The Importance Of Strategic Planning Information Systems Information Technology Essay

Introduction: What is SISP? Bing in 21st century which revealed that most of the activities in any organisation will utilize engineering as their method to carry through and help their nucleus concern activities. It is because engineering has a powerful consequence in bring forthing things with minimal energy consuming, and gives them a cost advantage in competition. An information system is an of import constituent in an organisation which consists of hardware, package, process, people, and informations. It has the duty and undertaking to garner, roll up, shop, procedure, retrieve, transmit, and administer the information among the organisation. Since the universe is so competitory, the strategic degree of direction will put in information system to assist a corporation to accomplish competitory advantage. To guarantee the effectivity of investing in IS, it has to integrate the company ‘s planning policies within Strategic Information System Planning ( SISP ) activities. In add-on, one of the aims of implementing SISP is the concern scheme of the organisation should aline with the IS investing. ( Bozarth, 2006 ) .

Strategic Information System Planning ( SISP ) is a planning on how to guarantee the information system ( IS ) is strategically locates in the organisation in order to carry through their ends and derive competitory advantage. Remenji ( 1991 ) stated that, “ SISP is the procedure of set uping a programme for the execution and usage of IS in such a manner that it will optimise the effectivity of the house ‘s information resources and utilize them to back up the aims of the whole endeavor every bit much as possible ” . SISP is the procedure whereby an organisation determines a portfolio of computer-based applications to assist it to accomplish its concern aims. It includes formulating IS aims, specifying schemes and policies to accomplish them, and develop item programs to give effects on schemes and policies. ( Lederer & A ; Sethi, 1998 ) . SISP can assist organisations to find the chief concern for information systems development in the organisation in term of effectivity, efficiency, and others.

The grounds in carry oning SISP are to guarantee that IS both complements and aids in the accomplishment of the concern ends ; to guarantee the usage of scare resources are maximized within a concern ; to work the benefits of altering engineering ; and to take history of the different point of views of concern professionals and IT professionals.

Beginning: Ward & A ; Grififiths, ( 1997 )

Figure 1

Figure 1 illustrates the overall purpose of SISP which direct the IS resources to those countries offering the most of import corporate benefits. Normally those who involves in the organisation will affect in SISP to guarantee a successful ISP will accomplish. The forces involved are the Information System Analyst/Planners, Top Management committedness, and Stakeholders ( employees, providers, patrons, etc. ) .

SISP is a critical issue confronting today ‘s concerns because it can place the most appropriate marks for cybernation and do a immense part to concerns every bit good as other organisations. Effective SISP can assist organisations utilize information system to implement concern schemes and range concern ends. ( Lederer & A ; Sethi, 1998 ) .

There are two methodological analysiss in implementing SISP such as impact methodological analysiss and alignment methodological analysiss. Impact methodological analysiss consist of Value Chain Analysis and Critical Success Factor, where as alliance methodological analysiss consist of Information Engineering, Business System Planning, and Method/1. Those methodological analysiss have their ain advantages and disadvantages and each organisation has their ain feasibleness to take the best method.

Beginning: Bhattacharjya, & A ; Venable, 2001

Figure 2

Figure 2 illustrates the demands for IS be aftering in the organisation because without proper planning, the organisation will happen it hard to hold the best information systems in the organisation hence doing the cachexia of proviso, money and clip consuming.

A SISP consists of a scheme in planning and pull offing the information and resources by utilizing information system, including the usage of maps and characteristics of IS. ( Noor, Hasinda, Rafeah, & A ; Hafizah, 2007 ) .With a proper strategic IS planning, organisations can utilize IS more competitively, place newer and higher payback IS applications, and better prognosis IS resource demands.

Why does the organisation demand to implement SISP? The grounds are ; place of import application to put ; assist organisation utilize its IS to transport out bing concern scheme ; help organisation defines concern scheme ; maximise net income ; increase efficiency ; and other activities.

