Hello attached both piers post please provide comments for both:
Post 1:
A technology roadmap can help you move forward with confidence and purpose while avoiding costly mistakes. It will help you align your IT projects with your strategic priorities, plan for the long term, and define your needs and priorities before making an investment. There are numerous steps an organization can take to develop a technology road made which can enable them to move forward with confidence.
1. Bold and innovative planning
It is important for firms to be bold and innovative while planning a roadmap. What a firm has done should not be the instrument by which they determine what should be done next. As a firm it is important for them to be innovative as Innovation is key. Invent the future while inspiring others to help build it.
1. Align technology with the business
Determining what role technology will play in satisfying the business vision and focusing on using technology to solve business problems and deliver business values is another important step to take. Firms should know when it is appropriate to choose leading-edge technology over being a late comer. It is also important to ensure that the roadmap is flexible, extensible, and attainable to change with the business (McKeen, J. D., & Smith, H. 2012).
1. Secure support for the roadmap.
Mckeen states that by ensuring that the funding model supports the technology roadmap of the business is another important step. A roadmap requires an executive sponsor, ownership, and accountability. Ensuring that strategic decisions are made at the right level will help the firm in staying on course (McKeen, J. D., & Smith, H. 2012).
1. The people.
Every technology change requires changes in people’s skills so firms must not forget the people involved. By mapping new technologies to require skill acquisition and/or development will enable firms to take steps to ensure that IT personnel understand the technology roadmap and its logic, complications, and time frame.
1. Control, measure, and communicate progress.
A successful roadmap must be measurable and updated in a timely manner. Communication of the roadmap is essential to success. So, by establishing a governance process to manage technology and vendor choices will enable the firms to implement a clear road map (Pastrikos, J. (n.d.).
References
· McKeen, J. D., & Smith, H. (2012). IT strategy: Issues and practices(2nded.). Upper Saddle River, NJ: Prentice Hall.
· Pastrikos, J. (n.d.). 6 steps to creating your technology roadmap. Retrieved from https://www.bdc.ca/en/blog/pages/it-strategy-6-steps-creating-your-technology-roadmap.aspx
Post 2:
Introduction
The ongoing process of defining key technical initiatives to address the needs of the company is a great technology roadmap. This cycle focusses on the business divisions on the top standard goals so that the organization can build the product roadmap and prepare to meet the objectives (M ...
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Hello attached both piers post please provide comments for both.docx
1. Hello attached both piers post please provide comments for
both:
Post 1:
A technology roadmap can help you move forward with
confidence and purpose while avoiding costly mistakes. It will
help you align your IT projects with your strategic priorities,
plan for the long term, and define your needs and priorities
before making an investment. There are numerous steps an
organization can take to develop a technology road made which
can enable them to move forward with confidence.
1. Bold and innovative planning
It is important for firms to be bold and innovative while
planning a roadmap. What a firm has done should not be the
instrument by which they determine what should be done next.
As a firm it is important for them to be innovative as Innovation
is key. Invent the future while inspiring others to help build it.
1. Align technology with the business
Determining what role technology will play in satisfying the
business vision and focusing on using technology to solve
business problems and deliver business values is another
important step to take. Firms should know when it is
appropriate to choose leading-edge technology over being a late
comer. It is also important to ensure that the roadmap is
flexible, extensible, and attainable to change with the business
(McKeen, J. D., & Smith, H. 2012).
1. Secure support for the roadmap.
Mckeen states that by ensuring that the funding model supports
the technology roadmap of the business is another important
step. A roadmap requires an executive sponsor, ownership, and
accountability. Ensuring that strategic decisions are made at the
right level will help the firm in staying on course (McKeen, J.
D., & Smith, H. 2012).
1. The people.
Every technology change requires changes in people’s skills so
2. firms must not forget the people involved. By mapping new
technologies to require skill acquisition and/or development
will enable firms to take steps to ensure that IT personnel
understand the technology roadmap and its logic, complications,
and time frame.
1. Control, measure, and communicate progress.
A successful roadmap must be measurable and updated in a
timely manner. Communication of the roadmap is essential to
success. So, by establishing a governance process to manage
technology and vendor choices will enable the firms to
implement a clear road map (Pastrikos, J. (n.d.).
References
· McKeen, J. D., & Smith, H. (2012). IT strategy: Issues and
practices(2nded.). Upper Saddle River, NJ: Prentice Hall.
· Pastrikos, J. (n.d.). 6 steps to creating your technology
roadmap. Retrieved from https://www.bdc.ca/en/blog/pages/it-
strategy-6-steps-creating-your-technology-roadmap.aspx
Post 2:
Introduction
The ongoing process of defining key technical
initiatives to address the needs of the company is a great
technology roadmap. This cycle focusses on the business
divisions on the top standard goals so that the organization can
build the product roadmap and prepare to meet the objectives
(McKeen & Smith, 2015). The plan will also take note of any
possible risk factors to help the team to identify and prepare
possible roadblocks. This allows the entire team to see
comprehensive plans and how assignments will depend on each
person within the company. The creation of a roadmap for
technologies is just part of the method. It is crucial for the
organization to discuss it with key stakeholders, such that it is
3. mindful of the practical steps for developing a technology
roadmap.
Be bold and innovative when planning the roadmap. This is the
first and foremost step in the entire roadmap. Adapt the best
innovations, capabilities, and operational frameworks to address
the evolving demands and desires of clients at the right
moment (McKeen & Smith, 2015). Be bold on investment in
technology through targeting the possible technical tools to
improve efficiency and investments in consolidating
technological advancement strategies and the creation of
continuity.
Align technology with the business. Determine the role of
technology to fulfill the business needs of the company.
Concentrate on leveraging technologies to address market
challenges and have value for capital. Learn about using new
technology as a revenue increase tool. Make sure the plan is
versatile, extensible, and business-oriented. Ensure a strategic
plan is sponsored by the business framework. Involve business
in making strategic decisions for the technological tools to
understand the impact on business.
Secure support for the roadmap. Connecting with the
appropriate people in the early stages will ensure that the idea
is funded and encouraged throughout the roadmap (Chrisos,
2019). It is necessary to make it transparent to those whose
approval you need to obtain the measurable benefits of your
company. It also includes the definition of the project mission
and business goals makes the client recognize more thoroughly
the ultimate strategy and performance metrics.
