Organizations that plan their information system tend to achieve better results than organizations that do not, yet studies reveal that many organizations either do not plan or do it unsystematically.
The information system plan generally includes the goals, objectives and structure of the information systems, the available information system resources and future developments, which may affect the plan.
Planning terminology: –
i) Mission: – It states the basic purpose for which an organization exists. In other words, the mission statement is a broad, enduring statement giving the organization’s ‘reason for being’. It answers the basic questions, ‘ what is our business?’ and distinguishes one organization from other similar organizations. For example, the mission of an oil organization is stated as follows:
To stimulate, continue and accelerate efforts to develop and maximize the contribution of the energy sector to the economy of the country.
ii) Objectives: – Objectives are the desired future positions and destinations the organization intends to reach in order to fulfill its mission.
iii) Strategies: – A strategy is a general direction in which an objective is to be sought. For e.g., if an objective is to increase earnings per share, it can be attained through action in many directions- new products, acquiring small companies, selling more in existing or new markets and even disinvestments of losing propositions. Each of these then will be termed as a strategy.
iv) Policies: – A policy is a general guideline that directs and constrains decision- making within an organization. In other words, a policy is a statement of intended behavior for the organization. Policy limits the scope of alternatives to be considered in decision-making in the implementation of a strategy. Policies are implemented by rules and procedures, which are more specific statements that direct decision-making.