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The Importance Of Strategic Planning Information Systems IT Essay

Introduction: What's SISP? Being in twenty-first century which revealed that the majority of the activities in any organization will use technology as their method to complete and assist their core business activities. It is because technology has a robust impact in producing things with lowest energy consuming, and provides them a cost benefit in competition. An information system is an important component in an organization which includes hardware, software, technique, people, and data. It gets the responsibility and activity to gather, acquire, store, process, retrieve, transmit, and disperse the information among the organization. Since the world is so competitive, the strategic level of management will spend money on information system to help a organization to attain competitive advantage. To ensure the effectiveness of investment in IS, it must incorporate the business's planning guidelines within Strategic Information System Planning (SISP) activities. Furthermore, one of the goals of implementing SISP is the business strategy of the organization should align with the IS investment. (Bozarth, 2006).

Strategic Information System Planning (SISP) is a planning how to guarantee the information system (IS) is strategically locates in the organization in order to perform their goals and gain competitive benefits. Remenji (1991) explained that, "SISP is the process of building a program for the execution and use of IS so that it'll optimize the effectiveness of the firm's information resources and use them to aid the targets of the whole enterprise as much as possible". SISP is the process whereby a business determines a collection of computer-based applications to make it to accomplish its business aims. It includes formulating IS targets, defining strategies and plans to accomplish them, and develop aspect plans to provide effects on strategies and plans. (Lederer & Sethi, 1998). SISP can help organizations to ascertain the main concern for information systems development in the business in term of performance, efficiency, yet others.

The reasons in doing SISP are to ensure that IS both matches and assists in the success of the business goals; to ensure the use of scare resources are maximized within a business; to exploit the benefits of changing technology; and also to take account of different viewpoints of business professionals and IT experts.

Source: Ward & Grififiths, (1997)

Figure 1

Figure 1 illustrates the entire aim of SISP which guide the IS resources to people areas offering the most important commercial benefits. Normally those who involves in the organization will involve in SISP to ensure an effective ISP will achieve. The staff involved are the Information System Analyst/Planners, Top Management commitment, and Stakeholders (employees, suppliers, sponsors, etc. ).

SISP is a crucial concern facing today's businesses since it can identify the most appropriate focuses on for computerization and make an enormous contribution to businesses as well as other organizations. Effective SISP can help organizations use information system to put into action business strategies and reach business goals. (Lederer & Sethi, 1998).

There are two methodologies in putting into action SISP such as impact methodologies and alignment methodologies. Impact methodologies consist of Value Chain Examination and Critical Success Factor, while alignment methodologies consist of Information Anatomist, Business System Planning, and Method/1. Those methodologies have their own benefits and drawbacks and each corporation has their own feasibility to choose the best method.

Source: Bhattacharjya, & Venable, 2001

Figure 2

Figure 2 illustrates the needs for IS planning in the business because without proper planning, the organization will find it difficult to really have the best information systems in the business hence causing the squandering of provision, money and time consuming.

A SISP consists of a technique in planning and taking care of the information and resources by using information system, including the use of functions and top features of IS. (Noor, Hasinda, Rafeah, & Hafizah, 2007). With a proper tactical IS planning, organizations can use IS more competitively, identify newer and higher payback IS applications, and better forecast IS source requirements.

Why does the organization need to apply SISP? The reasons are; identify important program to get; help company use its IS to carry out existing business strategy; help corporation defines business strategy; maximize earnings; increase efficiency; and other activities.

The Importance of Strategic Information System Planning

Identification of the Organization Current Position

There are several important strategies of applying SISP to the organization using appropriate SISP methodologies. It can be discussed in terms of the identification of the organization's current position. (Basu, Hartono, Lederer, & Sethi, 2002). SISP can assist the organization to recognize their current position either they are in critical situation that need IS immediately or not. The research of company situation will be done by strategic level management in terms of the situation occur, budget allocation, staff requirement, IS needed, yet others If the company need the IS immediately therefore they have got to determine ways to resolve the issues and at exactly the same time, the process will not bother key useful process in the organization. If they have enough budget allocation to truly have a new information system, they can carry on the process to own it either by outsourcing, develop in-house, or choose the information system and custom-made it to make suitability with the organization needed. Otherwise if indeed they recognize that the company still can use the prevailing information system because of their organization therefore they don't have to get for the new one. That's the reason SISP is importance nowadays in the organization since it can help the organization to learn and determine the priorities in certain situation that need attention.

