Tuesday, December 16, 2008

Relationship between the business plan and the Information System plan

Before discussing the nature of the relationship between the business plan and the Information System plan. For me a business plan is a direction of a certain business or a goal that must be attain so that the business will be successful and a business plan be obliged to make it before the construction of the business. In Wikipedia A business plan is a formal statement of a set of business goals, the reasons why they are believed attainable, and the plan for reaching those goals. It may also contain background information about the organization or team attempting to reach those goals. My knowledge about what is a business plan is almost the same to the description of the Wikipedia. Strategic Information System Planning is much focus on improving the management of the business and improves the performance of the business. Since I’m taking up the Management Information System subject now and we are studying about how the organizations do their Strategic Information System Planning (SISP). Strategic Information System Planning making has many factors to be considered the internal factors and external factors. In internal factors you must know what are the S.W.O.T. or Strength, Weaknesses, Opportunity and Threat of the organization. The external sides there are also factors that must consider the P.E.S.T.E or Political, Economical, Sociological, Technology and Environmental. These factors are very important in SISP. We will achieve a good plan for our organization if all these factors will be considered.

A business plan can be profitable or non-profitable. A business plans that aims for a profitable business is more focus and their goals are further gives attention to the financial side. Profitable business plan is the usual kind of a business that the intention is focus in having an income from their capital. For me this type of business plan is much more needed for the people that is business minded and want to earn cash. Non-profitable business plans are usually the public service or the government which their goal is not centers the income of the business but their goals is more focus in giving services to the people. In my own opinion non-profitable business plan is also a pleasant plan that tends to help the people around their society.

The Strategic Information System Planning has internal and external factors that are required to consider in constructing a Strategic Information System Planning. While the business plans provide and may focus internal business plan and external business plan. For the external business plan target goals that are important to external stakeholders, particularly financial stakeholders. Examples of external stakeholders are the investors and the customer for profitable business plan while in non-profitable business plan are the donors and the clients of the non-profit's services. The tax-payers, higher-level government agencies, and international lending bodies such as the International Monetary Fund and the World Bank can also be consider as a external stakeholders of the non-profitable business plan. For the internal business plans, they may cover the development of a new product, a new service, a new IT system, a restructuring of finance, the refurbishing of a factory or a restructuring of the organization. An internal business plan is often developed in conjunction with a balanced scorecard or a list of critical success factors. This allows success of the plan to be measured using non-financial measures. Business plans that identify and target internal goals, but provide only general guidance on how they will be met are called strategic plans.

Strategic Information System Planning is any technique employed to achieve an ISP must be accomplishable with less than 3% of the IT budget. Additionally, it must be timely, useable, maintainable, able to be iterated into a quality product, and reproducible. IT organizations, once they have completed their initial set of databases and business information systems will find themselves transformed from a project to a release environment. There are two factors that must think about which is that external and internal factors. In the side of the internal factors, the SWOT that must be consider or the Strength Weakness Opportunity and Threats of the organization in making the Strategic Information System Plan. Strength, we should recognize the strength of the organization for us to improve or continue the good deeds of the organization. The strong point of the organization should be properly handle and must be improve or retain since it gives plus point to the organization. Searching for the weakness of the organization is very necessary since it is the weak point of the organization we must find a technique to solve the weak point of the organization and improve it. Opportunity and threat is also a key factor in making a Strategic Information System Planning. External factors are composing of PESTE or the Political Economical Sociological Technology Environment. All of these external factors must consider when making a Strategic Information System Plan from the Political, Economical, Sociological, Technology and Environment so that your are not only focus in your organization but you will also know what is the factors that affects your business outside your organization.

Having the definition of the business plan and the Strategic Information System Planning, we can determine what is the relationship of the two. As well as what are their uses and what are the factors that may consider in having a business plan and the Strategic Information System Plan. I discuss also what are the limitation and focus of the business plan and the SISP. The relationship of the business plan and the Strategic Information System Plan are the business plan is only focusing in the attainment of the goals of the business in short it gives more attention to the business side while the Strategic Information System Plan focuses in improving the management side and to improve the performance of the business. For me the Business Plan and the Strategic Information System are very essential in a business and these two factors can lead you to the right path of business. As a conclusion, if you don’t have goal in your life why you are still living now? We live in this world to reach our own goals and make your goals as your inspiration. Don’t wait for your goal you must work for it.

God bless us all and Merry Christmas

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