à ̧šà ̧—à ̧—à ̧μà1ˆ9 Development Business IT Strategies

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à ̧šà ̧—à ̧—à ̧μà1ˆ9 Development Business IT Strategies

  1. 1. Developing Business/Information Technology Strategies 9
  2. 2. <ul><li>Discuss the role of planning in the business use of information technology, using the scenario approach and planning for competitive advantage. </li></ul><ul><li>Discuss the role of planning and business models in the development of e-business strategies, architectures, and applications. </li></ul>9 Learning Objectives
  3. 3. <ul><li>Identify several change management solutions for end user resistance to the implementation of new e-business strategies and applications. </li></ul>9 Learning Objectives (continued)
  4. 4. <ul><li>Planning Fundamentals </li></ul>9 Section I
  5. 5. <ul><li>The Planning Process </li></ul><ul><ul><li>Team building, modeling, & consensus </li></ul></ul><ul><ul><li>Evaluating organizational accomplishments and the resources they have acquired </li></ul></ul><ul><ul><li>Analyzing the business, economic, political, and societal environment </li></ul></ul><ul><ul><li>Anticipating and evaluating the impact of future developments </li></ul></ul>9 Organizational Planning
  6. 6. <ul><li>The planning process (continued) </li></ul><ul><ul><li>Building a shared vision and deciding on goals </li></ul></ul><ul><ul><li>Deciding what actions to take to achieve goals </li></ul></ul>9 Organizational Planning (continued)
  7. 7. <ul><li>Strategic Planning </li></ul><ul><li>Strategic Visioning </li></ul><ul><li>Tactical Planning </li></ul><ul><li>Operational Planning </li></ul>9 Organizational Planning (continued)
  8. 8. <ul><li>Teams participate in a “microworld” </li></ul><ul><li>A variety of business scenarios are created </li></ul><ul><li>Alternative scenarios are created by teams or by business simulation software based on.. </li></ul><ul><ul><li>A variety of developments, trends, and environmental factors </li></ul></ul>9 The Scenario Approach to Planning
  9. 9. 9 The Scenario Approach to Planning (continued)
  10. 10. <ul><li>Especially important in today’s competitive, complex environment </li></ul><ul><li>Involves an evaluation of potential benefits and risks </li></ul><ul><li>May include the competitive forces and competitive strategies models, as well as a value chain model of basic business activities </li></ul><ul><li>Use a strategic opportunities matrix to evaluate strategic potential </li></ul>9 Planning for Competitive Advantage
  11. 11. 9 Orasa T. Planning for Competitive Advantage (continued)
  12. 12. <ul><li>SWOT analysis </li></ul><ul><ul><li>Strengths (internal) </li></ul></ul><ul><ul><li>Weaknesses (internal) </li></ul></ul><ul><ul><li>Opportunities (external) </li></ul></ul><ul><ul><li>Threats (external) </li></ul></ul>9 Planning for Competitive Advantage (continued)
  13. 13. <ul><li>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. </li></ul>9 Business Models and Planning
  14. 14. <ul><li>Specifies what value to offer customers, and which customers to provide this value to using which products and services at what prices. </li></ul>9 Business Models and Planning (continued)
  15. 15. <ul><li>Specifies how the business will organize and operate </li></ul><ul><li>Focuses attention on how all the essential components fit into a complete system </li></ul>9 Business Models and Planning (continued)
  16. 16. <ul><li>The e-Business planning process has three major components </li></ul><ul><ul><li>Strategy development </li></ul></ul><ul><ul><li>Resource management </li></ul></ul><ul><ul><li>Technology architecture </li></ul></ul>9 e-Business Planning
  17. 17. <ul><li>IT architecture major components </li></ul><ul><ul><li>Technology platform </li></ul></ul><ul><ul><li>Data resources </li></ul></ul><ul><ul><li>Applications architecture </li></ul></ul><ul><ul><li>IT organization </li></ul></ul>9 e-Business Planning (continued)
  18. 18. <ul><li>The Strategic Positioning Matrix </li></ul><ul><ul><li>Cost and efficiency improvements </li></ul></ul><ul><ul><ul><li>Low level of connectivity and use of IT </li></ul></ul></ul><ul><ul><ul><li>Strategy: use the Internet and Web to communicate and interact </li></ul></ul></ul>9 Identifying e-Business Strategies
  19. 19. <ul><li>Strategic Positioning Matrix (continued) </li></ul><ul><ul><li>Performance improvements in business effectiveness </li></ul></ul><ul><ul><ul><li>High level of internal connectivity and pressures to substantially improve business processes, external connectivity is low </li></ul></ul></ul><ul><ul><ul><li>Strategy: making major improvements in business effectiveness. Use intranets and extranets to connect the organization with stakeholders </li></ul></ul></ul>9 Identifying e-Business Strategies (continued)
  20. 20. <ul><li>Strategic Positioning Matrix (continued) </li></ul><ul><ul><li>Global Market Penetration </li></ul></ul><ul><ul><ul><li>Must capitalize on a high degree of customer and competitor connectivity and use of IT. </li></ul></ul></ul><ul><ul><ul><li>Strategy: develop e-business and e-commerce applications to optimize interaction with customers and build market share. </li></ul></ul></ul>9 Identifying e-Business Strategies (continued)
