R. Ching, Ph.D. MIS Dept. California State University, Sacramento 1 Week 4 Monday, September 19 IT Leadership Strategic ITStrategic IT e-Business Modele-Business

R. Ching, Ph.D. • MIS Dept. • California State University, Sacramento 1

Week 4Week 4Monday, September 19Monday, September 19

IT LeadershipIT Leadership• Strategic ITStrategic IT

• e-Business Modele-Business Model• IT PlanningIT Planning


IT LeadershipIT Leadership

• Role of CIO…Role of CIO…

– Changes with advances in IT that open new opportunitiesChanges with advances in IT that open new opportunities

– Determined by the business' vision, mission and strategic Determined by the business' vision, mission and strategic plan to capitalize on opportunitiesplan to capitalize on opportunities

– Shaped by the business plan to capture opportunitiesShaped by the business plan to capture opportunities

– Specified by the adoption and the business' expectations of Specified by the adoption and the business' expectations of ITIT


American American AirlinesAirlines and SABRE: and SABRE:Leveraging IT for a Competitive Leveraging IT for a Competitive AdvantageAdvantage


• Accurate passenger inventories allowed American to manage Accurate passenger inventories allowed American to manage under/overbookings to jointly optimize passenger service and under/overbookings to jointly optimize passenger service and capacity utilization levelscapacity utilization levels

• Reduced labor content in the reservations process while Reduced labor content in the reservations process while increasing the productivity of the remaining reservation increasing the productivity of the remaining reservation personnel (efficiency)personnel (efficiency)

• Increased their presence in current marketsIncreased their presence in current markets

• Increased their presence in markets not servedIncreased their presence in markets not served

American American AirlinesAirlines and SABRE: and SABRE:SummarySummary


American American AirlinesAirlines IT and Electronic CommerceIT and Electronic Commerce

• Level 0 - No automation between the organization and its Level 0 - No automation between the organization and its external entities (internal operations control)external entities (internal operations control)

• Level 1 - Telecommunication link between the organization Level 1 - Telecommunication link between the organization and its customers (data sharing)and its customers (data sharing)

• Level 2 - Telecommunication links between the organization, Level 2 - Telecommunication links between the organization, and its customers and suppliers (process and information and its customers and suppliers (process and information integration)integration)

• Level 3 - Strategic alliances formed with competitors to offer Level 3 - Strategic alliances formed with competitors to offer products and services to customers (electronic market products and services to customers (electronic market facilitation)facilitation)


American Airlines and SABREAmerican Airlines and SABRE

Level 0Level 0

Level 1: Level 1: Retail AutomationRetail Automation

Travel Travel agents and agents and corporate corporate

officesoffices

Level 2: Co-hostingLevel 2: Co-hosting

Travel Travel agents and agents and corporate corporate

officesoffices


American Airlines and SABREAmerican Airlines and SABRE

Level 3: Strategic AlliancesLevel 3: Strategic Alliances

Travel Travel agents, agents,

corporate corporate offices, offices, publicpublic

Codeshare AlliancesCodeshare Alliances

Co-hostCo-host

Codeshare AlliancesCodeshare Alliances


American Airlines Codeshare AlliancesAmerican Airlines Codeshare Alliances

AA Codeshare AlliancesAA Codeshare Alliances A codeshare is an agreement where American Airlines purchases seats on A codeshare is an agreement where American Airlines purchases seats on selected routes and markets them as an American Airline flight. Codeshare selected routes and markets them as an American Airline flight. Codeshare alliances allow American to offer our customers access to hundreds of alliances allow American to offer our customers access to hundreds of international and domestic U.S. destinations, while ensuring consistent, international and domestic U.S. destinations, while ensuring consistent, coordinated, and high quality passenger service. coordinated, and high quality passenger service.


Horizontal IntegrationHorizontal Integration


Star AllianceStar Alliance



"One-stop" shopping"One-stop" shoppingStar Alliance membersStar Alliance members




United and Customer LoyaltyUnited and Customer Loyalty



Loyalty BenefitsLoyalty Benefits



Loyalty BenefitsLoyalty Benefits


B2B and Supply ChainB2B and Supply Chain

• Coordinating suppliersCoordinating suppliers– From EDI (electronic data interchange) to the InternetFrom EDI (electronic data interchange) to the Internet

• Establishing close and tight relationshipsEstablishing close and tight relationships– Loose integration – ad hoc and occasionalLoose integration – ad hoc and occasional

