Laure-Hélène Thevenet* 1 , Camille Salinesi*, Anne Etien *, Ines Gam*, Ménel Lassoued*

1. Experimenting a Modeling Approach for Designing Organization’s Strategies in the Context of Strategic Alignment Laure-Hélène Thevenet*1, Camille Salinesi*, Anne Etien *, Ines Gam*, Ménel Lassoued* *Centre de Recherche en Informatique, University Paris 1, France 1 BNP Paribas

2. Outline • Context and Motivation • Proposition of an approach • to design organization strategies • document the strategic alignment • Illustration with a case-study

3. Organization Organization ’ ’ s s Organization Organization Organisation Organisation ’ ’ s s Strategy Strategy Strategy Strategy strategy strategy Strategic level Alignment Alignment Functional level Business Business Information Information Organisation Organisation Business Business Organisation Organisation Information Information Processes Processes Systems Systems Processes Processes strategy strategy Systems Systems strategy strategy Context and Motivation:Importance of Strategic Alignment Top priority Improves Business Performance Helps providing return on IT investments Agility Visibility Tracing evolutions Impact analysis However, alignment between strategies and functional level remains ineffective and seldom considered

4. Context and Motivation:strategic alignment • Our requirements for a good strategic alignment documentation were to: • be formalized using modeling rules, • reflect the complexity of strategic alignment in a simple manner • show alignment as well as mis-alignment • be scalable to real-world organization sizes, • Need to document organizations’ strategic objectives • few modeling techniques available to document them, • the level of formality not adapted to work on strategic alignment • weak compatibility with the objectives relative to IS • Need to document strategic alignment However, methodologies do not provide means to evaluate if there is fit and to which extent.

5. Related works – goal modeling technique • i* • The relationships between actors and their goals • Bleistein et al. (BSCP framework) • MAP • CREWS-L’Ecritoire : • Goal modeling and scenario analysis • KAOS : • Goals are linked through AND/OR decomposition links Very few method exist to address the issue of strategic alignment.

6. Proposal • Description of the organizations’ strategic objectives in the context of strategic alignment • Use of the Map formalism • Enhancement of the Map formalism to document organizations’ strategic objectives • Definition of links between strategic map and functional map • Experimentation on the case study of Seven Eleven Japan

7. Proposed approach Strategic maps Contribution links Functional maps

8. Seven Eleven Japan case study • Largest chain in the Japanese convenience retailing industry • SEJ’s strategy more specifically relies on: • use information to meet customer’s demands • the optimization of storage space • Main strategic objectives : • Get better value of SEJ stores by answering to any client’s needs; • Live in harmony with the local communities; • Respect the environment.

9. SEJ’s Strategic map for “Get better value of SEJ stores” from stakeholders’ vision Strategy= manner to attain the target goal Section = (source intention, target intention, strategy) a (1) Start By availability towards customers and in shops (2) By being visible by By anticipating customers problems (1) Source Intention (2) (3) (4) By cooperation By guarantying By coordinating with allies and product quality logistics of products partner b (3) (1) Control the resources By answering quickly to store By providing requests organisational efficiency (1) By rationalizing the Caption organisation Increase the sources of value objective c Target Intention = goal to achieve (1) strategy (2) By By shareholders organisational section change Stop (change the organization strategy) Ressources : time, space, partners, stores, products, services d Sources of Value : customers, product quality, organsiation quality, sales (results of product, store (space), time, customer)

10. Functional Map“Organize networks of franchisee stores” (1) By recovery of the outstanding debts a (1) By catalogue construction Start (1)By paying the debts e Keep the accounting books (2)By geographical development (2)By recovery of the amounts to perceive b Define offers (3)By creating partnerships (1) (1) (1) Using the accounting results By definition of the communication policy By tutorial system (1) (2) (1) (3) By marketing (promotions) By franchise management By sales monitoring By stock optimisation d (1) Supervise the shops (1) By ajustment/ training (1) By advertising campaign By bone of contentious (1) By withdrawal of a geographical zone Maintain the image (1)By installing the communication equipment f Stop c

11. Example of Contribution links Necessary: the fulfilment of the section AC1 cannot occur if that of sections AB1, AB2, AB3 and BD2 is not performed. If evolution impacts these sections, it is inevitable to verify that the link is preserved Is Sufficient To : realising AB1, AB2, AB3 and BD2 is enough to satisfy the fulfilment of the section AC1 a Part of strategic map Start (1) By availability towards customers and in shops c (AB,AB2,AB3 AND BD2)are Necessary and Sufficent toAC1 Increase the sources of value a Part of funtional map Start (1) By catalogue construction (2) By geographical development Define offers b (2) By sales monitoring (3) By creating partnerships Supervise the shops d

12. Contribution links • Different contribution links between functional elements and strategic elements : • Necessary • Sufficient • Useful • Constrained by • Contradictory with • Possibility to combine different links • Use to analyze alignment • Detect redundancies in IS • Help in impact analysis • Identify new requirements to improve strategic alignment

13. The strategic level Organization Strategy 1* Organization Strategic Objective 1..* Describes ^ 1 2..* Comprises > Strategic map Strategy Section 1 1 * 0..* 0..* Refines> has for has for Corresponds to v target v source v 1 1 Goal 1* Makes Intervene v * * Vision * Expressed by v Satisfies needs of v * actor Internal External 1 actor actor 1*

14. Necessary Sufficient Useful Constrained Contradictory Composed Link Atomic Link Attribute Contribution Link target source Strategic Functional 0..1 0..1 map map Strategic Functional 0 * Element Element 0..1 Refines Refines > > 2 * 2 * 2 * 2 * Section Formula Section Formula 0 * 0..1 Link between strategic and functional level Strategic level Functional level

15. Conclusion • We proposed • the use of MAP formalism, to model both strategic and functional levels. • the definition of contribution links • We show on an example the pertinence of the approach • This approach is included in a larger project • CADWA approach for DW (use of map at the strategic level) • ACEM approach (use of map in a context of alignment)

16. Conclusion Perspectives: • definitions of contribution links • analysis of evolutions and evaluation of their consequences; • documentation of the used process to define the strategic maps and contribution links. Complementary experiments : • Interviews with industrials to explore the usability of strategic maps in an industrial context. • Empirical evaluation of the various qualities expected from the strategy modeling language. • Comparative analysis of i* with the Map approach to document organization’s strategy.