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mis - chap009.ppt

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  • 1. Chapter 9 Developing Business/Information Technology Strategies
  • 2. Learning Objectives
    • 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.
  • 3. Learning Objectives (continued)
    • Identify several change management solutions for end user resistance to the implementation of new e-business strategies and applications.
  • 4. Section I
    • Planning Fundamentals
  • 5. Organizational Planning
    • 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
  • 6. Organizational Planning (continued)
    • The planning process (continued)
      • Building a shared vision and deciding on goals
      • Deciding what actions to take to achieve goals
  • 7. Organizational Planning (continued)
    • Strategic Planning
    • Strategic Visioning
    • Tactical Planning
    • Operational Planning
  • 8. The Scenario Approach to Planning
    • 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
  • 9. The Scenario Approach to Planning (continued)
  • 10. Planning for Competitive Advantage
    • 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
  • 11. Planning for Competitive Advantage (continued)
  • 12. Planning for Competitive Advantage (continued)
    • SWOT analysis
      • Strengths (internal)
      • Weaknesses (internal)
      • Opportunities (external)
      • Threats (external)
  • 13. Business Models and Planning
    • 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.
  • 14. Business Models and Planning (continued)
    • Specifies what value to offer customers, and which customers to provide this value to using which products and services at what prices.
  • 15. Business Models and Planning (continued)
    • Specifies how the business will organize and operate
    • Focuses attention on how all the essential components fit into a complete system
  • 16. e-Business Planning
    • The e-Business planning process has three major components
      • Strategy development
      • Resource management
      • Technology architecture
  • 17. e-Business Planning (continued)
    • IT architecture major components
      • Technology platform
      • Data resources
      • Applications architecture
      • IT organization
  • 18. Identifying e-Business Strategies
    • 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
  • 19. Identifying e-Business Strategies (continued)
    • 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
  • 20. Identifying e-Business Strategies (continued)
    • 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.
  • 21. Identifying e-Business Strategies (continued)
    • 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.
  • 22. Identifying e-Business Strategies (continued)
  • 23. e-Business Application Planning
    • 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
  • 24. e-Business Application Planning (continued)
    • Another alternative for planning – e-business architecture planning
      • Combines contemporary methods and alternative planning scenarios with methodologies such as component-based development
  • 25. Section II
    • Implementation Challenges
  • 26. Implementation
    • A process of carrying out the plans for change in e-business strategies and applications that were developed during the planning process.
  • 27. Implementing IT
    • Requires managing the effects of major changes in key organizational dimensions such as
      • business processes
      • organizational structure
      • Managerial roles
      • Employee work assignments
      • Stakeholder relationships
  • 28. Implementing IT (continued)
  • 29. End User Resistance and Involvement
    • Change can generate fear and resistance to change
    • Keys to countering end user resistance
      • Proper education and training
      • End user involvement in organizational changes
  • 30. End User Resistance and Involvement (continued)
      • End user involvement in the development of new information systems
      • Involvement and commitment of top management and all business stakeholders
  • 31. Change Management
    • 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
  • 32. Change Management (continued)
    • 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
  • 33. Change Management (continued)
    • Key tactics for change (continued)
      • Make liberal use of financial incentives and recognition
      • Work within the company culture
  • 34. Change Management (continued)
  • 35. Change Management (continued)
    • A change management process
      • Create a change vision
      • Define a change strategy
      • Develop leadership
      • Build commitment
  • 36. Change Management (continued)
    • Change management process (continued)
      • Manage people performance
      • Deliver business benefits
      • Develop culture
      • Design organization
  • 37. Discussion Questions
    • 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?
  • 38. Discussion Questions (continued)
    • 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?
  • 39. Discussion Questions (continued)
    • 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?
  • 40. Discussion Questions (continued)
    • What major business changes beyond e-business and e-commerce do you think most companies should be planning for the next ten years?
  • 41. Real World Case 1 – The Rowe Cos. & Merrill Lynch
    • What are the benefits and possible limitations of the Rowe Companies ROI methodologies for IT project planning?
    • What is the business value of the ROI evaluation methodology required for project planning by Merrill Lynch?
  • 42. Real World Case 1 (continued)
    • Do you agree with the IT investment decisions being made by the Rowe Companies in response to changing economic conditions?
  • 43. Real World Case 1 (continued)
    • How can a company identify, measure, and compare the business/IT innovation as well as the profitability of IT projects in their planning process?
  • 44. Real World Case 2 – Verizon, F.X. Coughlin, & A-dec
    • Implementation challenges
    • What business benefits resulted from the integration projects of Verizon Wireless, F.X. Coughlin, and A-dec?
  • 45. Real World Case 2 (continued)
    • What change management challenges surfaced in each project?
    • Where those challenges handled properly by the companies involved?
  • 46. Real World Case 2 (continued)
    • What are several change management actions these companies could have taken to increase the acceptance of their IT integration challenges?
    • What other change management methods could be used to improve the acceptance of business/IT changes like those implemented at each company?
  • 47. Real World Case 3 – PeopleFirst, Cessna, Allstate, & Sprint
    • Challenges of Implementing CRM Systems
    • What are several reasons for the high failure rate in implementing CRM systems?
  • 48. Real World Case 3 (continued)
    • What could PeopleFirst and Cessna have done to avoid the failures in their first tries at implementing CRM systems?
  • 49. Real World Case 3 (continued)
    • How have Allstate and Sprint Corp. helped to ensure their successful CRM implementations?
    • What are other things companies could do to help implement CRM systems?
  • 50. Real World Case 4 – Corning Inc.
    • Business/IT Planning Strategies in Challenging Times
    • Do you agree with how CIO Richard Fishburn has defended Corning’s IT department from an economic downturn?
  • 51. Real World Case 4 (continued)
    • Why is aligning IT projects with business objectives a good business/IT strategy in challenging economic times?
    • And in good times?
  • 52. Real World Case 4 (continued)
    • Does Corning’s business/IT planning process for its new production and supply chain system prove the value of aligning IT with business goals?
  • 53. Real World Case 5 – Cincinnati Bell
    • Change Management Challenges of Business Convergence
    • Was the reorganization of Cincinnati Bell as revealed in this case a good business strategy?
  • 54. Real World Case 5 (continued)
    • Were the change management methods revealed in this case adequate for the changes being made?
  • 55. Real World Case 5 (continued)
    • What further changes should be made in IT systems to better support Cincinnati Bell’s business convergence?