The Importance of Strategic Information System Planning

Designation of the Organization Current Position

There are several of import schemes of using SISP to the organisation utilizing appropriate SISP methodological analysiss. It can be discussed in footings of the designation of the organisation ‘s current place. ( Basu, Hartono, Lederer, & A ; Sethi, 2002 ) . SISP can help the organisation to place their current place either they are in critical state of affairs that demand IS instantly or non. The analysis of company state of affairs will be done by strategic degree direction in footings of the job arise, budget allotment, staff demand, IS needed, and others If the company need the IS instantly therefore they have to happen out ways to work out the jobs and at the same clip, the procedure does non trouble oneself cardinal functional procedure in the organisation. If they have adequate budget allotment to hold a new information system, they can transport on the procedure to hold it either by outsourcing, develop in-house, or purchase the information system and customized it to do suitableness with the organisation needed. Otherwise if they recognize that the company still can utilize the bing information system for their organisation therefore they do non hold to put for the new 1. That is why SISP is importance presents in the organisation since it can assist the organisation to happen out and find the precedences in certain state of affairs that need attending.

Constitution of New Computer System Can Better Strategic Position

Besides the information reference above, another of import point of implementing SISP in the organisation is the establishement of new computing machine system that can better the strategic place. ( Lederer & A ; Sethi, 1988 ) . With the support of SISP, the organisation can happen out the suited computing machine systems for their organisation which guarantee the strategic place of the information system in the organisation consecutively to back up the organisation ‘s strategic ends and aims. The participants in the SISP play an of import function to guarantee the computing machine hardware and package demand are compatible with the information system that will be developed or modify. If the company does non carry on SISP therefore the procedure of following the information system as a tool to carry through the organisation ‘s strategic end and aims will suspend and upseting the jobs work in the organisation hence affect the organisational public presentation. Furthermore with the assisting of the SISP the organisation could place the most of import application system that they need to put for the organisation. Given an illustration in Sultanah Zanariah Library ( PSZ ) at Universiti Teknologi Malaysia ( UTM ) , which they are developing a new information system which is Reading Station. PSZ is an organisation that supports the job concern to their parent organisation which is UTM by supplying the best services for their users either UTM ‘s internal or external community in term of support the information needed. Therefore PSZ are pull offing their resources aligned with the university ‘s job activities which learning, larning, consultancy, research, and publication. Recognizing that their users need their services everyplace therefore they are developing a Reading Station. There are about fourty reading station that placed around the university to back up their users need indirectly to carry through their aim which is to foster a knowledge-based civilization and towards excellence mindset amongst UTM ‘s internal and external community. Those reading station must be organized in a proper mode therefore they decide to develop a new information system named Reading Station ( RS ) . They make a determination to develop that sort of information system when they conscious that peculiar IS could better their strategic place in the organisation therefore carry through their ends and the parent organisation ‘s ends. They will non develop that peculiar IS if there is no benefit at all. The procedure taken by them in make up one’s minding whether they need the new information system or non, will affect the SISP. By carry oning SISP besides, PSZ could make up one’s mind and develop that new information system which compatible with their bing Integrated Library Management System ( ILMS ) . They have to see the system demand, suited computing machine hardware and package when they developing their new information system and databases.

Improve Internal Coordination In An Organization

Beside that, by implementing SISP the organisation can better internal coordination in an organisation. ( Hartono, Lederer, Sethi, & A ; Zhuang, 2003 ) . SISP give niche to pull off and command internal coordination of organisation. It can organize their internal information resources so that the airing and handiness of internal information resources become smooth and wider. The information needed can be entree through all sections in that peculiar organisation. For case the Academic Affairs Department and Financial Department in higher educational establishment can acquire the information and related informations of the pupils from the Student Database since the database can be used for information and cognition sharing. This internal coordination gives advantage to that organisation which it can cut cost, reduces information redundancy, and will increase effectual direction.

Guarantee The Current And Future Developments In The Organization

Apart from that, SISP is of import to guarantee the current and future developments in the organisation which reflect the basic strategic push of the concern. ( Newkirk, Lederer, & A ; Srinivasan, 2003 ) . SISP can assist the organisation to foretell the hereafter development in the organisation which is parallel to the organisation mission and vision. Basically SISP will be conducted in order to aline the IS program with the organisation ‘s aims and ends.

