StrategicInformationSystemsPlanning
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INTRODUCTION
In this day, turbulence in the businesses‟ environment is on the increase. Therefore, businesses are
obliged to respond to that environmental uncertainty. Information Systems (IS) and Strategic Planning
support this effort. IS are connected with business strategy, management skills, decision making and aims
to increase competitive advantage (Zubovich et al., 2014). Researchers have focused on the process of
Strategic Information Systems Planning (SISP) since 1970. The purpose of SISP is to support the goals
and the business strategy, through IS. Furthermore, SISP helps businesses to innovate, create new
products, reduce costs and enhance relationships with customers (Kamariotou & Kitsios, 2015, Ullah &
Lai, 2013). The process of SISP contains five phases, which are strategic awareness, situation analysis,
strategy conception, strategy formulation and strategy implementation planning. These phases help
businesses not only to define IS strategy but also to develop IS.
Previous studies have examined the effect of these phases on SISP success. Also, other studies have
concluded that there is a positive relationship between SISP and firm performance. These surveys that
have discussed the relationship between SISP and firm performance have been presented only by a
theoretical approach (Goldsmit, 1991, Lederer & Sethi, 1996). These surveys collected data using
questionnaires in large firms. Surveys in SMEs which constitute the main component of each economy,
are limited however (Newkirk et al., 2003).
Consequently, the aim of this chapter is to propose a holistic approach in order to investigate the
significance of SISP process, to highlight phases that contribute to a greater extent of success and to draw
conclusions concerning the successful implementation of digital strategy in firms.
The structure of this chapter is as following: after a brief introduction to this field, a theoretical
framework is analyzed on the basis of the literature review about SISP phases and success in firms. Then
in the next section, the findings of previous surveys are presented, whereas the final section concludes the
paper.
strategic planning for the IS function is necessary so that businesses can effectively achieve their goals in
this complex and dynamic environment (Pvemkumar & King, 1991, 1994).
SISP can be defined as the ability to shape the strategy of a business and tools, techniques and
methodologies were suggested to support organizations in determining potential opportunities to deploy
IS with greater competitiveness (Peppard, et al., 2014). SISP is an integrated process which includes
certain phases. These phases and their activities are presented as follows. The first phase is Strategic
awareness. This phase includes the identification of key planning issues, planning objectives, organizing
the planning team and the encouragement of top level managers. The second phase is Situation analysis.
This phase involves the analysis of current business systems, current organizational systems and current
IS. Also, it includes the analysis of the current external and internal business environment and the current
external Information Technology (IT) environment. Next, the third phase is Strategy conception. This
phase includes the determination of main IS objectives, opportunities for improvement, alternative
scenarios as well as the evaluation of opportunities for improvement. Also, it includes the definition of
high level IS strategies. The next phase is Strategy formulation. In this phase, businesses select the most
suitable scenario from the previous alternatives scenarios, according to new business processes and new
IT architectures. Then this scenario is evaluated according to its strategic and technological impact. Also,
in this phase, specific new projects and priorities for new projects are identified. These projects consist of
specific activities which support the implementation of the selected scenario. The last phase is Strategy
implementation planning. This phase involves approaching the actions of change management and the
evaluation of strategic plan (Brown, 2004, 2010, Kamariotou & Kitsios, 2017, 2016, Kitsios &
Kamariotou, 2016, Maharaj & Brown, 2015, Mentzas, 1997, Mirchandani & Lederer, 2014, Newkirk &
Lederer, 2006, Newkirk, et al., 2008).
Despite the fact that previous researches have shown the success of the implementation of these phases in
IS‟ development, many factors affect negatively the success of the process. Such important critical factors
are management commitment, the involvement of employees, the communication between the members
of the team as well as the planning horizon. On the other hand, their advantages are the increase of
products‟ quality and the effectiveness of IS (Brown, 2010, Cohen, 2008, Haki, 2011, Luftman & Brier,
1999, Pai, 2006, Silvius & Stoop, 2013, Teo, et al., 1997, Yang, et al., 2013, Zubovich, et al., 2014).
Other factors which have an impact on SISP process are the analysis of the environment and the
knowledge sharing (Maharaj & Brown, 2015, Pai, 2006, Yang & Pita, 2014, Yang, et al., 2013, Zubovich,
et al., 2014). The determination of planning with a certain frame is very important due to technological
changes which affect SISP process (Newkirk, et al., 2008).