– Close integration – formal exchange of information between two Close integration – formal exchange of information between two businessesbusinesses

– Tight integration – sharing a business processes (e.g., UPS)Tight integration – sharing a business processes (e.g., UPS)

• Becoming a customer-centric value chain (virtual enterprise)Becoming a customer-centric value chain (virtual enterprise)– Risk sharingRisk sharing

– Supply chain (Supply chain (supplierssuppliers) vs. demand chain () vs. demand chain (distributors and distributors and retailersretailers))


Boeing Aircraft and Suppliers:Boeing Aircraft and Suppliers:Assembling an AircraftAssembling an Aircraft

Risk sharing partnersRisk sharing partners

Boeing 787Boeing 787


Boeing and Primary VendorsBoeing and Primary VendorsCompany/Business Unit

Main Location 787 Work Statement

Boeing Commercial Airplanes (announced Nov. and Dec. 2003)

Washington Airplane development, integration, final assembly, program leadership

Alenia/Vought Aircraft Industries (announced Nov. 2003)

Italy, Texas Horizontal stabilizer, center fuselage, aft fuselage

Boeing Fabrication (announced Nov. 2003) Washington, Canada, Australia

Vertical tail assembly, movable trailing edges, wing-to-body fairing, interiors

Spirit Aerosystems Inc. (announced as Boeing - Wichita Nov. 2003; Apr. 2004)

Kansas, Oklahoma

Fixed and movable leading edges, flight deck, part of forward fuselage, engine pylons

Fuji Heavy Industries (announced Nov. 2003) Japan Center wing box, integration of the center wing box with the main landing gear wheel well

Kawasaki Heavy Industries (announced Nov. 2003)

Japan Main landing gear wheel well, main wing fixed trailing edge, part of forward fuselage

Mitsubishi Heavy Industries (announced Nov. 2003)

Japan Wing box

Hamilton Sundstrand (announced Feb. 2004, March 2004, July 2004, Sep. 2004)

Connecticut Auxiliary power unit, environmental control system, remote power distribution units, electrical power generating and start system, primary power distribution, nitrogen generation, ram air turbine emergency power system, electric motor hydraulic pump subsystem

Rockwell Collins (announced Feb. 2004) Iowa Displays, communications/ surveillance systems

Honeywell (announced Feb. 2004, July 2004) Arizona Navigation, maintenance/crew information systems, flight control electronics; exterior lighting

Smiths (announced Feb. 2004, Jun. 2004) United Kingdom Common core system, landing gear actuation and control system, high lift actuation system

Goodrich ( announced March 2004; April 2004, June 2004, Nov. 2004, Dec. 2004)

North Carolina Fuel quantity indicating system, nacelles, proximity sensing system, electric brakes, exterior lighting, cargo handling system

Messier-Dowty (announced March 2004) France Landing gear structure

Dassault Systèmes (announced Feb. 2004) France Global collaboration tools/software

Boeing Interiors Responsibility Center (announced March 2004)

Washington Interior

FR-HiTemp (announced March 2004) United Kingdom Pumps and valves

Rolls-Royce (announced April 2004) United Kingdom Engines


General Electric (announced April 2004) Ohio Engines

Boeing Propulsion Systems Division (announced April 2004) Washington Propulsion systems engineering and procurement services

Moog Inc. (announced May 2004) New York Flight control actuators

Kidde Technologies (announced May 2004) North Carolina Fire protection system

Toray Industries (announced May 2004) Washington Prepreg composites

Kaiser Electroprecision (announced June 2004) California Pilot control system

Thales (announced July 2004, Aug. 2004) France Electrical power conversion, integrated standby flight display

Labinal (announced July 2004) France Wiring

Parker Hannifin (announced Sep. 2004) Ohio Hydraulic subsystem

Messier-Bugatti (announced Nov. 2004) France Electric brakes

Latecoere (announced Nov. 2004) France Passenger doors

Monogram Systems (announced Nov. 2004) California Water and waste system

Air Cruisers (announced Nov. 2004) New Jersey Escape slides

Delmia Corp. (announced Nov. 2004) Michigan Software

Intercim (announced Nov. 2004) Minnesota Software

Panasonic (announced Dec. 2004) Japan Cabin services system

Bridgestone (announced Dec. 2004) Japan Tires

Ultra Electronics Holdings (announced Dec. 2004) United Kingdom Wing ice protection system

GKN Aerospace (announced Dec. 2004) United Kingdom Composite mat for the wing ice protection system

