Business system planning
Business systems planning is a method of analyzing, defining and designing the information architecture of organizations. It was introduced by IBM for internal use only in 1981, although initial work on BSP began during the early 1970s. BSP was later sold to organizations. It is a complex method dealing with interconnected data, processes, strategies, aims and organizational departments.
BSP was a new approach to IA; its goals are to:
- Understand issues and opportunities with current applications
- Develop future technology supporting the enterprise
- Provide executives with direction and a decision-making framework for IT expenditures
- Provide information systems with a developmental blueprint
BSP comprises 15 steps, which are classified into three sections by function.
Preparation
Study authorization
The essential first step in BSP is to obtain authorization for the study from management or an interested department. A number of roles must agree on the purpose and range of the study:- Managing director
- * May be a sponsor or team leader
- * Verifies and approves study results
- Sponsor
- * Provides financial support
- Team leader
- * Chooses team members
- * Coordinates activities
- * Documents and implements study
- * Presents results to management
- Team member
- * Usually a department head
- * Analyzes and determines organizational information needs
- * Recommends future IS content
- * Presents results to management
- Secretary
- * Documents study
- * Assists team leader
Preparation
- Set timeframe
- Obtain documents
- Choose managers to interview
- Procure meeting and interview space
- Inform team members of:
- * Organizational functions
- * Organizational data-processing level
Beginning
At the first meeting of the study, the sponsor explains the purpose and expected results of the study; the team leader presents the study plan, and the IT manager describes the current state and the role of IS in the organization.Analysis
The analysis is the most important part of BSP. The team searches for an appropriate organizational structure as it defines business strategy, processes and data classes and analyzes current information support.Strategy
This step define strategic targets and how to achieve them within the organization:- Adaptating to the customer´s desires
- Centrally-planned reservations, stock, payments
- Improvements in checking in, shipping, presentation, advertising, partner relations and stock management
- New customers
- Noise reduction
- Paperless processes
- Product-portfolio expansion
- Loss and cost reduction
- Simplifying customer order cycle
- Transport coordination
- Upgrade of production line
- Updating information
Processes
There are about 40-60 business processes in an organization, and it is important to choose the most profitable ones and the department responsible for a particular process. Examples include:- Contact creation
- Hangaring
- Invoicing
- Monitoring
- Airplane coordination and service
- New-customer registration
- Service catalog creation
- Reservations
- Employee training
- Transfers
- Car rental
Data classes
- Accommodation
- Branches
- Corporation
- Customer
- Employee
- Invoice
- Load
- Airplane
- Purchase order
- Service catalog
- Supplier
- Vehicle
Information support
Management discussion
In the final analytical step the team discusses its results with management to confirm assumptions, provide missing information, reveal deficiencies in the organization and establish future priorities.Issue results
All documents created during the analysis are collected, serving as a base for future information architecture. The organization classifies and dissects all identified problems; a list is made of the cause and effect of each problem, which is integrated into the future IS.Conclusion
Defining information architecture
To define an organization's information architecture, it is necessary to connect the information subsystems using matrix processes and data classes to find appropriate subsystems. The organization then reorders processes according to the product life cycle.Establishing IS-development priorities
A number of criteria establish the best sequence of system implementation. High-priority subsystems may be analyzed more deeply. This information is given to the sponsor, who determines which information subsystems will be developed.Verifying study impact
An IS planning and management study should be conducted. When the organization has finished its work on processes and data classes, it should explore the functions and goals of the system with a list of requested departmental changes and a cost analysis.Proposals
Final recommendations and plans are made for the organization during this step, which encompasses information architecture, IS management and information-subsystem development and includes costs, profits and future activities.Presentation
This is the agreement of all interested parties on future actions.Final step
The organization should establish specific responsibilities during the project's implementation. There is usually a controlling commission, ensuring consistency across the IS.BSP, in addition to its value to IS planning, introduced the process view of a firm. The business process reengineering of the 1990s was built on this concept. It also demonstrated the need to separate data from its applications using it, supporting the database approach to software development methodology.
Criticism
The effectiveness of BSP and other similar planning methodologies has been questioned:- The historical analysis shows that BSP and subsequent enterprise architecture methodologies are "fundamentally flawed".
- The research concludes that "the approach is too expensive, its benefits are too uncertain, and it is organisationally difficult to implement".
- The research concludes that "given their great expense and time consumption, findings seriously challenge the utility of the planning methodologies".
- The research concludes that "in summary, strategic information systems planners are not particularly satisfied with . After all, it requires extensive resources. When the study is complete, further analysis may be required before the plan can be executed. The execution of the plan might not be very extensive".
- The study of BSP and similar planning methodologies concludes that "the evidence presented here strongly supports the need for a fundamental rethinking of IS planning methodologies".