1.5 Importance of Information System Planning

	Information system planning is the planning of information system for an organization. Assessing the information
	needs of an organization and defining the systems, databases and technologies that best satisfy those needs.

Effective management of an expensive and critical asset of the organization:

			For any company, information systems are an expensive asset. If the company invested the same
			amount of money in a building, each member of management would know the location, age, and
			purpose of the building.

			Many companies spend more money on their IS, yet business management may not know as much
			about their systems as they do about their building.

			Management must have a clear understanding of the IS environment to manage this asset as effectively
			as it would any other business asset.

		Improving communication and the relationship between the business and information system
		organization:

			The mutual understanding that business management and IS will gain working through this process will
			help establish a solid direction for IS that is in alignment with the business goals, and it will assist in the
			approval process necessary to get the new direction sold throughout the organization.

1.5 Importance of Information System Planning

Aligning the information system direction and priorities to the business direction and priorities:

			When all information system activities provide optimal support for the business goals, objectives, and
			strategies, then information system and the business are in alignment.

			True alignment implies that the IS strategy and the business strategy are developed concurrently rather
			than sequentially so that technology enables the business strategy.

			Alignment is not just "lip service." Companies should integrate IS with the business in a symbiotic
			relationship.

Operational excellence:

			A strong enterprise requirements planning (ERP) system is important to facilitate operational efficiency,
			including a strong forecasting and production planning system, to ensure that manufacturing meets and
			does not exceed demands.

			Customer service applications may also be important for efficiency. In these companies, IS organizations
			are often centralized to control costs and take advantage of specialized technical skills.

			Information systems processes need to be efficient, with focus on the operational processes such as
			problem management, change management, software distribution, performance, and availability
			management.

1.5 Importance of Information System Planning

		Identifying opportunities to use technology for a competitive advantage and increase the value to
		the business:

			Technology by itself does not provide a competitive advantage, but redefining or aligning with the
			business strategy and optimizing business processes with the use of technology can provide a
			competitive advantage.

			To identify opportunities to utilize technology for a competitive advantage, it is important to understand
			the business strategy, because the technical opportunities are different depending on the business
			strategy.

			For example, an operationally excellent company achieves a competitive advantage by using technology
			to cut costs from its processes, improving profit margins, and allowing the company to reduce prices.

Planning the flow of information and processes:

Information is a valuable resource, and it is important to maximize its value for the corporation.

			Planning and managing the flow of information throughout the organization can minimize labor, data
			redundancy, and inconsistency, in addition to increasing the quality and accuracy of the information.

1.5 Importance of Information System Planning

			When systems grow haphazardly over time, islands of information can develop, resulting in additional
			labor to maintain the disparate systems.

Efficiently and effectively allocating information systems resources:

			The focus of any organization must be to develop systems that
			provide the largest business benefit and provide a competitive advantage.

			Planning will direct the effective allocation of IS resources and minimize the costs of redesign, rework, or
			correction of errors. Information system must utilize both computing and human resources to obtain the
			most value for the corporation.

			Managers are expected from information system to reduce operating costs, generate money for the
			company, transform the business and build an enabling infrastructure.

Reducing the effort and money required throughout the life cycle of systems:

			When a company has decided one of its systems no longer serves its needs and needs to be replaced,
			the company may jump right into a vendor review of business application packages.

			Without proper planning, several steps of the traditional life cycle are inefficient and waste significant
			time and money.