Establishment of New Computer System Can Improve Strategic Position

Besides the info point out above, another important point of applying SISP in the organization is the establishement of new computer system that can increase the proper position. (Lederer & Sethi, 1988). Along with the support of SISP, the organization can find out the best computer systems for his or her business which ensure the proper position of the information system in the organization consecutively to support the organization's proper goals and targets. The players in the SISP play an important role to ensure the computer hardware and software need are appropriate for the info system that will be developed or modify. If the business does not carry out SISP therefore the process of adopting the info system as an instrument to perform the organization's tactical goal and goals will suspend and disturbing the chores work in the organization hence have an impact on the organizational performance. Moreover with the assisting of the SISP the business could identify the most crucial application system that they have to invest for the business. Given a good example in Sultanah Zanariah Catalogue (PSZ) at Universiti Teknologi Malaysia (UTM), that they are developing a new information system which is Reading Place. PSZ is an organization that helps the chore business with their parent corporation which is UTM by giving the best services for their users either UTM's external or internal community in term of support the information needed. Therefore PSZ are handling their resources aligned with the university's task activities which teaching, learning, consultancy, research, and publication. Knowing that their users need their services all over the place hence they may be creating a Reading Station. A couple of about fourty reading stop that placed round the university to support their users need indirectly to accomplish their aim which is to nurture a knowledge-based culture and towards quality mindset between UTM's interior and external community. Those reading train station must be structured in a proper manner therefore they opt to create a new information system called Reading Place (RS). They make a decision to build up that kind of information system when they conscious that particular IS could improve their strategic position in the organization hence complete their goals and the parent organization's goals. They will not develop that particular IS when there is no benefit in any way. The process considered by them in deciding if they need the new information system or not, will involve the SISP. By conducting SISP also, PSZ could decide and develop that new information system which compatible with their existing Integrated Library Management System (ILMS). They need to consider the machine requirement, suitable computers and software when they expanding their new information system and databases.

Improve Internal Coordination WITHIN AN Organization

Beside that, by putting into action SISP the business can improve internal coordination within an company. (Hartono, Lederer, Sethi, & Zhuang, 2003). SISP give topic to control and control inside coordination of group. It can coordinate their inside information resources so that the dissemination and availability of interior information resources become easy and wider. The info needed can be gain access to through all departments for the reason that particular organization. For example the Academic Affairs Division and Financial Office in higher educational organization can get the info and related data of the students from the College student Database since the database can be utilized for information and knowledge posting. This internal coordination gives gain to that group which it can cut cost, reduces data redundancy, and will increase effective management.

Ensure The Current And Future Trends INSIDE THE Organization

Apart from that, SISP is important to ensure the current and future improvements in the business which reflect the essential strategic thrust of the business. (Newkirk, Lederer, & Srinivasan, 2003). SISP can help the business to predict the near future development in the business which is parallel to the business mission and eye-sight. In essence SISP will be conducted to be able to align the IS plan with the organization's objectives and goals.

The other need for SISP is useful and effective management for information system resources. With the help of SISP the organization can take care of well their resources and create the alignment between business and IST activity, (Acumen Insights, 2009).

The Relationship between SISP and Repository Development and Implementation

SISP will help information system analyst and top management (person) to look for the best information system that might be used in the business for each division since SISP as medium for information system analyst and director or staffs in the business to have a discussion to be able to look for the preeminent and appropriate information system (IS) because of their organization. It is difficult to choose which information system is the best for the business, but by making use of SISP it could be done. It is because proper IS planning will included all the management levels in the organization that is operational level, tactical level, and proper level. End user is the most important aspect in planning information system for the organization because end-user is the main one who will use it. Normally information system analyst will executing SISP activities to investigate which is a good or suitable information system for the organization since it must take into consideration about the positioning of information system (IS) planning and organizational tactical goals and targets.

Database is one of the components that consist of in the information system, and it is required for the goal of knowledge writing, decision making, storing, controlling, retrieving and examining the info in the business. It is not a fairly easy process to develop a databases since there are several stages that the repository administrators have to check out. Process of developing the database will make the involvement of SISP process because they're interrelated. Repository development describes the procedure of database design and implementation. (Rob & Coronel, 2007). Data source development and implementation are take part in Database Life Cycle (DBLC). More explanations on DBLC and the partnership of the importance of SISP with the repository development and execution will discuss further.

