Planning for Information :

An information system plan describes the structure and content of the information systems and how these can be developed. Since all projects relating to information systems cannot be developed and implemented concurrently, priorities must be set. Since in a dynamic organization, there are more opportunities for information system applications than can be handled at one time, an allocation process must be worked out. Further, a very important fundamental concept of information system planning is that the organization’s strategic plan should be the basis for the information system strategic plan. Therefore, there should be integration of information system plan to organizational plan.

An information system plan has two time perspectives-long range and short range. The long-range plan, which usually covers three to five years, provides general guidelines for direction. The short-range plan provides a basis for specific accountability as to operational and financial performance. Since the short-range plan is derived out of the long-range plan, both the plans should be fully integrated. An information system plan usually, contains the following four sections:

1. Information system objectives and architecture.

2. Inventory of existing information systems.

3. Forecast of developments affecting the plan.

4. Specific plan.

Information System Objectives and Architecture

At the starting level of developing a plan of any type, its objectives should be defined so that those who are responsible for developing the plan are clear as to what they have to achieve through planning exercise. This is true for developing a plan for information systems too. However, information system objectives are

Srinivas MBA : MIS : CH 3  2009 

52

not ends in themselves from the organization’s point of view because these objectives contribute to the achievement of organizational objectives which are ends in themselves. Therefore, while defining the information system objectives, following factors should be considered :

1. Organizational objectives particularly the long term.

2. Organizational strategies to achieve those objectives,

3. External environment affecting the operation of the organization (such as nature of industry, government regulations, customers, suppliers),

4. Internal organizational constraints (such as management philosophy, organizational culture, etc.), and

5. Assumptions about business risks and potential consequences.

Thus, the information system objectives are defined within the overall organizational objectives. These objectives, in turn, provide the direction for developing information systems. While defining the information system objectives, these should be defined in both broad and operational ways. A broad objective defines what the information systems are going to achieve; how they would contribute to the achievement of organizational objectives. An Operational objective defines what the information systems are going to achieve in a specific time frame. For example, while the overall objective of the information systems may be defined in terms of 'providing information on a timely basis to all organizational units', the operational objective may be defined in terms of 'providing periodic financial reports within 24 hours after the end of the period’.

Based on the objectives, information system architecture is defined. Information system architecture provides a framework for detailed planning. It defines major categories of information and the major information subsystems or applications for the organization as a whole.

Inventory of Existing Information Systems

Inventory of existing information systems indicates the current status of information systems in use. Inventory includes such items as hardware, software, and applications (if the information systems are computerized); analysis of expenses, hardware and software utilization, and personnel utilization; and assessment of strengths and weaknesses of the existing information systems.

The basic objective of inventory is to determine the extent to which the existing systems would contribute to the proposed systems. For example, when an organization is switching from centralized computing to client/server computing, it must identify which of the hardware and software (both system and application) can be used in the latter. Similar is the case with personnel utilization. However, in the case of personnel, some additional problems arise specially when there is a change of manual to computerized information systems. In such a case, many existing personnel may become redundant unless suitable training is provided to

Srinivas MBA : MIS : CH 3  2009 

53

them. Further, the organization has to develop plan to utilize surplus personnel which may result because of computerization.

Forecast of Developments Affecting the Plan

While developing an information system plan, it is necessary that future developments which may affect the implementation of the plan are taken into account. Such developments may be. in the area of information technology, methodology, and environment. Information technology has the greatest influence on the effectiveness of any information system. Therefore, how information technology, both in terms of hardware and Software, would shape in future should be given adequate consideration. Though it is very difficult to predict the nature of technological development at the time of preparing the plan, organizations acting on proactive basis can plan the assimilation of new technology easily because of time lag between technology development and its application. Usually, it happens that technology development is announced much earlier than its commercial use.

Besides information technology, methodology change can also be forecast in advance. In order to incorporate methodology change, it is better to consider alternative system development methodologies in place of or in addition to traditional life cycle methods. Environmental changes, such as change in government regulations, tax laws, competitors' actions, etc. should also be included in so far as they affect information systems.

Specific Plan

After determining the above three factors, the organization can draw a specific plan for information systems. At the initial level, a specific plan may be prepared for a longer term, say up to five years. Based on this, plan may be prepared for shorter term, say for the next year or two years. However, these two-period plans should not be prepared independent of each other but both of these should be fully integrated. This integration can be achieved if the shorter-term plan is derived from the longer-term plan. The specific plan should include hardware acquisition schedule, purchased software schedule for both system software and application software, application software development schedule, software maintenance and conversion schedule, personnel resources required and their recruitment and training schedule, and financial resources required-capital expenditure for acquiring hardware, Software, and other accessories; operating expenditure for operations, maintenance, and new development.

