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1Chapter   9                        Developing                    Business/Information                    Technology Strat...
2                    Learning ObjectivesDiscuss  the role of planning in the business use  of information technology, usi...
3                    Learning Objectives (continued)Identify  several change management solutions  for end user resistanc...
4                          Section I                    Planning FundamentalsMcGraw-Hill/Irwin          Copyright © 2004, ...
5                    Organizational PlanningThe   Planning Process   Team building, modeling, & consensus   Evaluating ...
6                    Organizational Planning (continued)The  planning process (continued)   Building a shared vision and...
7                        Organizational Planning (continued)Strategic          PlanningStrategic          VisioningTact...
8         The Scenario Approach to PlanningTeams  participate in a “microworld”A variety of business scenarios are creat...
9                    The Scenario Approach to Planning (continued)McGraw-Hill/Irwin                 Copyright © 2004, The ...
10        Planning for Competitive AdvantageEspecially important in today’s competitive, complex environmentInvolves an ...
11                    Planning for Competitive Advantage (continued)McGraw-Hill/Irwin                  Copyright © 2004, T...
12                    Planning for Competitive Advantage (continued)SWOT    analysis   Strengths (internal)   Weaknesse...
13               Business Models and PlanningA  conceptual framework that expresses the  underlying economic logic and sy...
14                    Business Models and Planning (continued)Specifies what value to offer customers, and  which custome...
15                       Business Models and Planning (continued)Specifies          how the business will organize and  o...
16                    e-Business PlanningThe  e-Business planning process has three  major components  Strategy developm...
17                    e-Business Planning (continued)IT  architecture major components   Technology platform   Data res...
18             Identifying e-Business StrategiesThe  Strategic Positioning Matrix   Cost and efficiency improvements    ...
19              Identifying e-Business Strategies (continued)Strategic        Positioning Matrix (continued)   Performan...
20                    Identifying e-Business Strategies (continued)Strategic Positioning Matrix (continued)   Global Mar...
21                    Identifying e-Business Strategies (continued)Strategic Positioning Matrix (continued)   Product an...
22                    Identifying e-Business Strategies (continued)McGraw-Hill/Irwin                 Copyright © 2004, The...
23             e-Business Application PlanningBegins  after the strategic phase has occurredIncludes..  Evaluation of p...
24                    e-Business Application Planning (continued)Another   alternative for planning – e-business  archite...
25                           Section II                    Implementation ChallengesMcGraw-Hill/Irwin            Copyright...
26                    ImplementationA   process of carrying out the plans for change  in e-business strategies and applic...
27                    Implementing ITRequires  managing the effects of major  changes in key organizational dimensions su...
28                    Implementing IT (continued)McGraw-Hill/Irwin        Copyright © 2004, The McGraw-Hill Companies, Inc...
29       End User Resistance and InvolvementChange             can generate fear and resistance to changeKeys to counter...
30                    End User Resistance and Involvement (continued)   End user involvement in the development of    new...
31                    Change ManagementPeople are a major focus of organizational change management  Developing innovati...
32                     Change Management (continued)Key       tactics for change   Involve as many people as possible   ...
33                     Change Management (continued)Key       tactics for change (continued)   Make  liberal use of fina...
34                    Change Management (continued)McGraw-Hill/Irwin          Copyright © 2004, The McGraw-Hill Companies,...
35                    Change Management (continued)A     change management process   Create a change vision   Define a ...
36                         Change Management (continued)Change             management process (continued)   Manage   peo...
37                    Discussion QuestionsPlanning   is a useless endeavor, because  developments in e-business and e-com...
38                    Discussion Questions (continued)What   planning methods would you use to  develop e-business and e-...
39                    Discussion Questions (continued)How   can a company use change management  to minimize the resistan...
40                    Discussion Questions (continued)What   major business changes beyond  e-business and e-commerce do ...
41      Real World Case 1 – The Rowe Cos. & Merrill LynchWhat    are the benefits and possible limitations  of the Rowe C...
42                    Real World Case 1 (continued)Do  you agree with the IT investment decisions  being made by the Rowe...
43                    Real World Case 1 (continued)How   can a company identify, measure, and  compare the business/IT in...
44      Real World Case 2 – Verizon, F.X. Coughlin, & A-decImplementation         challengesWhat   business benefits res...
45                    Real World Case 2 (continued)What   change management challenges surfaced  in each project?Where  ...
46                    Real World Case 2 (continued)What    are several change management actions  these companies could h...
47 Real World Case 3 – PeopleFirst, Cessna, Allstate, & SprintChallenges         of Implementing CRM SystemsWhat    are ...
48                    Real World Case 3 (continued)What   could PeopleFirst and Cessna have done  to avoid the failures i...
49                    Real World Case 3 (continued)How   have Allstate and Sprint Corp. helped to  ensure their successfu...
50           Real World Case 4 – Corning Inc.Business/IT  Planning Strategies in  Challenging TimesDo  you agree with ho...
51                     Real World Case 4 (continued)Why    is aligning IT projects with business  objectives a good busin...
52                    Real World Case 4 (continued)Does    Corning’s business/IT planning process  for its new production...
53         Real World Case 5 – Cincinnati BellChange  Management Challenges of Business  ConvergenceWas   the reorganiza...
54                    Real World Case 5 (continued)Were   the change management methods  revealed in this case adequate f...
55                    Real World Case 5 (continued)What   further changes should be made in IT  systems to better support...
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Chap009 MIS

