Linking IT planning to business strategy

Information Strategy Planning is of growing importance. There are available a variety of formal methodologies for carrying out information systems planning, none of which are particularly well aligned to the current business planning views. The author was concerned that the value of the approaches used in business planning, most notably those of Michael Porter, were being ignored by the information systems planning methodologies. Both mechanisms yield insight and both are required to make strategic gains from IT. The paper explains the experience at Simon Engineering in combining Porter's value chain and five forces approach with the more usual Information Engineering methodology for information planning. A workshop approach was adopted and the conclusions drawn that the information strategy must be seen and developed as an integral part of, and at the same time as, the business strategy, and that both Information Engineering and Porter's approaches are necessary component parts of creating an integrated business and IT strategy. IT strategies cannot be developed independently of the business strategy, nor should they follow the business strategy. Successful IT strategies must be developed at the same time as the business strategy.     

Strategic Manufacturing Planning Systems and Their Linkage to Planning System Success

Academics and practitioners alike are focusing more attention on manufacturing strategy after having recognized the important role it plays in shaping the success of industrial firms. Even though research in this area has increased in the last decade, the focus of much of that work has been on the content rather than the process of the manufacturing strategy. Consequently, this study attempts to understand the important elements of the strategic manufacturing planning process and its effectiveness. Borrowing from the extant literature in the fields of strategic management and information systems, we propose a research model that relates strategic manufacturing planning system design to planning system success. Using structured questionnaires, empirical data is collected from over 200 manufacturing executives to test the model hypotheses. Planning process in manufacturing was found to be a bottom‐up approach from a corporate or business perspective, which differs from the top‐down planning process prevalent in strategic information systems planning process. Findings also indicate that greater planning system success in manufacturing is associated with a planning system that combines some “rational” elements (formality, comprehensiveness, control focus, longer horizon) with others that lend adaptability (wider participation and more intense interaction). But the strategic manufacturing planning system is more than just a collection of independent planning characteristics. Instead, it can be viewed as a gestalt planning system whereby planning characteristics move together in affecting overall planning system success.     

A multiple goal methodology for evaluating management information systems

The behavior and performance of an organization are intimately tied to the mode and effectiveness of its information processing function. While there is a rapidly expanding level of research concerned with the design, development, and implementation of management information systems (MIS), relatively few approaches to the evaluation and improvement of these systems have been suggested. The current paper develops a multiple goal methodology aimed at filling this gap by evaluating and, if necessary, subsequently modifying any given set of MIS design variables considered capable of enhancing a series of operational and, perhaps, conflicting goals. The methodology is based on a series of significant findings from the MIS design literature. In particular, the procedure incorporates the tripartite of decision type/decision-maker/MIS design into the evaluation process. The methodology is user-based, being flexible with respect to the definition of performance objectives, evaluation measures, design variables, and correction strategies. A brief example applies the methodology to the evaluation of an MIS within a health services organization.     

Some initial specifications for a strategic information system

Much of the discussion and published literature on information systems to date has been about systems concerned with the internal administration and operations of an organization. Considerably less attention has been given to the information requirements of the more strategic managerial activities of planning and policy making, in which the future directions and objectives of the organization are decided. Internal information systems in many organizations have now grown to maturity. At the same time, managers have become aware of the need for an additional component of the overall information system to support their more strategic activities. This paper considers the broad characteristics of a strategic component of an organizational information system and derives some initial specifications from which a more comprehensive design can be developed.     

Long range planning in large United States banks

This study indicated that there is considerable interest in formal strategic long range corporate planning among large U.S. banks. Officers in a total of 97 large U.S. banks provided information on their bank's efforts in the area of long range planning for this study. The data indicated that the percentage of large U.S. banks with fully developed and operational long range planning systems is rapidly increasing. Information on the organization for long range bank planning and the administrative procedures being utilized are presented and discussed. In addition, information on problems that the bankers are experiencing in implementing and operating their long range planning systems are presented.     

DDP—Managerial opportunities and consequences

Applications of DDP are examined via two case studies to determine how the technology was used by management to aid decision-making; the level of management involvement in the MIS (Management Information Systems) design process and the nature of the relationship between managers and data processing departments were also considered. The study showed that because the technology was largely under end user control, better tailored information systems resulted and system output was more directly used by middle and top managers. This only occurred, however, if certain moderators, such as computing and modelling skills, were present in functional departments. DDP also offers opportunities for better relationships with data processing departments but the consequences include the need for better management training and functional support groups for systems implementation. A conceptual model is presented as a theoretical framework to guide organisations when using DDP.     