Korry Electronics (announced Jan. 2005) Washington Flight-deck control panels

Ipeco (announced April 2005 United Kingdom Flight-deck seats

Diehl Luftfahrt Elektronik (announced April 2005) Germany Main cabin lighting

Jamco (announced Apr. 2005, May 2005) Japan Lavatories, flight deck interiors, flight deck door and bulkhead assembly

Northwest Composites Inc. (announced April 2005) Washington Sidewalls, window reveals, cargo linings, door linings and door surrounds

Securaplane (announced April 2005) Arizona Wireless emergency lighting system

Donaldson Company, Inc. (announced May 2005) Minnesota Air purification system

Astronautics Corp. of America (announced May 2005) Wisconsin Electronic Flight Bag (EFB)

CTT Systems (announced August 2005) Sweden Zonal Drying system


Vertical IntegrationVertical Integration

Supplier Supplier (manufacturer)(manufacturer)

RetailerRetailer

ConsumerConsumer

(Distributor)(Distributor)


B2C and Vertical Integration: B2C and Vertical Integration: United.comUnited.com

Air TransportationAir Transportation

Car RentalCar Rental

HotelHotel


B2C and Self-Service: Travelocity.comB2C and Self-Service: Travelocity.com

Customer specifies Customer specifies origin, destination origin, destination

and datesand datesTravelocity finds and Travelocity finds and

presents airfare presents airfare alternativesalternatives


B2B: Vision Service PlanB2B: Vision Service Plan

VSP, doctors and VSP, doctors and patientspatients


Strategic IT PlanningStrategic IT Planning

• Alignment of the IT strategy to the business Alignment of the IT strategy to the business strategystrategy

• Continuous planning vs. periodic planningContinuous planning vs. periodic planning

• IT portfolio vs. projects (6 months maximum)IT portfolio vs. projects (6 months maximum)

• Robust IT infrastructureRobust IT infrastructure

• Enterprise planningEnterprise planning

• Continuous improvement and reengineeringContinuous improvement and reengineering

• Top-down vs. bottom-up, centralized vs. Top-down vs. bottom-up, centralized vs. decentralizeddecentralized

Rapid advances Rapid advances in ITin IT


Ad Hoc PlanningAd Hoc Planning

Duck Tongues: A Tale of Redesigning the DuckDuck Tongues: A Tale of Redesigning the Duck

Longer tongueLonger tongue

Longer billLonger bill

Counterbalance Counterbalance weightweight

Larger wingsLarger wings

Strengthen legsStrengthen legs

Volume increases by its Volume increases by its cube (cube (vv33), area by its ), area by its

square (square (aa22))

Strengthened neckStrengthened neck


Traditional ‘Bricks and Mortar’ Traditional ‘Bricks and Mortar’ Business ModelBusiness Model

StoreStore

StoreStoreStoreStore

Distribution CenterDistribution Center Retail StoreRetail Store

Retail StoreRetail Store

ManufacturerManufacturer

Corporate HeadquarterCorporate Headquarter

SuppliersSuppliers

ConsumerConsumer Retail StoreRetail Store


E-Business:E-Business:An IT-Enabled Business ModelAn IT-Enabled Business Model

• Business model represents a Business model represents a – ““Clearly stated plan for adding economic value by Clearly stated plan for adding economic value by

applying know-how to a set of resources in order to applying know-how to a set of resources in order to create a marketable product or service” create a marketable product or service” (Miles, Snow and (Miles, Snow and Miles, 2000)Miles, 2000)

• E-Business, an IT-enabled E-Business, an IT-enabled business modelbusiness model

– Electronic network-based Electronic network-based (Internet)(Internet)

• Information primary Information primary resourceresource


Transitioning to e-BusinessTransitioning to e-BusinessMIT90 FrameworkMIT90 Framework

StrategyStrategyStrategyStrategy Management Management ProcessesProcesses

Management Management ProcessesProcesses

Individuals &Individuals &RolesRoles

Individuals &Individuals &RolesRoles

TechnologyTechnologyTechnologyTechnology

StructureStructureStructureStructure

Changes to one component require compensatory (or retaliatory) Changes to one component require compensatory (or retaliatory) changes to the otherschanges to the others

VisionVision


Traditional Business ModelTraditional Business ModelOrganization StructureOrganization Structure