Don’t forget the people. Project managers are responsible for
notice hard work and give proper credits to the team members.
This will sustain a healthy environment for future roadmap like
support, new innovations, etc. Any technical transition needs
4. improvements in the capabilities of people. Map emerging
technologies to learn and improve skills (McKeen & Smith,
2015). Allow efforts to ensure that the team grasps the
development plan and its meaning, implications, and timeline.
Control, measure and communicate progress. The assessment of
the milestones of the project is a significant part of the
technology road map (Uptmor, 2017). It encourages the team to
stay concentrated and to accomplish goals and allows project
managers to keep up on what is going on in the workplace. The
first step to good leadership is to help others to continue to
work, to include team partners, and to keep everyone
responsible.
References
Chrisos, M. (2019). 6 techniques to secure funding for IT
projects. Retrieved from
https://www.techfunnel.com/information-technology/6-
techniques-to-secure-funding-for-it-projects/
McKeen, J. D., & Smith, H. A. (2015). IT strategy: Issues and
practices. Upper Saddle River, New Jersey: Pearson Education,
Inc.
Uptmor, D. (2017). How to effectively measure progress on
your project. Retrieved from
https://www.clarizen.com/effectively-measure-progress-project/
Criteria
Equivalent to an A
Equivalent to a B
Equivalent to a C
Equivalent to a D
Equivalent to an F
5. Corporate-level strategy analysis
1.2 points
Thoroughly and correctly analyzes corporate level strategies
using BOTH research and course material to support reasoning.
(1.08 - 1.20)
1.02 points
Presents a corporate level strategy analysis using some research
ANDcourse material to support reasoning but some development
is needed.
(0.96 - 1.07)
0.9 points
Presents a corporate level strategy analysis using some research
AND course material to support reasoning but significant
development is needed.
(0.84 - 0.93)
0.78 points
Attempts to analyze corporate level strategies but may not be
correct, does not use both research AND course material to
support reasoning or needs major development.
(0.72 - 0.83)
0 points
Little to no attempt to analyze corporate level strategies.
(0 - 0.71)
/ 1.2
Create a partial SWOT table
1 point
Thoroughly and correctly creates a partial SWOT - SW citing
the sources from the research.
(0.9 - 1.0)
0.85 points
Creates a partial SWOT - SW citing the sources from the
research but needs some development OR presents less than
6. three strengths or weaknesses.
(0.80 - 0.89)
0.75 points
Creates a partial SWOT - SW citing the sources from the
research but needs significant development OR presents less
than two strengths or weaknesses.
(0.70- 0.79)
0.65 points
Attempts to create a partial SWOT - SW; does not provide
correct information OR does not consistently cite OR presents
one or incorrect strengths or weaknesses; needs major
development.
(0.60 - 0.69)
0 points
Little to no attempt to create a partial SWOT - SW.
(0 - 0.59)
/ 1
SW Analysis:
2.2 points
Thoroughly and correctly performs a SW analysis and discusses
the strategic inferences/implications/strategies that would allow
the company to capitalize on its strengths and strategies that
would allow company to improve upon its major weaknesses
using BOTH research AND course material to support
reasoning.
(1.7 - 2.2)
1.6 points
Performs a SW analysis and discusses the strategic
inferences/implications/strategies that would allow the company
to capitalize on its strengths and strategies that would allow
company to improve upon its major weaknesses using BOTH
research AND course material to support reasoning but needs
some development.
(1.5 - 1.69)
1.4 points
Performs a SW analysis and discusses the strategic
7. inferences/implications/strategies that would allow the company
to capitalize on its strengths and strategies that would allow
company to improve upon its major weaknesses using BOTH
research AND course material to support reasoning but needs
significant development.
(1.3 - 1.49)
1.2 points
Attempts to performs a SW analysis and attempts to discuss the
strategic inferences/implications/strategies that would allow the
company to capitalize on its strengths and strategies that would
allow company to improve upon its major weaknesses using
little course material AND/OR research to support the
reasoning; needs major development; missing key information.
(1.1 - 1.29)
0 points
Little to no attempts to performs a SW analysis OR does not
discuss the strategic inferences/implications/strategies that
would allow the company to capitalize on its strengths and
strategies that would allow company to improve upon its major
weaknesses .
(0 – 1)
/ 2.2
Create an IFE matrix analysis and address the strategic
inferences/implications
1 point
Thoroughly and correctly presents an IFE matrix analysis and
address the strategic inferences/implications using BOTH
research AND course material to support reasoning.
(0.9 - 1.0)
0.85 points
Presents an IFE matrix analysis and address the strategic
inferences/implications using BOTH research AND course
material to support reasoning but needs some development.
(0.8 - 0.89)
8. 0.75 points
Presents an IFE matrix analysis and address the strategic
inferences/implications using BOTH research AND course
material to support reasoning but needs significant
development.
(0.7 - 0.79)
0.65 points
Attempts to present an IFE matrix analysis; may attempt to
address the strategic inferences/implications - uses little course
material AND/OR research to support of the reasoning; needs
major development; missing key information.
(0.6 - 0.69)
0 points
Little to no attempt to create an IFE matrix analysis OR does
not address the strategic inferences/implications.
(0 – 0.59)
/ 1
Develop a Grand Strategy Matrix with an analysis that discusses
the strategic inferences/implications at a corporate level and
business-unit-level
1 point
Thoroughly and correctly develops a Grand Strategy Matrix
with an analysis that discusses the strategic
inferences/implications at a corporate level and business-unit-
level using BOTH research AND course material to support
reasoning and conclusions.
(0.9 - 1.0)
0.85 points
Develops a Grand Strategy Matrix with an analysis that
discusses the strategic inferences/implications at a corporate
level and business-unit-level using BOTH research AND course
9. material to support reasoning but needs some development.
(0.8 - 0.89)
0.75 points
Develops a Grand Strategy Matrix with an analysis that
discusses the strategic inferences/implications at a corporate
level and business-unit-level using BOTH research AND course
material to support reasoning but needs significant
development.
