Introduction
Information technology has emerged as an important concept that enhances and ensures the competitiveness of an organization in today’s global economy. The relationship between information technology and strategic planning was for a long time not viewed as important by managers and leaders in positions of authority. This was because information systems were viewed to entail data processing activities only. In recent times, however, there has been a growing realization that has placed a lot of emphasis on the importance of strategic planning to the information systems and technology of an organization. This essay will focus on the concept of strategic information systems planning for the information technology activities of a company.
Literature Review
Due to the increased competitive nature of the global market, strategic planning for information technology has become an important concept that is necessary for the efficient and effective performance of an organization. The planning of information systems provides organizations with the opportunity to align their operations with the business strategies that have been outlined. This alignment is done to anticipate environmental and technological changes in the economy (Byrd et al, 2006).
To better understand SISP, Battaglia (1991) states that “The result of using SISP is an action plan that shows the desired course of actions that are necessary for an organization to align its information use with its strategic direction”.
Lederer and Sethi (1988) defined strategic information systems planning as the process of designing a portfolio of computer-based applications that will aid the organization to achieve its goals and objectives. They further termed SISP as a set of defined, complex, and interrelated information system activities. Current research on the concept of SISP has focused on the comprehensive aspect of strategic planning for information systems within an organization. As Fredrickson and Mitchell (1984) state “the comprehensiveness of SISP is the extent to which an organization attempts to make and integrate strategic decisions in an inclusive and exhaustive”.
Janis and Mann (1977) highlighted seven behaviors that illustrated the comprehensiveness of strategic planning of information systems within an organization. These behaviors were developing a large set of options, surveying a full set of objectives, weighing carefully the costs and risks of each probable outcome, intensively searching for new information that is relevant for each option or alternative, considering any new information, reconsidering the consequences of the options or alternatives before choosing the best option, and developing detailed provisions for the implementation of the selected option. These behaviors represented the concept of SISP in an organization ensuring the process of information systems was carried out in a precise way.
Doherty and Fulford (2006) describe strategic planning to encompass three information planning activities which are technical resource planning activities, personnel resources planning, and data security planning activities.
Technical resource planning activities involve planning activities that deal with systems and application software, hardware, and network communications. Personnel resource planning activities involve activities that are people-oriented and concerned with the technical training of personnel within the organization and end-user computing. Data security planning activities involve the planning for activities that are associated with the protection of the organization’s systems from outside intrusions and recovering information that has undergone unwanted intrusion (Doherty and Fulford, 2006).
Earl (1993) viewed SISP in terms of five different approaches which have been referred to as business-led approaches that focus on the organization as a whole, method driven approaches that focus on planning techniques, administrative approaches that focus on available organizational resources, the technology of the information systems model and the organizational approach that has its focus on employee learning.
Other contributors, NewKirk and Lederer (2006) described SISP in terms of phases and activities found within the SISP process. These phases and activities represent components of the strategic planning process with each component and phase having a different set of objectives, techniques, and conditions. The phases are used in describing an organization’s comprehensive efforts in the strategic information technology planning process.
An example of a phase and activity described by Newkirk and Lederer is the strategy formulation phase which entails identifying new business processes leading to the design and development of new information technology structures. These structures lead to the development of new projects and priorities for the new projects. The extent to which an organization executes each phase and activity will ensure the assessment of the comprehensive nature of the strategic information system plan.
SWOT Analysis
During the strategic planning process, managers perform a SWOT analysis which examines the company’s strengths, weaknesses, opportunities, and threats. A SWOT analysis contributes significantly to the process of strategic planning by identifying the human financial and technical resources. It is also used in formulating strategies and policies that will be used by the organization for future operations (Shelly and Rosenblatt, 2010).
In carrying out the SWOT analysis, managers must ask themselves questions such as what are the strengths of the company and what must be done to maximize these strengths in the future, what are the weaknesses of the company and what should be done to overcome them, what must be done to strengthen the IT functions of the organization, how should the weaknesses in IT resources be addressed, what are the major opportunities and what IT plans can be used to support these opportunities, what major threats does the company face and what can be done to deal with threats to the success of the information systems of an organization ( Shelly and Rosenblatt, 2010).
SWOT Analysis for Perisher Blue
Perisher Blue is a mountain resort ski company that was started in 1995 to provide ski services and facilities in the Perisher Valley, Blue Cow, Guthega resort, and Smiggin Holes areas which make up the Perisher Range. These areas are located in the alpine regions of southeastern Australia with urban areas such as Cooma, Canberra, and Tumut located nearby. The Perisher range forms part of the Kosciuszko National Park (Perisher Blue, 2002).