The other importance of SISP is efficient and effectual direction for information system resources. With the aid of SISP the organisation can pull off good their resources and make the alliance between concern and IST activity, ( Acumen Insights, 2009 ) .

The Relationship between SISP and Database Development and Implementation

SISP will help information system analyst and top direction ( stop user ) to find the best information system that could be used in the organisation for each section since SISP as medium for information system analyst and director or staffs in the organisation to hold a treatment in order to find the preeminent and suited information system ( IS ) for their organisation. It is hard to make up one’s mind which information system is the best for the organisation, but with the aid of SISP it could be done. It is because strategic IS be aftering will involved all the direction degrees in the organisation that is operational degree, tactical degree, and strategic degree. End user is the most of import facet in fixing information system for the organisation because end-user is the 1 who will utilize it. Normally information system analyst will carry oning SISP activities to analyse which is the best or suited information system for the organisation since it must take into consideration about the alliance of information system ( IS ) planning and organisational strategic ends and aims.

Database is one of the constituents that comprise in the information system, and it is required for the intent of cognition sharing, determination devising, hive awaying, managing, recovering and analysing the information in the organisation. It is non an easy procedure to develop a database since there are several stages that the database decision makers have to follow. Procedure of developing the database will do the engagement of SISP procedure because they are interrelated. Database development describes the procedure of database design and execution. ( Rob & A ; Coronel, 2007 ) . Database development and execution are engage in Database Life Cycle ( DBLC ) . More accounts on DBLC and the relationship of the importance of SISP with the database development and execution will discourse further.

Database Life Cycle ( DBLC )

As stated by Rob & A ; Coronel, ( 2007 ) , The Database Life Cycle ( DBLC ) is the history of a database within an information system, and phases that involves in DBLC is shown in Figure 3. DBLC is one of the procedures that contain in SDLC ( System Development Life Cycle ) since SDLC provide the large image within which database design and application development is able to map out and evaluated.

Beginning: Rob & A ; Coronel ( 2007 ) . Database Systems: Design, Implementation, and Management.

Figure 3:

Database Life Cycle ( DBLC )

SISP Help in Database Initial Study

The first stage in DBLC is database initial survey which requires a database decision maker to analyze operation of the current system used in the organisation. In this stage, the database decision maker has to analyse the organisation environment, their information needed and functional demand for the database. Therefore, SISP is needed in order to finish this stage because during SISP the undertaking squad which comprise of information system analyst, database decision maker, top direction, and end user will discourse farther item on what the organisation preferred from the IS and database. Furthermore by carry oning SISP the undertaking squad can place the portfolio of computer-based applications for the organisations indirectly assist the organisation in put to deathing its concern program and recognizing concern ends. ( Hartono, Lederer, Sethi, & A ; Zhuang, 2003 ) . Ideally, this stage is happening when the current system used in the organisation is failed or the organisation intends to develop a new one. If the current system is failed, the interior decorator has to find why and how it failed. Process of make up one’s minding whether to construct a new system or modify the bing system besides involves SISP procedure such as Value Chain Analysis ( VCA ) which consists in impact methodological analysiss in SISP. In VCA, the SISP will be conducted by analysing the demand of each section in the organisation towards information system, and those all the information system could incorporate with each other in order to be a niche for the organisation to derive competitory advantage. Diagram 1 show the procedure in make up one’s minding the acceptance of information system in the organisation. The chosen of interior decorator is depending on the complexness and range of the database environment which consider the organisation ends and aims since the database that will be developed or modify must back up the organisation ‘s ends and aims.

Assess Needs ( what are you making now )

Fix or replace the current system

Buy, Build or Outsource a new system?


