The impact of IS technologies on the competitive capability of the firm has increased the need for effective strategic IS planning. Most of the research about information system planning have focused on seeking to identify the opportunity of IT that enable the business strategy. However a few researches have been undertaken on how to understand about complex relationships between the business strategy and IS planning in the systematic and formal way. Therefore, traditional financial analysis is the only formal method in the phase of the IS investment for the most part.
This paper suggests a methodology that assures the alignment between the business strategy priorities and information technology capabilities for effective strategic IS planning and investment decision in the systematic and formal way.
This methodology uses the QFD(Quality Function Deployment) concept that has been developed for application in product design and development stage to satisfy customer requirements. This methodology allows the firm to secure evaluation criteria such as consistency, validity and cooperative behavior in the IS planning process. In addition, I also suggest a method that integrate the concept of core competence, which is new strategic business planning theory, into the IS planning process.
Finally, the proposed methodology is applied to a real world case and the results will be verified compared with current practice in the point of its usefulness.