INFORMATION SYSTEM STRATEGY-STAGE MODEL OF INFORMATION SYSTEM PLANNING

STAGE MODEL OF INFORMATION SYSTEM PLANNING

1. Strategic planning:
a. Derivation from the organizational plan.
b. Strategic fit with organizational culture.
c. Strategy set transformation.
2. Information requirement analysis:
a. Define underlying organizational requirements.
b. Develop sub system matrix.
c. Define and evaluate information requirements for organizational sub-systems.
3. Resource allocation:
a. Return on investment
b. Charge out

c. Portfolio approach
d. Steering committees.
4. Project planning
a. milestones
b. Critical path method
c. Gantt chart

To sum up, The Information Systems Planning is a key process for the success and competitiveness of companies in present business environment. Plans explain the structure and content of information system and the way it is developed. The major aim of Information Systems Planning is to recognize the stages of IS planning in the organization.

7.2 INFORMATION SYSTEMS STRATEGY VERSUS MICHAEL PORTER THEORY
It is possible to use information systems so as to achieve the required strategic goals and overcome the business forces according to Michael porter’s theory as follows:
1. Threat of new entrants
This means that a company is always under threat of new companies venturing in the same market for goods or services.
Profitable markets that yield high returns will attract new entrant firms and this eventually will decrease profitability for all firms in the industry meaning that the only way out is for the incumbent/current firm to try and block entry of new firms.
Information systems and ICT tools can be applied to overcome such pressure by helping a company to link customer systems with the company systems thereby locking-in customers and also helping the company to venture cross-border markets through ecommerce.

2. Threat of substitute goods.

This means that a company is always under threat from alternative goods or services offered in the same market such that customers may shift attention to such substitute’s i.e. The existence of products in the realm/territory of a firm’s popular product increases the chance of customers to switch to such alternative product.
Information systems and ICT tools can be applied to overcome such pressure by helping a company to make its products differentiated from other products through presentable packaging and high-quality production through CAD or 3D printing

3. Bargaining power of customers / buyers
This means that customers will always want to bargain so as to buy at a lower price thereby threatening the company profit margin.
Information systems and ICT tools can be applied to overcome such pressure by helping a company to use JIT concepts and mass customization concepts that eliminate the warehousing costs of finished products.
4. Bargaining power of suppliers
This means that the suppliers will always prefer to push up the prices of raw materials/supplies at a higher cost thereby threatening the company profit margin.
Information systems and ICT tools can be applied to overcome such pressure by helping a company to use automated procurement systems thereby eliminating warehousing costs of raw materials and becoming low cost producer.
5. Intensity of competition rivalry
This means that a company exists in a market where there is competition from existing companies in the same market thereby affecting the sales volume and profit margin.
Information systems and ICT tools can be applied to overcome such pressure by helping a company to venture cross border markets through ecommerce and to be more innovative for new products.

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