Database Life Cycle (DBLC)

As explained by Rob & Coronel, (2007), The Repository Life Routine (DBLC) is the history of a data source in a information system, and phases that involves in DBLC is shown in Physique 3. DBLC is one of the procedures that contain in SDLC (System Development Life Cycle) since SDLC supply the big picture within which data source design and software development can map out and evaluated.

Source: Rob & Coronel (2007). Databases Systems: Design, Implementation, and Management.

Figure 3:

Database Life Pattern (DBLC)

SISP Help in Database First Study

The first period in DBLC is databases initial research which takes a database administrator to look at operation of the current system found in the organization. In such a phase, the databases administrator has to analyze the business environment, their information needed and functional requirement of the data source. Therefore, SISP is necessary to be able to complete this phase because during SISP the project team which comprise of information system analyst, databases administrator, top management, and person will discuss further aspect on what the business preferred from the IS and databases. Moreover by executing SISP the task team can identify the profile of computer-based applications for the organizations indirectly assist the business in executing its business plan and realizing business goals. (Hartono, Lederer, Sethi, & Zhuang, 2003). Preferably, this phase is occurring when the existing system found in the business is failed or the organization intends to develop a new one. If the existing system is failed, the designer has to determine why and how it failed. Process of deciding whether to create a new system or adjust the existing system also requires SISP process such as Value String Evaluation (VCA) which is composed in impact methodologies in SISP. In VCA, the SISP will be conducted by examining the need of each department in the organization towards information system, and the ones everything system could integrate with the other person in order to be a distinct segment for the business to get competitive edge. Diagram 1 show the procedure in deciding the adoption of information system in the organization. The chosen of designer is depending on complexity and opportunity of the data source environment which consider the business goals and objectives since the data source that will be developed or change must support the organization's goals and goals.

Assess Needs (what exactly are you doing now)

Fix or replace the existing system

Buy, Build or Outsource a new system?


Fix it (Select a Consultant)




Select an ASP

Select a consultant

Specify solution requirements

Select a vendor

Source: Data source planning guide. (2001). Compu Mentor. Retrieved from http://www. compumentor. org.

Diagram 1

SISP Help In Determine the Organizational Environment

The company situation represents the company procedures, its organizational framework, its objective, goals, and objectives, its functional need for each office, as well as others. In analyzing the business situation, it must fix the issues like "what is the organization's basic operating environment?" Which means design of the database must align with the organization's functioning environment in order to assist the chores work in the organization because the used of information system is to smoothen the daily and nature work. For instance, the database that'll be developed in library environment is quite differing from the repository which will be developed in medical center (health) environment. In collection environment it maybe matter of the library holdings; patron details - for the purpose of circulation process; sellers; cataloging; and other. While health environment maybe concern about the database that will be used in storing patients' record - like the medication that they have used before; doctors' particular details, treatment; and other that relates to this management. That is why the SISP is needed in the business to develop a fresh system or even to modify the prevailing system. For example if the organization took the business enterprise System Planning methodologies (BSP), therefore it could assist in interpreting the organization's operating environment because in this methodology, the company can identifies its business quest, objectives, functions, and determine its business process. By analyzing that business process hence could determine the info classes. All combination of data classes could assist database administrator to develop database for the business. (Lederer & Sethi, 1988). Thus it shows that SISP relates to the development of database in the business because the repository can't be develop if the type and tasks work in the organizations is anonymous. Furthermore the introduction of database must adhere to 5W such as "Who's the end consumer that use it"? (Supervisor? Clerk? Chief Executive Officer? while others), "What exactly are the functional requirement"? "How the database can operate"? and the ones question can be answer with the help of SISP.

SISP Support the business In Define Problem and Constraints

Other than that, defining problems and constraints in the organization also important in the data source initial review. (Bozarth, 2006). It is because the data source can be developed or improve when the issues and constraints are known. Therefore, the developer must accumulate and analyze those problems and constraints that arise in the company before creating a new data source or modifying the existing database or upgrading the current repository that already outdated. For example, the problems may arise from production director, marketing administrator, machine operator, and more. Different business and company will have different problems and constraints. Then the designer must collect all particular information (problems happen from various business unit) and probe carefully to be able to identify the issues in the company operations with a larger framework. The designer must find the complete answer since it is important to facilitate the development of the database which is concerned with operational human relationships among sections. For example how does the challenge of the marketing supervisor fit within the broader set of marketing department tasks works? This example also involved the SISP process since process of gathering that particular information (pull together and analyze the problems and constraints) could be achieved with the assist of SISP because SISP contains a technique in planning and handling the resources in the business including the use and request of information system.