(0.7 - 0.79)
0.65 points
Attempts to develop a Grand Strategy Matrix; may attempt to
discuss strategic inferences/implications at a corporate level and
business-unit-level using little course material AND/OR
research to support of the reasoning; needs major development;
missing key information.
(0.6 - 0.69)
0 points
Little to no attempt to develops a Grand Strategy Matrix OR an
analysis that discusses the strategic inferences/implications at a
corporate level and business-unit-level.
(0 – 0.59)
/ 1
Evaluate the company's product line and target market
1.2 points
Thoroughly and correctly evaluates company's product line and
target market using BOTH research AND course material to
support reasoning.
(1.08 - 1.20)
1.02 points
Evaluates the company's product line and target market using
BOTH research AND course material to support reasoning but
needs some development.
(0.96 - 1.07)
0.9 points
10. Evaluates the company's product line and target market using
BOTH research AND course material to support reasoning but
needs significant development.
(0.84 - 0.93)
0.78 points
Attempts to evaluate the company's product line and target
market using little course material AND/OR research to support
the reasoning; needs major development; missing key
information.
(0.72 - 0.83)
0 points
Little to no attempt to evaluate the company's product line and
target market.
(0 – 0.71)
/ 1.2
Identify and explain business-level strategies
1.2 points
Thoroughly and correctly identifies and explain business-level
strategies using BOTH research AND course material to support
reasoning.
(1.08 - 1.20)
1.02 points
Identifies and explains business-level strategies using BOTH
research AND course material to support reasoning but needs
some development.
(0.96 - 1.07)
0.9 points
Identifies and explains business-level strategies using BOTH
research AND course material to support reasoning but needs
significant development.
(0.84 - 0.93)
0.78 points
Attempts to identify and explain business-level strategies
providing with little course material AND/OR research to
support the reasoning; needs major development; missing key
information.
11. (0.72 - 0.83)
0 points
Little to no identification and explanation of business-level
strategies.
(0 - 0.71)
/ 1.2
Assess the company's org structure, org culture marketing
production, operations, finance/accounting, R&D
1 point
Thoroughly and correctly assesses the company's org structure,
org culture, marketing production, operations,
finance/accounting, and R&D, using both research AND course
material to support reasoning and conclusions.
(0.9 - 1.0)
0.85 points
Correctly assesses the company's interactions with its
stakeholders, org structure, org culture, marketing production,
operations, finance/accounting, and R&D using both research
AND course material to support reasoning and conclusions but
needs clarity or some development in using the course material
to support ideas or in the research.
(0.8 - 0.89)
0.75 points
Attempts to assesses the company's org structure, org culture,
marketing production, operations, finance/accounting, and
R&D providing some use of the course material AND research
to support reasoning and conclusions but needs significant
clarity, development in using the course material to support
ideas or in the research.
(0.7 - 0.79)
0.65 points
Assesses the company's org structure, org culture, marketing
production, operations, finance/accounting, and R&D with
little course material AND/OR research to support the reasoning
and conclusions. Needs major development; missing key
information OR needs major development in using course
12. material to support ideas or the research.
(0.6 - 0.69)
0 points
Little to no assessment of the company's org structure, org
culture, marketing production, operations, finance/accounting,
and R&D,
(0 – 0.59)
/ 1
Explain how functional-level strategies align with the
company's vision and mission statements
1 point
Thoroughly and correctly explains how the functional-level
strategies align with the company's vision and mission
statements using BOTH research AND course material to
support reasoning and conclusions.
(0.90 - 1.0)
0.85 points
Explains how the functional-level strategies align with the
company's vision and mission statements using BOTH research
AND course material to support reasoning but needs some
development.
(0.80 - 0.89)
0.75 points
Explains how the functional-level strategies align with the
company's vision and mission statements using BOTH research
AND course material to support reasoning but needs significant
development.
(0.70 - 0.79)
0.65 points
Attempts to explain how the identified strategies align with the
company's vision and mission statements using little course
material AND/OR research to support the reasoning; needs
major development; missing key information.
(0.60 - 0.69)
0 points
Little to no explanation of how the identified strategies align
13. with the company's vision and mission statements.
(0 - 0.59)
/ 1
Ratio calculation and presentation of industry averages.
1 point
Correctly calculates no less than a total of ten (10) key financial
ratios for the company using only relevant ratios for the
company and presents same industry averages across the four
categories.
(0.90 - 1.0)
0.85 points
Calculates no less than a total of ten (10) key financial ratios
for the company using only relevant ratios for the company
presenting the same industry averages across the four categories
but 1-2 ratios are incorrectly presented.
(0.80 - 0.89)
0.75 points
Calculates no less than a total of ten (10) key financial ratios
for the company using only relevant ratios for the company
presenting the same industry averages across the four categories
but 3-4 ratios are incorrectly presented.
(0.70 - 0.79)
0.65 points
Calculates less than ten (10) key financial ratios OR industry
averages do not match selected key ratios; ratios show more
than four incorrect calculations.
(0.60 - 0.69)
0 points
Fails to show actual ratio calculations or does not present
industry averages.
(0 - 0.59)
/ 1
Financial analysis: Discuss the corporate financial standing
based on a financial ratio analysis. Include whether the
company's financial ratio is a strength, a weakness or a neutral
14. factor.
1 point
Thoroughly and correctly performs a financial analysis and
discusses corporate financial standing and determines whether a
strength, weakness or neutral factor using BOTH calculations
AND course material to support reasoning and conclusions.
(0.9 - 1.0)
0.85 points
Performs a financial analysis and discusses corporate financial
standing and determines whether a strength, weakness or neutral
factor using BOTH calculations AND course material to
support reasoning but needs some development.
(0.8 - 0.89)
0.75 points
Performs a financial analysis and discusses corporate financial
standing and determines whether a strength, weakness or neutral
factor using BOTH calculations AND course material to
support reasoning but needs significant development.
(0.7 - 0.79)
0.65 points
Attempts to performs a financial analysis but may not discuss
corporate financial standing or whether a strength, weakness or
neutral factor OR does not use BOTH calculations AND course
material to support reasoning; needs major development.
(0.6 - 0.69)
0 points
Little to no financial analysis or missing discussion of financial
standing AND does not determine strength, weakness or neutral
factor.
