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Chapter 11

Chapter 11. Business/IT Strategies for Development. Learning Objectives. Discuss the role of planning in the business use of information technology, using the scenario approach, and planning for competitive advantage as examples.

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Chapter 11

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  1. Chapter 11 Business/IT Strategies for Development

  2. Learning Objectives Discuss the role of planning in the business use of information technology, using the scenario approach, and planning for competitive advantage as examples. Discuss the role of planning and business models in the development of business/IT strategies, architectures, and applications. Identify several change management solutions for end-user resistance to the implementation of new IT-based business strategies and applications.

  3. Section 1 IT Planning Fundamentals

  4. I. Introduction Simply knowing the importance and structure of e-business is not enough. A Plan is needed to transition from an old business design to a new e-business design.

  5. II. Organizational Planning Enterprise-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

  6. 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 about Uncertainties – Elements we consider uncertain or unknowable

  7. III. The Scenario Approach Components of an Organizational Planning Process

  8. III. The Scenario Approach Strategic Visioning Questions for e-Business

  9. III. The Scenario Approach Converging Trends in Strategic Business/IT Planning

  10. Risk Assessment and Mitigation What are the four types of IT risks listed? Describe each risk. What could a firm do to mitigate each risk?

  11. 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 opportunity Strengths – core competencies and resources Weaknesses – areas of substandard performance Opportunities – potential for new markets or innovation Threats – potential for losses

  12. Bristow Helicopters: Technology-Supported SWOT and Much More What needs did Bristow have? What key goal is identified? What software technology was used to make these changes? How did the software work to accomplish this?

  13. V. Business Models and Planning Conceptual framework of how a business can deliver value to customers at a cost and still turn a profit

  14. V. Business Models and Planning Questions for All Business Models

  15. V. Business Models and Planning Questions for e-Business Models

  16. Iridium Satellite: Finding the Right Business Model What product/market did Iridium originally service? What product/market have they moved to? Why is this different from the way they previously competed?

  17. VI. Business/IT Architecture Planning Plans on how to use IT to support customer value and business value goals Strategic Development – business strategies that support a firm’s business vision Resource Management – strategic plans for managing or outsourcing a firm’s IT resources Technology Architecture – strategic IT choices reflecting an IT architecture that supports a firm’s e-business and other IT initiatives

  18. VI. Business/IT Architecture Planning Information Technology Architecture – blueprint that contains: Technology Platform – complete infrastructure supporting strategic use of IT for e-commerce and business/IT applications Data Resources – databases and data warehouses Application Architecture – business applications IT Organization – organizational structure of the IS function within a firm

  19. 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

  20. VII. Identifying Business/IT Strategies To optimize strategic impact, firms must continually assess the value of IT/e-commerce applications Cost and Efficiency Improvements – low internal/external connectivity and low use of IT Performance Improvement in Business Effectiveness – high internal but low external connectivity, need to improve collaboration Global Market Penetration – high external connectivity and use of IT Product and Service Transformation – extensively networked internally and externally

  21. e-Business Strategy Examples Describe each example listed. Discuss each example and how it could be used in a particular business. Identify businesses (not those listed) that could utilize each example.

  22. VIII. Business Application Planning IT proposals for addressing strategic business priorities and planning for application development Business/IT Architecture Planning – combines strategic planning methods (SWOT, etc.) with recent modeling and development methodologies

  23. VIII. Business Application Planning E-Business Architecture Planning

  24. KI: The Importance of Strategic Planning Why is forming a strategic IT plan difficult at most companies? What was the problem at KI? How has developing a strategic IT plan helped the firm overall? What pitfalls, resistance, and cultural issues might have been stumbling blocks along the way?

  25. 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?

  26. Section 2 Implementation Challenges

  27. I. Implementation Carrying out the strategic plans developed in the planning process

  28. II. Implementing Information Technology Moving to e-business involves major organizational change

  29. II. Implementing Information Technology Impact and Scope of Business Change Caused By IT Implementation

  30. III. End-User Resistance and Involvement New ways of doing things always generates some resistance from those affected; end-user involvement in the change process can help minimize the resistance

  31. III. End-User Resistance and Involvement Obstacles to Knowledge Management Systems

  32. Société de Transport de Montréal: Smooth Ride after a Bumpy Start What problem did STM have? Why did this problem occur? How did the IT staff work to resolve this problem? What other issues/areas might this same problem arise within? Why would the same problem manifest itself in other ares?

  33. Understanding the Science Behind Change What was the problem in IT at Blue Cross? What causes these problems? How does understanding the problem help? How did Blue Cross address the problem?

  34. IV. Change Management Managing organizational change is important and can be difficult; people are a major focus here A Change Management Process – these 8 steps are just one way of visioning change management

  35. IV. Change Management Key Dimensions of Change Management

  36. DHL Express: The Challenges of Global Change What are the two extremes of the pendulum for IT? What as the problem at DHL? What solution did DHL provide for this problem? How does this affect the IT department? How does it affect DHL?

  37. Reuters: Implementing Global Shared Services What problem did Reuters have, and why? What solution did they adopt? Discuss the meaning of this solution. How did this work out for Reuters?

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