King and Teo, (2000), argue that the factors which influence the process of SISP are the understanding of
the objectives, management commitment and the creation of integrated plans. These factors impact on the
firm performance of a business and especially on the index of Return on investment (ROI), as well as on
the increase of market share and on customer‟s satisfaction. Also, Lederer and Sethi, (1991), concluded
that the most important factors are related with systems‟ architecture, their cost and their implementation.
Furthermore, they highlighted factors which are related to managers‟ involvement, the small horizon of
projects, the support of financial plan for the development of IS, as well as knowledge sharing, analysis of
business environment and understanding of strategic objectives. Earl, (1993), considered the linkage
between business objectives and IS, the increase of competitive advantage through IT as well as the
necessary resources for the development of IS as the major factors.
This is the pre-final version. The final chapter is available at: Kamariotou, M. and Kitsios, F. (2019), Strategic
Information Systems Planning, In: Mehdi Khosrow-Pour (Ed.), Advanced Methodologies and Technologies in Business
Operations and Management, IGI Global Publishing, chapter 39, pp. 535-545. [see: https://www.igi-
global.com/chapter/strategic-information-systems-planning/212136]
The success of SISP is defined as “the degree to which the objectives of SISP are achieved” (Pai, 2006).
Several authors have measured the success of SISP with two dimensions: quality and effectiveness, while
others have measured it with four, named: alignment, analysis, collaboration and capabilities (Newkirk &
Lederer, 2006, Pai, 2006). A combination of the above dimensions proposed by Yang and Pita, (2014),
who measure the success of SISP with aligning business strategy and Information Systems‟ strategy and
the effectiveness of Information Systems Design. Other researchers measure SISP success with variables
such as user satisfaction, quality of information and system and organizational impact (Heo & Han,
2003). Another different approach for the measurement of the process comes from Silvius and Stoop,
(2013), who suggested variables such as the alignment between business strategy with Information
Systems strategy, the development of skills, the degree of management commitment and the achievement
of objectives.
As for the four dimensions of SISP success, the first one includes the understanding of IS in supporting
strategy, the identification of opportunities to support the strategic direction of the firm, the alignment
between IS strategies with the strategic plan of the organization, the education of top management on the
importance of IT and the adaption of technology to strategic change. The second dimension contains
variables such as the generation of new ideas to reengineer business processes through IT, the
understanding of information needs through subunits, the understanding of the dispersion of data,
applications, and other technologies throughout the firm, the development of a „„blueprint‟‟ which
structures organizational processes, the improvement of the understanding of how the organization
actually operates and the monitoring of internal business needs and the capability of IS to meet those
needs. The third dimension includes the development of clear guidelines of managerial responsibility for
plan implementation, the Identification of potential sources of resistance to IS plans, the support of open
lines of communication with other departments, the achievement of a general level of agreement
regarding the risks/tradeoffs among system projects and the avoidance of the overlapping development of
major systems. Finally, the last dimension includes capabilities such as the ability to identify key problem
areas, the ability to anticipate surprises and crises, the flexibility to adapt to unanticipated changes and the
ability to gain cooperation among user groups for IS plans (Newkirk & Lederer, 2006, Newkirk et al.,
2003).
