Business Systems Planning (BSP)

What is Business Systems Planning (BSP)?

Business systems planning (BSP) is a method of analyzing, defining, and designing the information architecture of organizations. It is a complex method dealing with interconnected data, processes, strategies, aims, and IT Business systems organizational departments.

Business systems planning 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 (IS) with a developmental blueprint

Business Systems Planning (BSP) Procedure

BSP procedure contains 15 steps which are classified into 3 main sections according to their functions.

• Preparation
  • Obtain authorization for the study: The very first step of BSP is to obtain authorization for the study from management or a department interested in this study. There is no use to proceed in the study without this document. There are a number of roles which have to agree on the purpose and range of the study.
  • Obtain authorization for the study: The roles are following:
    • Management member (Director)
      • operates as a sponsor or a team leader
      • Verifies, approves final results of the study
    • Sponsor
      • provides with the financial support for the study
    • Team leader
      • chooses and leads the team members (4-7 prsns)
      • coordinates activities
      • guarantees early documentation
      • has 8 weeks to carry out the study (usually more)
      • presents final results to the management
  • Study Preparation: The team leader is responsible for this part and its goal is to:
    • set time plan
    • get all the necessary documents
    • choose managers for interview
    • ensure meeting and interview space
    • inform team members about:
      • fundamental functions of the organization
      • data processing level of the organization
    • Final product of this step: A Leading study book. The book contains:
      • all the necessary information mentioned above,
      • concrete study schedule, documents relating to IT, diagrams, etc.
  • Study Beginning: It is Initiated with a Kick-off meeting where:
    • sponsor presents
      • the main purpose of the study
      • expected results of the study
    • team leader presents
      • results of previous part
      • plan of the study
    • IT manager presents
      • the present state of IS
      • role of IS within the organization
• Analytical
  • Define the business strategy:Team is responsible for creating the main processes from these strategic targets.
    • The final output = Strategy / OU matrix.
      • Strategy = particular strategic targets mentioned above.
      • Organizational Units = particular departments of the organization (i.e. production, business, marketing, etc.). Every single department is considered to have a responsibility for each strategic target.
        • a cross [*]= primary responsibility.
        • a slash [/] = partial responsibility.
    • Adaptation to the customer’s desires
    • Centrally planned reservations, stock, customer’s payments
    • Check-in improvement
    • Material movement improvement
    • Noise reduction
    • Paperless processes
    • Product portfolio expansion
    • Presentation improvement
    • Advertising improvement
    • Reduction of commitment losses
    • Reduction of material costs
    • Relations with business partners improvement
    • Stock management improvement
    • Simplification of customer’s order cycle
    • Transport coordination
  • Define the Business Processes: The final output of this step are two matrices:
    • 1.Processes / OU
    • 2.Processes / Strategy.
    • There are several business processes (activities) within every organization. Choose the most relevant ones which are profitable for the organization, and select the department which is responsible for the particular process. Here are some examples of business processes:
      • Contacts creation
      • Invoicing
      • Monitoring
      • Plane coordination
      • Plane service
      • Registration of a new customer
      • Service reservation
      • Employee training
      • Transfer
      • Car rental
  • Define Data Classes: The final output of this step are three matrices:
    • 1.Data classes / Processes,
    • 2.Data classes / Strategy and
    • 3.Data classes / OU.
    • It is necessary to create data classes (DC, Entities) that represent data classes of the particular organizational units. There are usually about 30-60 data classes depending on the size of the organization. Future IS is about to use databases based on these data classes. There are several examples of data classes:
      • Branch
      • Customer
      • Employee
      • Invoice
      • Load
      • Plane
      • Purchase order
      • Service Catalog
      • Supplier
      • Vehicle
• Final

See Also

• IT Strategy (Information Technology Strategy)