(0 – 0.59)
/ 1
Develop a Quantitative Strategic Planning Matrix (QSPM)
analysis and address the strategic inferences/implications.
1 point
Thoroughly and correctly develops a QSPM and addresses the
strategic inferences/implications using BOTH the course
15. material AND the Tools & Techniques developed throughout the
course to support reasoning.
(0.9 - 1.0)
0.85 points
Develops a QSPM and addresses the strategic
inferences/implications using BOTH the course material AND
the Tools & Techniques developed throughout the course to
support reasoning but needs some development,
(0.8 - 0.89)
0.75 points
Develops a QSPM and addresses the strategic
inferences/implications using BOTH the course material AND
the Tools & Techniques developed throughout the course to
support reasoning but needs significant development,
(0.7 - 0.79)
0.65 points
Attempts to develops a QSPM with little use of course material
AND/OR he Tools & Techniques developed throughout the
course to support the reasoning; needs major development;
missing key information.
(0.6 - 0.69)
0 points
Little to no development of a QSPM.
(0 – 0.59)
/ 1
Develop a composite and consistent view on internal factor
strategy analysis based on the qualitative and quantitative
analytical outcomes
1.2 points
Thoroughly and correctly develops a composite and consistent
view on internal factor strategy analysis based on the qualitative
and quantitative analytical outcomes using BOTH research AND
course material to support reasoning.
(1.08 - 1.20)
1.02 points
Develops a composite and consistent view on internal factor
16. strategy analysis based on the qualitative and quantitative
analytical outcomes using BOTH research AND course material
to support reasoning but needs some development.
(0.96 - 1.07)
0.9 points
Develops a composite and consistent view on internal factor
strategy analysis based on the qualitative and quantitative
analytical outcomes using BOTH research AND course material
to support reasoning but needs significant development.
(0.84 - 0.93)
0.78 points
Attempts to develos a composite and consistent view on internal
factor strategy analysis based on the qualitative and quantitative
analytical outcomes and uses little course material AND/OR
research to support the reasoning; needs major development;
missing key information.
(0.72 - 0.83)
0 points
Little to no development of a composite and consistent view on
internal factor strategy analysis based on the qualitative and
quantitative analytical outcomes.
(0 – 0.71)
/ 1.2
Attention to Instructions
2 points
The paper contains completion of all major assignment tasks
including writing the report. The paper also includes
completion of all minor aspects of the assignment such as third
person writing, required use of course readings, outside sources
if needed, and assignment format.
(1.8 - 2.0)
1.7 points
The paper contains completion of all major assignment tasks
including writing the report. The paper missed 1 minor aspect
of the assignment such as third person writing, required use of
course readings, outside sources if needed, and assignment
17. format.
(1.6 - 1.79)
1.5 points
The paper missed 1 major assignment task (including writing
the report) or 2 minor aspects of the assignment.
(1.4 - 1.59)
1.3 points
Fails to show a firm understanding of requirements; missed two
key elements or several minor aspects of assignment.
(1.2 - 1.39)
0 points
Fails to demonstrate understanding of assignment requirements.
(0 – 1.19)
/ 2
Writing Mechanics
2 points
Strictly adheres to standard usage rules of written English,
including but not limited to capitalization, punctuation, run-on
sentences, missing or extra words, stylistic errors, spelling and
grammatical errors. No errors found. No contractions or jargon
used.
(1.8 - 2.0)
1.7 points
Excellently adheres to standard usage of mechanics:
conventions of written English, including capitalization,
punctuation, and spelling. One to four errors found.
(1.6 - 1.79)
1.5 points
Satisfactorily adheres to standard usage rules of mechanics:
conventions of English, including capitalization, punctuation,
and spelling. Five to 10 errors found.
(1.4 - 1.59)
1.3 points
Minimally adheres to standard usage rules of mechanics:
conventions of written English, including capitalization,
punctuation, and spelling. More than 10 errors found.
18. (1.2 - 1.39)
0 points
Does not adhere to standard usage rules of mechanics:
conventions of written English largely incomprehensible; or
errors are too plentiful to count.
(0 – 1.19)
/ 2
APA Style (6th ed.)
1 point
No APA style or usage errors; Proper citation of source material
is used throughout paper; Reference titles follow APA with only
the first word, the first word after a colon and proper nouns
capitalized.
(0.9 - 1.0)
0.85 points
Attempts in-text citations and reference list but one or two APA
style errors noted or fails to use APA citations when appropriate
1-2 times.
(0.8 - 0.89)
0.75 points
Attempts in-text citations and reference lists; APA style errors
are noted throughout document; Fails to use APA citations when
appropriate 3 times in document.
(0.7 - 0.79)
0.65 points
Attempts in-text citations and reference lists; Fails to use APA
citation when appropriate 4-5 times; or presents only 1-2 in-text
citations and reference list in a paper that requires APA
citations throughout the document.
(0.6 - 0.69)
0 points
No attempt at APA style; or attempts either in-text citations or
reference list but omits the other.
(0 – 0.59)
/ 1
Rubric Total ScoreTotal
19. / 20
Running Head: ASOS PLC
ASOS PLC2
ASOS Plc. is a British organization founded in 2000. The main
focus was on retailing fashion and cosmetic products for young
people in their 20s. The headquarters of ASOS Plc. is located in
London, England, United Kingdom. There was a gap of
fashionable products for the young individual on the market
(Borsenberger et al. 2016). ASOS Plc. is now a global fashion
retailer that provides lifestyle products to both men and women.
The organization sells a mixture of private labels, local as well
as global brands through 8 websites in the US, UK, German,
Spain, Russia, Australia, Italy, and France. The founders of
ASOS Plc. are Nick Robertson, Andrew Reagan, and Quentin
Griffin. The major products offered by the company include
shoes, clothes, beauty, and other accessories. By 2019, the
number of employees was more than 4000. ASOS Plc. falls
under the industry of retail discretionary while in the consumer
discretionary sector. The sub-industry is the E-commerce
discretionary. This paper will focus on finding out the
competitive position of ASOS Plc. by integrating information in
a Competitive Profile Matrices (CPM), partial SWOT (OT),
External Factor Evaluation (EFE) matrix and Porter's Five
Forces
Through the help of porter five forces, ASOS Plc. determine the
industry attractiveness as it understands its competitive
positioning in industry as well as market. This analysis can be
applied by the organization to come up with a strategically
suitable decision or choices that not only enhance its long term
survival but also improve its performance.