Strengths
The company has come up with an award-winning master plan for its ski resort that outlines objectives and goals that will be accomplished in the next ten to fifteen years. The plan will cover the operations of ski slopes such as Perisher Valley and Blue Cow, and ensure the facilities are up to date. This will give it a competitive edge in terms of alpine skiing facilities and services. Having ski lifts and buildings on the mountain slopes such as restaurants and toilets ensures that the ski visitors enjoy their skiing experience at Perisher valley. The ski resort has a strong market for skiing activities and operations that is expected to remain strong in the next 25 years. Perisher Blue has experienced market growth of 4.6%, a figure that is likely to grow in the coming years.
Weaknesses
Several roads within the mountain slope and the ski resort cannot be used because of the unstable nature of the terrain. The roads have also been affected by either extreme weather conditions such as heavy or unseasoned snowfalls, a lot of wetness on the track, or snowdrifts at the end of the winter season. These factors have at times led to the closure of roads or tracks in the Blue Cow, Perisher Valley, Smiggon Holes, and Guthega areas. Ski resort visitors are also limited to the number of vehicles they can use in the slope or resort because of the unstable nature of the terrain (Perisher Blue, 2002).
Opportunities
The Perisher Blue master plan will see the construction of additional buildings in the valley which will create employment opportunities for the people of Perisher Valley. The employment opportunities will strengthen the economic base of the regions located around Perisher Valley. The resort attracts 16,000 visitors in one day during winter peak times with this number expected to increase with the establishment of more ski facilities. The Perisher area is the largest skiing field in the whole of Australia which ensures that it will be the predominant provider of winter recreational activities in the country. Snow tourism in the alpine region also boosts the economy of the urban areas located around Perisher valley.
Threats
The greenhouse effect or global warming will have a major impact on the skiing activities of Perisher Valley. The unpredictable weather patterns will affect the operations in the ski resort which mostly relies on the winter season for its profits. The variations in weather patterns and climatic conditions might affect the amount of snow on the slopes which might lead to a decrease in skiing activities. The resort will also face the prospect of losing out on ski visitors as a result of competition coming from other ski resorts in the New South Wales Region of Australia such as the Thredbo ski field and international ski resorts such as those based in Switzerland (Perisher Blue, 2002).
Recommendations
Perisher Blue enjoys a large customer base with projections pointing to the number of ski visitors increasing in the next ten to fifteen years. To manage its large customer base, Perisher Blue needs to incorporate into the master plan strategic planning of its information system to ensure that the customer database is well managed and up to date. Current systems will also ensure that its database management systems are up to the standard of systems that are used by international ski resorts such as those based in Switzerland.
Because most of its operations and activities rely heavily on the winter season, the resort should look into other investments for activities that can be carried out during other seasons of the year such as mountain hiking which will ensure the resort has a constant source of income. The resort should also look for ways to stabilize its track roads during the winter season to ensure ski visitors are not limited to particular areas of the Perisher Range. Investing in current weather systems will also ensure the management of Perisher Blue can determine the amount of snow to expect at certain times.
Conclusion
Strategic information system planning is an important concept for all organizations, but integrating it into the business activities of the company is not an easy task. As Shelly and Rosenblatt, (2010) state, “strategic systems are meant to cater for the strategic demands of the organization which are meeting the objectives of the company and creating a competitive environment”. Companies need to plan adequately for their information systems while at the same time recognizing that the systems will not only be used as tools for cutting costs but also systems that will add value to the company.
The return on investment in information systems is increasing each year; this will have an impact on the information technology of a company. Re-engineering business systems for organizations is a process that is likely to continue well into the future with the ever-increasing role that information technology is playing in today’s global world.
Appendix
Business Process Flow Chart
Business processes flow charts influence the redesign of information system flows within an organization. These flow charts display the activities that an organization needs to perform in order to achieve the successful carrying out of its business operations. The activities highlighted in the process flow chart are meant to be guides when planning the business activities of the organization. The flow chart should include information that displays a connection between the various systems of the organization. Business process charts are beneficial to a company because they give everyone in the company a clear understanding of the business process, they help in identifying non-value added activities, and they facilitate communication networks and teamwork within the organization (Andersen, 1999).
Adaptive business processes provide a company with a competitive edge over its competitors while at the same time ensuring the success of the company. Business processes facilitate the interaction between the information system, services and people in order to achieve the operational and strategic objectives. The execution of business processes enables organizations to provide goods and services that are of a high quality at a lower cost of production (Kumar and Rizwan, 2008).
Business process charts are designed for the various activities within an organization such as communication, purchasing, supply and filing. The following is a business process flow chart that shows the supply process for Perisher Blue.
References
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Kumar, M., and Rizwan, M.K. (2008) Business process platform. How fast can you change? Web.
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Newkirk, H.E., and Lederer, A.L. (2006) Incremental and comprehensive strategic Information systems planning in an uncertain environment. IEEE Transactions on Engineering Management, Vol. 53, No.3, pp 380-394.
Perisher Blue (2002) Perisher Blue Ski Resort. Web.
Shelly, G.B., and Rosenblatt, H.J. (2010) Systems analysis and design. 8th Edition. Boston, USA: Course Technology.