strategic planning information system

Strategic Information System: Planning and Examples

A Strategic Information System (SIS) is a type of information system developed in response to corporate business initiatives. These systems play an integral role in an organization’s strategic planning, allowing it to gain a competitive advantage by effectively aggregating, processing, and managing data to inform decision-making.

Here are some key characteristics of SIS:

• Support for Decision Making:  SIS is specifically designed to support the decision-making process in an organization. It provides useful information to executives and managers who need data to make strategic decisions.
• Competitive Advantage:  SIS can give a company a competitive edge by providing unique and valuable insights. It can help identify opportunities and threats in the market, giving the company a strategic advantage over its competitors.
• Alignment with Strategy:  A strategic information system should be closely aligned with an organization’s business strategy. It should help in achieving the long-term goals and objectives of the company.
• High-level Management:  SIS is typically used by high-level management as it helps in strategic planning and decision-making.
• Integration of Data:  SIS can integrate data from various sources, both internal and external, to provide a holistic view of the organization’s performance and the market.

Strategic Control: Types | Examples | Systems

Strategic information system planning

Strategic Information System Planning (SISP) is the process of identifying a portfolio of computer-based applications that will assist an organization in executing its business plans and realizing its business goals. SISP is one of the most important IS practices, linking strategic business planning and IS planning.

The purpose of SISP is to ensure that technology and information systems are fully aligned with the strategic objectives and priorities of the organization. It involves analyzing the current state of the organization’s systems, defining the future state of these systems, and developing a plan to achieve this future state.

Here are the key steps often involved in SISP:

• Identification of Strategic Business Objectives:  The first step is to understand the business’s strategic goals. This involves discussions with senior leadership and analyzing the business’s strategic plan.
• Current Systems Assessment:  The organization’s existing information systems are evaluated to determine their effectiveness in meeting current and future business needs.
• Information Requirements Analysis:  The business’s information needs are analyzed. This step involves understanding what information is required, who needs it when they need it, and how it should be delivered.
• Gap Analysis:  The gap between the current state of the organization’s systems and the desired future state is identified.
• Development of the SISP:  The Strategic Information Systems Plan is developed, outlining the initiatives that will be taken to close the gap identified in the previous step.
• Implementation of the SISP:  The plan is put into action, often involving the acquisition of new systems, modification of existing systems, and changes to business processes.
• Review and Update:  The SISP is regularly reviewed and updated to ensure it remains aligned with the organization’s strategic objectives and to account for changes in technology and the business environment.

SISP can provide several benefits, including improved alignment between IT and business strategy, better communication and understanding between IT and business stakeholders, and a clear roadmap for developing and acquiring information systems.

Example of strategic information system planning

Let’s use the example of a manufacturing company implementing Strategic Information System Planning (SISP) to improve its operational efficiency and market competitiveness.

• Identification of Strategic Business Objectives:  The company’s strategic business objectives are to increase operational efficiency, reduce costs, and improve product quality to gain a larger market share.
• Current Systems Assessment:  The current information systems are assessed, and the company finds that its existing systems need to be updated, resulting in inefficiencies, high error rates, and a lack of real-time data for decision-making.
• Information Requirements Analysis:  The company determines that it needs real-time information on production, inventory, and sales data to improve decision-making. The organization also requires better quality control, forecasting, and strategic planning analytics.
• Gap Analysis:  There’s a significant gap between the company’s IT capabilities and needs. The outdated systems can’t provide real-time data or sophisticated analytics, and they’re not well integrated, leading to data silos and inefficiencies.
• Development of the SISP:  The company develops a Strategic Information Systems Plan to bridge the gap. This plan involves implementing an Enterprise Resource Planning (ERP) system to integrate different business processes, a Manufacturing Execution System (MES) for real-time production monitoring, and a Business Intelligence (BI) system for advanced analytics. The plan also includes data migration, system integration, staff training, and change management steps.
• Implementation of the SISP:  The company implements the SISP over a multi-year period, taking a phased approach to minimize disruption. The new systems are implemented, staff is trained, and changes are managed carefully to ensure a smooth transition.
• Review and Update:  Once the new systems are in place, they’re continually monitored to ensure they deliver the expected benefits. The SISP is also reviewed and updated regularly to accommodate changes in business strategy or technology trends.

In this scenario, the company has used SISP to align its IT systems with its strategic business objectives, giving it the tools it needs to achieve its goals of improved efficiency, cost reduction, and enhanced product quality. The company can now make real-time data-driven decisions, improve its production process, and understand market trends better with advanced analytics, thereby gaining a competitive advantage.

Strategic Alignment: Explained with Examples

Examples of strategic information system

Strategic Information Systems (SIS) help organizations gain a competitive advantage, improve performance, and achieve operational excellence. Here are a few examples of such systems:

• Customer Relationship Management (CRM) Systems:  CRMs manage an organization’s interactions with current and potential customers. They use customer history data analysis to improve business relationships, focusing specifically on customer retention and driving sales growth. Salesforce and HubSpot are common examples of CRM systems.
• Enterprise Resource Planning (ERP) Systems:  ERPs are comprehensive systems that manage and integrate the organization’s major business processes. They can streamline processes, provide real-time reporting and analytics, and help increase efficiency and productivity. Common examples of ERP systems are SAP and Oracle.
• Supply Chain Management (SCM) Systems:  These systems manage the flow of goods, data, and finances related to a product or service from the initial procurement of raw materials to the delivery of the product at its final destination. SCM systems like Oracle SCM Cloud and SAP SCM can provide a strategic edge by enhancing the efficiency of the supply chain and reducing costs.
• Executive Information Systems (EIS):  EIS, also known as Executive Support Systems (ESS), provide various internal and external information to top executives and decision-makers, allowing them to track business performance and make strategic decisions. EIS platforms can pull data from numerous sources, offering a comprehensive view of business operations.
• Business Intelligence (BI) and Analytics Systems:  These systems analyze business data to provide actionable insights, helping an organization make informed decisions. They allow for trend analysis, forecasting, and tracking key performance indicators (KPIs). Examples of these systems include Tableau, Power BI, and Looker.
• Knowledge Management Systems (KMS):  KMS help organizations capture, distribute, and effectively use their collective knowledge. They can enhance decision-making, foster innovation, and improve customer service. Examples include Atlassian Confluence and Microsoft SharePoint.