  21. 21. <ul><li>Strategic Positioning Matrix (continued) </li></ul><ul><ul><li>Product and Service Transformation </li></ul></ul><ul><ul><ul><li>All stakeholders are extensively networked </li></ul></ul></ul><ul><ul><ul><li>Strategy: implement Internet-based technologies including e-commerce websites and e-business intranets and extranets. </li></ul></ul></ul>9 Identifying e-Business Strategies (continued)
  22. 22. 9 Identifying e-Business Strategies (continued)
  23. 23. <ul><li>Begins after the strategic phase has occurred </li></ul><ul><li>Includes.. </li></ul><ul><ul><li>Evaluation of proposals for using IT to accomplish the strategic priorities </li></ul></ul><ul><ul><li>Evaluation of the business case for investing in e-business development projects </li></ul></ul><ul><ul><li>Developing and implementing e-business applications and managing the development projects </li></ul></ul>9 e-Business Application Planning
  24. 24. <ul><li>Another alternative for planning – e-business architecture planning </li></ul><ul><ul><li>Combines contemporary methods and alternative planning scenarios with methodologies such as component-based development </li></ul></ul>9 e-Business Application Planning (continued)
  25. 25. <ul><li>Implementation Challenges </li></ul>9 Section II
  26. 26. <ul><li>A process of carrying out the plans for change in e-business strategies and applications that were developed during the planning process. </li></ul>9 Implementation
  27. 27. <ul><li>Requires managing the effects of major changes in key organizational dimensions such as </li></ul><ul><ul><li>business processes </li></ul></ul><ul><ul><li>organizational structure </li></ul></ul><ul><ul><li>Managerial roles </li></ul></ul><ul><ul><li>Employee work assignments </li></ul></ul><ul><ul><li>Stakeholder relationships </li></ul></ul>9 Implementing IT
  28. 28. 9 Implementing IT (continued)
  29. 29. <ul><li>Change can generate fear and resistance to change </li></ul><ul><li>Keys to countering end user resistance </li></ul><ul><ul><li>Proper education and training </li></ul></ul><ul><ul><li>End user involvement in organizational changes </li></ul></ul>9 End User Resistance and Involvement
  30. 30. <ul><ul><li>End user involvement in the development of new information systems </li></ul></ul><ul><ul><li>Involvement and commitment of top management and all business stakeholders </li></ul></ul>9 End User Resistance and Involvement (continued)
  31. 31. <ul><li>People are a major focus of organizational change management </li></ul><ul><ul><li>Developing innovative ways to measure, motivate, and reward performance </li></ul></ul><ul><ul><li>Designing programs to recruit and train employees in the core competencies </li></ul></ul><ul><li>Also involves analyzing and defining all changes facing the organization </li></ul>9 Change Management
  32. 32. <ul><li>Key tactics for change </li></ul><ul><ul><li>Involve as many people as possible </li></ul></ul><ul><ul><li>Make constant change an expected part of the organizational culture </li></ul></ul><ul><ul><li>Tell everyone as much as possible about everything as often as possible, preferably in person </li></ul></ul>9 Change Management (continued)
  33. 33. <ul><li>Key tactics for change (continued) </li></ul><ul><ul><li>Make liberal use of financial incentives and recognition </li></ul></ul><ul><ul><li>Work within the company culture </li></ul></ul>9 Change Management (continued)
  34. 34. 9 Change Management (continued)
  35. 35. <ul><li>A change management process </li></ul><ul><ul><li>Create a change vision </li></ul></ul><ul><ul><li>Define a change strategy </li></ul></ul><ul><ul><li>Develop leadership </li></ul></ul><ul><ul><li>Build commitment </li></ul></ul><ul><ul><li>Manage people performance </li></ul></ul><ul><ul><li>Deliver business benefits </li></ul></ul><ul><ul><li>Develop culture </li></ul></ul><ul><ul><li>Design organization </li></ul></ul>9 Change Management (continued)
  36. 36. <ul><li>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? </li></ul><ul><li>“ 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? </li></ul>9 Discussion Questions
  37. 37. <ul><li>What planning methods would you use to develop e-business and e-commerce strategies and applications for your own business? </li></ul><ul><li>What are several e-business and e-commerce strategies and applications that should be developed and implemented by many companies today? </li></ul>9 Discussion Questions (continued)
  38. 38. <ul><li>How can a company use change management to minimize the resistance and maximize the acceptance of changes in business and technology? </li></ul><ul><li>“ Many companies plan really well, yet few translate strategy into action.” Do you think this is true? </li></ul>9 Discussion Questions (continued)
  39. 39. <ul><li>What major business changes beyond e-business and e-commerce do you think most companies should be planning for the next ten years? </li></ul>9 Discussion Questions (continued
  40. 40. References <ul><li>James A. O'Brien; George M. Marakas. Management Information Systems: Managing Information Technology in the Business Enterprise 6th Ed., Boston: McGraw-Hill/ Irwin ,2004 </li></ul>9

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