OrganizationOrganization

FunctionalArea

FunctionalArea

FunctionalArea

FunctionalArea

FunctionalArea

FunctionalArea

Hierarchical Communication Flows

Each functional area’s performance tends to be optimized within itself

Silos


Paradigm ShiftParadigm Shift

Information Information ManagementManagementInformation Information

ManagementManagementPhysical Resource Physical Resource

ManagementManagementPhysical Resource Physical Resource

ManagementManagementParadigm Paradigm

shiftshift

• EfficiencyEfficiency• LogisticsLogistics• Physical presencePhysical presence

• Exploitation and Exploitation and leveraging of information leveraging of information and knowledge (factual, and knowledge (factual, procedural, tacit)procedural, tacit)

• Virtual organizations Virtual organizations (partnerships and (partnerships and alliances)alliances)

• Internet-enabling Internet-enabling technologiestechnologies

Defines the way problems and Defines the way problems and solutions are viewed and solutions are viewed and developeddevelopedTraditional Business Traditional Business

ModelsModels e-Business Modelse-Business Models


e-Business Modele-Business ModelOrganization StructureOrganization Structure

OrganizationOrganization

FunctionalArea

FunctionalArea

FunctionalArea

FunctionalArea

FunctionalArea

FunctionalArea

The entire organization’s performance is optimized

Shared knowledge

Direction and visionOrganizational boundaries

less discernible


e-Business Transition Modele-Business Transition Model

TechnologyTechnologyTechnologyTechnology

StrategyStrategyStrategyStrategy

StructureStructureStructureStructure

ManagementManagementProcessesProcesses

ManagementManagementProcessesProcesses

IndividualsIndividualsand Rolesand Roles

IndividualsIndividualsand Rolesand Roles

SuccessfulSuccessfulE-BusinessE-Business

ModelModel

SuccessfulSuccessfulE-BusinessE-Business

ModelModel

Strategy incorporates a Strategy incorporates a vision of technologyvision of technology


Strategy and Organization StructureStrategy and Organization Structure

• Responding to the environmentResponding to the environment

– OpportunitiesOpportunities

– ThreatsThreatsCreate a responsive Create a responsive

organization structureorganization structure

"If you have to react, it's too late""If you have to react, it's too late"


Planning TechniquesPlanning Techniques

• Stages of Growth: Nolan's Stages TheoryStages of Growth: Nolan's Stages Theory

• Rockart's Critical Success Factors (CSF)Rockart's Critical Success Factors (CSF)

• Porter's Competitive Forces ModelPorter's Competitive Forces Model

• Porter's Value Chain AnalysisPorter's Value Chain Analysis

• e-Business value matrixe-Business value matrix

• Linkage analysis planningLinkage analysis planning

• Scenario planning Scenario planning


Nolan's Stage TheoryNolan's Stage Theory

• All organizations go through four stages for IT adoptionAll organizations go through four stages for IT adoption

– IntroductionIntroduction

– ContagionContagion

– ControlControl

– IntegrationIntegrationIT is recognized as a resourceIT is recognized as a resource


IT ResourceIT Resource

Nolan's Stages TheoryNolan's Stages Theory

IntroductionIntroduction

ContagionContagion

ControlControlIntegrationIntegration

TimeTime

Investment Investment in ITin IT

Stage 1Stage 1 Stage 2Stage 2 Stage 3Stage 3 Stage 4Stage 4


Critical Success Factors (CSF)Critical Success Factors (CSF)

• ““Critical success factors thus are, for any business, the limited Critical success factors thus are, for any business, the limited number of areas in which results, if they are satisfactory, will number of areas in which results, if they are satisfactory, will ensure successful competitive performance for the ensure successful competitive performance for the organization. They are the few key areas where 'things must organization. They are the few key areas where 'things must go right' for the business to flourish. If results in these areas go right' for the business to flourish. If results in these areas are not adequate, the organization's efforts for the period will are not adequate, the organization's efforts for the period will be less than desired. ... As a result, the critical success factors be less than desired. ... As a result, the critical success factors are areas of activity that should receive constant and careful are areas of activity that should receive constant and careful attention from management.”attention from management.”