Fix it ( Choose a Consultant )




Select an ASP

Choose a adviser

Specify solution demands

Choose a seller

Beginning: Database be aftering usher. ( 2001 ) . Compu Mentor. Retrieved from hypertext transfer protocol: //

Diagram 1

SISP Help In Determine the Organizational Environment

The company state of affairs describes the company operations, its organisational construction, its mission, ends, and aims, its functional demand for each section, and others. In analysing the company state of affairs, it must decide the issues like “ what is the organisation ‘s general operating environment? ” Therefore the design of the database must aline with the organisation ‘s operating environment in order to help the jobs work in the organisation since the used of information system is to smoothen the day-to-day and nature work. For case, the database that will be developed in library environment is rather differing from the database that will be developed in infirmary ( wellness ) environment. In library environment it possibly concern of the library retentions ; frequenter inside informations – for the intent of circulation procedure ; sellers ; cataloging ; and other. While wellness environment possibly concern about the database that will be used in hive awaying patients ‘ history – including the medicine that they have taken earlier ; physicians ‘ specific inside informations, intervention ; and other that is related to this direction. That is why the SISP is needed in the organisation to develop a new system or to modify the bing system. For case if the organisation took the Business System Planning methodological analysiss ( BSP ) , therefore it could help in construing the organisation ‘s operating environment because during this methodological analysis, the house can acknowledge its concern mission, aims, maps, and find its concern procedure. By analysing that concern procedure hence could find the information categories. All combination of informations categories could help database decision maker to develop database for the organisation. ( Lederer & A ; Sethi, 1988 ) . Thus it shows that SISP is related to the development of database in the organisation because the database can non be develop if the nature and jobs work in the organisations is unknown. Furthermore the development of database must besides follow with 5W such as “ Who is the terminal user that will utilize it ” ? ( Manager? Clerk? Chief Executive Officer? and others ) , “ What are the functional demand ” ? “ How the database can run ” ? and those inquiry can be answer with the aid of SISP.

SISP Support the Organization In Define Problem and Constraints

Other than that, specifying jobs and restraints in the organisation besides of import in the database initial survey. ( Bozarth, 2006 ) . It is because the database can be developed or modify when the jobs and restraints are known. Therefore, the interior decorator must roll up and analyse those jobs and restraints that arise in the company before developing a new database or modifying the bing database or replacing the current database that already outdated. For case, the jobs may originate from production director, selling director, machine operator, and others. Different organisation and company will hold different jobs and restraints. Then the interior decorator must garner all peculiar information ( jobs arise from assorted concern unit ) and probe carefully in order to place the jobs in the company operations with a larger model. The interior decorator must happen the precise reply since it is of import to ease the development of the database which is concerned with operational relationships among concern units. For illustration how does the job of the selling director tantrum within the broader set of selling section chores works? This state of affairs besides involved the SISP procedure since procedure of garnering that peculiar information ( collect and analyse the jobs and restraints ) could be done with the aid of SISP because SISP consists of a scheme in planning and pull offing the resources in the organisation including the usage and application of information system.

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

More over the first stage in DBLC besides involve specifying range and boundaries in implementing the development and creative activity of the database. Scope and boundaries is a bound to the system. The range means that to what extent the database design can operates harmonizing to the operational demand. ( Rob & A ; Coronel, 2007 ) . Will the database encompass the full sections in the organisations or specific to certain section? By specifying the range will help interior decorator to find the needed information construction of the database, figure of entities, size of database, and so on. In other manus, the boundaries are the external bound of the system, for case budget allotment, package and hardware that will be used, clip devouring in developing the database, and so on. ( Rob & A ; Coronel, 2007 ) . In an ideal universe, the interior decorator can take which is the best package and hardware that can be used in implementing and carry through the database system ends. It is because, in SDLC, the choice of suited hardware and package is of import in order to bring forth the quality system. Unfortunately, nowadays the engineering changed quickly, and those databases that will be designed must follow and follow with the bing hardware and package. Once more SISP is involve and related with this state of affairs in order to develop a database since by using SISP the organisation could understand and ensures the alliance between organisational concern ends and aims with the information system ( IS ) activity. ( Acumen Insights, 2009 ) . SISP besides help in specifying range and boundaries in database development because in carry oning SISP it will affect the budget allotment besides. Furthermore, SISP activities will take into history the concern scheme of the corporation, and assortment of external factors such as placement of rivals and providers. ( Rogerson & A ; Fidler, 1994 ) .