Threats of New Entrants
Threats of the new entrants indicate how the new market players
20. impose threats to the existing market players. When the industry
is profitable, then the barrier to enter the same industry will be
low. The entry into industry needs substantial capital as well as
resources investment. The force tends to lose the strength of the
item is differentiated in the high, and customers impose high
value on unique or special experiences. ASOS Plc. can place the
low threat of the new entrants if the existing regulatory
platforms put challenges to the new organizations interested in
entering the market (Borsenberger et al. 2016). The new entrant
will be required to comply with strict time, consuming
regulatory demands which end up discouraging entrance into the
market. The threats will be low if the psychological switching
cost for the customer is high, and the existing brands have
already established or founded their brands. Therefore, for the
ASOS Plc. to challenge, the organization can develop brand
loyalty through addressing customer relationship management.
Another important thing to do is to invest in research to get
valuable customer data and be innovative.
Threat of Substitutes
The presence of substitute products as well as services in the
industry, make the competitive environment challenging for the
company. The threats of substitutes include factors such as the
availability of cheaper products in the industry. The
psychological switching cost moving from the industry to the
substitute product is low (Li, Frederick, & Gereffi, 2019).
Contrarily the substitute threat is substantially low if ASOS Plc.
the switching cost of consuming the substitute high and two
when the consumer cannot derive the same utility based on
performance and quality. Therefore, ASOS Plc. can address this
challenge by emphasizing how the company delivers products
much better than any other substitute. Offer better experience to
customer work on loyalty and focus on differentiation of the
products.
Bargaining Power of Buyers
Bargain power of buyers implies the pressure consumers exert
on the organization to get quality products at an affordable
21. price plus excellent services. If the customers are few, then they
will definitely impact the market. The presence of low
switching cost and other factors such as customer price
sensitivity purchasing the standard product in high number or
volume and high market knowledge increases the consumer
bargaining power (Choudhury, 2018). To address the issue of
consumer bargaining power, ASOS Plc. should diversify the
customer market base. That is through the introduction of rather
new products, adopt diversification techniques, and target new
market segments. Marketing, as well as promotional techniques,
brings significant outcomes. Focusing on innovation, thus
building loyalty and delivering excellent customer experience,
ultimately reduce consumer bargaining power.
Bargaining Power of Suppliers
Barging power of suppliers has to do with the pressure exerted
by suppliers on the business through using techniques thus
minimizing product availability, increasing the price, and
reducing the quality of the product. The higher bargaining
power of suppliers increases the competition in the industry as
such, lowering the growth potential and profit of ASOS Plc.
Contrarily weak bargaining power of suppliers leads to
increased profitability and attractiveness of the industry
(Choudhury, 2018). The force also becomes high when the cost
of switching suppliers is categorically higher. The power
increases when the suppliers are few with increased product
demand (Rusanen, Hänninen, & Paavola, 2017). The supplier’s
position is strengthened when ASOS Plc. is less educated, have
inadequate market knowledge, and, more importantly, have
limited data related to price sensitivity. Therefore ASOS Plc.
can make their position strong by reducing overdependence on
one supplier. Grow in terms of price-sensitive and adopt
product differentiation techniques. Develop a long-term
contractual relationship with their suppliers; this leads to
loyalty and lowers their bargaining power.
Rivalry among existing firms
22. ASOS Plc. can face very strong pressure from competitors. This
not only leads to profitability but also the growth in the
industry is definitely low. The rivalry among existing
organizations will be low for ASOS Plc. if there are a few
numbers of players in the industry. Secondly, there will be less
competition if the industry is growing at a faster rate. There
will be a low rivalry if there is a clear market leader, switching
cost for customers is high, product and services are vividly
differentiated, and as such, every market player focuses on
varied sub-segments (Borsenberger et al. 2016). When the exit
barriers are low, the company can leave the industry minus,
incurring a lot of loss. There may be an intense rivalry if the
existing market players are strategically diverse and target a
similar market. The rivalry is at its best if the consumers are not
loyal to any existing brand as such attract other players (Li,
Frederick, & Gereffi, 2019). ASOS Plc. should, therefore, target
the implicit needs and expectations of the customer in the
course of product differentiation. Switch costs can be raised by
developing long-term customer relationships. To identify a new
market segment, the organization should prioritize market
research.
ASOS Plc. SWOT Analysis / Matrix
SWOT MATRIX OF ASOS Plc.
Internal factors
External factors
Strength
Weakness
Opportunity
Threats
a. Enhanced performance in the new market
a. The marketing of the product is left a lot to be desired
a. Opening of the new market due to government agreements
a. The rising pay levels of $15in an hour lead to less
23. profitability
b. Presence of motivated and highly trained employees
b Improper financial planning
b. The stable cash flow gives the company a chance to invest
more
b. The increased competition in the retail industry
c. A very strong brand portfolio
c. ASOS Plc. requires to invest in new technologies
d. New technology adoption enhances differentiation of
products
c The increase of counterfeit products
d Presence of strong cash flow
d Marketing strategy is wanting
d The new trends in consumer behavior leads to new market
d New environment regulations under Paris agreement
e Automation activities bring in quality and consistency
e. Investing in research is below the one done by the top
players in the industry.
f. ASOS Plc.’s core competence can be a success in similar
other products in the field
e lack of physical shops
OT ANALYSIS
Opportunity and Threats Analysis
Opportunity
Threats
a. Opening of the new market due to government agreements
a. The rising pay levels of $15in an hour and cost of raw
material in the UK lead to less profitability
b. The stable cash flow gives the company a chance to invest
more
24. b. Intense competition in the retail industry
c. New technology adoption enhances differentiation of
products
c. The increase in counterfeit products
d. The new trends in consumer behavior lead to new market
d. New environment regulations under the Paris agreement
e. ASOS Plc.’s core competence can be a success in similar
other products in the field
e. Lack of physical shops
External Factor Evaluation (EFE) Analysis
External evaluation matrix
Important external factors
Weight
Rating
Weighted score
Opportunities
a. Opening of the new market due to government agreements
2
5
0.4
b. The stable cash flow gives the company a chance to invest
more
1
4
0.25
c. New technology adoption enhances differentiation of
products
2
5
0.4
25. d. The new trends in consumer behavior lead to new market
2
2
1
e. ASOS Plc.’s core competence can be a success in similar
other products in the field
1
2
0.5
Threats
a. The rising pay levels of $15 in an hour and increased cost of
raw material in the UK lead to less profitability
2
5
0.4
b. Intense competition in the retail industry
1
3
0.33
c. Increase in counterfeit products
1
3
0.33
d. New environment regulations under the Paris agreement
2
5
0.4
e. Lack of physical shops
1
4
0.25
Total
26. 16
3.81
The rating in this EFE matrix represents the response done by
ASOS Plc. toward the stated opportunities as well as threats.