Remember, while these systems have strategic potential, their effectiveness depends on how well they align with the organization’s overall strategy and how well they’re implemented and used within the organization.

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Strategic Information Systems Planning (SISP)

What is strategic information systems planning (sisp).

Strategic Information Systems Planning or SISP at the most basic can be defined as “the process of determining an organization’s portfolio of computer-based applications that will help it achieve its business objectives.” (Newkirk & Lederer, 2007, p. 34).

The definition of strategic information system planning has many variations. For example Lederer and Sethi (1988) state that “(SISP) is the process of deciding the objectives for organizational computing and identifying potential computer application which the organization should implement” (p.445). Hevner, Bernt, and Studnicki (2000) state that “(SISP) is the process of aligning an organization’s business strategy with effective computer-based information systems to achieve critical business objectives” (p. 1). Doherty et al. (1999) offer a composite definition from different sources and state that SISP is “the process of identifying a portfolio of computer-based applications to be implemented, which is both highly aligned with corporate strategy and has the ability to create an advantage over competitors” (p. 265). Each of these definitions states that there is a process to strategic information system planning.

SISP is needed in order to align IT with the strategic goals of an organization in order to identify new opportunities, and that organizations miss opportunities and fail to implement new business strategies without SISP (Kearns, 2006, p. 237; Lederer & Sethi, 1988, p. 445). The general consensus is that: (a) there is an ongoing need for strategic information systems planning (Henderson & Sifonis, 1988), and (b) that SISP has a direct impact in an organizations ability to execute its strategic business strategy, maximize its performance, and leverage IT investments for competitive advantage (Johnson & Lederer, 2010).

Strategic information systems planning is based on two core arguments:

• The first is that, at a minimum, a firm’s information systems investments should be aligned with the overall business strategy, and in some cases may even become an emerging source of competitive advantage. While no one disagrees with this, operations management researchers are just starting to study how this alignment takes place and what the measurable benefits are.
• The second core argument behind SISP is that companies can best achieve IS-based alignment or competitive advantage by following a proactive, formal and comprehensive process that includes the development of broad organizational information requirements. This is in contrast to a “reactive” strategy, in which the IS group sits back and responds to other areas of the business only when a need arises. [1]

What SISP is Not [2]

• SISP is unlikely to lead to fundamental changes in strategy. Situations rarely call for dramatic shifts in course. SISP should not lead to change for the sake of change, nor is it a rubber-stamp for current directions, past actions, or preconceived notions of how things should be.
• SISP is not the final written document, a detailed implementation plan, or a budgeting exercise. It is a learning process that should result in an improved, shared vision of the IS/IT function among senior managers and identification of a select group of potential business initiatives which, after further review, may afford opportunities for high returns on investment .
• SISP is not something that can be contracted out to external consultants. The strategic plan must be “owned” company executives, critical stakeholders, senior managers, and senior IT staff. A consultant’s report should be (and often is) rejected by company executives and critical stakeholders. Although consultants may provide useful assistance at various points in the planning process, extreme care must be exercised lest the result be theirs and not yours.
• SISP is not a technical exercise to create a unified data architecture or extensive, explicit models of all business processes.

SISP Phases [3] While much has been written about SISP, the important aspect that has been underemphasized is the planning process or how planning is accomplished. SISP planners have to consider the preparatory steps that ensure that business, organizational and information strategies are aligned in a complementary fashion. The overall role of technology and information systems within the organization must be determined, and the internal and external assessments need to be addressed. The most important point to remember is that the SISP process must be part of the overall organization plan. SISP has been described in terms of phases and the specific tasks within them. The phases and tasks represent the components of the planning process, with each having its own objectives, participants, preconditions, products, and techniques. The phases and tasks can be used to describe an organization’s attempts to be comprehensive in its strategic planning process. SISP unfolds in five phases (summarized graphically in figure below)

The overall five phase breakdown is as follows:

• It outlines an organization’s overall direction, philosophy, and purpose.
• It examines its current status in terms of its strengths, weakness, opportunities, and threats.
• It sets long-term objectives.
• It formulates short-term tactics to reach them.
• Information Systems Assessment: Evaluation of the system to assess its status (current information systems resources) in terms of original or current expectations and how they are serving the organization.
• Information Systems Vision: Ideal role that should be pursued for use of information systems resources
• Information Systems Guidelines: Set of statements that clarify use of organization’s technical and information systems resources.
• Strategic Initiatives: Three to five year long-term proposals that specify new initiatives for information systems organization.

SISP Methodologies [4] There are a number of SISP methodologies to choose from. Pita et al. (2008) provide a list of a number of SISP methodologies, which is reproduced in the Table below. While this list is by no means exhaustive, it shows the range of methodologies and provide a means for those interested in further study. An attempt to determine the most used methodology does not yield definitive results; however, Pita et al. (2008) list the top methodologies used in Australia and suggest that the most popular methodologies are alignment methodologies (p. 754).