A decision support methodology for strategic planning in maritime transportation

This paper presents a decision support methodology for strategic planning in tramp and industrial shipping. The proposed methodology combines simulation and optimization, where a Monte Carlo simulation framework is built around an optimization-based decision support system for short-term routing and scheduling. The simulation proceeds by considering a series of short-term routing and scheduling problems using a rolling horizon principle where information is revealed as time goes by. The approach is flexible in the sense that it can easily be configured to provide decision support for a wide range of strategic planning problems, such as fleet size and mix problems, analysis of long-term contracts and contract terms. The methodology is tested on a real case for a major Norwegian shipping company. The methodology provided valuable decision support on important strategic planning problems for the shipping company.     

通用MIS数学模型的合理度分析

在文[4]建立的通用的MIS信息结构数学模型的基础上,本文进一步分析了MIS的关联构造,定义了各种合理度,使对模型的构造有一个定量的描述,以利于消除系统冗余,优化系统结构。     

A network of management support systems

Based on the decision-making process that actually happens in most organizations, a management support system (MSS) or an integrated decision support systems (DSS) is defined as a network of subsystem interfaces, as opposed to management information system (MIS) being a network of information flows. Three modes for subsystem interfaces are discussed. To help the operationalization of the (computerized) support system, we also propose a design architecture which consists of the continuum of conceptual constructs, operational constructs and implementational constructs.     

Reducing Risk Through Real Options in Systems Design: The Case of Architecting a Maritime Domain Protection System

Complex engineering systems are usually designed to last for many years. Such systems will face many uncertainties in the future. Hence the design and deployment of these systems should not be based on a single scenario, but should incorporate flexibility. Flexibility can be incorporated in system architectures in the form of options that can be exercised in the future when new information is available. Incorporating flexibility comes, however, at a cost. To evaluate if this cost is worth the investment a real options analysis can be carried out. This approach is demonstrated through analysis of a case study of a previously developed static system-of-systems for maritime domain protection in the Straits of Malacca. This article presents a framework for dynamic strategic planning of engineering systems using real options analysis and demonstrates that flexibility adds considerable value over a static design. In addition to this it is shown that Monte Carlo analysis and genetic algorithms can be successfully combined to find solutions in a case with a very large number of possible futures and system designs.     

Strategic planning for MIS

This article report on a study of the strategic decision to develop computerized management information systems (MIS) in 32 business organizations. THe findings suggest that this decision is a complex policy decision which involves protracted environmental negotiations, a high and escalating commitment of organizational resources, and extensive organizational preparation. Eleven organizational and environmental factors which influence the decision are identified through a literature review. The influence of these factors on the success of the decision is examined and recommendations are made for managing the decision-making process to insure improved decision outcomes.     

The design of computer based planning and modeling systems

Today there are nearly 2000 corporations in North America and Europe either using, developing, or experimenting with some form of corporate planning model. With the emergence of this new and rather substantial interest in the methodology of corporate planning modeling, there appears to be a definite need for a conceptual framework which can be used to design and implement computer based planning and modeling systems.In this paper the authors describe a collection of elements which they believe to be of critical importance in designing a corporate planning model. Their objective is to develop a set of criteria for not only designing a planning and modeling system, but a set of criteria which can also be used to facilitate the evaluation and comparison of alternative planning and modeling systems.There are over 50 planning and modeling software packages on the market today. These include systems such as BUDPLAN, COMOS and SIMPLAN. This paper attempts to provide the reader with a convenient checklist of possible features to consider in either designing one's own system or selecting an appropriate software package.     

Developing a planning culture for more effective strategic planning

The literature of long-range planning is replete with justifications of the need for strategic planning and admonitions concerning its critical importance. However, both the literature of planning and its practice, as manifested in a variety of organizations as diverse as industrial firms, educational systems and law enforcement agencies, are deficient in specifying proven techniques and methodologies for marshalling organizational resources to effectively implement strategic planning.Over a period of years, the authors have consulted with a variety of business organizations and public agencies in the development and implementation of long-range planning processes. From this work has come an empirically-tested conclusion that the success of long-range planning in an organization is less sensitive to the parameters of the planning techniques that it is to the overall culture within which the planning is accomplished. Since most of the non-pontifical literature of planning focuses on planning techniques and specifications for planning processes, these conclusions suggest a critical void in planning methodology.     