The higher the rating, the greater the response of organization
to exploit the given opportunity and thus overcoming or
defatting the threat. The rating is done on a scale of 1-5. 1
represents poor response; 2 represents fair response; 3
represents average response; 4 above average response and 5 is
superior response. Weight represents important factors on the
company's success and falls on a scale of 0-2. The sum of all
weighted scores is the equal to total weighted score, the final
value should range from 1to 5, and when the company's total
weighted scores are above 3, it is considered strong in its
position.
The total weighted score of ASOS Plc. is strong since its more
than 2.5 and being 3.81 it means that the organization is putting
in a lot of effort to exploit the opportunities presented while
improving on the weakness. An increased number of weaknesses
in the organization make it stuck, and the rate of growth tends
to be a bit slow. One of the greatest opportunities that are
credited to ASOS Plc. is the concentration of diversity and
practicing new technologies (Borsenberger et al. 2016).
Competitors, in this case, do not deliver products with diversity
and exclusivity. Through the use of new trends of buying from
mobile phones, computers and tablets, and the application of
services that consumer is able to update their buying
experience, the organization increases its profitability. The
increment of the pay is being substituted by the fact that the
organization gets to employ relatively few people due to online
shopping; therefore, employees are paid handsomely well. One
major threat the organization faces is the lack of physical shops
as such customer services can be a bit poor (Choudhury, 2018).
To improve on this weakness, the organization continues to
27. create more interactive services to enhance customer
experience. The differentiation and exclusivity in the
organization work because some items and brands just work
only with ASOS Plc. and loyal customer tends to choose these
products over and over against the new ones. The organization
is also producing some of the favorable trends in the UK in
addition to the growing demand for private labels
Competitive Analysis
CPM TABLE
fashion matches
Alibaba
Zalando
Critical successful factors
Weight
Rating
Score
Rating
score
Rating
Score
Range of the products
2
5
0.4
4
0.5
4
0.5
market share
2
4
0.5
5
0.4
29. 5
0.2
3
0.33
4
0.25
Strong online presence
1
5
0.2
5
0.4
5
0.4
Total
3.47
3.60
3.35
The three competitors of ASOS Plc. that have been integrated
with this research include Zalando, Alibaba, and fashion
matches. Zalando sells shoes, furniture, accessories, and
clothes. Zalando owns more than 1500 brands and uses
technology to build on customer experience (Rusanen,
Hänninen, & Paavola, 2017). Centralization is also the primary
brand’s strategy pertaining to the internalization; each country
determines the delivery form because the market is always
different, according to Zalando (Au-Yeung et al. 2016). The
strength of Zalando is the relationship between suppliers and
the technology backbones. One strength of Zalando is delivering
goods at a lower price compared to the competitors due to the
large quantity they buy with a discount. This can also be taken
30. as a weakness because technology requires high investment and
for the development and research and low prices reduces
company cash flows. Alibaba is also a global Chinese company
founded in 1999 and deals with online shops.
The target or goal of Alibaba to allow the world to find an easy
way of conducting business anywhere. The business deals with
brands such as clothes, accessories, and beauties and merchants.
The major strength of Alibaba is the huge and populated market;
it operates with the second economy in the world-China (Au-
Yeung et al. 2016). The weakness is that there are too many
merchants on board, leading to better brands calling off due to
competition, counterfeit goods from local distributors, and m
not able to make a profit. The third company is fashion matches
deals in varieties of products; including books, home décor,
clothes, art, and gallery exhibit, own the brand and tourism
(Rusanen, Hänninen, & Paavola, 2017). While some of the
weaknesses of the organizations are location and designer
range, its strength outweighs the weakness. The strength
includes improved personal experience, the fact that it’s global,
visual merchandising, and owns the brand.
Conclusion
The purpose of this paper was to analyze the competitive
position of ASOS Plc. through integration of data in a
Competitive Profile Matrices (CPM), partial SWOT (OT),
External Factor Evaluation (EFE) matrix and Porter's Five
Forces. This research shows that the retail and e-commerce
industry is competitive. Generally, “the global retail market is
expected to top $25 trillion USD by 2019. But, growth has
slowed considerably versus the prior five years and is not
expected to pick up through 2023”. This means that ASOS Plc
has to improve in terms of technology, and open new market
because it is mostly concentrated in Europe and differentiate
their products to survive the competition from an organization
such as Alibaba.
References
Au-Yeung, B., Chu, D., Enfante, M., Logan, G., & Saelee, K.
31. (2016). Industry Analysis: Cloud Computing.
Borsenberger, C., Cremer, H., De Donder, P., & Joram, D.
(2016). Differentiated pricing of delivery services in the e-
commerce sector. In The Future of the Postal Sector in a Digital
World (pp. 191-211). Springer, Cham.
Choudhury, R. N. (2018). The determinant of Foreign Direct
Investment in India's E-commerce Sector. Available at SSRN
3490466.
https://csimarket.com/Industry/Industry_Financial_strength.php
Li, F., Frederick, S., & Gereffi, G. (2019). E-commerce and
industrial upgrading in the Chinese apparel value chain. Journal
of Contemporary Asia, 49(1), 24-53.
Rusanen, O., Hänninen, M., & Paavola, L. J. (2017). Mastering
Strategic Change in a Political and Complex Organization.
In Academy of Management Proceedings (Vol. 2017, No. 1, p.
