(Note: This is a reply to Mr. G.'s thread in USeP-IC Web Forum - Assignment 2: What should be the nature of the relationship between the business plan and the IS plan?)
Planning is something very essential to anybody or any organization as it is a preparation of some things that need to be done. Encarta defines plan as a system for achieving objective. Thus, it is clearly stated that it is a method of doing something that is worked out in advance – a layout or just an outline of items to be included in certain tasks.
In any organization, planning is a basic tool in achieving its objectives and purposes. To earn success, people should have an effective business plan to be carried out. A business plan is any plan that works for a business to look ahead, allocate resources, focus on key points, and prepare for problems and opportunities(Bplans.com). Basically, any form of business and/or establishments has business plans that set out its future strategies and financial development.
Since we talk of business plan and IS plan here, let us dig deeper the importance of planning. To have a better view on this I would like to present to you some key points I have gathered through my researches about business planning.
First, planning is a critical component of good management and governance, as agreed by most non-profit leaders and experts. In organizing and controlling the affairs of a business, a manager has to set out a layout of his plans which will guide him in doing tasks concerning the achievement of his business goals. This will also help him govern his business colleagues and associates and direct the whole company to its program implementations. Without this solid foundation that serves as a backbone for the organization, no business will be able to have a clear perspective of its accomplishment. Planning guides the organization on the right track keeping it focused and remains relevant to the needs of its community, the reason why it exists. It provides a basis for measuring the results and progress of the business development. The key important thing is it makes the organization move into a systematic and orderly way.
Because planning serves as basis for assessment of progress, most organizations understand the need for annual program objectives. When managers and leaders organize objectives for yearly program implementations, they usually set out goals made strategically to help them set the priorities of the organization and organize work. They need work plans that are focused on organization’s programs which then include operating and systematic plans for the development of the company’s resources.
And with the fast-evolving changes in our environment in the present, plans should likewise be made every now and then if possible so to handle the rapid amendments and transformations of various company programs and objectives intended for longer terms. Some definite objectives could not be anymore applicable in a certain period of time or it may be difficult to implement now that several changes are influencing the present status of the organization. That is why planning is an important factor to be considered by most leaders since this will help them in making some methods which will aid in defining ways to manage changes brought by internal and external factors in the community.
Nevertheless, not only managers and leaders are liable in making plans in an organization. Since implementing the goals and objectives to achieve the vision and mission of the company involves each and every individual, all must also take part in setting the layout of the plans of the organization. In most cases, those of higher positions like CEOs and Board of Directors are the usual creators of planning the business components of the company and the lower rank staff like those in the supervising and control staff and employees are hands-on to the implementation of the plans. Some have certain office divisions and departments which handles these planning strategies. But in common cases, planning are done primarily by the administrative division.
Having realized the efficiency brought by technology to the corporate world, information technology has long been integrated into the core of every business through managing and supporting its operations. The information system department is not far from the organization’s most important areas. IS people are treated as critical resources of the company. Thus it is then very crucial for the company to take high attention on the heart of the organization which holds its vital information. We have talked and mentioned about the information system and its significance to the organization before. The purpose and use of information systems in the beginning, according to a reference that I have found, is targeted towards reducing manual labor and increasing efficiency and thus reducing cost of doing business. In this case, the information system processes the essential elements of the company’s day-to-day business.
For this reason, planning should include not only the external part of the business components of the company but also the internal structure of the organization as well as elements comprising the information systems. The information systems utilizes technology to better serve the organization, the community where it belongs, to perform its mission, to achieve its goals through propelling business, to boost the economy. There are a lot more reasons to keep driving the information systems of the company. Every organization as we all know is continually striving hard to improve its competitive position in the global and local marketplace. Thus most organizations invest in information technology as it plays a critical supporting role in reaching the organization’s goals.
If we are going to look down specifically on the components of an information system and have a breakdown of each task, we will see the importance that each significant element holds. All the hardware aspects of the organization are essential tools of every individual utilizing these resources necessary for running the business of an organization. Of course these equipments are investments of the company because these are the things that aid in processing large amounts of data and helps produce more results while lessening the effort of the labor. Naturally, hardware components would not run without the software elements of the system. Moreover, in most businesses, there are lots of proprietary and open source software alike being used by various companies that could further improve processing their information. Some of these are those especially made for certain tasks and programs made for working on particular jobs. Needless to say, an information system would not be without the most important ingredient – human resources. Of course, who would operate on the hardware and software components of the business without the people who are working for it? The workforce of the company is the critical resource of the organization. And as with the information system, these IT people are treated as highly significant beings because all the crucial information about the business of the company is being processed in the information system department which is manned by people who are hands-on to the functionalities of the system.
