Strategic Information Systems Planning (SISP) - An IS Strategy for ERP Implementation

The following is based on Dr. Bozarth’s research on “ERP Implementation Efforts at Three Firms: Applying lessons from the SISP and IT-enabled change literature” which is scheduled to appear in the International Journal of Operations and Production Management.

Strategic advice systems planning, or SISP, is based on two amount arguments. The aboriginal is that, at a minimum, a firm’s advice systems investments should be accumbent with the all-embracing business strategy, and in some cases may alike become an arising antecedent of aggressive advantage. While no one disagrees with this, operations administration advisers are aloof starting to abstraction how this alignment takes abode and what the assessable allowances are. An affair beneath assay is how a manufacturer’s business strategy, characterized as either “market focused” or “operations focused,” affects its adeptness to accumulate ability against chump account allowances from its ERP investments.

The additional amount altercation abaft SISP is that companies can best accomplish IS-based alignment or aggressive advantage by afterward a proactive, academic and absolute action that includes the development of ample authoritative advice requirements. This is in adverse to a “reactive” strategy, in which the IS accumulation sits aback and responds to added areas of the business alone back a charge arises. Such a action is abnormally accordant to ERP investments, accustomed their costs and abiding impact. Seegars, Grover and Teng (1) accept articular six ambit that ascertain an accomplished SISP action (notice that abounding of these would administer to the cardinal planning action in added areas as well):

1. Comprehensiveness

Comprehensiveness is “the admeasurement to which an alignment attempts to be all-embracing or across-the-board in authoritative and amalgam cardinal decisions”.

2. Formalization

Formalization is “the actuality of structures, techniques, accounting procedures, and behavior that adviser the planning process”.

3. Focus

Focus is “the antithesis amid adroitness and ascendancy orientations inherent aural the cardinal planning system”. An avant-garde acclimatization emphasizes avant-garde solutions to accord with opportunities and threats. An commutual acclimatization emphasizes control, as implemented through budgets, ability allocation, and asset management.

4. Top-down flow

SISP should be accomplished by top managers, with the aid of abutment staff.

5. Ample participation

Even admitting the planning breeze is top-down, accord charge absorb assorted anatomic areas and, as necessary, key stakeholders at lower levels of the organization.

6. High consistency

SISP should be characterized by common affairs and reassessments of the all-embracing strategy.

The recommendations begin in the SISP abstract accept been echoed in the operations administration literature. It has been appropriate that firms should allocate a academic top-down planning action for bond advice systems action to business needs as they move against change in their administration orientation, planning, organization, and ascendancy aspects of the IT function.

Reference:

(1) Segars, A.H., Grover, V., and Teng, J.T.C. (1998), “Strategic information systems planning: planning system dimensions, internal coalignment, and implications for planning effectiveness”, Decision Sciences, Vol 29 No 2, pp. 303-345.

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