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RELATIONSHIP BETWEEN
STRATEGIC STRATEGIC PLANNING AND
INFORMATION SYSTEMS INFORMATION TECHNOLOGY
IT 197

RELATIONSHIP BETWEEN RELATIONSHIP BETWEEN

STRATEGIC PLANNING AND IT STRATEGIC PLANNING AND IT
• Various surveys of business and IT executives have • Lack of alignment increases the likelihood that IT is not
identified the need to improve alignment between being applied effectively and that valuable
business and IT as a top business priority opportunities may go unexploited.
• Alignment means that the IT organization and resources • If IT is not being used strategically, many managers will
are working on projects that support the key objectives consider it as an overhead cost that should be
of the business minimized.
• IT and business managers must have a shared vision of • The odds of achieving good alignment are increased
where the organization is headed and agree on its key vastly if IT staff members have experience in the
strategies business and can talk to business managers in business
terms rather than technology terms.

Source: Reynolds, G. W. 2010. Information Technology Management. Cengage Learning. Source: Reynolds, G. W. 2010. Information Technology Management. Cengage Learning.

STRATEGY

Preliminary Tools For • The word “strategy” originates from the Greek word
strategos, meaning “general.”

IS Strategic Planning • In war, a strategy is a framework, or an approach, to

obtaining an advantageous position.
MGT 286 • Other disciplines, especially business, have borrowed the
John Lorenz R. Belanio, FIC term. As you know from media coverage, corporate
executives often discuss actions in ways that make business
References: competition sound like war. Businesspeople must devise
Khan, C. (2003). Strategic Information Systems.
Los Baños: UP Open University. decisive courses of action to win—just as generals do.

Notes on Strategic Planning, August 2005.

• In business, a strategy is an approach designed to help an
organization outperform its competitors. Unlike battle plans,
National Computer Center. (n.d.). ISSP Guidebook 2.0. however, business strategy often takes the form of creating
new opportunities rather than beating rivals.
Source: Oz, Effy. 2009. Management Information Systems. 6th ed. Cengage Learning.

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THE INFORMATION SYSTEMS

THE STRATEGIC PLAN STRATEGIC PLAN (ISSP)
• Outlines the path between the current status of • Serves as a framework for the organization s effort to
business (or an organization) and the desired computerize its operations.
status to achieve. • Shows the organization’s intention to use information
technology (IT) to help realize its vision, mission and goals.
• Helps the organization establish its objectives,
• Embodies the organization’s overall strategic plan for the
goals, as well as the decisions to achieve these development and implementation of information systems,
objectives and goals. the use of IT and the corresponding resource requirements
• Involves a long-term and prospective perspective. over a fixed long-term period (planning horizon).
• A natural component of the organization’s planning process
• Provides guidance for the preparation of and should be considered a tool to ensure IT application in
functional plans and (business) budget strategic areas of organizational concern and map out its IT
direction.

Bütüner, H. (2016). Case Studies in Strategic Planning. Florida: CRC Press National Computer Center, ISSP Guidebook 2.0

THE VISION, MISSION

AND GOALS
• The name, statutes, or articles of incorporation do not
define an organization. The business mission defines it.
Before beginning with strategic Only a clear definition and purpose of the organization
makes possible clear and realistic objectives. (Drucker,
planning, organizations must have 2000)
articulated their mission and vision, • Before any strategic planning can be done, the
mission, vision and goals of an organization must be
and identified their basic policies clearly defined.
and core values.

THE VISION, MISSION IF VMG IS NOT AVAILABLE, DAVID

(2000) SUGGESTS ASKING THE THREE
AND GOALS QUESTIONS BELOW:
• We cannot align the IS needs of an organization 1. Where are you now? Think of the current
without knowing its direction. status of the organization. Identify its
• Vision and mission statements can be found in the front capabilities, resources, information systems,
page of annual reports, displayed throughout the firm’s and business trends.
premises and are distributed with company for 2. Where do you want to go? What does the
information. organization want to be in the future? This
• The first input in ISSP is the firm’s vision, mission and goals. will include a vision for the organization’s
future (e.g. what the org will be in 5-10 years)
3. How will you get there? This will include the
plan of action to attain the organization’s
goals.

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THE ORGANIZATION’S
QUESTIONS TO ASK
VISION STATEMENT
• The vision statement is often considered the first step in 1. What business are we in now?
strategic planning, preceding even the development
of a mission statement. 2. What businesses do we want to be in?
• If you were assigned to develop one for your 3. What will our customers want in the future?
organization, try to answer these questions to help form 4. What are the expectations of our stakeholders?
strategic visions:
5. Who will be our future competitors? Suppliers?
Partners?
6. What should our competitive scope be?
7. How will technology impact our industry?
8. What environmental scenarios are possible?

WHY SET THE VISION?

WHAT IS VISION?
“To make a great
• A picture of the organization in the
dream come true, foreseeable future
you must first have • GIANT Vision
a great dream.” G reat
- Hans Selye I nspiring
A mbitious
N ew
T imed

GREATEST VISION THAT WHY THE VISION

WAS ACCOMPLISHED STATEMENT
• John F. Kennedy (1964) • It defines the achievement motive
• “Before the end of the decade, we • Makes us innovative
shall send a manned expedition to • Creates a performing team
the moon and bring them back
safely.”