15666). Briarcliff Manor, NY 10510: Academy of Management.
Company Overview
The company is a global retail organization that deals with
internet services and fashions that target customers who are
aged between 20-30 years. ASOS Plc. deals with branded
products that are worn by both men and women. Its operations
are carried worldwide by distributing its products to interested
consumers. The headquarters of ASOS Plc is located in London.
In 2000, it was formed there targeting the young adult
population. ASOS Plc. also deals with online marketing of
fashions and accessories like cosmetics (Wells, 2018). Over 850
brands are sold on their websites. Additionally, ASOS Plc.
services 196 countries across the world. Its total revenue
obtained in 2019 was 709.5M. According to statistics carried
out in 2018, the company has a total of 4,386 employees. The
following are the names of the top management of the company;
Adam Crozier is the chairperson of the company, Nick
Beighton- CEO, Anders Holch Povlsen, who has a 27% stake in
the company. Nick Robertson, Andrew Regan, and Quentin
32. Griffin founded the company after seeing an opportunity on the
global internet. They formed ASOS Plc. to provide an
alternative market for products.
The industry in which ASOS Plc. Operates
ASOS Plc. operates as an investment holding company. It has
online retailing because it owns the subsidiary, which is
ASOS.com Ltd. ASOS company subsidiary is a global online
fashion and beauty through retailing. This investment holding
company provides the basis of ASOS operation, which has made
the company successful, especially on the global internet.
General Environment -PESTEL Analysis
ASOS Plc. PESTEL analysis is that the strategic approach used
to analogize the macro environment of ASOS Plc. Company.
PESTEL is an abbreviated term whereby P stands for Political'
E-Economical, S-Social, T-Technological-Environmental, and
lastly L for Legal factors that influence the macro environment
of the ASOS Plc. When the general environment of the company
experiences some changes, ASOS Plc. is affected directly and
goes ahead to affect other retailing critical players in the
industry (Ortega et al. 2019). The competitive landscape of the
company, which is impacted by the environment, ushers in the
competitive advantage of the organization. The level of
profitability to the consumers of the industry is improved due to
the effect of macro-environment. PESTEL analysis outlines the
platform of insights into operating obstacles of ASOS Plc. It
will project to the environment in which the company operates
compared to competitive forces. The environment in which the
industry is set determines its growth in terms of operations and
financial growth. Any industry recording high profits and
tremendous growth but is located in an environment
experiencing political instability becomes irrelevant to ASOS
Plc. For instance, the Spanish Oil Repsol experienced a high
level of profits at the beginning of Argentina. The company
made strong returns for an average period of 6 years before the
business was pulled down by the Left-Wing government. The
long period of high profits enjoyed by Spanish Oil Repsol did
33. not have the potential to materialize the business at the end.
PESTEL is analyzed below.
Political Factors that Impacts ASOS Plc.
Political factor plays an essential role in revealing the unique
factors that can have long term profits to ASOS Plc. It has
extended its retailing operation to many countries, which
creates the venue of exposure to different political atmosphere
or environment (Ortega et al. 2019). Some countries experience
political instability, which becomes threatening to the operation
of the business. To deter the political system risk so that
excellent Retail industry to countries whose environments seem
to be hostile is to diversify the risk systems of the political
atmosphere. Before ASOS Plc, decides to join or invest in a
specific business or market, analyzes many factors. The first
analysis ASOS Plc determines the political wave of interested
countries to invest in terms of retail aspects relating to the
economy of the country. This helps the business to avoid being
exposed to unnecessary risks, which may pull down the
established business. The second analysis is based on military
and associated risks from them. ASOS Plc carries out the
statistics on the military of the target country and determines
the possibility of being invaded. Analysis of military invasion
of the retail business helps ASOS Plc by guaranteeing its
business security. ASOS Plc. carries out the analysis on
determining the transparency on Bureaucracy and possible
interference by the government on the Retailing Company. This
analysis helps the company to enter into the investment process
of a particular country after gathering the political background
information. Price regulation is another strategy of ASOS Plc.
Analysis that is used before the industry starts investing, and
this helps the company to look at any available strategy that can
be incorporated in the retailing process to accommodate its
customers. Customers are the elements in any business, and
therefore price regulation should be carried about consumer's
service. ASOS Plc, analyzes a particular country, taxation
before stepping into the world of investment. ASOS Plc. also
34. analyzes the level of tax rates imposed on the retail industry and
incentives. This helps the industry to avoid entering the
business blindly, which may lead to a significant loss.
Economic Factors that impact ASOS Plc.
The economic factors affect the environment in which the
business operates, such as inflammation rates, the rate charged
on foreign exchange, and cycle, which drives the economy of
the country. These are parameters that are used to measure
demand and investment aggregates in the economy. A
competitive environment adds a competitive advantage to the
company because it provides the platform for the company to
employ quality strategies to make it outstanding to the market.
ASOS Plc. may utilize various economic factors of the country
like the growth rate of country population, Country's inflation,
and industry economic parameters to determine the future path
of the company. This analysis determines the Retail Industry
growth and the level of consumption of the industry's products.
The following are the economic factors of ASOS Plc. The
company should determine and analyze the type of economic
approach the interested country holds in business operations
(Ortega et al. 2019). This will help ASOS Plc. determine the
prevailing economic system of operation and analyze its
stability in the preferred country. The industry will assess its
operational strength and determine whether it is capable of
coping up with the economic system of the country and see the
available venue to perfect the prevailing system. The second
analysis ASOS Plc. is to check on foreign exchange rates and
the level of stability of the currency in that particular country of
investment (Strangmueller, 2018). The analysis of exchange and
the value of the host currency will reveal the economic status of
the country and determine the industry's trend after investment.
The infrastructural stability in the Retail Industry is another
analysis that should be incorporated when carrying out PESTEL
analysis.
The infrastructural stability will open many venues to the Retail
market hence increasing the profitability of the ASOS Plc. Poor
35. infrastructure in the Retail industry will act as an obstacle for
the economic growth of the Retail industry. Education level in
the field of economy is another factor ASOS Plc. needs to
combine in the system of operation when conducting PESTEL
analysis (Pan, Chen, & Zhan, 2019). The high level of education
system about the economy of the host country will positively
influence the Retail industry primarily compared to the low
education level in the economy.
