Strategic Information Systems Planning

Strategic information systems planning is a crucial component of business in the 21st century. From the smallest of businesses to multi-national corporations, successful use of IT and IS drive fundamental business processes, help business cope with increasing marketplace demands, and form an integral basis for competitive advantage. This paper will discuss strategic information systems planning, information technology, information systems, and how they affect competitive advantage, business planning, and drive change. The paper will also discuss how internal, external, and environmental factors influence strategic information systems planning and the development and use of IT and IS. According to Kearns and Lederer, information technology has assumed a critical role in many organizations, despite failures and setbacks. High dependence on IT for core business activities have made firms vulnerable to critical impairment. These facts lead Kearns and Lederer to pose several questions such as: who should use SISP, is SISP valid in environmental uncertainty, and how is business performance affected? The answers to these questions have many variables involved. Strategic information systems planning and information technology, according to Kearns and Lederer, should be investments that support business objectives and significantly affect organizational performance. However, Teubner’s research reveals that in the financial services company he studied, SISP was almost non-existent. IT was focused on the automation of mass data processing and cost reduction, rather than a driving force behind innovation, business process evolution, and competitive advantage. On the other hand, Buhalis’ study shows how information technology and information systems transformed the airline industry. Information communication technologies have not only changed the way the industry does business, but has completely dominated all aspects of business from sales, marketing, accounting,