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Aligning Information System Using Chandlers Methods - IT Project Management
Aligning Information System Using Chandlers Methods - IT Project Management
Aligning Information System Using Chandlers Methods - IT Project Management
Aligning Information System Using Chandlers Methods - IT Project Management
Aligning Information System Using Chandlers Methods - IT Project Management
Aligning Information System Using Chandlers Methods - IT Project Management
Aligning Information System Using Chandlers Methods - IT Project Management
Aligning Information System Using Chandlers Methods - IT Project Management
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Aligning Information System Using Chandlers Methods - IT Project Management

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Aligning Information System Using Chandlers Methods …

Aligning Information System Using Chandlers Methods

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  • 1. Welingkar’s Distance Learning Division I.T. for Management CHAPTER-13 Aligning Information System Using Chandlers Methods We Learn – A Continuous Learning Forum
  • 2. Welingkar’s Distance Learning Division Aligning Information System using Chandlers Method The Alfred Chandlers model is a Simple but very effective business model In the Alfred Chandler model each of the three sides of the triangle represent the strategies in the business Alfred chandler presented a simple business model based on Business Strategy Organizational Strategy Systems & IT Strategy We Learn – A Continuous Learning Forum
  • 3. Welingkar’s Distance Learning Division Aligning Information System using Chandlers Method Business Strategy One of the best cases on this subject is that of Mrs. Fields Cookies Mrs. Cookies started the business of cookies The business strategy was to replicate the formula of success of the first store in each of 400 stores The success of stores summed up as • Hot fresh, baked cookies made as per the unique recipe developed by Mrs. Field • A distinct upbeat stores culture which attracted customers • Hourly sales initiative & forecasting techniques We Learn – A Continuous Learning Forum
  • 4. Welingkar’s Distance Learning Division Aligning Information System using Chandlers Method Organizational Strategy: The organizational strategy supported the business strategy in more than one ways as summed up • Mrs. Field insisted on flat organization. • Mrs. Field believed if she had to exert her influence and communication at the individual stores level she must eliminate all in between levels. she believed technology would have to support her in terms of communication facilities • This also support the idea that most of the middle management layers act either as information processor We Learn – A Continuous Learning Forum
  • 5. Welingkar’s Distance Learning Division Aligning Information System using Chandlers Method Organizational Strategy: • Mrs. Field however believed that maintaining a performance oriented and upbeat stores culture would require a direct contact • In Mrs. Field’s case culture also means a young and high energy team at all times. To a young managers directly reporting • An upbeat culture also meant a young & high energy team all times. She therefore hired young college students to mange stores • Managing stores however also required other back office & analytical functions We Learn – A Continuous Learning Forum
  • 6. Welingkar’s Distance Learning Division Aligning Information System using Chandlers Method Systems & IT strategy • IT is used to empower people and not as means of surviving & controlling them • Using IT for empowerment also means that the need for several supervisory levels is eliminated to the company • With communication technology Mrs. field implemented email, voice mail& form mail • Automated software were provided to tale decisions for managers. A very high level of Automation also reduces the effective head count • The systems, Processes and software also Encapsulated the experience of Mrs. Fields • The systems used in Mrs. Fields case were based on a Centralized database We Learn – A Continuous Learning Forum
  • 7. Welingkar’s Distance Learning Division Aligning Information System using Chandlers Method Learning for the CIO fro the above case • One of the key learnings in the Fields case was that business, organization and strategies must be Coherent • Changes in one Strategy must reflect on changes in the other • Domestic banks are now able to do a BPR thanks to an easing up of union pressures • The model can be used as a tool for carrying out an IT Effectiveness study • Highlights the importance of driving IT on the basis of philosophies of underlying organizational strategies and those of conducting business • Infrastructure matters but alignment of the vision for IT with the vision for business & organization makes the difference We Learn – A Continuous Learning Forum
  • 8. Welingkar’s Distance Learning Division Aligning Information System Using Chandlers Method End of Chapter 13 We Learn – A Continuous Learning Forum

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