2003)
Identifying new IT architectures (Mentzas, 1997, Mirchandani &
Lederer, 2014, Newkirk &
Lederer, 2006, Newkirk et al.,
2003)
Identifying specific new projects (Mentzas, 1997, Mirchandani &
Lederer, 2014, Newkirk &
Lederer, 2006, Newkirk et al.,
2003)
Identifying priorities for new projects (Mentzas, 1997, Mirchandani &
Lederer, 2014, Newkirk &
Lederer, 2006, Newkirk et al.,
2003)
Strategy Defining change management (Mentzas, 1997, Mirchandani &
implementation approach Lederer, 2014, Newkirk &
Lederer, 2006, Newkirk et al.,
2003)
Defining action plan (Mentzas, 1997, Mirchandani &
Lederer, 2014, Newkirk &
Lederer, 2006, Newkirk et al.,
2003)
Evaluating action plan (Mentzas, 1997, Mirchandani &
Lederer, 2014, Newkirk &
Lederer, 2006, Newkirk et al.,
2003)
Defining follow-up and control (Mentzas, 1997, Mirchandani &
procedure Lederer, 2014, Newkirk &
Lederer, 2006, Newkirk et al.,
2003)
Alignment Maintaining a mutual understanding (Newkirk & Lederer, 2006, Newkirk
with top management on the role of IS et al., 2003)
in supporting strategy
Understanding the strategic priorities (Newkirk & Lederer, 2006, Newkirk
of top management et al., 2003)
Identifying IT-related opportunities to (Newkirk & Lederer, 2006, Newkirk
support the strategic direction of the et al., 2003)
firm
Aligning IS strategies with the strategic (Newkirk & Lederer, 2006, Newkirk
plan of the organization et al., 2003)
Adapting the goals/objectives of IS to (Newkirk & Lederer, 2006, Newkirk
changing goals/objectives of the et al., 2003)
organization
Educating top management on the (Newkirk & Lederer, 2006, Newkirk
importance of IT et al., 2003)
This is the pre-final version. The final chapter is available at: Kamariotou, M. and Kitsios, F. (2019), Strategic
Information Systems Planning, In: Mehdi Khosrow-Pour (Ed.), Advanced Methodologies and Technologies in Business
Operations and Management, IGI Global Publishing, chapter 39, pp. 535-545. [see: https://www.igi-
global.com/chapter/strategic-information-systems-planning/212136]
Ability to gain cooperation among user (Newkirk & Lederer, 2006, Newkirk
groups for IS plans et al., 2003)
Researchers have measured firm performance with variables such as sales growth, profitability,
innovation, growth of customer satisfaction and growth of market share of products and services
(Andersen, 2001, Bergeron et al., 2004, Chatzoglou et al., 2011, Croteau & Bergeron, 2001, King & Teo,
2000, Oh & Pinsonneault, 2007).
In Europe at about 75% of all businesses are SMEs. Although, family businesses pay attention to the
business‟s long-term sustainability, they do not implement strategic planning (Siakas et al., 2014). Greece
is a country which has plenty of SMEs comparatively to other countries of the European Union and most
of them have been negatively affected from the financial crisis (Vassiliadis & Vassiliadis, 2014).
The current financial crisis has negatively impacted plenty of activities and most of the family businesses
have already found themselves in a new turbulent financial environment where uncertainty dominates and
the market characteristics radically changes. Except for financial barriers, their lack of technological,
managerial and human capabilities may restrict their ability to bowl over the financial crisis (Bourletidis
et al., 2014). Also, the lack of strategic planning negatively increases this difficulty. It appears that formal
processes in SMEs which are connected with strategic management and information handling support
managers to pay attention to strategies, structures and processes that are expected to increase firm
performance. In uncertain environments, businesses should formalize processes using standardized rules
and procedures which support the lowering of environmental uncertainty and arrange economic
consistency. Formalization encourages the development of frameworks that request communication
among the individuals as well as sharing of new information, and also supports the transformation of new
ideas into real plans through the flexible structures. The result is the raise of innovation (Giannacourou et
al., 2015).
SISP is a formal process which can be followed by SMEs in order to determine IS strategy and develop
the most suitable IS for their needs. This process supports businesses to make decisions on the planning
and the development of IS, analyzing their resources taking not only the environmental opportunities but
also the threats into consideration. Also, SISP includes all the factors and the activities which are
presented above as the advantages of the formalization. In this view, Mirchandani & Lederer, (2014),
investigated SISP phases and they found that as the environment becomes more uncertain, more
situational analysis is needed. The analysis of current business systems, organizational systems and IS, as
well as current external and internal business environment and the current external IT environment allow
the organization to identify problems and diagnose opportunities.
The findings of these surveys show that IS executives went their efforts into the strategic conception
phase. Despite the fact that planners put their efforts into this phase, they cannot define the suitable
alternative strategies so their efforts do not affect SISP success. As a result, they cannot achieve their
aims. The most common problems which have been observed during the SISP process are the lack of
participation and the failure to implement strategic IS plans. Executives cannot be committed to the plan,
so the team has difficulties to implement the IS strategy. Also, findings highlight that executives
understand that the implementation phase is difficult but very important and they are looking for ways in
order to pay more attention on this phase (Lederer & Sethi, 1991, Newkirk & Lederer, 2006, Newkirk et
al., 2003, Zubovic, et al., 2014). Internet can be used as a tool which supports the communication between
the individuals and increases their participation to the process (Andersen, 2001). Except from Internet all
This is the pre-final version. The final chapter is available at: Kamariotou, M. and Kitsios, F. (2019), Strategic
Information Systems Planning, In: Mehdi Khosrow-Pour (Ed.), Advanced Methodologies and Technologies in Business
Operations and Management, IGI Global Publishing, chapter 39, pp. 535-545. [see: https://www.igi-
global.com/chapter/strategic-information-systems-planning/212136]
the IT applications can support the knowledge sharing and the communication between the individuals
(Pai, 2006). The participation between the members of the team is increased when CEOs support the
process (Brown, 2010, King & Teo, 2000).
