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Developing Developing Business/InformationBusiness/InformationTechnology StrategiesTechnology Strategies

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• 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.

99 Learning ObjectivesLearning Objectives

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

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• Planning Fundamentals

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• 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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• The planning process (continued)– Building a shared vision and deciding

on goals– Deciding what actions to take to

achieve goals

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• Strategic Planning

• Strategic Visioning

• Tactical Planning

• Operational Planning

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• 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

99 The Scenario Approach to PlanningThe Scenario Approach to Planning

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99The Scenario Approach to Planning The Scenario Approach to Planning (continued)(continued)

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• 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

99 Planning for Competitive AdvantagePlanning for Competitive Advantage

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99Orasa T.Orasa T.

Planning for Competitive Advantage Planning for Competitive Advantage (continued)(continued)

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• SWOT analysis– Strengths (internal)– Weaknesses (internal)– Opportunities (external)– Threats (external)

99Planning for Competitive Advantage Planning for Competitive Advantage (continued)(continued)

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• 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.

99 Business Models and PlanningBusiness Models and Planning

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

99 Business Models and Planning (continued)Business Models and Planning (continued)

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

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

99 e-Business Planning (continued)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 to

communicate and interact

99 Identifying e-Business StrategiesIdentifying e-Business Strategies

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• 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

99 Identifying e-Business Strategies (continued)Identifying e-Business Strategies (continued)

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• 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.

99 Identifying e-Business Strategies (continued)Identifying e-Business Strategies (continued)

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• 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.

99 Identifying e-Business Strategies (continued)Identifying e-Business Strategies (continued)

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99 Identifying e-Business Strategies (continued)Identifying e-Business Strategies (continued)

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• 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

99 e-Business Application Planninge-Business Application Planning

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• Another alternative for planning – e-business architecture planning– Combines contemporary methods and

alternative planning scenarios with methodologies such as component-based development

99 e-Business Application Planning (continued)e-Business Application Planning (continued)

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• Implementation Challenges

99 Section IISection II

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

99 ImplementationImplementation

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• 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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99 Implementing IT (continued)

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• Change can generate fear and resistance to change

• Keys to countering end user resistance– Proper education and training– End user involvement in organizational

changes

99 End User Resistance and InvolvementEnd User Resistance and Involvement

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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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• 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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• 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

99 Change Management (continued)Change Management (continued)

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• Key tactics for change (continued)

– Make liberal use of financial incentives and recognition

– Work within the company culture

99 Change Management (continued)Change Management (continued)

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99 Change Management (continued)Change Management (continued)

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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, 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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• 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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• 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?

99 Discussion Questions (continued)Discussion Questions (continued)

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• 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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ReferencesReferences

• 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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