Chapter 12 • Planning Information Systems Resources 529Management wants the Information Services and Systems (ISS) department to
develop its own long-range plan utilizing the vision, mission, values, and principles
of operation outlined previously. The following is a listing of initiatives we feel
should be undertaken in the ultimate formulation of this plan:1. Manage development and operations of network architecture and security
in accordance with business and internal customer requirements.2. Help departments build individual information plans, utilizing ISS departmental
expertise and knowledge of overall company system requirements.3. Create and maintain a short list of approved hardware and software that can be
efficiently utilized within the designed network to meet end-user requirements.4. Coordinate with other departments in the evaluation and design of
telecommunication and data communication systems that meet the company’s
strategic and operational needs.5. Provide and annually update a prioritized list of uses of external data that would
strategically help the company.6. Encourage active client participation in network utilization through training
programs and help sessions that increase the efficiency and effectiveness of
the overall company decision-making process.7. Restructure the information services and systems departmental organization to
better accomplish the mission of the department.8. Develop a structured timetable and system of application backlog reductions.9. Formulate a written standardization process for application development.FIGURE 12.8 Sample Strategy Agenda- Make products/services more desirable than those of
current competitors by providing unique product
features or customer services (e.g., providing prof-
itability reports to small pharmacies in addition to
selling them products). - More strongly link with customers by building sys-
tems to achieve loyalty and “lock-in,” thereby mak-
ing it more difficult to switch to a competitor. - Strengthen the link with suppliers by seamlessly
connecting to their ordering and invoicing systems.
In addition to the competitive forces framework,
Figure 12.9 lists questions that planners can ask about
suppliers, customers, and competitors to identify oppor-
tunities for the strategic use of IT. The most fruitful dis-
cussions will occur when both business and IS managers
are involved since IS managers can help quantify the
effort needed for a particular initiative and business man-
agers can identify the value that it would bring to the
organization.VALUE CHAIN ANALYSIS Another technique frequently
used to suggest strategic IS initiatives is the classic value
chain analysismethod described by Porter and Millar
(1985). As depicted in Figure 12.10, the value chain includes
five primary and four support activities within an organiza-
tion that can each add value for the customer in the process
of producing, delivering, and servicing a product or service.
IT can be used in each activity to capture, manipu-
late, and distribute the data necessary to support that activ-
ity and its linkages to other activities. To be of strategic or
competitive importance, automating an activity in this
chain must make the process run more efficiently or lead to
differentiation of the product or service.