Rockart, 1979Rockart, 1979


Prime Sources of CSFsPrime Sources of CSFs

• IndustryIndustry

– Determined by the characteristics of the industryDetermined by the characteristics of the industry

• Competitive strategy and industry positionCompetitive strategy and industry position

– Actions of each organization within the scope of this Actions of each organization within the scope of this industryindustry

• Environmental factorsEnvironmental factors

– Environmental events that affect the industry and Environmental events that affect the industry and organization (e.g., the economy)organization (e.g., the economy)


Prime Sources of CSFsPrime Sources of CSFs

• Temporal factorsTemporal factors

– Internal considerationsInternal considerations

– Activities significant for the success of an organization for Activities significant for the success of an organization for a particular period of time because they are below the a particular period of time because they are below the threshold of acceptability at that timethreshold of acceptability at that time

• Managerial positionManagerial position

– Functions and responsibilities of each managerFunctions and responsibilities of each manager

Bullen and Rockart, 1981Bullen and Rockart, 1981


Classification of CSFs: Three Classification of CSFs: Three DimensionsDimensions

• Internal versus ExternalInternal versus External

– Internal: Deal with issues and situations within the Internal: Deal with issues and situations within the manager's controlmanager's control

– External: Pertain to situations generally less under the External: Pertain to situations generally less under the manager's controlmanager's control

• Monitoring versus BuildingMonitoring versus Building

– Monitoring: Focuses on tracking and guiding the Monitoring: Focuses on tracking and guiding the organization's performance (i.e., control)organization's performance (i.e., control)

– Building: Aimed at adapting the organization to a Building: Aimed at adapting the organization to a perceived new environment (i.e., planning)perceived new environment (i.e., planning)

• Sources of CSFsSources of CSFs


Five Sources of CSFsFive Sources of CSFs


• StrategyStrategy

• EnvironmentEnvironment

• TemporalTemporal

• Position (of manager)Position (of manager)


Major Dimensions of CSFsMajor Dimensions of CSFs

ExternalExternal InternalInternal

Monitoring Monitoring (Control)(Control)

BuildingBuilding(Innovation)(Innovation)

SourcesSources


• StrategyStrategy

• EnvironmentEnvironment

• TemporalTemporal

• PositionPosition

Interest ratesInterest rates

New skill New skill acquisitionacquisition


Benefits of CSF ApproachBenefits of CSF Approach

• Helps managers determine on which factors they should focus Helps managers determine on which factors they should focus their attention their attention – Ensures those factors will receive careful and continuous Ensures those factors will receive careful and continuous

management scrutinymanagement scrutiny• Forces managers to develop good measure for those factors Forces managers to develop good measure for those factors

and to seek reports on each of the measuresand to seek reports on each of the measures• All a clear definition of the amount of information that must All a clear definition of the amount of information that must

be collected by the organization and limits the costly be collected by the organization and limits the costly collection of more data than necessarycollection of more data than necessary

• Moves the organization away from the trap of building its Moves the organization away from the trap of building its reporting and information system primarily around data that reporting and information system primarily around data that are easy to collect.are easy to collect.


Benefits of CSF Approach (Cont.)Benefits of CSF Approach (Cont.)

• Acknowledges that some factors are temporal and that CSFs Acknowledges that some factors are temporal and that CSFs are manager specific are manager specific

– This suggests that the information system should be in This suggests that the information system should be in constant flux with new reports being developed as needed constant flux with new reports being developed as needed to accommodate changes in the organization’s strategy, to accommodate changes in the organization’s strategy, environment, or organization structureenvironment, or organization structure

Rockart, 1979Rockart, 1979


Hierarchical Nature of CSFsHierarchical Nature of CSFs

Individual CSFsIndividual CSFs

Industry CSFsIndustry CSFs

Corporate CSFsCorporate CSFs

Sub-organization CSFsSub-organization CSFs


Porter’s Five Forces ModelPorter’s Five Forces ModelForces that Shape StrategyForces that Shape Strategy

Industry Industry CompetitorsCompetitors

Rivalry among Rivalry among existing firmsexisting firms

SuppliersSuppliersSuppliersSuppliers Customers and Customers and BuyersBuyers

Customers and Customers and BuyersBuyers

Potential Potential EntrantsEntrantsPotential Potential EntrantsEntrants

SubstitutesSubstitutesSubstitutesSubstitutes

Bargaining power of buyersBargaining power of buyers

Threat of substitute products or Threat of substitute products or servicesservices

Bargaining power of Bargaining power of supplierssuppliers

Threat of new entrantsThreat of new entrants

How will the business How will the business react to threats (and react to threats (and

opportunities)?opportunities)?


