ABSTRACT

Improving strategic planning within the realm of information technology management is consistently identified by top corporate executives as a critical competitive issue. This study attempts to take a major step in conceptualizing the strategic information systems planning (SISP) process and examining its effectiveness. Two profiles of SISP process and four of SISP effectiveness are developed conceptually and supported with empirical analysis. The six dimensions of SISP process identified in the previous literature are grouped into radical and incremental profiles both conceptually and empirically based on the patterns they display. Similarly, the four dimensions of SISP effectiveness from prior literature are grouped into fit and fitness profiles, from which four types of organizations emerge based on their performance along these two dimensions. The results suggest that a radical approach to SISP consists of high comprehensiveness, high formalization, creativity focus, bottom-up flow, high participation, and high consistency while an incremental approach exhibits the opposite emphases along these dimensions. For SISP effectiveness, empirical analysis supportedfour types of organizations (adaptive, learning-impaired, alignment-impaired, and planning-impaired). Adaptive organizations are adept at balancing exploration and exploitation and they achieve high levels of both fitness and fit. Other organizations are impaired in either one or both dimensions. Thus, organizations need to think in terms of both fit and fitness if they are to align their business–IT plans and thereby avoid long periods of underperformance. Since the competitive environment is continually evolving, they should consider fit as requiring constant monitoring and regular updating, rather than intermittent interventions.