Strategic information systems planning is considered a complex activity with a potential for problems, thus it’s important for the organization to choose the methodology with the best fit (Lederer & Sethi, 1988, p. 448). As noted by Lederer and Sethi (1988) organizations may choose to adopt a specific SISP methodology or modify an existing strategic management planning strategy and incorporate information technology (p. 448). An organization may also choose to combine a number of SISP methodologies into a SISP approach (Doherty et al., 1999, p. 265). According to Pita et al. (2008), “one of the major issues on the IS planning agenda is choosing the right methodology” and that the use of more than one methodology is preferred (p. 752). Additionally, Pita et al. (2008) note that the selection of a wrong SISP methodology can significantly contribute to SISP failure (p. 752).

Benefits of SISP [5] SISP has been increasingly becoming essential for organizations to enhance their performance. It provides a wide range of benefits to an organization including improvements in terms of business activities and information flow. Furthermore, SISP enhances the organization’s competitive advantages. Essential benefits of SISP have been identified as: (i) Align information technology with business needs. (ii) Integrating IT into an organization, and promote organizational competitiveness (iii) Effectiveness of IT implementation (iv) Helping to identify strategic applications by information executives and top management (v) Justify IT investments by addressing the expectation out of such investments

Studies have shown that SISP assists managers in determining the new information systems (IS) and information technology (IT) strategies, allocating resources, positioning suitable applications and gaining competitive advantages. It is essential for an organization as the measurement of organization's success is based on the return on the money invested in IT. Thus, it plays an important role in management functions. Moreover, it can help organizations to use IT more competitively, identify new higher payback applications and better forecast on IT resource requirement. The picture that emerges from previous studies indicates that SISP is a relatively successful management process. For example, there is consistency across the studies and most of IS managements are reported being satisfied with SISP implementation for organization performance. Galliers et al. also found that the perceptions of the management improved as the organization moves from its first SISP exercise into subsequent SISP exercises. Lederer et al. broke down the SISP process into a number of component parts and measured the satisfaction of the IS planners they surveyed with each component part individually. They found considerable differences in satisfaction. Whilst over half were satisfied with the SISP methodology used, this fell to less than one third for SISP implementation.

Finnegan et al. also identified the following benefits from SISP in their study of Irish companies:

• New projects justified to provide a basis for IS budgets in the performance of the IS department can be judged more fairly. A strategy for technology selection is set. Business managers become better informed and more involved in IT Scarce. IT resources are allocated more wisely Emergency IS projects are avoided Business programmers are more assured of IT requirements Both et al. demonstrated that SISP success varies according to SISP approach with the administrative and technological approaches being the least successful and the organizational approach being the most successful.
• Obviously SISP brings about strategic benefits to the organization in such matters as effectiveness of IT implementation. However, the effectiveness implies addressing issues associated with IT implementation at the planning level.
• IT Strategy
• ↑ What is Strategic Information Systems Planning (SISP) NC State University
• ↑ What SISP is Not Michelle Lombardo et al.
• ↑ SISP Phases Arwa A. Altameem et al.
• ↑ SISP Methodologies Brian Fergerson
• ↑ Benefits of SISP Muneer Alsurori, Juhana Salim

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Strategic Information Systems Planning (SISP) – An IS Strategy for ERP Implementation

The following is based on Dr. Bozarth’s research on “ ERP Implementation Efforts at Three Firms: Applying lessons from the SISP and IT-enabled change literature” which is scheduled to appear in the International Journal of Operations and Production Management.

Strategic information systems planning, or SISP , is based on two core arguments. The first is that, at a minimum, a firm’s information systems investments should be aligned with the overall business strategy, and in some cases may even become an emerging source of competitive advantage. While no one disagrees with this, operations management researchers are just starting to study how this alignment takes place and what the measurable benefits are. An issue under examination is how a manufacturer’s business strategy, characterized as either “market focused” or “operations focused,” affects its ability to garner efficiency versus customer service benefits from its ERP investments.

The second core argument behind SISP is that companies can best achieve IS-based alignment or competitive advantage by following a proactive, formal and comprehensive process that includes the development of broad organizational information requirements. This is in contrast to a “reactive” strategy, in which the IS group sits back and responds to other areas of the business only when a need arises. Such a process is especially relevant to ERP investments, given their costs and long-term impact. Seegars, Grover and Teng (1) have identified six dimensions that define an excellent SISP process (notice that many of these would apply to the strategic planning process in other areas as well):

1. Comprehensiveness

Comprehensiveness is “the extent to which an organization attempts to be exhaustive or inclusive in making and integrating strategic decisions”.

2. Formalization

Formalization is “the existence of structures, techniques, written procedures, and policies that guide the planning process”.

Focus is “the balance between creativity and control orientations inherent within the strategic planning system”. An innovative orientation emphasizes innovative solutions to deal with opportunities and threats. An integrative orientation emphasizes control, as implemented through budgets, resource allocation, and asset management.

4. Top-down flow

SISP should be initiated by top managers, with the aid of support staff.

5. Broad participation

Even though the planning flow is top-down, participation must involve multiple functional areas and, as necessary, key stakeholders at lower levels of the organization.

6. High consistency

SISP should be characterized by frequent meetings and reassessments of the overall strategy.

The recommendations found in the SISP literature have been echoed in the operations management literature. It has been suggested that firms should institutionalize a formal top-down planning process for linking information systems strategy to business needs as they move toward evolution in their management orientation, planning, organization, and control aspects of the IT function.

(1) Segars, A.H., Grover, V., and Teng, J.T.C. (1998), “Strategic information systems planning: planning system dimensions, internal coalignment, and implications for planning effectiveness”, Decision Sciences, Vol 29 No 2, pp. 303-345.

