Strategic Information Systems

Planning
(A Study Report)

By

AJI RAJ
(Student No. 0116904)
MBA Full-Time

Assignment
On
STRATEGIC INFORMATION SYSTEMS
PLANNING
Submitted on 17-05-2002

Reviewed by

Dr. J. Bolissian

University of East London

EAST LONDON BUSINESS SCHOOL
 Strategic Information Systems Planning

Abstract:

The Internet, along with Internet resources such as the World Wide Web (Web), is receiving
much attention from both individuals and organisations; sites, users and volume of packets
sent throughout the world are growing exponentially (Berghel, 1996). Setting policies and
standards of appropriate access and information content has been difficult in such a dynamic
environment. Managers are faced with an energised information technology, which is
diffusing more rapidly than any previous information technology to provide better service to
the Customers and for their satisfaction. The challenge to utilise this technology effectively
cannot be ignored.

The Strategic Information System Planning (SISP) is a Managerial process for integrating
Information Systems (IS) considerations in to the corporate planning process, linking or
aligning the application of IS to business goals and determining information requirements to
help meet an organizations short and long term goals. In this paper, planning of a Strategic
information System has been done for the competitive advantages of the Kharagpur
Electronic Library on the Internet.

Keywords:
Internet Technology, Strategic Information System, Business competencies, Stakeholders,
Digital Library, Networking

1. Introduction

Strategic Information System Planning (SISP) has been described as a managerial process
for integrating Information Systems (IS) considerations in to the corporate planning process,
linking or aligning the application of IS to business goals and determining information
requirements to help meet an organizations short and long term goals (Earl 1989, Galliers
1991, Teo & King 1999). A strategic information system is instrumental in the organization's
achievement of its competitive or other strategic objectives. The main thrust of this theme is
that if an organization can identify an approach or direction for the use and management of
information systems and articulate it in their information system strategy and if the process is
successful, that is consistent with business goals, and consistent with the current maturity of
experience, resource constraints and the technological availability then the reward is
competitive advantage.
The Case Study is adopted from V K J Jeevan, "Kharagpur Electronic Library on the Internet
(KELNET)", published in Library Hi Tech, Volume 18 - number 3-2000

2. Overview of the Kharagpur Electronic Library on the Internet (KELNET)

The Indian Institute of Technology at Kharagpur near Calcutta was the first such facility set up
by the Government of India in 1951 for the planned development of human resources in
various branches of applied sciences and technology. The central library (CL) of the institute
caters to the information requirements of students, researchers and faculty for their study,
research and teaching work. It has a specialised collection of over 170,000 monographs,
80,000 bound volumes of over 2,000 journals, and around 50,000 other information sources
such as reference volumes, patents, theses, and standards, and subscribes to over 800
journal titles. The collection is rated as one among the best in Asia.

The CL of the Indian Institute of Technology holds a specialised collection of over 300,000
information sources in different branches of science and technology, and is pre-eminent in the
South Asian region. The CL currently subscribes to around 850 specialised journals to
support the information requirements of the Institute's teaching as well as the ongoing R&D
programmes. The money generated from research and consultancy projects by the Institute
from 1993 to 1998 is in the region of Rs370 million. On average, approximately 1,000
research papers are published and presented in international journals and conferences, by
the researchers from the Institute.

3. The Internal Environment

3.1. The Stakeholders

The major stakeholders of the Central Library (CL) are the Researchers (R&D Groups),
students, Teachers, Technical and Non-Technical staff of CL, Staff of Kharagpur IIT, the IIT
itself, the Common people of the Society and the Government. The Stakeholder groups
within the KELNET have different needs for information to fulfil their professional and personal
works and researches, and often have very different backgrounds. [Ref. 3]

3.1.1. The Researchers (R&D Groups)

This group is considered to be a powerful group due to their frequent need of information.
The generated income from the R&D Projects is, using as one of the source for setting-up
Library facilities.
3.1.2. The Students, Teachers and Staff of Kharagpur IIT
Normally this group doesn't have any financial control over CL and also these are the users of
the Library facilities. This group can be seen as being the most dependent of the facilities
and information available in the Library. Many times they are in request of the library staff

3.1.3. Librarian and Library Staff

This Stakeholder group, the staff who deal mainly with the user groups, can be seen as being
more powerful because they should know what the user group needs, or can help the users to
get accurate information and better services. The links between those two groups are
traditionally strong because the library staff is the person with whom the users have most
contact. They should know about the available services and information that may be
appropriately helpful to the each and every request.