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Chap009 MIS

  1. 1. 1Chapter 9 Developing Business/Information Technology StrategiesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  2. 2. 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.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  3. 3. 3 Learning Objectives (continued)Identify several change management solutions for end user resistance to the implementation of new e-business strategies and applications.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  4. 4. 4 Section I Planning FundamentalsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  5. 5. 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 developmentsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  6. 6. 6 Organizational Planning (continued)The planning process (continued) Building a shared vision and deciding on goals Deciding what actions to take to achieve goalsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  7. 7. 7 Organizational Planning (continued)Strategic PlanningStrategic VisioningTactical PlanningOperational PlanningMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  8. 8. 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 factorsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  9. 9. 9 The Scenario Approach to Planning (continued)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  10. 10. 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 potentialMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  11. 11. 11 Planning for Competitive Advantage (continued)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  12. 12. 12 Planning for Competitive Advantage (continued)SWOT analysis Strengths (internal) Weaknesses (internal) Opportunities (external) Threats (external)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  13. 13. 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.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  14. 14. 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.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  15. 15. 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 systemMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  16. 16. 16 e-Business PlanningThe e-Business planning process has three major components Strategy development Resource management Technology architectureMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  17. 17. 17 e-Business Planning (continued)IT architecture major components Technology platform Data resources Applications architecture IT organizationMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  18. 18. 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 interactMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  19. 19. 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 stakeholdersMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  20. 20. 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.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  21. 21. 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.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  22. 22. 22 Identifying e-Business Strategies (continued)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  23. 23. 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 projectsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  24. 24. 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 developmentMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  25. 25. 25 Section II Implementation ChallengesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  26. 26. 26 ImplementationA process of carrying out the plans for change in e-business strategies and applications that were developed during the planning process.McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  27. 27. 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 relationshipsMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  28. 28. 28 Implementing IT (continued)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  29. 29. 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 changesMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  30. 30. 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 stakeholdersMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  31. 31. 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 organizationMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  32. 32. 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 personMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  33. 33. 33 Change Management (continued)Key tactics for change (continued) Make liberal use of financial incentives and recognition Work within the company cultureMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  34. 34. 34 Change Management (continued)McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  35. 35. 35 Change Management (continued)A change management process Create a change vision Define a change strategy Develop leadership Build commitmentMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  36. 36. 36 Change Management (continued)Change management process (continued) Manage people performance Deliver business benefits Develop culture Design organizationMcGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  37. 37. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  38. 38. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  39. 39. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  40. 40. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  41. 41. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  42. 42. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  43. 43. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  44. 44. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  45. 45. 45 Real World Case 2 (continued)What change management challenges surfaced in each project?Where those challenges handled properly by the companies involved?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  46. 46. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  47. 47. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  48. 48. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  49. 49. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  50. 50. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  51. 51. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  52. 52. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  53. 53. 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?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  54. 54. 54 Real World Case 5 (continued)Were the change management methods revealed in this case adequate for the changes being made?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.
  55. 55. 55 Real World Case 5 (continued)What further changes should be made in IT systems to better support Cincinnati Bell’s business convergence?McGraw-Hill/Irwin Copyright © 2004, The McGraw-Hill Companies, Inc. All rights reserved.

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