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Strategic information system planning (SISP) is a central process that enables organizations to identify the strategic alignment of their IT portfolio to achieve their business needs and objectives. The extant SISP literature has focused on theoretical and processual aspects and has left methodological ambiguity about how SISP is practiced. Strategic information system planning (SISP) becomes central for any business when an organization faces an inflection point concerning its information system.

1. Introduction

2. strategic information system planning (sisp).

3. Critical Success Factor (CSF)

4. multi-criteria decision-making (mcdm).

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A Practical Guide to Information Systems Strategic Planning

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The foundation of a successful information systems strategic plan is the recognition that business direction and requirements must drive the IS strategy and computing architecture. A Practical Guide to Information Systems Strategic Planning, Second Edition outlines a systematic approach to guide you through the development of an effective IS plan t

TABLE OF CONTENTS

Chapter 1 | 22  pages, purpose of information systems strategic planning, chapter 2 | 16  pages, is governance, chapter 3 | 14  pages, the planning process, chapter 4 | 68  pages, the visioning phase, chapter 5 | 100  pages, the analysis phase, chapter 6 | 76  pages, the direction phase, chapter 7 | 36  pages, the recommendation phase, chapter 8 | 26  pages.

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Strategic Direction

ISSN : 0258-0543

Article publication date: 4 April 2022

Issue publication date: 19 April 2022

This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies.

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This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context.

An emphasis on strategic information systems planning (SISP) offers an effective way of enhancing organizational performance. Firms are best able to optimize the impact of SISP by identifying and strengthening critical success factors within its four key dimensions.

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• Strategic information systems planning
• Critical success factors
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(2022), "Increasing the impact of strategic information systems planning: Identifying critical success factors is important", Strategic Direction , Vol. 38 No. 5, pp. 7-9. https://doi.org/10.1108/SD-03-2022-0026

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Home » Information Systems Management » Strategic Information Systems Planning (SISP) – Meaning and Importance

Strategic Information Systems Planning (SISP) – Meaning and Importance

In a global marketplace, information has emerged as an agent and enabler of new competitiveness for today’s enterprise. However the paradigm of strategic planning changes sufficiently to support the new role of information and technology. The question is, are changes can support the new role of information and technology and what is the relationship between strategic information system planning with the development database in an organization. Therefore, the development of strategic information system planning is importance in an organization. Strategic information systems planning (SISP) is the process of creating a portfolio based on the use of information system in order to achieve organizational goals and objectives. Within SISP, organizational can clearly define their organizational goals , the critical success factor (CSF) and the problem areas within the organization activity.

Introduction to Strategic Information Systems Planning (SISP)

There are two concepts of strategic information systems planning (SISP). The first one is SISP viewed as the process of identifying a portfolio of computer based applications that will assist an organization in achieving the business plan and at the same time achieve the business organization goals. Meanwhile the second one is SISP involved searching for application with a high impact and with the ability to create an advantage over competitors to gain competitive advantage . Based on the theory of SISP, it can be define that the process of identifying a portfolio of computer-based applications to be implemented aligned with the corporate strategy and has the ability to create an advantage over competitors.

Organization goals is analyze by defining what exactly organization hope in order to accomplish the goals. After organization goals have been analyzed, then critical success factor will evaluated so that it will affect the organization goals and objective in long term. Critical success factor is the element that organization should know and must work in order to survive in the business environmental. And lastly, identify the problem areas which are the weaknesses that organization already have.

Strategic information systems planning help organization in overall strategic planning process in effectively and efficiently. SISP participants include top business, functional area, and information system management. In an organization, the success of IS plan can be determined with the involvement and commitment of senior management. Involvement of senior management is very important to determine whether the success or failure of the project. Senior management was the backlog behind the success of the project. Within SISP also can be used to improve the communication between top management and users regarding IT. This actually gain top management commitment. Communication and commitment will also help in increasingly the visibility of IT in organization.

The purpose of SISP is to ensure that the IT organization align with the strategic goals of organization. Alignment of IT organization and business goals has been used to control and ensure that business goals will achieve and all the operation included the IT and IS that used in running the organization will keep in track. SISP alignment will also help in identifying strategic applications, identifying new and higher payback applications, and developing an information architecture. Organizations also use the SISP to help in forecasting and allocating IT resources. With SISP, also can avoid loss of control of IS/IT in an organization. SISP is needed for the system to ensure the system that used in the organization integrated with other system or not.

Without Strategic information systems planning in an organization, may lead to missed opportunity, duplicate system, incompatible system and wasted resources.

Importance of Strategic Information Systems Planning (SISP)

The importance of Strategic information systems planning in an organization has been well documented within the IS literature. Within SISP, the integration of IS function within organization can be facilitate. Besides, SISP supports the identification of opportunities to use information systems for strategic purpose . SISP also ensures that adequate resources or the use of scarce resources are allocated to critical application and the use of resources in properly manner. With SISP, can ensures that the IS function support the organizational goals and objectives and also the activities at every level.

Having a good strategic information system planning in organization, will determine whether the organization will success or failure. The reason why organization needs good strategic information system planning is that it can help organization to avoid misused of scarce resources. By planning, only projects that can generate good returns will get investors from the firm. A good planning is very important to avoid problem such as the misuse and wasted resources in form of system that nobody likes and used the system effectively. When a new system developed, pre-existing system can be used to communicate or interface properly and at the same time avoid the problem of “Islands of automation”. This can be happen if the organization has proper planning for their organization.

Before develop a new system, planning is very important to make sure the smooth of business operation. First of all, the organization should identify their needs. Development of system should be a response to need whether at the transaction processing level or at the more complex information and support system levels. Priorities, objectives and authorization for information system projects need to be formalized first. The system development plan should identify the project resources that needed the procedures, and constraints for each application area. Planning should be flexible to adjust the priorities if necessary. Furthermore, to facilitate understanding of each application the plan must be specific enough. A strategic capability architecture must flexible and continuously improving infrastructure of organizational capabilities and at the same time gain company’s sustainable competitive advantage .