Moreover, since the information system involves many functions and procedures, it is therefore necessary to have an Information Systems Plan where the processing, classifying, arranging, and calculating the data input to yield the necessary output of the business information.
There are lots of cases where some departments especially the large divisions of the company have set unique strategies that certain objectives are made according from what their division or department are primarily tasked to work out. To be able to carry out the mission and vision of the company as a whole, each and every subdivisions of it should align with the business strategy. This is where the business plan and information systems plan connect.
The nature of relationship between the business plan and the information systems plan is relative to business and IT. An information system plan is a road map indicating direction of systems development. Normally, the information system is linked to the business plans of the organization. This is because aside from the business strategies being planned out by the heads of the company, there are also new hardware and software technologies that an organization should be aware of. The management should also look up to how these technologies will benefit the organization as a whole. Apart from that concerns such as how the company should acquire and manage the firm’s hardware and software assets, and other mediating factors affecting the information technology and the organization should also be considered.
An organization is a stable, formal structure. It takes resources from the environment and processes them into outputs. The information system is in charge of doing these procedures that is why the IS plan should not be far from the overall business plan of the company. Each will benefit the other. The organization takes information from the environment and the information system is in charge with the production process of these data which will be generated into outputs given back to the environment or the community needing the services of the organization. The information system department is just one formal organizational unit inside the organization which is responsible of the information systems. In developing a program that will be used in business transactions, for example, the programmers write the programs while system analysts translate business problems into solutions. The program that will be made will be used by end-users or representatives outside the IS department where systems are developed. This is one significant importance of the IS in the firm. Without intensive business plan and integrated IS plan, these programs would not be possibly directly implemented and gain beneficial results for the business. The kinds of information systems like the operational, knowledge, management, and strategic level serves the groups of operational managers, knowledge and data workers, middle managers, and senior managers. As we can see, these people are also the same persons setting out the company’s vision, mission, goals, and objectives. They make up the team in making the business plans of the organization. But here, in various functional areas like sales and marketing, manufacturing, finance, accounting, and human resources, all are also concerned with the information system levels. Just one proof that business plan should not isolate IS plan. In fact, the two should be well-made and integrated for the organization to grow and develop. If in some cases the organization plans to bring business to the global scope with its clients not only in the local or national but also worldwide, for sure it needs enough information and communication from and to various firms and business partners outside. This can be done by networking digital firms and virtual organizations to link people, assets, and ideas so to create and distribute products and services without being limited to physical locations.
The factors to consider when planning and/or maintaining an information system is nevertheless similar to planning and organizing the business. Both will be concerned of the organizational environment, its structure and operating procedures. Because the IS is considered as the heart of the organization, its plans should be aligned with the business plans of the firm. Likewise, the business plans should take more into account the needs and functionalities of the information system since it is the core of the company’s operations. The information system is designed to assist the kinds of tasks, decisions, and business processes. Thus, the impact of the IS will also affect the organization as a whole. Information system and business strategy is an effective partnership and to gain efficiency in business, these two should work well together through strategic planning.
In general, I can say that the use of information technology in business strategies helps achieve competitive advantage of the organization in the global marketplace. This is because IS encouraging the sharing of knowledge across business units enhances competency. Information systems achieve great efficiencies by automating parts of the business processes. When the manual system poses threats to security and reliability of data due to redundancy, the automated system can bring fast, accurate, more reliable outputs which could then be utilized not just by one functional area in the company but to all that is concerned with the information being processed. This is what we call cross-functional business processes which go beyond the boundary between sales, marketing, research and development, and many other. Just like in an order fulfillment process, the methods involved in sales include generating and submitting the order. It could be passed on to the accounting section where the credit is checked and approved to generate invoice. If the credit is approved, the manufacturing and production can now proceed in assembling and shipping the product. Without the information technology as a tool, most organizations would spend lots of costly efforts and resources if the said transaction will be done manually and/or in a decentralized system where in fact all can be done more efficiently and quickly if appropriate IS procedures will be followed. Within the business, there are a lot of functions having its uses of information systems. Just imagine if the information system plan is not in line with the business plan or vice versa. The shallow thought connecting these ideas is this: the information system comprises of the different systems in which every process of each business function is made. Needless to say, both IS and business strategies is correlated to each other – business plans carry out the external factors of the organization while IS plans have to do with the information system and the company’s core issues.
I would like to acknowledge the following resources I used as references of the above statement:
What is a Business Plan by Tim Berry in BPlans.com
The State of Tennessee 2008 Information Systems Statewide Plan by Bengel et. al
Administrative Information Systems Business Plan Exec. Summary by University of Iowa
Formulating an Information System Strategic Plan by BlastAsia Inc.