3.1.4. The Institute

The Institute is having an overall control of the library. The limited annual operating grants
issued by the institute is using for setting-up the library facilities. The Institute is the authority
of maintaining the Human Resources Infrastructure of the Library. So the Institute is in the
Management position.

3.1.5. The Government

The sole source of funding information facilities in India is the Central Government and the
Government acts as the main custodian of the Institute. The committee of the Government
and University Grand Commission (UGC) is responsible for the appointment of higher and
key officials of the Institute.

4. External Environment

The CL has a dynamic external environment. It is giving a way to socio-cultural and technical
development. The alumni of the Institute occupy prestigious positions not only in India, but
also in other countries where technology has a major influence on social developments.

The increasing cost of information sources and their unprecedented growth which makes it
cumbersome to handle them through manual means. As a result the demand for information
and services become heavy and made difficulty to liase with other information resources. The
introduction of information superhighways and Internet made the authorities to change the
infrastructure and strategies of the Library.

The focus of service provided to customers needed to change in accordance with the
changes in customer requirements. At the same time the authorities have to maintain an
international standard to keep-up the reputation of the Institution. This influences to make a
lot of changes in the strategies of the organisation to provide better customer services.

Faced with an increase in customer demand and changing technology, the CL adopted a
comprehensive IS/IT strategy and planned to develop a Library Information System based on
Internet capabilities. It has to pass through different stages to get the desired outcomes.
Since SISP is not a one off-exercise the following approach was adopted.

The details of the KELNET Resources are given in the Appendix I

5. Overall SISP Approach in CL

5.1. Scope and Evolution

The SISP approach is used to support strategic decision making, or to support or shape an
organisation's competitive strategy, or it might be used as a combination of both. For a
system to be considered a SIS it must satisfy two essential criteria: [Ref. 9]

 The system is directly linked to the business strategy

 The system significantly affects organisational performance
SISP is the means of identifying application systems, which support and enhance
organisational strategy and provides the framework for the effective implementation of these
systems.

This definition addressees the four key issues in that 'organisational strategy' accommodates
all types of organisation, 'support and enhance' encourage feedback and strategic alignment,
and 'provide the framework' helps promote a strategic culture.

The Institute having their own software and IT experts and formed a formal Consultant group
with these experts to develop a new IS/IT strategy. The previous strategy adopted by the
Library has been technical and manual in dimension and nature and did not focus on
Information System and Information Management with in a balanced IS/IT strategy. Being the
staff of the Institute, the Consultants were well known with the mission and vision of the
Institute and CL and its business activities. An overall path for strategy development activities
will be mapped out at a very general level at the outset of the project.

The consultants was adopted a revolutionary tool-kit approach rather than a proprietary SISP
methodology. They consulted with many users and staff of the library for the identification of
the methodology and for remedies of different problems. The overall path to strategy
development was also reconsider many times of the project and made post-audits at many
times.
5.2. Analysis
The mission and vision of the Library provided clarity of direction of the overall strategy and
promotes commitments and loyalty in the employees used, however if it is not well
documented and communicated within the organisation it can lead to a failure in the overall
SISP approach.

With this overview, consultants should have make discussions, with the end-users and their
approaches, and should use suggestions concerning IS/IT application from employees
directly rather than relaying solely on the mission and vision of the Library. The evolutionary
tool-kit approach adopted was flexible, and having opportunities to use different techniques as
the project in progressed. The flexibility given option review the project time-to-time for
adding the recommendations and making changes.

6. SISP Activities and Key Issues

As mentioned earlier the key members of the library and Institute were interviewed and
reviewing key corporate documentation, such as corporate strategic planning document.
Being the part of the organisation, the project members or Consultants were well known with
the ethos and environment of the library and institute. The mission and vision of the CL was
well defined, and was beneficial as SISP activities could concentrate on IS/IT without having
additional burden of identifying what business was trying to achieve.

The business appraisal culminated in the development of SWOT analysis, sizing up a firm's
internal strengths and weakness and its external opportunities and threats on the specific
issues of IS/IT implementations.

The SWOT analysis is an easy-to-use technique for getting a quick overview of a firm's
strategic situation. SWOT analysis underscores the basic principle that strategy must
produce a good fit between a company's internal capability (its strength and weakness) and
its external cituation (reflected in part by its opportunities and threats). [Ref. 7]

6.1. SWOT Analysis

6.1.1. Strengths

 Pioneer and well established Library in the field having a strong image
 Access to large information resources all over the world
 Having well educated and professionally trained staff and
  Shared commitment to success
 Competence and efficiency in the Managerial and technical field

With these internal strengths, the CL could easily adopt a new IS/IT strategy to satisfy the
heavy demand of the users.