It is important to have Strategic information systems planning to maximize the benefits of changing technology and to take account of the different viewpoints of business professionals and IT professionals. System investments are made to support business objectives and also to gain inadequate infrastructure. SISP is important because it emphasizes the need to bring IT to bear on and sometimes influence strategic direction of the corporation is widely accepted by researchers. This is particularly true in contemporary environments where harnessing the power of technology resources could be critical for competitiveness.

Relationship with Organizational Database Development

Data are the raw material from which information is produced. Therefore, it is not surprising that in today’s information-driven environment, data are a valuable asset that requires careful management. To access data’s monetary value, data that stored in company database are data about customers, suppliers, inventory, and operations and so on. Imagine that all the data in the database loss. What will happen if the situation like that happen? Data loss puts any company in a difficult position. The company might be unable to handle daily operation effectively; it might be faced with the loss of customers who require quick and efficient service, and it might lose the opportunity to gain new customers.

Data are a valuable resource that can translate into information. If the information is accurate and timely, it is likely to trigger action that enhance the company’s competitive position and generate wealth. In effect, an organization is subject to a data information decision cycle; that is the data user applies intelligence to data to produce information that is the basis of knowledge used in decision making by the user.

A critical success factor of an organization is efficient asset management. Critical success factor involve the management in an organization to know the current status of the organization in ICT. Based on the analysis of the business environment of the corporation, the critical success factors concerning the firm are identified. Critical success factor is refer to the limited number of area in which result, if satisfactory will ensure successful competitive performance for the organization. There are such area where thing’s must go right for the business to flourish. Thus, the factor that are critical for accomplishing the objectives are identified at this stage.

To manage data as a corporate asset , managers must understand the value of information that is processed data. Data are used by different people in different departments for different reasons. Therefore, data management must address the concept of shared data. Whatever the type of organization, the database predominant role is to support managerial decision making at all level in the organization . That’s why, Strategic information systems planning play a big role in organization. SISP is an important management function. It can help an organization use information technology (IT) more competitively, identify new, higher payback IT applications, and better forecast IT resources requirements.

An organization’s managerial structure might be divided into three levels which are top, middle and operational. Top level management makes strategic decisions; middle management makes tactical decisions and operational management make daily operational decisions. Operational decisions are short terms and affect only daily operations for example deciding to change the price of a product to clear it from inventory. Tactical decision involve a longer time frame and after larger scale operation; for example changing the price of a product in response to competitive pressures. Strategic decisions are those that affect the long term well-being of the company or even its survival; for example changing pricing strategy across product lines to capture market share . This shows that having a good SISP will lead the organization to achieve the goal and objective in short or long term in an organization.

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STRATEGIC INFORMATION SYSTEMS PLANNING: A REVIEW OF ITS CONCEPT, DEFINITIONS AND STAGES OF DEVELOPMENT

Business organizations, government agencies and educational institutions consider strategic information system planning (SISP) as an important element for improving their organizational performance. Over the years, SISP has seen much change not only in terms of its meaning but also its emphasis. More specifically, the literature indicates minimal emphasis on its evolution as a discipline of study and field of practice. Based on the literature and previous studies, this paper reviews the concept of SISP, its definitions and stages of development.

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Abstract - Strategic Information Systems Planning (SISP) has been a theme of considerable importance to Information Systems (IS) professionals in both the business and academic communities for the last two decades. SISP process is intended to ensure that technology activities are properly aligned with the evolving needs and strategies of the organization. Success can be achieved when an organization can achieve balance between IS and its organizational planning, SISP is confirmed as the heart of all IS planning contribution to the competitiveness of the organisation. This paper examines the research on this everimportant topic and focuses on the importance of SISP to IS strategies.

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Critical Factors of Strategic Information Systems Planning Phases in SMEs

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Strategic Information Systems Planning (SISP) supports business goals and business strategy, through the use of Information Systems (IS). Findings from previous surveys indicate that many managers make too much effort to SISP process while others too little. The implemented plans are not effective, successful and they do not meet the objectives. Researchers have noticed that family businesses focus on business’s long-term sustainability, but they do not develop strategic planning. More attention is needed to be payed to and how they use IS and strategic planning in order to deal with the crisis. The purpose of this paper is to indicate the phases which contribute to a greater extent of success in order to provide conclusions regarding the implementation of this process in SMEs. Data were collected using questionnaires to IS executives in Greek SMEs. Factor Analysis is performed on the detailed items of the SISP process and success constructs.

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Kamariotou, M., Kitsios, F. (2019). Critical Factors of Strategic Information Systems Planning Phases in SMEs. In: Themistocleous, M., Rupino da Cunha, P. (eds) Information Systems. EMCIS 2018. Lecture Notes in Business Information Processing, vol 341. Springer, Cham. https://doi.org/10.1007/978-3-030-11395-7_39

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"Strategic Planning for Information Systems explores the impact that information systems (IS) and information technology (IT) have on business performance and the contribution that they make to the strategic options of organisations. It describes tools, techniques and management frameworks to both align strategies for IS and IT with business strategy, as well as seek out new opportunities through innovative deployment of technology." This book demonstrates why strategic planning for information systems is essential to organisational success, especially in times of increasingly rapid change. Over the long term any organisation will get the information systems it deserves, according to the approach adopted to the use and management of IS/IT. To obtain the whole range of benefits available from IS/IT and avoid the potential pitfalls, every organisation must establish the means to manage IS/IT as an integral part of its approach to strategic management.

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• 7 strategic planning models, plus 8 fra ...

