEx10. IBMInnovativenessEmployee talentUse of assetsSocial responsibilityManagement qualityFinancial soundnessLong term investmentQuality of products or servicesGlobalnessGlobal Most AdmiredGlobal Most Admired1. Wal-Mart2. GE3. Microsoft4. Dell5. Johnson & Johnson6. Berkshire Hathaway7. Procter & Gamble8. IBM9. Coca-Cola10. FedEx11. Toyota12. BMW13. Sony14. Pfizer15. Intel16. UPS17. Home Depot18. Nokia19. Nestle20. PepsiCoOther RankingsOther Rankings21. Singapore Airlines22. Cisco26. Honda28. Target37. Volkswagen38. Costco43. Boeing48. General MotorsOracle 5.44Sun 5.26AMR 4.66UAL 2.52Wal-Mart 7.24Apple and Agilent were not part of the surveyBest for MinoritiesBest for Minorities1. McDonald’s2. Fannie Mae3. Denny’s4. Union Bank of California5. Sempra Energy6. Southern Calif. Edison7. SBC Communications8. Freddie Mac9. PepsiCo10. PNM Resources11. US Postal ServiceChapter 15 IntroductionChapter 15 IntroductionIntegrating IS Integrating IS into into the Business Plan the Business PlanChapter ObjectiveChapter ObjectiveUnderstand the importance of Understand the importance of integrating IS into the integrating IS into the business planning process.business planning process.Business Drivers Influence PlanningBusiness Drivers Influence PlanningOrganizationalResponse to Business DriversOrganization• Decentralization• Downsizing• Outsourcing• Business Partnering• Corp. AlliancesProcess• Reengineering• Redefining• TQMTime, FlexibilityandResponsivenessas CompetitiveFactorsProduct Customization• Value-added Services• Markets• Customers• Global StandardsNew Markets,Opportunitiesand CompetitorsEmployees• Skills• Empowerment• Quality Circles• TeamsFigure 15-1Two Major Planning ChallengesTwo Major Planning ChallengesWhat to do What to do – Important to know where the company is Important to know where the company is going.going.Making it happenMaking it happen– Can be difficult because it often involves Can be difficult because it often involves changeschangesStrategic Planning ModelStrategic Planning ModelBusinessPlanTacticalPlanStrategicPlanEnvironment(External)OpportunitiesThreatsStrengthsWeaknessesEnterprise(Internal)GoalsObjectivesStrategic PositioningCulture(Explicit/Implicit)Business UnitFunctional ProgramsMajorProjectsDetailedProjectsResources:Headcount,Capital andExpenseBudgetsFigure 15-3MissionVisionBeneficiaries of Good Business Beneficiaries of Good Business and IS Planningand IS PlanningThose who are shaping the future of the Those who are shaping the future of the business benefit by better understanding the business benefit by better understanding the business changes that technologies will drive business changes that technologies will drive and support.and support.Barriers to Apply IS with Business Barriers to Apply IS with Business PlanningPlanningManagement Authority and ResponsibilityManagement Authority and Responsibility–Lack of support in the planning processLack of support in the planning process–Impatience of senior managementImpatience of senior management–System inflexibilitySystem inflexibilityIS and General Business-related IssuesIS and General Business-related Issues–Outcome is technology orientated other than positive Outcome is technology orientated other than positive business resultsbusiness results–Lack of user understandingLack of user understanding–Lack of risk taking leadsLack of risk taking leadsBusiness - IS PlanningI/S StrategyDeterminesInformationTechnologyBenefitsBusinessStrategyDictatesFigure 15-6Planning MethodologiesPlanning MethodologiesPlanning methodologies are like systems Planning methodologies are like systems with input, processing and output all being with input, processing and output all being key elements.key elements.Key to planning is communicating the Key to planning is communicating the intended direction through practice.intended direction through practice.ConclusionsConclusionsPlanning is not to control but to guide and Planning is not to control but to guide and direct.direct.Planning is a tool used to identify the right Planning is a tool used to identify the right things to do, and to initiate action programs to things to do, and to initiate action programs to accomplish the things identified.accomplish the things identified.IS managers are key players in making tough IS managers are key players in making tough decisions on resource allocations to pursue decisions on resource allocations to pursue new opportunities and
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