There should be a provision for updating the plan as each year passes, the information system plan requires updating. Future plans are affected by changes in technology, experience with the systems that have been developed, changing needs for new systems, and changes in the organization itself. The plan should be updated in anticipation of these changes rather than the actual changes. This facilitates the organization to be ready to face challenges emerging out of these changes.

Srinivas MBA : MIS : CH 3  2009 

54 INFORMATION SYSTEM GROWTH CYCLE

Every system has a life cycle In which a system develops Into stages. For example, human beings have life cycle consisting of birth, adolescence, youth, adult, maturity, and decay. In the same way, an Information system has a life cycle with different stages. Nolan has presented a stage model of Information system life cycle. Nolan stage model is a framework for Information system planning that matches various features of Information systems to stages of growth. It is a contingency theory which states-if these features exist, then the information system Is In this stage. It states that an organization must go through each stage of growth before It can progress to the next one. Thus, the stage model provides a set of limits if the organization’s current stage of growth can be diagnosed.

Information System Growth Stages

Nolan originally presented four stages of Information system life cycle-Initiation, expansion (or contagion), formalization (or control), and maturity (or Integration).

In a subsequent model, Nolan expanded these four stages into six stages-initiation, contagion, control, Integration, data administration, and maturity.

Management responses to growth in computing are reflected In different levels of control or slack with each stage. Control is characterized by management policies and systems which ensure efficiency of computing use. Slack is the lack of control and the availability of resources to experiment with application features not required to perform basic processing. Table 3.1 shows the levels of control or slack In different stages of Information system growth model.

Table 3.1: Levels of control or slack in different stages

While proposing stage model of information system growth cycle, Nolan has made certain assumptions about the growth dynamics of movement through the stages. These assumptions are as follows:

Srinivas MBA : MIS : CH 3  2009 

55

1. Organizational learning permits movement through stages. Organizational learning is the process by which an organization identifies action-outcome relationships, identifies and corrects errors, stores the experience in organizational personnel who teach new employees, and stores the systems, procedures, rules, computer programs, and other forms of transferring experience. Thus, organizational learning exhibits adaptive behaviour. This adaptive behaviour is useful in moving from one stage to another stage of information system growth cycle. For example, limited experimentation of stage one (initiation) is the basis for the second stage (contagion), and contagion stage allows diffusion of the technology before controls are applied.

2. Various stages of information system growth cycle cannot be skipped because experience is necessary before the organization is ready for the next stage. If experimentation is not performed. there are no early users to promote contagion.

If the organization goes from initiation to control directly, technology diffusion does not occur because the control stifles widespread trial-and-error use.

3. Although there are certain natural growth processes involved, various stages of growth model can be planned, coordinated, and managed to move through stages efficiently and effectively. Organizational culture, leadership styles, and power relationships shift to meet the needs of each stage. Thus, various stages represent a sequence for planned and managed change.

Nolan has also proposed that major changes in information technology eliminate the maturity stage. With the introduction of new hardware, software, and system design, the organization starts on a new growth curve as shown in Figure 3.1.

Figure 3.1: Repeating stages after technology shift.

Using Stage Model in Information System Planning

The stage model has significant relevance in information system planning. It can be used in diagnosis of current stage of growth and in planning changes in controlled way to move to the next stage. In an organization, usually, not all application subsystems grow at the same rate: for example, financial information

Srinivas MBA : MIS : CH 3  2009 

56

system may be in stage three (control) with controlled growth, while marketing may require encouragement for new applications which need more slacks. Thus.

in practice, shifts in stages and their accompanying features occur gradually and at different paces. The stage model describes the logic of change and the destination that is to be achieved. It presents the logic of information system growth over different stages. However, the stage model does not specify the mechanisms of change from one stage to another stage. To that extent, the model lacks specificity. Therefore, the diagnostic measurements and prescriptive elements of the model should be viewed as general guidelines for information system planning.

3. 3 Techniques for Information Systems Planning :

A number of techniques have been proposed for information system planning.

Each of these techniques tries to identify the flow of activities for developing a long-rage information system plan. These techniques are as follows:

1. Derivation of information system plan from organizational plan.

2. Strategic grid.

3. Strategy set transformation.

(1) DERIVATION OF INFORMATION SYSTEM PLAN FROM