7 strategic planning models, plus 8 frameworks to help you get started

Strategic planning is vital in defining where your business is going in the next three to five years. With the right strategic planning models and frameworks, you can uncover opportunities, identify risks, and create a strategic plan to fuel your organization’s success. We list the most popular models and frameworks and explain how you can combine them to create a strategic plan that fits your business.

A strategic plan is a great tool to help you hit your business goals . But sometimes, this tool needs to be updated to reflect new business priorities or changing market conditions. If you decide to use a model that already exists, you can benefit from a roadmap that’s already created. The model you choose can improve your knowledge of what works best in your organization, uncover unknown strengths and weaknesses, or help you find out how you can outpace your competitors.

In this article, we cover the most common strategic planning models and frameworks and explain when to use which one. Plus, get tips on how to apply them and which models and frameworks work well together. 

Strategic planning models vs. frameworks

First off: This is not a one-or-nothing scenario. You can use as many or as few strategic planning models and frameworks as you like. 

When your organization undergoes a strategic planning phase, you should first pick a model or two that you want to apply. This will provide you with a basic outline of the steps to take during the strategic planning process.

During that process, think of strategic planning frameworks as the tools in your toolbox. Many models suggest starting with a SWOT analysis or defining your vision and mission statements first. Depending on your goals, though, you may want to apply several different frameworks throughout the strategic planning process.

For example, if you’re applying a scenario-based strategic plan, you could start with a SWOT and PEST(LE) analysis to get a better overview of your current standing. If one of the weaknesses you identify has to do with your manufacturing process, you could apply the theory of constraints to improve bottlenecks and mitigate risks. 

Now that you know the difference between the two, learn more about the seven strategic planning models, as well as the eight most commonly used frameworks that go along with them.

1. Basic model

The basic strategic planning model is ideal for establishing your company’s vision, mission, business objectives, and values. This model helps you outline the specific steps you need to take to reach your goals, monitor progress to keep everyone on target, and address issues as they arise.

If it’s your first strategic planning session, the basic model is the way to go. Later on, you can embellish it with other models to adjust or rewrite your business strategy as needed. Let’s take a look at what kinds of businesses can benefit from this strategic planning model and how to apply it.

Small businesses or organizations

Companies with little to no strategic planning experience

Organizations with few resources 

Write your mission statement. Gather your planning team and have a brainstorming session. The more ideas you can collect early in this step, the more fun and rewarding the analysis phase will feel.

Identify your organization’s goals . Setting clear business goals will increase your team’s performance and positively impact their motivation.

Outline strategies that will help you reach your goals. Ask yourself what steps you have to take in order to reach these goals and break them down into long-term, mid-term, and short-term goals .

Create action plans to implement each of the strategies above. Action plans will keep teams motivated and your organization on target.

Monitor and revise the plan as you go . As with any strategic plan, it’s important to closely monitor if your company is implementing it successfully and how you can adjust it for a better outcome.

2. Issue-based model

Also called goal-based planning model, this is essentially an extension of the basic strategic planning model. It’s a bit more dynamic and very popular for companies that want to create a more comprehensive plan.

Organizations with basic strategic planning experience

Businesses that are looking for a more comprehensive plan

Conduct a SWOT analysis . Assess your organization’s strengths, weaknesses, opportunities, and threats with a SWOT analysis to get a better overview of what your strategic plan should focus on. We’ll give into how to conduct a SWOT analysis when we get into the strategic planning frameworks below.

Identify and prioritize major issues and/or goals. Based on your SWOT analysis, identify and prioritize what your strategic plan should focus on this time around.

Develop your main strategies that address these issues and/or goals. Aim to develop one overarching strategy that addresses your highest-priority goal and/or issue to keep this process as simple as possible.

Update or create a mission and vision statement . Make sure that your business’s statements align with your new or updated strategy. If you haven’t already, this is also a chance for you to define your organization’s values.

Create action plans. These will help you address your organization’s goals, resource needs, roles, and responsibilities. 

Develop a yearly operational plan document. This model works best if your business repeats the strategic plan implementation process on an annual basis, so use a yearly operational plan to capture your goals, progress, and opportunities for next time.

Allocate resources for your year-one operational plan. Whether you need funding or dedicated team members to implement your first strategic plan, now is the time to allocate all the resources you’ll need.

Monitor and revise the strategic plan. Record your lessons learned in the operational plan so you can revisit and improve it for the next strategic planning phase.

The issue-based plan can repeat on an annual basis (or less often once you resolve the issues). It’s important to update the plan every time it’s in action to ensure it’s still doing the best it can for your organization.

You don’t have to repeat the full process every year—rather, focus on what’s a priority during this run.

3. Alignment model

This model is also called strategic alignment model (SAM) and is one of the most popular strategic planning models. It helps you align your business and IT strategies with your organization’s strategic goals. 

You’ll have to consider four equally important, yet different perspectives when applying the alignment strategic planning model:

Strategy execution: The business strategy driving the model

Technology potential: The IT strategy supporting the business strategy

Competitive potential: Emerging IT capabilities that can create new products and services

Service level: Team members dedicated to creating the best IT system in the organization

Ideally, your strategy will check off all the criteria above—however, it’s more likely you’ll have to find a compromise. 

Here’s how to create a strategic plan using the alignment model and what kinds of companies can benefit from it.

Organizations that need to fine-tune their strategies

Businesses that want to uncover issues that prevent them from aligning with their mission

Companies that want to reassess objectives or correct problem areas that prevent them from growing

Outline your organization’s mission, programs, resources, and where support is needed. Before you can improve your statements and approaches, you need to define what exactly they are.