SISP Assist In Ensure the Database Design Meet the End User Need

The 2nd stage in DBLC is database design. At this stage the interior decorator must make the conceptual design, procedure of choice of DBMS, create the logical design and make the physical design. This stage is the most critical stage in DBLC stages and need high concern because it has to do certain that the concluding merchandise of the database is meet the terminal user ‘s needed and systems demands. That is why the proper and item analysis of planning must be done right and accurately particularly in SISP phases. It is because if the design of the information system is non align with the organisational ends and aims, it will ensue in cachexia of clip and budget allotment. Furthermore the investing in information systems is rather high particularly when affect the development of database. Therefore at this phase, it is required the concentration of the information features which will be used in database theoretical account subsequently. Procedure of roll uping the information feature will necessitate SISP since with the aid of SISP in could aline the position of director ( top direction ) and database decision maker. Furthermore, the aim of SISP is to better communicating between information system analyst and user, to increase top direction support, and better prognosis resources demand and allocates resources. ( Lederer & A ; Sethi, 1988 ) . Figure 5 shows the different position of director ( top direction ) and interior decorator ( eg: database decision maker ) , and those positions could be settle by utilizing IS and in order to set IS strategically in the organisation hence SISP is needed.

Beginning: Rob & A ; Coronel, ( 2007 ) . Database Systems: Design, Implementation, and Management.

Figure 5

Two positions of informations: concern director and interior decorator

SISP Support Conceptual Design in Database Development

The first phase in database design is conceptual design. In this phase, there is a demand for informations analysis and demand. In this measure the interior decorator should garner all peculiar informations and information that is needed in developing databases. How to garner all peculiar informations needed? The reply is through the conducting of SISP by top direction degree since top direction support is a cardinal determiner of SISP success ( Kearns, 2004 ) . They have to obtain the features of the information elements which focus on the type of information that the organisation demand ; types of users ; types of beginnings of information that will be used ; and fundamental laws of information. ( Rob & A ; Coronel, 2007 ) . Information needs describes on the type of the information that are needed by the organisation such as the end product consequence that generates by the databases ; eg: studies and questions. Type of information users besides have to find by the interior decorator in order to guarantee the database is successfully use and effectual in assisting the organisation reach their aims and ends. To develop an accurate informations theoretical account, the interior decorator should hold a thorough apprehension about the informations types that is used in that peculiar organisation. By making this the interior decorator could specify the concern regulations from all the information gathered. A concern regulation is a brief and precise narrative description of a policy, process, or rule within a specific organisation ‘s environment. When interior decorator had recognized the concern regulations in the organisation and compose it decently will help them to specify the entities, properties, relationships, connectivity, cardinalities, and restraints. ( Bozarth, 2006 ) . Example of concern regulation within the organisation are ; a pupil can register many classs ; a class can be registered by many pupils ; a pupil can take a plan ; a plan can be taken by many pupils ; a lector may learn many pupils ; and others. Preferably, concern regulations is derived from description of operations which is s papers that provides precise, detailed, up-to-date, and exhaustively reviewed descriptions of activities that define an organisation ‘s operating environment. The description of operations could be acquiring from company directors, policy shapers, section directors, and written certification. ( Compu Mentor, 2001 ) . This state of affairs shows the being of the relationship between SISP and database development since the importance of implementing SISP is to better internal coordination in an organisation. When the information component and characteristic are defined and gathered, it is easier for the interior decorator to understand what sort of the informations are needed in each section hence help them to bring forth a good relationship in Entity Relationship ( ER ) diagram subsequently. If the developed database can non be linked with other section ( eg: Financial Department and Human Resources Department ) it create a hapless information sharing among the organisation. Furthermore the activities in SISP will affect specifying the Information Architecture ( in BSP methodological analysis ) which will take to database design when the peculiar categories have determined harmonizing to concern procedure. Then, the interior decorator or squad prepares the system and subsystem for the databases harmonizing to informations gathered. ( Lederer & A ; Sethi, 1988 ) .