Results show that several managers put too much efforts to SISP process while others too little. In the
first case, the process could be confused, detained or its implementation is prevented. In the second case,
the implemented plans could be inefficient and they could not meet the objectives. So, the evaluation of
the process is very important because managers can avoid these unsatisfactory results.
Findings conclude that managers focus on Strategy Conception and Strategy Implementation and they do
not concentrate on Strategic Awareness and Situation Analysis, so the implemented plans are not
effective, successful and they do not meet the aims (Brown, 2010, Newkirk & Lederer, 2006, Newkirk et
al., 2003). Also, the strong focus on the implementation of the process leads to shorter SISP horizons but
the strategic objectives have not been achieved. Executives do not concentrate on what strategic aims
really matter and how they can add value to the business because they pay attention to the horizon of the
project and to reduce its cost due to limited IT budget (Brown, 2010). The results suggest that planners
should pay attention on conducting situational analysis with greater punctiliousness, so they can develop
strategy conception and strategy implementation planning with greater versatility than they currently
implement. Managers should analyze their current business systems, organizational systems, IS, business
environment and external IT environment. An understanding of those elements can improve the outcome
of the planning process despite the fact that the time and cost will be increased. When managers
understand the environment, they can identify significant IT objectives and opportunities for
improvement, evaluate them for improvement and identify high level IT strategies in their business‟
strategy conception (Mirchandani & Lederer, 2014 Zubovic, et al., 2014).
CONCLUSION
Up to now academic studies have not focused on the impact of SISP phases on success. This chapter
presented a framework which can provide a formal process to be followed by IS executives and managers
in order to plan and use the right IS and to raise competitive advantage.
The authors contribute to the existing studies by increasing IS executives awareness of the strategic use of
IS planning in order to accomplish success and competitive advantage. The presented framework is
significant for SMEs. SMEs are very important for national and global economy but they do not
implement strategic planning, so they cannot increase their resources as well as their competitive
This is the pre-final version. The final chapter is available at: Kamariotou, M. and Kitsios, F. (2019), Strategic
Information Systems Planning, In: Mehdi Khosrow-Pour (Ed.), Advanced Methodologies and Technologies in Business
Operations and Management, IGI Global Publishing, chapter 39, pp. 535-545. [see: https://www.igi-
global.com/chapter/strategic-information-systems-planning/212136]
advantage. SMEs should develop strategic planning in order to develop and use IS according to their
resources and their needs. Researchers proposed a framework which is based on literature review and they
provided a survey methodology for the studies on this field. However, the results of an exploratory study
will be summarised in a better conceptual model for further research.
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ADDITIONAL READINGS
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Operations and Management, IGI Global Publishing, chapter 39, pp. 535-545. [see: https://www.igi-
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Firm Performance: The power of a business to implement activities better rather than its
competitors.
Strategic awareness: This phase includes the identification of key planning issues, planning
objectives, organizing the planning team and the encouragement of top level managers.
Strategic analysis: This phase involves analysis of current business systems, current
organizational systems and current IS. Also, it includes the analysis of the current external and
internal business environment and the current external IT environment.
Strategy conception: This phase contains the determination of main IS objectives, opportunities
for improvement, alternative scenarios as well as the evaluation of opportunities for
improvement. Also, it includes the definition of high level IS strategies.
This is the pre-final version. The final chapter is available at: Kamariotou, M. and Kitsios, F. (2019), Strategic
Information Systems Planning, In: Mehdi Khosrow-Pour (Ed.), Advanced Methodologies and Technologies in Business
Operations and Management, IGI Global Publishing, chapter 39, pp. 535-545. [see: https://www.igi-
global.com/chapter/strategic-information-systems-planning/212136]
Strategy formulation: In this phase, businesses select the most suitable scenario from the
previous alternatives scenarios, according to new business processes and new IT architectures.
Then this scenario is evaluated according to its strategic and technological impact. Also, in this
phase, specific new projects and priorities for new projects are identified. These projects consist
of specific activities which support the implementation of the selected scenario.
Strategy implementation planning: This phase involves an approach and the actions of change
management and the evaluation of strategic plan.