Commonwealth of Virginia Strategic Plan for Information Technology 2007-2011
Management Information Systems 8th edition by Laudon and Laudon materials:
Chapter 2 Information Systems in the Enterprise
Chapter 3 Information Systems, Organizations, Management, and Strategy
Chapter 12 Redesigning the organization with Information Systems
In any organization, planning is a basic tool in achieving its objectives and purposes. To earn success, people should have an effective business plan to be carried out. A business plan is any plan that works for a business to look ahead, allocate resources, focus on key points, and prepare for problems and opportunities(Bplans.com). Basically, any form of business and/or establishments has business plans that set out its future strategies and financial development.
Since we talk of business plan and IS plan here, let us dig deeper the importance of planning. To have a better view on this I would like to present to you some key points I have gathered through my researches about business planning.
First, planning is a critical component of good management and governance, as agreed by most non-profit leaders and experts. In organizing and controlling the affairs of a business, a manager has to set out a layout of his plans which will guide him in doing tasks concerning the achievement of his business goals. This will also help him govern his business colleagues and associates and direct the whole company to its program implementations. Without this solid foundation that serves as a backbone for the organization, no business will be able to have a clear perspective of its accomplishment. Planning guides the organization on the right track keeping it focused and remains relevant to the needs of its community, the reason why it exists. It provides a basis for measuring the results and progress of the business development. The key important thing is it makes the organization move into a systematic and orderly way.
Because planning serves as basis for assessment of progress, most organizations understand the need for annual program objectives. When managers and leaders organize objectives for yearly program implementations, they usually set out goals made strategically to help them set the priorities of the organization and organize work. They need work plans that are focused on organization’s programs which then include operating and systematic plans for the development of the company’s resources.
And with the fast-evolving changes in our environment in the present, plans should likewise be made every now and then if possible so to handle the rapid amendments and transformations of various company programs and objectives intended for longer terms. Some definite objectives could not be anymore applicable in a certain period of time or it may be difficult to implement now that several changes are influencing the present status of the organization. That is why planning is an important factor to be considered by most leaders since this will help them in making some methods which will aid in defining ways to manage changes brought by internal and external factors in the community.
Nevertheless, not only managers and leaders are liable in making plans in an organization. Since implementing the goals and objectives to achieve the vision and mission of the company involves each and every individual, all must also take part in setting the layout of the plans of the organization. In most cases, those of higher positions like CEOs and Board of Directors are the usual creators of planning the business components of the company and the lower rank staff like those in the supervising and control staff and employees are hands-on to the implementation of the plans. Some have certain office divisions and departments which handles these planning strategies. But in common cases, planning are done primarily by the administrative division.
Having realized the efficiency brought by technology to the corporate world, information technology has long been integrated into the core of every business through managing and supporting its operations. The information system department is not far from the organization’s most important areas. IS people are treated as critical resources of the company. Thus it is then very crucial for the company to take high attention on the heart of the organization which holds its vital information. We have talked and mentioned about the information system and its significance to the organization before. The purpose and use of information systems in the beginning, according to a reference that I have found, is targeted towards reducing manual labor and increasing efficiency and thus reducing cost of doing business. In this case, the information system processes the essential elements of the company’s day-to-day business.
For this reason, planning should include not only the external part of the business components of the company but also the internal structure of the organization as well as elements comprising the information systems. The information systems utilizes technology to better serve the organization, the community where it belongs, to perform its mission, to achieve its goals through propelling business, to boost the economy. There are a lot more reasons to keep driving the information systems of the company. Every organization as we all know is continually striving hard to improve its competitive position in the global and local marketplace. Thus most organizations invest in information technology as it plays a critical supporting role in reaching the organization’s goals.
If we are going to look down specifically on the components of an information system and have a breakdown of each task, we will see the importance that each significant element holds. All the hardware aspects of the organization are essential tools of every individual utilizing these resources necessary for running the business of an organization. Of course these equipments are investments of the company because these are the things that aid in processing large amounts of data and helps produce more results while lessening the effort of the labor. Naturally, hardware components would not run without the software elements of the system. Moreover, in most businesses, there are lots of proprietary and open source software alike being used by various companies that could further improve processing their information. Some of these are those especially made for certain tasks and programs made for working on particular jobs. Needless to say, an information system would not be without the most important ingredient – human resources. Of course, who would operate on the hardware and software components of the business without the people who are working for it? The workforce of the company is the critical resource of the organization. And as with the information system, these IT people are treated as highly significant beings because all the crucial information about the business of the company is being processed in the information system department which is manned by people who are hands-on to the functionalities of the system.
Moreover, since the information system involves many functions and procedures, it is therefore necessary to have an Information Systems Plan where the processing, classifying, arranging, and calculating the data input to yield the necessary output of the business information.