6.1.2. Weakness
 The increasing cost of information sources, and their unprecedented growth,
which makes it cumbersome to handle them through manual means or by using
EDIs.
 Not having technical access to information superhighways and internet
 Education in Computer Science and Library Science operate independently
in India, though both deal with the problem of information processing
 The sole source of funding is the Government finds it exceedingly difficult to
meet even the basic demands of libraries, because it is on the decline.
 Publishing in higher education and research is becoming costlier every year,
forcing the library (in developing Countries) to cut their collections further.
 No clear strategic direction
 Falling behind in R & D

6.1.3. Opportunity
 Money generated from research and R&D Consultancy project by the
Institute in last five years is Rs. 370 million and having many projects to be
finished.
 The government announced a grant of Rs. 50 millions for the current year.
 The coming years will see more Web/Net enabled information entities, and
there will be ample scope for major changes in the way information is distributed,
collected, organised and stored.
 The in-house staff training will also be beefed up to the level of specialisation
so that a person in the reference desk can handle all types of information, from
OPAC contents to Internet resources.
The above opportunities give CL, financial resources to pursue, offer important avenues for
profitable growth, and also they are most potential for competitive advantages

6.1.3. Threats
 The resources that CL dedicates to training are expenditure rather than an
investment.
 Lot of information are available on Internet for free
  The technological changes, the speed of global communication, Concepts of
virtual organisations, different searching engines in the Net, made the information
access easy.
 The International organisations are using modern technologies, for cost
effectiveness and business advantages.

The Government policies are not giving any restriction to the new entrance to this field. So
effective steps should be taken to overcome the threats of new entrance.

7. Analysis

While considering the Strength and Weakness of the CL, it is found that the weakness is
higher than the strength. The strategic issues are whether the company's strength/assets
adequately overcome its weakness/liabilities (even 50-50 balance is definitely not the desired
condition), how to meld company strengths into an effective strategy, and whether
management actions are needed to tilt the company's strategic balance more toward
strength/assets and away from weaknesses/liabilities. [Ref. 7]

Successful strategists seek to capitalise on what a company does best-its expertise,

strengths, core competencies, and strongest competitive capabilities. Successful strategist
aims at capturing a company's best growth opportunities and creating defenses against
threats to its competitive position and future performance.

8. SISP Process in the CL

Based on the CL's business and corporate strategic plane, several Critical Success Factors
(CSF's) were identified from the key areas that must go right in order for the Library to
flourish. These related to issues such as the business environment, the industry, The
Company's situation within the industry like customer service, finance, and corporate image,
Organisational activity that is currently unacceptable and needs attention. At this stage of
SISP process, these were undertaken in order to align IS/IT strategies to the business
requirements. All these business CSF's were analysed via an Information Needs Matrix by
considering the CL's activities.

A Value chain Analysis were also undertaken to identify the areas that can be benefit from an
IS development and the current IS with respect to the users information needs, and the
evolution of new IT. [Ref. 7]
A Strategic Relevance And impact Grid was used to review existing systems and so identify
the lack of IS support for areas which are vital to the well being of the organization. From the
analysis, it is found that the current systems were considered support or factory rather than
turn around or strategic. [Ref. 9]

However at this point is was important for the consultant to conduct a second strategic grid in
order to highlight how the employees and the stakeholders should view the proposed systems
in the CL.

At this point the existing systems and proposed new IS/IT projects were pooled together to
provide a Strategic Grid and viewed by using a Strategic Option Generator for the Execution
and Strategic Advantage, which shows the entire system. [Ref. 9]

The strategic advantage of the new IS/IT system will build a new Strategic Culture with in the
CL. So the Consultants should take care of the Strategic Culture Building (SCB) while
undertaking the project, because the information is accessed by different categories of people
having different cultural backgrounds. The management should take care of effective
communication with in the organization to build an effective SCB and should allocate enough
funds for the staff training and effective documentation.

