Developing Business/Information Technology Strategies

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Developing Business/InformationTechnology
Strategies
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Learning Objectives

• Discuss the role of planning in the business use
  of information technology, using the scenario
  approach and planning for competitive advantage.
• Discuss the role of planning and business models
  in the development of e-business strategies,
  architectures, and applications.

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Learning Objectives (continued)

• Identify several change management solutions for
  end user resistance to the implementation of new
  e-business strategies and applications.

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Section I

• Planning Fundamentals

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Organizational Planning

• The Planning Process
• Team building, modeling, consensus
• Evaluating organizational accomplishments and the
  resources they have acquired
• Analyzing the business, economic, political, and
  societal environment
• Anticipating and evaluating the impact of future
  developments

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Organizational Planning (continued)

• The planning process (continued)
• Building a shared vision and deciding on goals
• Deciding what actions to take to achieve goals

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Organizational Planning (continued)

• Strategic Planning
• Strategic Visioning
• Tactical Planning
• Operational Planning

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The Scenario Approach to Planning

• Teams participate in a microworld
• A variety of business scenarios are created
• Alternative scenarios are created by teams or by
  business simulation software based on..
• A variety of developments, trends, and
  environmental factors

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The Scenario Approach to Planning (continued)
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Planning for Competitive Advantage

• Especially important in todays competitive,
  complex environment
• Involves an evaluation of potential benefits and
  risks
• May include the competitive forces and
  competitive strategies models, as well as a value
  chain model of basic business activities
• Use a strategic opportunities matrix to evaluate
  strategic potential

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Orasa T.
Planning for Competitive Advantage (continued)
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Planning for Competitive Advantage (continued)
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• SWOT analysis
• Strengths (internal)
• Weaknesses (internal)
• Opportunities (external)
• Threats (external)

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Business Models and Planning

• A conceptual framework that expresses the
  underlying economic logic and system that prove
  how a business can deliver value to customers at
  an appropriate cost and make money.

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Business Models and Planning (continued)

• Specifies what value to offer customers, and
  which customers to provide this value to using
  which products and services at what prices.

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Business Models and Planning (continued)

• Specifies how the business will organize and
  operate
• Focuses attention on how all the essential
  components fit into a complete system

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e-Business Planning
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• The e-Business planning process has three major
  components
• Strategy development
• Resource management
• Technology architecture

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e-Business Planning (continued)

• IT architecture major components
• Technology platform
• Data resources
• Applications architecture
• IT organization

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Identifying e-Business Strategies

• The Strategic Positioning Matrix
• Cost and efficiency improvements
• Low level of connectivity and use of IT
• Strategy use the Internet and Web to
  communicate and interact

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Identifying e-Business Strategies (continued)

• Strategic Positioning Matrix (continued)
• Performance improvements in business
  effectiveness
• High level of internal connectivity and pressures
  to substantially improve business processes,
  external connectivity is low
• Strategy making major improvements in business
  effectiveness. Use intranets and extranets to
  connect the organization with stakeholders

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Identifying e-Business Strategies (continued)

• Strategic Positioning Matrix (continued)
• Global Market Penetration
• Must capitalize on a high degree of customer and
  competitor connectivity and use of IT.
• Strategy develop e-business and e-commerce
  applications to optimize interaction with
  customers and build market share.

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Identifying e-Business Strategies (continued)

• Strategic Positioning Matrix (continued)
• Product and Service Transformation
• All stakeholders are extensively networked
• Strategy implement Internet-based technologies
  including e-commerce websites and e-business
  intranets and extranets.

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Identifying e-Business Strategies (continued)
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e-Business Application Planning

• Begins after the strategic phase has occurred
• Includes..
• Evaluation of proposals for using IT to
  accomplish the strategic priorities
• Evaluation of the business case for investing in
  e-business development projects
• Developing and implementing e-business
  applications and managing the development
  projects

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e-Business Application Planning (continued)

• Another alternative for planning e-business
  architecture planning
• Combines contemporary methods and alternative
  planning scenarios with methodologies such as
  component-based development

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Section II

• Implementation Challenges

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Implementation

• A process of carrying out the plans for change in
  e-business strategies and applications that were
  developed during the planning process.

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Implementing IT

• Requires managing the effects of major changes in
  key organizational dimensions such as
• business processes
• organizational structure
• Managerial roles
• Employee work assignments
• Stakeholder relationships

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Implementing IT (continued)
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End User Resistance and Involvement

• Change can generate fear and resistance to change
• Keys to countering end user resistance
• Proper education and training
• End user involvement in organizational changes

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End User Resistance and Involvement (continued)
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• End user involvement in the development of new
  information systems
• Involvement and commitment of top management and
  all business stakeholders

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Change Management

• People are a major focus of organizational change
  management
• Developing innovative ways to measure, motivate,
  and reward performance
• Designing programs to recruit and train employees
  in the core competencies
• Also involves analyzing and defining all changes
  facing the organization

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Change Management (continued)

• Key tactics for change
• Involve as many people as possible
• Make constant change an expected part of the
  organizational culture
• Tell everyone as much as possible about
  everything as often as possible, preferably in
  person

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Change Management (continued)

• Key tactics for change (continued)
• Make liberal use of financial incentives and
  recognition
• Work within the company culture

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Change Management (continued)
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Change Management (continued)

• A change management process
• Create a change vision
• Define a change strategy
• Develop leadership
• Build commitment
• Manage people performance
• Deliver business benefits
• Develop culture
• Design organization

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Discussion Questions

• Planning is a useless endeavor, because
  developments in e-business and e-commerce, and in
  the political, economic, and social environments
  are moving too quickly nowadays. Do you agree
  with this statement?
• Planning and budgeting processes are notorious
  for their rigidity and irrelevance to management
  action. How can planning be made relevant to
  the challenges facing an e-business enterprise?

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Discussion Questions (continued)

• What planning methods would you use to develop
  e-business and e-commerce strategies and
  applications for your own business?
• What are several e-business and e-commerce
  strategies and applications that should be
  developed and implemented by many companies
  today?

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Discussion Questions (continued)

• How can a company use change management to
  minimize the resistance and maximize the
  acceptance of changes in business and technology?
• Many companies plan really well, yet few
  translate strategy into action. Do you think
  this is true?

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Discussion Questions (continued

• What major business changes beyond e-business
  and e-commerce do you think most companies should
  be planning for the next ten years?

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References
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• James A. O'Brien George M. Marakas.
  Management Information Systems Managing
  Information Technology in the Business Enterprise
  6th Ed., Boston McGraw-Hill/ Irwin,2004