Porter’s Five Forces ModelPorter’s Five Forces Model

Industry Industry CompetitorsCompetitors

Rivalry among Rivalry among existing firmsexisting firms

SuppliersSuppliersSuppliersSuppliers

Potential Potential EntrantsEntrantsPotential Potential EntrantsEntrants

SubstitutesSubstitutesSubstitutesSubstitutes

Bargaining power of buyersBargaining power of buyers

Threat of substitute products or Threat of substitute products or servicesservices

Bargaining power of Bargaining power of supplierssuppliers

Threat of new entrantsThreat of new entrants



The strategy and actions an organization adopts The strategy and actions an organization adopts dependdepend upon its perceptions of itself and these threats.upon its perceptions of itself and these threats.

The strategy and actions an organization adopts The strategy and actions an organization adopts dependdepend upon its perceptions of itself and these threats.upon its perceptions of itself and these threats.

Porter’s strategies:Porter’s strategies:• Product differentiation (non-duplicable product or service)Product differentiation (non-duplicable product or service)• Low-cost producer Low-cost producer • Market niche (market segment or geographical market)Market niche (market segment or geographical market)

Porter’s strategies:Porter’s strategies:• Product differentiation (non-duplicable product or service)Product differentiation (non-duplicable product or service)• Low-cost producer Low-cost producer • Market niche (market segment or geographical market)Market niche (market segment or geographical market)


Value Chain AnalysisValue Chain Analysis

• Primary activitiesPrimary activities– Inbound logisticsInbound logistics– Operations: converting inputs to outputsOperations: converting inputs to outputs– Outbound logisticsOutbound logistics– Marketing and salesMarketing and sales– ServiceService

• Supporting activitiesSupporting activities– Organization infrastructureOrganization infrastructure– HR managementHR management– Technology developmentTechnology development– ProcurementProcurement

Getting the Getting the product or service product or service

to the customerto the customer

Enabling the Enabling the value chainvalue chain


Value Chain AnalysisValue Chain Analysis

Inbound Inbound logisticslogistics OperationsOperations

Outbound Outbound logisticslogistics

Marketing Marketing and salesand sales ServiceService

Firm infrastructureFirm infrastructure

Human resource managementHuman resource management

Technology developmentTechnology development

ProcurementProcurement

Margin

Margin

Mar

gin

Mar

gin

Support Support ActivitiesActivities

Primary ActivitiesPrimary Activities

CustomersCustomers

How can value be added at every activity?How can value be added at every activity?


e-Business Value Matrixe-Business Value Matrix

• Project categories:Project categories:

– New fundamentalsNew fundamentals

– Operational excellenceOperational excellence

– Rational experimentationRational experimentation

– Breakthrough strategyBreakthrough strategy

• Value of the project (low, high)Value of the project (low, high)

– Criticality to businessCriticality to business

– Newness of ideaNewness of idea


e-Business Value Matrixe-Business Value Matrix

Criticality to businessCriticality to business

Newne

ss of

Idea

Newne

ss of

Idea

New fundamentalsNew fundamentals

Operational Operational excellenceexcellence

Rational Rational experimentationexperimentation

Breakthrough Breakthrough strategystrategy

LowLow HighHighLowLow

HighHigh

Operational Operational excellence, high excellence, high criticality to business, criticality to business, high newness of ideahigh newness of idea


Linkage Analysis PlanningLinkage Analysis Planning

• StepsSteps

– Define power relationships among various players and Define power relationships among various players and stakeholdersstakeholders

– Map out the extended enterprise to include suppliers, Map out the extended enterprise to include suppliers, buyers and strategic partnersbuyers and strategic partners

– Plan electronic channels to deliver the information Plan electronic channels to deliver the information component of products and servicescomponent of products and services


Linkage Analysis PlanningLinkage Analysis Planning

Electronic ChannelsElectronic Channels

Top managementTop management

Middle Middle managementmanagement

Operations Operations managementmanagement

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Gov

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Stoc

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Stoc

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Tra

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com

peti

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New

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Supp

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Scenario PlanningScenario Planning

• Steps:Steps:

– Define a decision problem and timeframe to bound the Define a decision problem and timeframe to bound the analysisanalysis

– Identify the major known trends that will affect the Identify the major known trends that will affect the decision problemdecision problem

– Identify just a few driving uncertaintiesIdentify just a few driving uncertainties

– Construct the scenariosConstruct the scenarios


Scenario PlanningScenario Planning


Documents

R. Ching, Ph.D. MIS Dept. California State University, Sacramento 1 Week 4 Monday, September 19 IT Leadership Strategic ITStrategic IT e-Business Modele-Business