SISP Is Significant in Defining Scope and Limitations in Developing the Database

More over the first stage in DBLC also require defining opportunity and boundaries in employing the development and creation of the data source. Scope and restrictions is a limit to the system. The scope means that to what extent the database design can runs in line with the operational requirement. (Rob & Coronel, 2007). Will the database encompass the entire departments in the organizations or specific to certain section? By determining the scope will help designer to determine the required data framework of the repository, range of entities, size of databases, and so on. In other hands, the boundaries are the external limit of the system, for example budget allocation, software and hardware that'll be used, time consuming in producing the database, etc. (Rob & Coronel, 2007). In a perfect world, the designer can pick which is the foremost software and hardware that can be used in utilizing and complete the repository system goals. It is because, in SDLC, selecting suitable hardware and software is important in order to produce the product quality system. Unfortunately, nowadays the technology altered rapidly, and those databases that will be designed are required to follow and comply with the existing hardware and software. Once again SISP is involve and related to this situation to be able to build up a repository since by applying SISP the organization could understand and ensures the positioning between organizational business goals and objectives with the information system (IS) activity. (Acumen Insights, 2009). SISP also assist in defining range and boundaries in database development because in executing SISP it'll entail the budget allocation also. Moreover, SISP activities will look at the business strategy of the organization, and variety of external factors such as setting of rivals and suppliers. (Rogerson & Fidler, 1994).

SISP Assist In Ensure the Repository Design Meet the PERSON Need

The second period in DBLC is database design. At this phase the artist must create the conceptual design, procedure for selection of DBMS, create the reasonable design and create the physical design. This stage is the most critical phase in DBLC phases and need high concern since it has to make certain that the ultimate product of the repository is meet the end user's needed and systems requirements. That is why the proper and detail research of planning must be achieved correctly and accurately especially in SISP periods. For the reason that if the design of the information system is not align with the organizational goals and objectives, it will lead to wasting of their time and budget allocation. Furthermore the investment in information systems is quite high especially when involve the introduction of database. Therefore at this time, it is required the attention of the info characteristics which is used in data source model later. Procedure for collecting the info characteristic will need SISP since by making use of SISP in could align the view of supervisor (top management) and databases administrator. Moreover, the aim of SISP is to boost communication between information system analyst and customer, to increase top management support, and better forecast resources need and allocates resources. (Lederer & Sethi, 1988). Shape 5 shows the several view of administrator (top management) and artist (eg: data source administrator), and the ones views could be negotiate by using IS and in order to put IS strategically in the organization therefore SISP is needed.

Source: Rob & Coronel, (2007). Data source Systems: Design, Execution, and Management.

Figure 5

Two views of data: business director and designer

SISP Support Conceptual Design in Databases Development

The first level in databases design is conceptual design. In this stage, there is a need for data analysis and necessity. In this task the creator should accumulate all particular data and information that is necessary in developing databases. How to collect all particular data needed? The answer is through the conducting of SISP by top management level since top management support is an integral determinant of SISP success (Kearns, 2004). They need to have the characteristics of the data elements which concentrate on the sort of information that the organization need; types of users; types of sources of information that'll be used; and constitutions of information. (Rob & Coronel, 2007). Information needs describes on the type of the info that are needed by the organization like the output final result that generates by the directories; eg: studies and queries. Kind of information users also need to determine by the custom made in order to ensure the database is efficiently use and effective in helping the business reach their targets and goals. To develop an accurate data model, the creator should have an intensive understanding about the info types that is used in that particular organization. Using this method the developer could defined the business rules from all the info gathered. A business rule is a short and precise narrative information of a policy, procedure, or principle within a particular organization's environment. When creator had recognized the business rules in the business and write it properly will help them to identify the entities, features, relationships, connection, cardinalities, and constraints. (Bozarth, 2006). Exemplory case of business rule within the business are; students can sign-up many training; a course can be registered by many students; students can take a program; an application can be taken by many students; a lecturer may coach many students; yet others. Preferably, business rules is derived from description of functions which is s report that provides exact, specific, up-to-date, and completely reviewed explanations of activities that define an organization's operating environment. The information of functions could be getting from company managers, policy makers, section professionals, and written records. (Compu Mentor, 2001). This example shows the lifestyle of the relationship between SISP and data source development since the value of utilizing SISP is to boost internal coordination within an organization. When the data element and characteristic are defined and gathered, it is easier for the designer to understand what kind of the data are needed in each team hence help them to make a good romance in Entity Relationship (ER) diagram later. In the event the developed database can't be linked with other section (eg: Financial Team and RECRUITING Office) it create a poor information showing among the business. Moreover the actions in SISP calls for defining the Information Structures (in BSP strategy) which will lead to data source design when the particular classes have established matching to business process. Then, the custom made or team prepares the system and subsystem for the databases according to data gathered. (Lederer & Sethi, 1988).