9. The Information Need of CL

The SISP is aligned with the corporate mission and its value to the business strategies of the
CL. The required strategic functions identified from the needs of the users of the CL and day-
to-day exercises include: [Ref. 3]

1. To search Electronic Databases (EDBs) available locally (some stand-alone and few
networked);

2. To access the floppies/CD-ROMS provided with certain monographs;

3. To view the engineering lectures on video cassettes produced by the Centre for
Educational Technology of the Institute (over 570 hours of core science and
technology course material); and

4. To surf the Internet for various databases available in CL

5. Develop its own Web-Site
6. Link the CL (KELNET) with international organisations and other Library resources
through Information Technology
10. The New Strategic Culture

It is possible to identify the different problems, presently facing by the CL (KELNET) for the
effective use and implementation of IS/IT strategy with in the organization by using the
SISP/SCB formulated through the analysis and timely service should be adopted to improve
the service.

11. Outcomes

The competitive business strategic IS/IT plan obtained through the analysis of SISP should be
developed and executed for the strategic advantage of the KELNET.

12. Conclusion

Formulating a SISP is an easything, but the implementation is difficult. It is actually a cultural

change to the organization. For the strategic culture building, the Management has to take
initiative for the effective communication and proper documentation. The new strategy should
be implemented through the discussion and co-operation of the staff and users.
References
1. Jagajeevan, V.Ket al, 1998, "Social care information systems (SOCIS) for information
age", Proceedings of FID International Conference, New Delhi, II-1, II-5.
2. Jeevan, V.K.J, 1999, "Info alert facility for research (IAFR): an Indian attempt", New
Library World, 100, 1152, 315-18.
3. Katna, A.Ket al, 1995, "Accessing KELNET resources through ERNET and Internet",
Proceedings of CALIBER 95, INFLIBNET Centre, Ahmedabad, 105-17.
4. Kaul, H.K, 1996, "DELNET: the first operational library network in India", Desidoc
Bulletin of Information Technology, 16, 2, 23-34.
5. Kumar, P, Kumbar, T.S, 1998, Proceedings of CALIBER 98, INFLIBNET Centre,
Ahmedabad, 249-57.
6. G M Scott, “Principles of Management Information Systems”, (1986), International
Student Edition, McGraw-Hill Book Company.
7. T Strickland, “Strategic Management – Concepts & Cases”, Ninth Edition, Published
by IRWIN.
8. KC Laudon & JP Laudon, “Management Information Systems”, Sixth Edition (2000),
Printice-Hall International (UK) Limited
9. W Robson, "Strategic Management Information Systems", Second Edition, Printice
Hall 1977
Appendix 1. KELNET resources
[Source: V K J Jeevan, "Kharagpur Electronic Library on the Internet (KELNET)", published
in

ibrary Hi Tech, Volume 18 - number 3-2000]

Collection
*1 Monographs: 200,000
*2 Serials: Bound 85,000 Current 850
*3 Thesis/standards/patents: 30,000
Services
Circulation of monographs: 100,000 transactions per year (the whole process is automated
through Database package and barcode readers)
Photocopy/P/reprint services for journal articles
Reference/information services: answering reference queries
Alerting services: new additions of books (monthly)
Arrival list of journals (monthly)
Electronic SDI (monthly)
Computer resources
Servers: 2 Sco-Unix Pentium Pro and 1 486 DX
PCs: 13 Pentiums, 8 486
25 VT100 Terminals
16 printers
7 bar code scanners
(plus around 1,000 high end PCs and over 100 special purpose servers in different
departments of the Institute, with 2 MBPS internet connectivity)
EDBs
IEEE full text: 1988-1998
Ei Tech Index: 1987-to date
INSPEC: 1989-to date
Biotechnology Abstracts: 1982-to date
Dialog OnDisc Biotechnology and Bioengineering: 1984-1998
Chemical Abstracts on CD: 1999
ABI/Inform: 1989-1993
Current Contents on Diskette (CCOD):
Physics, Chemistry and Earth Sciences (PCES): 1991-1997, 1999
Engineering, Computing and Technology (ECT): 1991-1997, 1999
Social and Behavioural Sciences (SBS): 1991 to date
Life Sciences: 1991, 1998 to date
Agriculture, Biological and Environmental Sciences (ABES): 1998 to date
(All except the first are bibliographic)
Video courses
(All courses designed by IIT, Kharagpur faculty and produced by the Centre for Educational
Technology of the Institute)
Basic Electronics: K V Rajakumar, 38 hours.
Computer Networks and Communication, Ajit Pal, 40 hours.
Design and Analysis of Algorithms: T K Dey, 33 hours.
Digital Image Processing: S Sengupta, 41 hours.
Digital Signal Processing: T K Basu, 33 hours.
Digital Voice and Picture Coding, R V Rajakumar, 34 hours.
Fluid Mechanics: S K Som, 49 hours.
Information Systems, Sujoy Ghosh, 30 hours.
Introduction to Database Management Systems: P P Chakraborty, 36 hours.
Machine Drives I: A K Chattopadhyay, 35 hours.
Machine Drives II: A K Chattopadhyay, 35 hours.
Modelling and Simulation of Dynamic Systems: A Mukherjee, 38 hours.
Multimedia Systems, S. Sengupta, 43 hours.
Numerical Analysis and Algorithms: P Niyogi, 40 hours.
Object Oriented System Design, A K Majumdar & S Sarkar, 36 hours.
Optoelectronic Materials and Devices: D N Bose, 42 hours.
Programming Methodology and Data Structures: P P Chakraborty, 32 hours.
Software Engineering: Rajib Mall, 32 hours.
Special Electrical Motors, K V Ratnam, 44 hours.
Switching and Finite Automata Theory: S C Dey Sarkar, 33 hours.
Theory and Practice in Machining: A B Chattopadhyay, 54 hours.
Theory of Electrical Machines: S N Bhadra, 42 hours.
VLSI Circuits and Systems: S K Lahiri, 41 hours.
R&D projects awarded to CL

