Chapter 12 • Planning Information Systems Resources 527productivity, and the appropriateness of technology
applications. Goals relating to increased effectiveness,
access to external resources, and breadth of business
manager involvement in IS applications are also possible.
A sample of strategic IS objectives for a regional
bank in the Midwest was shown in Figure 12.4. This
organization assigned IS department goals in several
areas, including internal customer satisfaction, compli-
ance with standards, network availability, and IS depart-
ment personnel turnover. Although the choice of which
goals to set will vary with the organization’s circum-
stances, each objective should provide some clear
benchmark toward achieving the vision and architecture
for IT.
CONDUCTING INTERNAL AND EXTERNAL ANALYSES
The second step in the development of a strategic IS plan
is a review of the external environment within which the
organization’s information resources must be developed
over the planning period, say three to five years. This step
should include reviews of the company’s strategic busi-
ness plan as well as an IT industry forecast. Quite often
the result of this process is a series of statements called
opportunities (areas in which new systems could be creat-
ed or where the IS organization could take some action to
the company’s long-term advantage) and threats (external
factors that might affect IS performance that could be
corrected or for which some countermeasure could be
developed).
Along with the external analysis, a review of the
internal strengths and weaknesses of the IS department
and how well business managers play their role in the
entire IT process is also conducted. The list of strengths
indicates areas where the IS department is particularly
strong. Likewise, the list of weaknesses displays areas
where the IS department or the role of the business
manager should improve. The internal analysis parts of
this step are often conducted during the assessment phase
of the planning process described earlier in this chapter.
These four statements together make up a SWOT
(i.e., strengths, weaknesses, opportunities, and threats)
strategic situation analysis.
A sample SWOT analysis that was input into a
company’s strategic IS plan is shown in Figure 12.7. Note
that the company (via a working group of business
managers and IS managers) identified seven strengths
related to the organization’s information resources. Most
relate to technical skills of IS professionals and the qual-
ity of their transaction processing systems. Six weak-
nesses in the use or management of information are
listed, ranging from personnel issues within the IS
organization to limited departmental applications beyond
routine transaction processing.
These strengths and weaknesses act as either lever-
age points (strengths) or as limiting factors (weaknesses)
for new strategic initiatives. The threats and opportuni-
ties lists contain both factual and attitudinal issues that
must be dealt with in the plan. Both user and technology
issues should be mentioned in the opportunities and
threats sections.ESTABLISHING STRATEGIC INITIATIVES Figure 12.8
contains a set of strategic initiatives resulting from a
strategic information resources planning effort for a medi-
um-sized energy company. Each statement represents an
important initiative needed to enhance the role of IT at
this corporation. Some of these initiatives will require
substantial investment and create new operating costs for
implementation. Yet none of the initiatives is spelled out
in enough detail to be immediately translated into action.
The operational planning step which is discussed in the
next section is required to translate these initiatives into
actual projects.Tools for Identifying Strategic IT
Opportunities
While building the strategic IS plan, organizations often
seek help in identifying ways in which IT can provide strate-
gic advantage for the firm. Several tools for finding new
strategic insights have proven useful. None of the tools
discussed here explicitly considers how an opportunity, once
identified, can be translated into a comprehensive IS plan for
the organization. The tools, however, have proven valuable
in finding specific opportunities for IT applications and
showing the role that IT might play in achieving certain
business objectives.CRITICAL SUCCESS FACTORS Critical success factors
(CSFs) define a limited number of areas (usually four to
six) that, if executed satisfactorily, will contribute most
to the success of the overall performance of the firm or
function. In an automobile manufacturer, critical success
factors might include energy-efficient design and dealer-
ship effectiveness. Many CSFs have either short-term or
long-term impact on the use of IT. Once identified, the
factors can be stated as opportunities for the application
of IT. An analysis might then be conducted to determine
more precisely how IT can be used to accomplish the
needed task.