The second part of conceptual design is creating the entity romance modeling and normalization. 8 steps require in developing the conceptual model using ER diagram are;

Identify, review, and refine the business enterprise rules;

Identify the key entities;

Define the partnership among entities;

Define the qualities, primary secrets, and foreign tips for every of the entities;

Normalize the entities;

Complete the original ER diagram;

Have the main end users confirm the model in step 6 against the info, information, and control requirements;

Modify the ER diagram

(Sandifer, & Halle, 1991)

ER diagram is vital in order to ensure the database will work successfully. Wrong romantic relationship in the diagram can cause the repository cannot perform as desired by the business hence will make the information struggling to retrieve and show.

The second stage in data source design is the DBMS (Database Management System) software selection. DBMS software selection is important in order to have a smooth operation in producing the database later. Therefore a critical analysis and learning must be conducted by the custom to guarantee the best DBMS will be determined to develop the database. This situation also entails SISP process in order to guarantee the database which will be developed can improve the tactical position of Is the organization and also could gain competitive advantage. Methodology that can be used in SISP in order to guarantee the company could gain competitive advantage from the utilization of Information System is impact methodologies. (Pant, & Hsu, 1995).

Implementation and Loading

The third phase in DBLC is implementation and loading. As of this phase, the machine administrator can set up the picked DBMS software to be able to put into action the logical design and create the databases. When the directories have been created, then your data must be launching into the data source tables. Another requirements that must to taken into account in this stage is database performance, security of the databases, backup and restoration, data integrity, and company benchmarks. (Bozarth, 2006). Be aware that the database cannot be implemented if there is no proper planning in SISP. Agree with the Lederer and Sethi (1988) that SISP is the process for the business to planning properly in determines the best and suitable computer system and software for the business to support the business operations. At this time, database administrator also offers to get agreement from end user in order to run the database through the organization.

Therefore, to summarize the overall justification above, it shows that there are present a romance between SISP and databases development and implementation. There also can be found relationship between information system analyst or programmer and end-user in the business because the programmer have to gather all related data about the business from end-user to build up data source; and the end-user (include director, operational staffs, etc. ) need programmer to assist them in developing information system for the intended purpose of gain competitive edge for their firm. The medium found in conveying the theory from both different functions will need SISP.

Information Engineering and Database

Another romance among SISP and data source development and execution could be explained in term of SISP methodologies. A good example of SISP methodologies is Information Executive. Information Executive (IE) can be an integrated set of methodologies and products used to steer and develop information handling within an group. This methodology provides techniques for building venture, data and process models. (Pant & Hsu, 1995). Number 6 shows process involve in the IE. It could be assume that there are exist a romantic relationship between IE and DBLC.

Source: Pant & Hsu, 1995

Figure 6

The repository development such as repository design is involve in the reasonable level and physical level. While repository execution involve in platform level that your execution of the directories.


SISP is a process to establish the positioning between tactical organizational goals and aims with the IS plan. SISP is important to be able to ensure the firm reach what their need. Proper use of SISP may lead to success implementation of IS. SISP also important in expanding database and put into action it in the business because there is interrelated relationship among them specially when determine the business enterprise operations. As a result the particular firm could gain competitive benefit by doing SISP. Furthermore, SISP is an effective planning which suitable in our time that most of the tasks activities are doing by using information systems and systems. Without SISP, the organization cannot determine the best and suited information system for the organization since SISP gets the techniques or methodologies used. Also without SISP, information system analyst cannot create a appropriate system to the organizations. Therefore, SISP performs an important role to be able to keep, control, manage and increase output of services in the organization in these details era parallel with the development of the information systems recently.

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