Strategic Information Systems Planning (SISP): An Empirical Evaluation of Adoption of Formal Approaches to SISP in Australian Organizations

This study examines the use of formal Strategic Information Systems Planning (SISP) approaches and methodologies in Australia. The authors analyze the relationships between SISP success, SISP objectives, company size/type and SISP approaches and methodologies. The authors find that the most popular methodologies are not the most successful. Emerging methodologies, such as Fuzzy Cognitive Maps and Information Engineering, could be considered for improving the success of SISP. They also find that a combination of SISP approaches is more successful than the implementation of any one approach. This can be interpreted that the boundary lines that distinguish theoretical approaches are blurred and that SISP theory needs a new way of thinking to stay relevant for practice. In addition, many findings of significant importance to SISP practitioners, in the context of various industries, are presented. (Caudle et al., 1991; Boar, 1993; Brancheau et al., 1996; Watson et al., 1997; Luftman, 2004; Maltz & DeBlois, 2005). IT/IS strategic importance has not diminished because a global trend of information availability to everyone, whenever it is needed, and anywhere (Luthans, Rubach, & Marsnik, 1995; Szántó, 2005). On critical dependency on IT/IS, organisations respond toward the pronounced need for strategic planning of IT/IS resources (Palvia & Palvia, DOI: 10.4018/jsds.2010040102 International Journal of Strategic Decision Sciences, 1(2), 28-61, April-June 2010 29 Copyright © 2010, IGI Global. Copying or distributing in print or electronic forms without written permission of IGI Global is prohibited. 2003). SISP then is needed to produce a strategic plan that addresses the future needs for IT/ IS in accordance with the business objectives in formal or less formal ways (Galliers, 1987; Hackos, 1997). Within the IT/IS landscape, theoretical research is well advanced but in many aspects still lags behind practical needs as SISP is addressed by many theorists but few practitioners. The content of the relations among SISP constructs still remains hidden because of the conceptual nature of previous SISP studies, further diminishing the impact of academic thinking on SISP practice. Consequently, a question about theoretical relevance as a source of practical advice to SISP practitioners can be raised. SISP is a dynamic, evolving activity and revisiting the usefulness of propositions and methods for practice should be a continuous process (Galliers, 1987). These studies (Galliers, 1987; Wilson, 1989; Earl, 1990; Flynn & Goleniewska, 1993) are helping practitioners learn from experience in other organisations and research can channel their efforts to areas that need improvements. How deep is the gap between current SISP practice and theory? Can analysis of current relationships between different approaches and SISP success shed light on the reason why SISP is still one of the major concerns for IT executives? Should similar types of organisations exercise the same approach to SISP? Do organisations’ objectives and the size have an influence on the selection of a SISP approach? This study focuses on empirical analysis of diffusion and adoption of the five SISP approaches, Business-Led, Method-Driven, Administrative, Technological, and Organizational, defined by Earl (1993) as well as their current relationship to SISP objectives, company size and SISP success. All relationships are assessed on a variable level. Also, this study tries to help SISP practitioners by finding relationships between used methodologies and SISP success in the context of various industries. The rest of paper proceeds as follows. The next section is the literature overview of the most used SISP approaches and methodologies. The aim is to present some key stands from the SISP literature to be able to form a context within which the survey results may be interpreted. The research methodology and data analysis are presented next. Finally, a summary of the survey results, limitations and possibilities for further research are presented.