There are lots of cases where some departments especially the large divisions of the company have set unique strategies that certain objectives are made according from what their division or department are primarily tasked to work out. To be able to carry out the mission and vision of the company as a whole, each and every subdivisions of it should align with the business strategy. This is where the business plan and information systems plan connect.
The nature of relationship between the business plan and the information systems plan is relative to business and IT. An information system plan is a road map indicating direction of systems development. Normally, the information system is linked to the business plans of the organization. This is because aside from the business strategies being planned out by the heads of the company, there are also new hardware and software technologies that an organization should be aware of. The management should also look up to how these technologies will benefit the organization as a whole. Apart from that concerns such as how the company should acquire and manage the firm’s hardware and software assets, and other mediating factors affecting the information technology and the organization should also be considered.
An organization is a stable, formal structure. It takes resources from the environment and processes them into outputs. The information system is in charge of doing these procedures that is why the IS plan should not be far from the overall business plan of the company. Each will benefit the other. The organization takes information from the environment and the information system is in charge with the production process of these data which will be generated into outputs given back to the environment or the community needing the services of the organization. The information system department is just one formal organizational unit inside the organization which is responsible of the information systems. In developing a program that will be used in business transactions, for example, the programmers write the programs while system analysts translate business problems into solutions. The program that will be made will be used by end-users or representatives outside the IS department where systems are developed. This is one significant importance of the IS in the firm. Without intensive business plan and integrated IS plan, these programs would not be possibly directly implemented and gain beneficial results for the business. The kinds of information systems like the operational, knowledge, management, and strategic level serves the groups of operational managers, knowledge and data workers, middle managers, and senior managers. As we can see, these people are also the same persons setting out the company’s vision, mission, goals, and objectives. They make up the team in making the business plans of the organization. But here, in various functional areas like sales and marketing, manufacturing, finance, accounting, and human resources, all are also concerned with the information system levels. Just one proof that business plan should not isolate IS plan. In fact, the two should be well-made and integrated for the organization to grow and develop. If in some cases the organization plans to bring business to the global scope with its clients not only in the local or national but also worldwide, for sure it needs enough information and communication from and to various firms and business partners outside. This can be done by networking digital firms and virtual organizations to link people, assets, and ideas so to create and distribute products and services without being limited to physical locations.
The factors to consider when planning and/or maintaining an information system is nevertheless similar to planning and organizing the business. Both will be concerned of the organizational environment, its structure and operating procedures. Because the IS is considered as the heart of the organization, its plans should be aligned with the business plans of the firm. Likewise, the business plans should take more into account the needs and functionalities of the information system since it is the core of the company’s operations. The information system is designed to assist the kinds of tasks, decisions, and business processes. Thus, the impact of the IS will also affect the organization as a whole. Information system and business strategy is an effective partnership and to gain efficiency in business, these two should work well together through strategic planning.
In general, I can say that the use of information technology in business strategies helps achieve competitive advantage of the organization in the global marketplace. This is because IS encouraging the sharing of knowledge across business units enhances competency. Information systems achieve great efficiencies by automating parts of the business processes. When the manual system poses threats to security and reliability of data due to redundancy, the automated system can bring fast, accurate, more reliable outputs which could then be utilized not just by one functional area in the company but to all that is concerned with the information being processed. This is what we call cross-functional business processes which go beyond the boundary between sales, marketing, research and development, and many other. Just like in an order fulfillment process, the methods involved in sales include generating and submitting the order. It could be passed on to the accounting section where the credit is checked and approved to generate invoice. If the credit is approved, the manufacturing and production can now proceed in assembling and shipping the product. Without the information technology as a tool, most organizations would spend lots of costly efforts and resources if the said transaction will be done manually and/or in a decentralized system where in fact all can be done more efficiently and quickly if appropriate IS procedures will be followed. Within the business, there are a lot of functions having its uses of information systems. Just imagine if the information system plan is not in line with the business plan or vice versa. The shallow thought connecting these ideas is this: the information system comprises of the different systems in which every process of each business function is made. Needless to say, both IS and business strategies is correlated to each other – business plans carry out the external factors of the organization while IS plans have to do with the information system and the company’s core issues.
I would like to acknowledge the following resources I used as references of the above statement:
What is a Business Plan by Tim Berry in BPlans.com The State of Tennessee 2008 Information Systems Statewide Plan by Bengel et. al Administrative Information Systems Business Plan Exec. Summary by University of Iowa Formulating an Information System Strategic Plan by BlastAsia Inc. Commonwealth of Virginia Strategic Plan for Information Technology 2007-2011 Management Information Systems 8th edition by Laudon and Laudon materials:Chapter 2 Information Systems in the Enterprise
Chapter 3 Information Systems, Organizations, Management, and Strategy
Chapter 12 Redesigning the organization with Information Systems
1 comment:
this post saved my day.. big help for my assignment.. thanks God.. thank You!!!
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