STRATEGIC PLANNING FOR INFORMATION SYSTEMS

Strategic Planning for Information Systems

Strategic Planning for Information Systems

1. Introduction

Strategic information systems planning (SISP) is essential for organizations to succeed in today's highly competitive global marketplace. However, observers have suggested that both too little and too much SISP can be detrimental ([Premkumar and King, 1991, Raghunathan and Raghunathan, 1991, Earl, 1993 and Sambamurthy et al., 1994]).

Too little SISP would result in insufficient understanding of the external competitive environment, the internal organizational environment, and emerging information technology ([Premkumar and King, 1991 and Raghunathan and Raghunathan, 1991]). This could produce ill-conceived strategic alternatives and poor selections from them. The investments proposed in the strategic information systems plan would hence be inadequate to enable the organization to meet its impending challenges. Anything implemented would more likely fail to serve the organization as well as it should.

Too much SISP would require too much time. Changes in the competitive environment, the internal organizational environment, and emerging information technology would render the plan obsolete before it could be implemented ([Sambamurthy et al., 1994 and Min et al., 1999]). Again, the plan would be inadequate to enable the organization to meet its forthcoming challenges.

This research examines the relationship between comprehensiveness and effectiveness in five SISP planning phases. A nonlinear, inverted-U relationship between the constructs would suggest the existence of an optimal level of SISP practice. Fig. 1 shows this relationship. The purpose of the current study was thus to test whether such a level exists. The next two sections elucidate the comprehensiveness and effectiveness constructs, and provide the rationale for the basis of their measurement in the study.

Fig. 1. SISP success and comprehensiveness.

2. The comprehensiveness of the SISP process

SISP is the process whereby an organization determines a portfolio of computer-based applications to help it achieve its business objectives ([Lederer and Sethi, 1988]). It is an intricate and complex group of specific, interrelated tasks or activities. Because it can be viewed as a set of defined activities, the current research examines its extent practiced—that is, its comprehensiveness—in terms of such activities. Prior research has often considered its comprehensiveness, but rarely by decomposing it into its specific planning activities. It has, instead, usually studied SISP in terms of its broad characteristics or general behaviors.

Comprehensiveness in such planning as SISP has been formally defined as 'the extent to which an organization attempts to be exhaustive or inclusive in making and integrating strategic decisions' ([Fredrickson and Mitchell, 1984], p. 402). Seven broad behaviors illustrate comprehensiveness in strategic planning in general: (1) the thorough canvassing of many alternatives; (2) the surveying of a full range of objectives; (3) the careful weighing of what is known about the costs and risks of each possible outcome; (4) the intensive searching for new information relevant to alternatives; (5) the considering of any new information or expert judgment; (6) the reexamining of the consequences of all known alternatives before making a final choice; and (7) the making of detailed provisions for implementing the chosen course of action ( [Janis and Mann, ...