Developing Business/Information Technology Strategies

1. 9 Developing Business/InformationTechnology Strategies

2. 9 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.

3. 9 Learning Objectives (continued) • Identify several change management solutions for end user resistance to the implementation of new e-business strategies and applications.

4. 9 Section I • Planning Fundamentals

5. 9 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

6. 9 Organizational Planning (continued) • The planning process (continued) • Building a shared vision and deciding on goals • Deciding what actions to take to achieve goals

7. 9 Organizational Planning (continued) • Strategic Planning • Strategic Visioning • Tactical Planning • Operational Planning

8. 9 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

9. The Scenario Approach to Planning (continued) 9

10. 9 Planning for Competitive Advantage • Especially important in today’s 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

11. Orasa T. Planning for Competitive Advantage (continued) 9

12. Planning for Competitive Advantage (continued) 9 • SWOT analysis • Strengths (internal) • Weaknesses (internal) • Opportunities (external) • Threats (external)

13. 9 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.

14. 9 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.

15. 9 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

16. e-Business Planning 9 • The e-Business planning process has three major components • Strategy development • Resource management • Technology architecture

17. 9 e-Business Planning (continued) • IT architecture major components • Technology platform • Data resources • Applications architecture • IT organization

18. 9 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

19. 9 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

20. 9 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.

21. 9 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.

22. 9 Identifying e-Business Strategies (continued)

23. 9 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

24. 9 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

25. 9 Section II • Implementation Challenges

26. 9 Implementation • A process of carrying out the plans for change in e-business strategies and applications that were developed during the planning process.

27. 9 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

28. 9 Implementing IT (continued)

29. 9 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

30. End User Resistance and Involvement (continued) 9 • End user involvement in the development of new information systems • Involvement and commitment of top management and all business stakeholders

31. 9 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

32. 9 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

33. 9 Change Management (continued) • Key tactics for change (continued) • Make liberal use of financial incentives and recognition • Work within the company culture

34. 9 Change Management (continued)

35. 9 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

36. 9 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?

37. 9 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?

38. 9 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?

39. 9 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?

40. References 9 • James A. O'Brien; George M. Marakas. Management Information Systems: Managing Information Technology in the Business Enterprise 6th Ed., Boston: McGraw-Hill/ Irwin,2004