System of Systems Engineering and Risk Management of Extreme Events: Concepts and Case Study

The domain of risk analysis is expanded to consider strategic interactions among multiple participants in the management of extreme risk in a system of systems. These risks are fraught with complexity, ambiguity, and uncertainty, which pose challenges in how participants perceive, understand, and manage risk of extreme events. In the case of extreme events affecting a system of systems, cause‐and‐effect relationships among initiating events and losses may be difficult to ascertain due to interactions of multiple systems and participants (complexity). Moreover, selection of threats, hazards, and consequences on which to focus may be unclear or contentious to participants within multiple interacting systems (ambiguity). Finally, all types of risk, by definition, involve potential losses due to uncertain events (uncertainty). Therefore, risk analysis of extreme events affecting a system of systems should address complex, ambiguous, and uncertain aspects of extreme risk. To accomplish this, a system of systems engineering methodology for risk analysis is proposed as a general approach to address extreme risk in a system of systems. Our contribution is an integrative and adaptive systems methodology to analyze risk such that strategic interactions among multiple participants are considered. A practical application of the system of systems engineering methodology is demonstrated in part by a case study of a maritime infrastructure system of systems interface, namely, the Straits of Malacca and Singapore.     

Manufacturing strategies and financial performance—The effect of advanced information technology: CAD/CAM systems

Nowadays, the business environment is characterized by great uncertainty and variability. In this environment, information technology (IT) has proved to be an important strategic ingredient for the creation of competitive advantage. This role of IT has been widely accepted during the past few years [Feeny D. Creating and sustaining competitive advantage with IT. In: Earl M, editor. Information management the strategic direction. Oxford, 1990; Ives B. Wingtip Courriers, Southern Methodist University Case Study #SMY/MIS/90-01, Edwin L. Cox School of Business, Dallas, TX, January 1990].     

Strategic competitive information systems

A variety of strategic competitive information systems is described and evaluated in terms of three criteria which should be met by strategic information systems. The more sophisticated varieties—those that incorporate specific models into the system—generally meet the criteria better than do the ‘retrieval’ varieties of systems. Since systems of this kind are relatively expensive to develop, this suggests that the area of strategic competitive information may be one of great potential payoff for the integration of models into information systems.     

Confirmatory Factor Analysis of the End‐User Computing Satisfaction Instrument: Replication within an ERP Domain*

Over the past decade, organizations have made significant investments in enterprise resource planning (ERP) systems. The realization of benefits from these investments depends on supporting effective use of information technology (IT) and satisfying IT users. User satisfaction with information systems is one of the most important determinants of the success of those systems. Drawing upon a sample of 407 end users of ERP systems and working within the framework of confirmatory factor analysis (CFA), this study examines the structure and dimensionality, and reliability and validity of the end‐user computing satisfaction (EUCS) instrument posited by Doll and Torkzadeh (1988) . In response to Klenke's (1992) motion to cross‐validate management information system (MIS) instruments and to retest the end user computing satisfaction instrument using new data, this study's results, consistent with previous findings, confirm that the EUCS instrument maintains its psychometric stability when applied to users of enterprise resource planning application software. Implications of these results for practice and research are provided.     

Strategic Information Systems Planning: Planning System Dimensions,Internal Coalignment,and Implications for Planning Effectiveness

Improving strategic information systems planning (SISP) remains a critical concern of both practitioners and academics. To date, a rather large number of studies have examined or proposed analytical techniques, frameworks, and tools for developing strategic plans. As a direct consequence of this emphasis, methodologies have often become the basis for characterizing the entire process of SISP within the information systems literature. Recent theoretical work suggests that such characterizations are unnecessarily narrow and that planning activities within organizations can be more accurately conceptualized as systems of behaviors, agendas, or process dimensions. Working within this contemporary theoretical perspective, the findings of this study suggest that SISP can be operationalized along distinct dimensions of comprehensiveness (extent of solution search), formalization (rules and procedures to guide activities), focus (creativity or control), flow (top down, bottom up), participation (number and variety of planners), and consistency (frequency of planning cycles). Similar to previous theoretical work and case studies, higher order factor modeling of these dimensions suggests that planning systems that exhibit aspects of rationality (high comprehensiveness, high formalization, control focus, top-down flow), and adaptation (high participation, high consistency) are positively associated with planning effectiveness.     

Formal strategic planning in the United States today.

The author sets out an appraisal of the state of corporate-strategic planning in the United States. He deals with the chronology of planning development before appraising the 'state of the art'. The appraisal utilizes the author's own set of criteria which are comprehensive and provide a framework against which individuals and companies can assess their own systems. The author deals in some detail with the nature of planning systems in different types of organization and provides valuable insight into the current state of strategic planning and a useful framework for critical analysis.