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TO IMAGINE AND CREATE TYPES OF VISION

THE FUTURE, WE NEED TO: REVOLUTIONIZING VISION
• Unlearn the past • Ford Motors (early 1900s): “Make cars
• Have foresight affordable to every American”
• Stretch goals • Sony (1950s)” “Change the poor quality
image of Japanese products”
• Know customers
• Boeing (1950s): “bring the world to
commercial jet age”

TYPES OF VISION TYPES OF VISION

LEADERSHIP VISION ROLE MODEL VISIONS
• Walmart (1990) : “A $125-B company in the • Stanford U (1940): “Become the Harvard of
year 2000” the West”
• Citibank (1915) : “Be the world’s most • Watkins Johnson (1996): “Become as
powerful financial institution” respected as HP today”

TYPES OF VISION THE RIGHT VISION

COMMON ENEMY VISIONS
• Nike (1960s): “Crush Adidas”
• Honda (1970s): “We will destroy
Yamaha”
STATEMENT
• Short; easy to recall; not more than 12
words
• Nouns as central ideas; not adjectives
• Time bound: short-, medium-, or long term
• No sloganeering

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THE ORGANIZATION’S
BARRIERS TO VISIONING
MISSION
• “The future depends on the past.” • Reflects the management’s vision of what
the organization seeks to do
• “It can’t be done.”
• A brief statement why the business exists,
what you want to achieve
• Provides a clear view of what the
organization is trying to accomplish for its
customers and indicates intent to stake out
a particular business position

VISION VS. MISSION THE DIFFERENCES

• VISION: A future condition • VISION • MISSION
• MISSION: Ongoing concern in every • Future event • Ongoing
transaction • What will happen to • What the firm does
the firm for customer
• Changes once • Does not change
achieved

WHY A MISSION IS COMPANIES MUST

NEEDED
• Reason for doing business aside from
making profit
Profit is like oxygen– necessary for life,
but not reason for living.
• Gives meaning to people’s jobs
PUBLICIZE THEIR MISSION
• Formulate a mission which you
love doing
• And publicly commit your
company to the mission

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A MISSION STATEMENT
EXAMPLES OF
PROVIDES THE BASIC
INFORMATION: MISSION STATEMENTS
• The key market • Courtyard by Marriot
Key market: To provide service to economy and
• Contribution quality minded travelers
• Distinction of the organization
Contribution: with a premier, moderately priced
lodging facility

Distinction: which is consistently perceived as

clean, comfortable, well-maintained and
attractive, staffed by friendly, attentive and
efficient people

(CON’T) ISSP VISION EXAMPLE

• McDonald’s • Develop this by looking at the company ’ s vision
Key market: To offer the fast food customer statement and objectives and identifying how
information systems can assist the company

Contribution: food prepared in the same high-quality

manner worldwide, tasty and reasonably priced, ” An integral partner addressing business needs
through IT”

Distinction: delivered in a consistent, low-key décor and

friendly atmosphere

INFORMATION SYSTEMS
ISSP MISSION
AND BUSINESS GOALS
• Concise statement of what business the group • The purpose of IS is to add value.
is in. It is a statement of why the information • The purpose of the planning process is to help IS
systems group exists, what purpose and organizations determine how best to add value to
function it provides for the company. the organization.
“The mission of the Information Systems organization
is to provide timely, cost effective, high quality
information systems and services the need or
exceeds customers ’ requirements for achieving
business goals and objectives.”

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IS AND BUSINESS GOALS FIVE BUSINESS GOALS

• There are many possible ways by which information • Customer delight
systems can help the company achieve the five
business goals • Superior sales growth
• Financial excellence
• Employee Excellence
• Business process improvement

CUSTOMER DELIGHT
• Design systems so that customers can access
information easily and directly. Customers should
be able to design and enter orders, obtain cost,
delivery date, and shipping information directly via
technology (e.g. Internet, phone response, direct
entry)
• Product selection and configuration of custom
orders should be easy and fed directly into
manufacturing
• Systems and processes should be designed to
ensure maximum quality delivered to the
customer.
SUPERIOR SALES
GROWTH
• Have tools and systems that can integrate
new products
• Provide distribution-planning systems
• Provide tools that can analyze the impact
of future price increases to maximize value
and minimize customer cost
• Interface to industry databases and
information to proactively build information

FINANCIAL EXCELLENCE EMPLOYEE EXCELLENCE

• Implement tools and processes to support a • Train employees with tools and processes to
paperless environment minimize frustration and to improve their ability to
• Standardize tools and equipment to reduce do their jobs
support costs. Utilize standard software packages
whenever possible • Provide up-to-date tools and technology
• Provide tools that provide immediate financial • Provide systems to track employee training and
feedback and information in a format that is
understandable so that corrective actions be capabilities
taken • Provide employee performance tracking
• Have flexible systems that can integrate future
acquisitions
• Provide improved visibility to maintain and monitor
standard and variance cost information

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BUSINESS PROCESS ISSP IN

IMPROVEMENT GOVERNMENT INSTITUTIONS
• Provide systems that are flexible in handling • The formulation of an ISSP is aimed at directing IT
changes in business processes application towards mission- critical, public-
• Provide training and tools to facilitate business service-sensitive, development-management-
process re-engineering supportive and revenue-generating areas of the
government as well as accelerating
• Provide a structure and process for business computerization in national and local government
process improvement agencies.
• Provide a tool to track and prioritize business • It provides answers, from the IT perspective, to the
process improvements
following questions: (next slide)
• Provide quality measurements, such as value-
added ratios

National Computer Center, ISSP Guidebook 2.0

QUESTIONS ANSWERED
BY THE ISSP
• Where is the organization now?
• What resources does it have?
• Who are its beneficiaries?
• What are the needs of its beneficiaries?
THANK YOU!
• Where does the organization want to go?
• What does it want to achieve?
• How would the organization get there?
• Over what time frame will the plan be?
• How will the organization finance

National Computer Center, ISSP Guidebook 2.0