9_Development Business IT Strategies

7/31/2019 9_Development Business IT Strategies

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DevelopingBusiness/InformationTechnology Strategies

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Discuss the role of planning in thebusiness use of information technology,using the scenario approach and

planning for competitive advantage.

Discuss the role of planning andbusiness models in the development ofe-business strategies, architectures, andapplications.

9 Learning Objectives


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Identify several changemanagement solutions for end userresistance to the implementation of

new e-business strategies andapplications.

9 Learning Objectives (continued)


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Planning Fundamentals

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The Planning Process

Team building, modeling, & consensus

Evaluating organizational

accomplishments and the resourcesthey have acquired

Analyzing the business, economic,

political, and societal environment Anticipating and evaluating the impact

of future developments

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The planning process (continued)

Building a shared vision and decidingon goals

Deciding what actions to take toachieve goals

9 Organizational Planning (continued)


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Strategic Planning

Strategic Visioning

Tactical Planning

Operational Planning

9 Organizational Planning (continued)


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Teams participate in a microworld

A variety of business scenarios arecreated

Alternative scenarios are createdby teams or by business simulationsoftware based on..

A variety of developments, trends,and environmental factors

9 The Scenario Approach to Planning


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9 The Scenario Approach to Planning(continued)


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Especially important in todayscompetitive, complex environment

Involves an evaluation of potentialbenefits and risks

May include the competitive forces andcompetitive strategies models, as well asa value chain model of basic business

activities Use a strategic opportunities matrix toevaluate strategic potential

9 Planning for Competitive Advantage


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9 Orasa T.Planning for Competitive Advantage(continued)


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SWOT analysis

Strengths (internal)

Weaknesses (internal)

Opportunities (external)

Threats (external)

9 Planning for Competitive Advantage(continued)


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A conceptual framework thatexpresses the underlying economiclogic and system that prove how a

business can deliver value tocustomers at an appropriate costand make money.

9 Business Models and Planning


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Specifies what value to offercustomers, and which customers toprovide this value to using which

products and services at what prices.

9 Business Models and Planning (continued)


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Specifies how the business willorganize and operate

Focuses attention on how all theessential components fit into acomplete system

9 Business Models and Planning (continued)


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The e-Business planning processhas three major components

Strategy development

Resource management

Technology architecture

9 e-Business Planning


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IT architecture major components

Technology platform

Data resources

Applications architecture

IT organization

9 e-Business Planning (continued)


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The Strategic Positioning Matrix

Cost and efficiency improvements

Low level of connectivity and use of IT

Strategy: use the Internet and Web tocommunicate and interact

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Strategic Positioning Matrix (continued)

Performance improvements in businesseffectiveness

High level of internal connectivity and pressures tosubstantially improve business processes, externalconnectivity is low

Strategy: making major improvements in businesseffectiveness. Use intranets and extranets toconnect the organization with stakeholders

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Strategic Positioning Matrix(continued)

Global Market Penetration

Must capitalize on a high degree ofcustomer and competitor connectivity anduse of IT.

Strategy: develop e-business and e-

commerce applications to optimizeinteraction with customers and buildmarket share.



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Strategic Positioning Matrix(continued)

Product and Service Transformation

All stakeholders are extensivelynetworked

Strategy: implement Internet-basedtechnologies including e-commerce

websites and e-business intranets andextranets.



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Begins after the strategic phase hasoccurred

Includes..

Evaluation of proposals for using IT toaccomplish the strategic priorities

Evaluation of the business case for investingin e-business development projects

Developing and implementing e-businessapplications and managing the developmentprojects

9 e-Business Application Planning


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Another alternative for planning e-business architecture planning

Combines contemporary methods and

alternative planning scenarios withmethodologies such as component-based development

9 e-Business Application Planning (continued)


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Implementation Challenges

9 Section II


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A process of carrying out the plansfor change in e-business strategiesand applications that were

developed during the planningprocess.

9 Implementation


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Requires managing the effects ofmajor changes in key organizationaldimensions such as

business processes organizational structure

Managerial roles

Employee work assignments Stakeholder relationships

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9 Implementing IT (continued)


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Change can generate fear andresistance to change

Keys to countering end user

resistance Proper education and training

End user involvement in organizational

changes

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End user involvement in thedevelopment of new information systems

Involvement and commitment of top

management and all businessstakeholders

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People are a major focus oforganizational change management

Developing innovative ways to

measure, motivate, and rewardperformance

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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Key tactics for change

Involve as many people as possible

Make constant change an expectedpart of the organizational culture

Tell everyone as much as possible

about everything as often as possible,preferably in person

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Key tactics for change (continued)

Make liberal use of financial incentives

and recognition

Work within the company culture



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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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Planning is a useless endeavor, becausedevelopments in e-business and e-commerce,and in the political, economic, and socialenvironments are moving too quickly nowadays.Do you agree with this statement?

Planning and budgeting processes are notoriousfor their rigidity and irrelevance to managementaction. How can planning be made relevant to

the challenges facing an e-business enterprise?

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What planning methods would you use todevelop e-business and e-commercestrategies and applications for your own

business?

What are several e-business and e-commerce strategies and applications

that should be developed andimplemented by many companies today?

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How can a company use changemanagement to minimize theresistance and maximize the

acceptance of changes in businessand technology?

Many companies plan really well,yet few translate strategy intoaction. Do you think this is true?

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What major business changesbeyond e-business and e-commercedo you think most companies should

be planning for the next ten years?

9 Discussion Questions (continued


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References James A. O'Brien; George M. Marakas.

Management Information Systems:Managing Information Technology in the

Business Enterprise 6th Ed., Boston:McGraw-Hill/ Irwin,2004

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9_Development Business IT Strategies