(1) Modernisation and automation of library, 1991-1994, 1.5 million Indian Rupees (Rs),
Ministry of Human Resources Development (MHRD), New Delhi, India.

This project has resulted in the modernisation and automation of the library with a
computerised information retrieval system having automated issue-return of books, up-to-
date catalogue (automated printing), computerised acquisition and processing of books,
journals, and more. Other objectives achieved were:
1. (a) Availability of the OPAC to users through the campus local area network (LAN)
and Internet. Available: telnet://library.iitkgp. ernet.in, login: search;
2. (b) creation of necessary infrastructure and training of existing library personnel;
3. (c) First Indian library GOPHER configured and registered at the University of
Minnesota, USA.
Facilities added: METEOR III with SCO UNIX, 8 VT100 terminals, 2 CD-ROM Drives, 2-
486 PCs and 2-PC-XT.

(2) Electronic library, 1994-1996, Rs1 million, All India Council for Technical Education
(AICTE), New Delhi, India.

Objectives achieved:
1. (a) creation of an Electronic Information Access Facility, the EL;
2. (b) Barcoding of library books and implementation of the same for faster issue/return
of books. The usage of books and journals has increased considerably as a result of
better information retrieval from the OPAC and CD-ROM databases.
Facilities added: 6 486 PCs with CD-ROM drives , UPS, 5 CCD bar-code scanners, 1 HP
5SiMX Laser Printer.

(3) CD-ROM networking, 1996-1998, Rs800,000, AICTE, New Delhi, India.

Objectives achieved:
1. (a) experimental CD-ROM Network has been tested through Windows WorkGroup,
Linux (Unix) and the campus network;
2. (b) Web Server configured and library Web site developed ("Central Library" link from
http://www.iitkgp.ernet.in);
3. (c) Implementation of CD-ROM networking, by facilitating selective access to a few
electronic databases through IIT Intranet (campus ATM Network) using Web
browsers and any networked PCs.
Facilities added: NSM JukeBox, Meridian CD-Netrom Tower and associated software.

(4) Hypermedia digital library, 1998-2000, Rs760,000, Aeronautical Research

Development Board, Bangalore, India.

Objective: creation of a hypermedia digital library on AEROSPACE science and

technology at IIT, Kharagpur

Work in progress:
1. (a) creation of a database of aerospace publications available in Central Library, IIT
Kharagpur;
2. (b) a separate Web server of Hypermedia Digital Library was configured and
connected to the campus ATM Network;
3. (c) images of journal articles scanned and tested to integrate with the Web.
(5) Archives on technical education, 1998-2000, Rs500,000, AICTE, New Delhi, India.

Being the first IIT, set up in 1951, the institute has a dominant role in standardising the
higher education in science and technology, and this project will concentrate on
developing an archive reflecting the practice of human resources development in
technology disciplines in this country.

(6) Training course on library automation, 1999, Rs300,000, NISSAT, New Delhi, India.

The training course tries to blend the expertise available in the computer and information
technology disciplines with the help of tutorials/practicals on the actual operation of
automation for library work. Two courses in the series have taken place, and the
feedback received from the participants and institutions was highly encouraging.