Identify what internal processes are working and which ones aren’t. Pinpoint which processes are causing problems, creating bottlenecks , or could otherwise use improving. Then prioritize which internal processes will have the biggest positive impact on your business.

Identify solutions. Work with the respective teams when you’re creating a new strategy to benefit from their experience and perspective on the current situation.

Update your strategic plan with the solutions. Update your strategic plan and monitor if implementing it is setting your business up for improvement or growth. If not, you may have to return to the drawing board and update your strategic plan with new solutions.

4. Scenario model

The scenario model works great if you combine it with other models like the basic or issue-based model. This model is particularly helpful if you need to consider external factors as well. These can be government regulations, technical, or demographic changes that may impact your business.

Organizations trying to identify strategic issues and goals caused by external factors

Identify external factors that influence your organization. For example, you should consider demographic, regulation, or environmental factors.

Review the worst case scenario the above factors could have on your organization. If you know what the worst case scenario for your business looks like, it’ll be much easier to prepare for it. Besides, it’ll take some of the pressure and surprise out of the mix, should a scenario similar to the one you create actually occur.

Identify and discuss two additional hypothetical organizational scenarios. On top of your worst case scenario, you’ll also want to define the best case and average case scenarios. Keep in mind that the worst case scenario from the previous step can often provoke strong motivation to change your organization for the better. However, discussing the other two will allow you to focus on the positive—the opportunities your business may have ahead.

Identify and suggest potential strategies or solutions. Everyone on the team should now brainstorm different ways your business could potentially respond to each of the three scenarios. Discuss the proposed strategies as a team afterward.

Uncover common considerations or strategies for your organization. There’s a good chance that your teammates come up with similar solutions. Decide which ones you like best as a team or create a new one together.

Identify the most likely scenario and the most reasonable strategy. Finally, examine which of the three scenarios is most likely to occur in the next three to five years and how your business should respond to potential changes.

5. Self-organizing model

Also called the organic planning model, the self-organizing model is a bit different from the linear approaches of the other models. You’ll have to be very patient with this method. 

This strategic planning model is all about focusing on the learning and growing process rather than achieving a specific goal. Since the organic model concentrates on continuous improvement , the process is never really over.

Large organizations that can afford to take their time

Businesses that prefer a more naturalistic, organic planning approach that revolves around common values, communication, and shared reflection

Companies that have a clear understanding of their vision

Define and communicate your organization’s cultural values . Your team can only think clearly and with solutions in mind when they have a clear understanding of your organization's values.

Communicate the planning group’s vision for the organization. Define and communicate the vision with everyone involved in the strategic planning process. This will align everyone’s ideas with your company’s vision.

Discuss what processes will help realize the organization’s vision on a regular basis. Meet every quarter to discuss strategies or tactics that will move your organization closer to realizing your vision.

6. Real-time model

This fluid model can help organizations that deal with rapid changes to their work environment. There are three levels of success in the real-time model: 

Organizational: At the organizational level, you’re forming strategies in response to opportunities or trends.

Programmatic: At the programmatic level, you have to decide how to respond to specific outcomes or environmental changes.

Operational: On the operational level, you will study internal systems, policies, and people to develop a strategy for your company.

Figuring out your competitive advantage can be difficult, but this is absolutely crucial to ensure success. Whether it’s a unique asset or strength your organization has or an outstanding execution of services or programs—it’s important that you can set yourself apart from others in the industry to succeed.

Companies that need to react quickly to changing environments

Businesses that are seeking new tools to help them align with their organizational strategy

Define your mission and vision statement. If you ever feel stuck formulating your company’s mission or vision statement, take a look at those of others. Maybe Asana’s vision statement sparks some inspiration.

Research, understand, and learn from competitor strategy and market trends. Pick a handful of competitors in your industry and find out how they’ve created success for themselves. How did they handle setbacks or challenges? What kinds of challenges did they even encounter? Are these common scenarios in the market? Learn from your competitors by finding out as much as you can about them.

Study external environments. At this point, you can combine the real-time model with the scenario model to find solutions to threats and opportunities outside of your control.

Conduct a SWOT analysis of your internal processes, systems, and resources. Besides the external factors your team has to consider, it’s also important to look at your company’s internal environment and how well you’re prepared for different scenarios.

Develop a strategy. Discuss the results of your SWOT analysis to develop a business strategy that builds toward organizational, programmatic, and operational success.

Rinse and repeat. Monitor how well the new strategy is working for your organization and repeat the planning process as needed to ensure you’re on top or, perhaps, ahead of the game. 

7. Inspirational model

This last strategic planning model is perfect to inspire and energize your team as they work toward your organization’s goals. It’s also a great way to introduce or reconnect your employees to your business strategy after a merger or acquisition.

Businesses with a dynamic and inspired start-up culture

Organizations looking for inspiration to reinvigorate the creative process

Companies looking for quick solutions and strategy shifts

Gather your team to discuss an inspirational vision for your organization. The more people you can gather for this process, the more input you will receive.

Brainstorm big, hairy audacious goals and ideas. Encouraging your team not to hold back with ideas that may seem ridiculous will do two things: for one, it will mitigate the fear of contributing bad ideas. But more importantly, it may lead to a genius idea or suggestion that your team wouldn’t have thought of if they felt like they had to think inside of the box.

Assess your organization’s resources. Find out if your company has the resources to implement your new ideas. If they don’t, you’ll have to either adjust your strategy or allocate more resources.

Develop a strategy balancing your resources and brainstorming ideas. Far-fetched ideas can grow into amazing opportunities but they can also bear great risk. Make sure to balance ideas with your strategic direction. 

Now, let’s dive into the most commonly used strategic frameworks.

8. SWOT analysis framework

One of the most popular strategic planning frameworks is the SWOT analysis . A SWOT analysis is a great first step in identifying areas of opportunity and risk—which can help you create a strategic plan that accounts for growth and prepares for threats.