The 2nd measure in conceptual design is making the entity relationship mold and standardization. 8 stairss involve in developing the conceptual theoretical account utilizing ER diagram are ;

Identify, analyze, and polish the concern regulations ;

Identify the chief entities ;

Specify the relationship among entities ;

Specify the properties, primary keys, and foreign keys for each of the entities ;

Normalize the entities ;

Complete the initial ER diagram ;

Have the chief terminal users verify the theoretical account in measure 6 against the information, information, and processing demands ;

Modify the ER diagram

( Sandifer, & A ; Halle, 1991 )

ER diagram is really of import in order to guarantee the database will work successfully. Incorrect relationship in the diagram can do the database can non execute as desired by the organisation hence could do the information unable to recover and portion.

The 2nd phase in database design is the DBMS ( Database Management System ) package choice. DBMS package choice is of import in order to hold a smooth operation in developing the database subsequently. Therefore a critical analysis and analyzing must be conducted by the interior decorator to guarantee the best Database management system will be selected to develop the database. This state of affairs besides involves SISP procedure in order to guarantee the database that will be developed can better the strategic place of IS in the organisation and besides could derive competitory advantage. Methodology that can be used in SISP in order to guarantee the organisation could derive competitory advantage from the usage of Information System is impact methodological analysiss. ( Pant, & A ; Hsu, 1995 ) .

Execution and Loading

The 3rd stage in DBLC is execution and burden. At this stage, the system decision maker can put in the selected DBMS package in order to implement the logical design and make the databases. When the databases have been created, so the informations must be lading into the database tables. Another standard that must to taken into consideration in this stage is database public presentation, security of the database, backup and recovery, informations unity, and company criterions. ( Bozarth, 2006 ) . Bear in head that the database can non be implemented if there is no proper planning in SISP. Agree with the Lederer and Sethi ( 1988 ) that SISP is the procedure for the organisation to be aftering decently in determines the best and suited computing machine system and application for the organisation to back up the concern operations. At this phase, database decision maker besides has to acquire understanding from terminal user in order to run the database through the organisation.

Therefore, to reason the overall account above, it shows that there exist a relationship between SISP and database development and execution. There besides exist correlativity between information system analyst or coder and end-user in the organisation because the coder have to garner all related informations about the organisation from end-user to develop database ; and the end-user ( include director, operational staffs, etc. ) need programmer to help them in developing information system for the intent of addition competitory advantage for their organisation. The medium used in conveying the thought from both different parties will necessitate SISP.

Information Engineering and Database

Another relationship among SISP and database development and execution could be explained in term of SISP methodological analysiss. An illustration of SISP methodological analysiss is Information Engineering. Information Engineering ( IE ) is an incorporate set of methodological analysiss and merchandises used to steer and develop information processing within an organisation. This methodological analysis provides techniques for edifice endeavor, informations and procedure theoretical accounts. ( Pant & A ; Hsu, 1995 ) . Figure 6 shows procedure involve in the IE. It can be assume that there are be a relationship between IE and DBLC.

Beginning: Pant & A ; Hsu, 1995

Figure 6

The database development which include database design is involve in the logical degree and physical degree. While database execution involve in platform degree which the execution of the databases.


SISP is a procedure to set up the alliance between strategic organisational ends and aims with the IS program. SISP is of import in order to guarantee the organisation make what their demand. Proper usage of SISP may take to success execution of IS. SISP besides of import in developing database and implement it in the organisation because there is interconnected relationship among them particularly when find the concern operations. As a consequence the peculiar organisation could derive competitory advantage by carry oning SISP. Furthermore, SISP is a proper planning which suited in our clip that most of the jobs activities are carry oning by utilizing information engineerings and systems. Without SISP, the organisation can non find the best and suited information system for the organisation since SISP has the attacks or methodological analysiss used. Besides without SISP, information system analyst can non develop a suited system to the organisations. Therefore, SISP plays an of import function in order to keep, control, manage and increase productiveness of services in the organisation in this information age analogue with the development of the information systems late.