Chapter 11

Business/IT Strategies for Development

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II. Organizational PlanningEnterprise-wide plans are required to

introduce IT/IS-based solutions to the entire firm.

Strategic Planning – develop a firm’s mission, goals, policies

Tactical Planning – develop objectives, procedures, rules, schedules, budgets

Operational Planning – implement/control day-to-day operations

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III. The Scenario Approach A less rigid but more realistic strategic

planning methodology; combine known facts about the future with plausible alternatives

Knowledge:Trends – Things we think we know

something aboutUncertainties – Elements we consider

uncertain or unknowable

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III. The Scenario Approach Components of an Organizational Components of an Organizational

Planning ProcessPlanning Process

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III. The Scenario Approach

Strategic Visioning Questions for e-BusinessStrategic Visioning Questions for e-Business

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IV. Planning for Competitive Advantage

Evaluation of potential benefits/risk of using IT for competitive advantage

SWOT ( strengths, weaknesses, opportunities, threats) Analysis – evaluate impact of each possible strategic opportunityStrengths – core competencies and resourcesWeaknesses – areas of substandard performanceOpportunities – potential for new markets or

innovationThreats – potential for losses

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Business ModelsConceptual framework of how a business can

deliver value to customers at a cost and still turn a profit

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Business ModelsQuestions for All Business ModelsQuestions for All Business Models

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Business Models Questions for e-Business ModelsQuestions for e-Business Models

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Iridium Satellite: Finding the Right Business Model

Iridium originally focused on consumer telephone serviceWent bankrupt in 2000 and company redesignedNow focuses on companies in barren deserts, Earth’s

poles, deep wilderness, disaster areas, and oceans. Also provides machine-to-machine communications.

Why is this different from the way they previously competed?

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VI. Business/IT Architecture Planning

Balanced Scorecard – measuring a company’s activities in terms of its visions and strategies; not based on proven economic theory or decision sciences

Financial Perspectives – measures of financial performance

Customer Perspective – measures directly impacting customers

Business Process Perspective – measures performance of key business processes

Learning and Growth Perspective – measures the firm’s learning curve

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The Role of IT in Business Process Design

Why might IT personnel be in a better position to see organizational needs than other personnel?

Why would IT be in the right place to provide solutions to these needs?

What organizational and cultural issues might be stumbling blocks to adopting these solutions?

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Section 2Implementation Challenges

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I. Implementation

Carrying out the strategic plans developed in the planning process

Moving to e-business involves major organizational change

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What is Change Management?

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II. Implementing Information Technology

Impact and Scope of Business Change Impact and Scope of Business Change Caused By IT ImplementationCaused By IT Implementation

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III. End-User Resistance and Involvement

Obstacles to Knowledge Management Obstacles to Knowledge Management SystemsSystems

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Individual prerequisites for change to occur

Thinking & Thinking & understandingunderstanding

Emotional/ Emotional/ MotivationalMotivational

BehavioralBehavioral

HeadHead HeartHeart

HandsHands

Why should I Why should I change?change?

What’s in it for What’s in it for me?me?

What do I do differently?What do I do differently?

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A stepped approach to change

StartStartXX

A journey of a thousand A journey of a thousand miles occurs one step at a miles occurs one step at a

time.time.

SuccessSuccess