SWOT stands for strengths, weaknesses, opportunities, and threats. Here’s an example:

9. OKRs framework

A big part of strategic planning is setting goals for your company. That’s where OKRs come into play. 

OKRs stand for objective and key results—this goal-setting framework helps your organization set and achieve goals. It provides a somewhat holistic approach that you can use to connect your team’s work to your organization’s big-picture goals.  When team members understand how their individual work contributes to the organization’s success, they tend to be more motivated and produce better results

10. Balanced scorecard (BSC) framework

The balanced scorecard is a popular strategic framework for businesses that want to take a more holistic approach rather than just focus on their financial performance. It was designed by David Norton and Robert Kaplan in the 1990s, it’s used by companies around the globe to: 

Communicate goals

Align their team’s daily work with their company’s strategy

Prioritize products, services, and projects

Monitor their progress toward their strategic goals

Your balanced scorecard will outline four main business perspectives:

Customers or clients , meaning their value, satisfaction, and/or retention

Financial , meaning your effectiveness in using resources and your financial performance

Internal process , meaning your business’s quality and efficiency

Organizational capacity , meaning your organizational culture, infrastructure and technology, and human resources

With the help of a strategy map, you can visualize and communicate how your company is creating value. A strategy map is a simple graphic that shows cause-and-effect connections between strategic objectives. 

The balanced scorecard framework is an amazing tool to use from outlining your mission, vision, and values all the way to implementing your strategic plan .

You can use an integration like Lucidchart to create strategy maps for your business in Asana.

11. Porter’s Five Forces framework

If you’re using the real-time strategic planning model, Porter’s Five Forces are a great framework to apply. You can use it to find out what your product’s or service’s competitive advantage is before entering the market.

Developed by Michael E. Porter , the framework outlines five forces you have to be aware of and monitor:

Threat of new industry entrants: Any new entry into the market results in increased pressure on prices and costs. 

Competition in the industry: The more competitors that exist, the more difficult it will be for you to create value in the market with your product or service.

Bargaining power of suppliers: Suppliers can wield more power if there are less alternatives for buyers or it’s expensive, time consuming, or difficult to switch to a different supplier.

Bargaining power of buyers: Buyers can wield more power if the same product or service is available elsewhere with little to no difference in quality.

Threat of substitutes: If another company already covers the market’s needs, you’ll have to create a better product or service or make it available for a lower price at the same quality in order to compete.

Remember, industry structures aren’t static. The more dynamic your strategic plan is, the better you’ll be able to compete in a market.

12. VRIO framework

The VRIO framework is another strategic planning tool designed to help you evaluate your competitive advantage. VRIO stands for value, rarity, imitability, and organization.

It’s a resource-based theory developed by Jay Barney. With this framework, you can study your firmed resources and find out whether or not your company can transform them into sustained competitive advantages. 

Firmed resources can be tangible (e.g., cash, tools, inventory, etc.) or intangible (e.g., copyrights, trademarks, organizational culture, etc.). Whether these resources will actually help your business once you enter the market depends on four qualities:

Valuable : Will this resource either increase your revenue or decrease your costs and thereby create value for your business?

Rare : Are the resources you’re using rare or can others use your resources as well and therefore easily provide the same product or service?

Inimitable : Are your resources either inimitable or non-substitutable? In other words, how unique and complex are your resources?

Organizational: Are you organized enough to use your resources in a way that captures their value, rarity, and inimitability?

It’s important that your resources check all the boxes above so you can ensure that you have sustained competitive advantage over others in the industry.

13. Theory of Constraints (TOC) framework

If the reason you’re currently in a strategic planning process is because you’re trying to mitigate risks or uncover issues that could hurt your business—this framework should be in your toolkit.

The theory of constraints (TOC) is a problem-solving framework that can help you identify limiting factors or bottlenecks preventing your organization from hitting OKRs or KPIs . 

Whether it’s a policy, market, or recourse constraint—you can apply the theory of constraints to solve potential problems, respond to issues, and empower your team to improve their work with the resources they have.

14. PEST/PESTLE analysis framework

The idea of the PEST analysis is similar to that of the SWOT analysis except that you’re focusing on external factors and solutions. It’s a great framework to combine with the scenario-based strategic planning model as it helps you define external factors connected to your business’s success.

PEST stands for political, economic, sociological, and technological factors. Depending on your business model, you may want to expand this framework to include legal and environmental factors as well (PESTLE). These are the most common factors you can include in a PESTLE analysis:

Political: Taxes, trade tariffs, conflicts

Economic: Interest and inflation rate, economic growth patterns, unemployment rate

Social: Demographics, education, media, health

Technological: Communication, information technology, research and development, patents

Legal: Regulatory bodies, environmental regulations, consumer protection

Environmental: Climate, geographical location, environmental offsets

15. Hoshin Kanri framework

Hoshin Kanri is a great tool to communicate and implement strategic goals. It’s a planning system that involves the entire organization in the strategic planning process. The term is Japanese and stands for “compass management” and is also known as policy management. 

This strategic planning framework is a top-down approach that starts with your leadership team defining long-term goals which are then aligned and communicated with every team member in the company. 

You should hold regular meetings to monitor progress and update the timeline to ensure that every teammate’s contributions are aligned with the overarching company goals.

Stick to your strategic goals

Whether you’re a small business just starting out or a nonprofit organization with decades of experience, strategic planning is a crucial step in your journey to success. 

If you’re looking for a tool that can help you and your team define, organize, and implement your strategic goals, Asana is here to help. Our goal-setting software allows you to connect all of your team members in one place, visualize progress, and stay on target.

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