Social Factor
The culture of the society within which the organization
operates plays a significant role in the success of the business.
The society environment detects the progress of the Retail
industry because the existing beliefs and customs held by the
surrounding population detect the level of ASOS Plc. marketers
in understanding their clients' preference for Retail marketing.
The social environment, which is accommodative, influences
the Retail industry positively, but the harsh social environment
may interfere with Retail industry operation (Gupta, 2013). The
management of ASOS Plc. should focus on various factors when
conducting PESTEL analysis. The first focus before entering the
business in a particular country is that ASOS Plc. should
analyze the demographic of the population and determine the
level of acquired skill. The analysis will help ASOS Plc. to
know their points of strength and weakness. The demographic
study will reveal to the industry the target population and
region of allocation. Another analysis should focus on the
entrepreneurial spirit and broad perception nature of the host
society. This will help the industry to know if society can
motivate entrepreneurship or discourage it when the Retail
business is set in that particular society. Attitudes are another
critical social factor that determines the effectiveness of the
prevailing environment in the Retail industry. The
environmental consciousness of the host country tends to
promote Retail business and, therefore, should be advocated by
ASOS Plc. when carrying out PESTEL analysis.
36. Technological Factor
Technology plays a vital role in current business operations and
is the system adopted by almost all industries. Transportation
industries have experienced drastic changes in terms of
technology over the last five years. Technology has created a
competitive environment, and any industry that seems to neglect
technology advancement is considered outdated. ASOS Plc.
need not dwell only on the analysis of the technology of the
industry but should stretch its neck to analyze the technology
that affects interference with the organization (Ortega et al.
2019). ASOS Plc. ought to understand some technological
factors before entering into business in a particular country.
First, the industry should determine the impact of technology on
the products offered. This will make the industry to impress the
correct technological system that will improve the
organizational operations. Another technical factor that should
be considered is the rate in which the proposed technology can
diffuse. Right technology should be flexible and accommodative
to its customers.
Environmental Factors
The environmental factors that influence ASOS Plc. are
parameters that influence the profitability of the organization in
the prevailing market. The environmental standards vary widely
from one country to another, including environmental law and
liability. Before entering into investment in a particular
country, the industry should carry out severe audits and analysis
to determine the existing environmental standards on the market
place and the guidelines in which they operate (Gupta, 2013).
ASOS Plc. also should consider environmental factors such as
weather factors, climatic change, existing policies on
environmental pollution, recycling of waste products, and the
attitude towards renewable energy before making investments.
Legal Factors
Outlined legal processes in different countries can guarantee the
organizations full legal protection and support. The
organization should conduct a thorough analysis of the legal
37. process before entering into the business. The management of
ASOS Plc. needs to consider the laws that cannot be trusted in
the Retail industry. This analysis will help the industry to evade
some possible risks that may occur. The industry should also
analyze and determine discrimination laws and upheld
determine the general health and safety laws.
The Technological Factors and how the ASOS Plc. a company
could be affected by the selected Trend
Technological factors that provide the podium for the industry
to experience technical advancement. ASOS Plc. uses
technology to sell its products. The company has made excellent
access to embrace modern technology in distributing products to
interested clients across the world. The incorporation of
technological methods in ASOS Plc. operation in Retail
business has created a comprehensive platform on the global
internet (Voiculet et al., .2010). This will expand the industry
revenue and profit. In the selection of the Technological factor,
the industry should analyze it before it is adopted because it
may fail to deliver when installed inappropriately. Technology
has attracted many people into the business, which has resulted
in cybercrime. The technological factor is one of the
frameworks marketers use to make a business decision more
comprehensively. This trend may expose the industry to that
risk of mishandling important information because the system is
humanmade hence can be altered. This may affect the system of
operation of the industry since most data may not be easily
retrieved.
The Analysis of the ASOS Plc. Mission, Vision, and Objectives
The mission of ASOS Plc. is to become the world's number one
destination for fashion-loving. From the mission, the industry
creates the multi-platform that set to fulfill customers' desires.
Quality products that keep the company at the peak are the
tradition of ASOS Plc. The objective of the company is inclined
to the mission of providing impeccable services.
Uncompromising presentation of service delivery makes the
industry measurable to the market planet. The mission, vision,
38. and objectives of the ASOS Plc. are the clear frameworks of the
organizational goals. The vision of the industry postulates the
dynamic perception of the future and the strategies to achieve
the mission. They are inclined to the strategy of building
ethnically and environmentally sound supply as the chain to
build the confidence of the customers. The strategy of
preserving and promoting the brands and their products to the
customers is drawn from the mission.
Conclusion
From the above analysis of the ASOS Plc. The company, the
managers, need to conduct a situation before the industry enters
into business or investment. A PESTLE analysis should provide
the appropriate tool that should be advocated by the executive
of the ASOS. The management of the industry should have
complete knowledge of the company's environment based on
strength, weakness, opportunities, and threats. The company
requires an immense interactive approach and comprehensive
coordination in different sections of organizational operation.
The analysis should not be discriminative but should run across
the departments, which include the finance department,
marketing, operational department, and management department
of the industry. The strategic planning of the industry should
display competence and analyze both internal and external
strategic factors to keep the organization at the peak.
39. Reference
Wells, John R., and Gabriel Ellsworth. "ASOS PLC." Harvard
Business School Case 716-449, March 2016. (Revised May
2018.)
Strangmueller, M. (2018). A PESTEL Analysis of the company
Siemens.
Gupta, A. (2013). Environment & PEST analysis: an approach
to the external business environment. International Journal of
Modern Social Sciences, 2(1), 34-43.
Voiculet, A., Belu, N., Parpandel, D. E., & Rizea, I. C. (2010).
The impact of the external environment on an organizational
development strategy.
Pan, W., Chen, L., & Zhan, W. (2019). PESTEL analysis of
construction productivity enhancement strategies: A case study
of three economies. Journal of Managment in
Engineering, 35(1), 05018013.
Ortega, R. G., Rodríguez, M., Vázquez, M. L., & Ricardo, J. E.
(2019). Pestel analysis based on neutrosophic cognitive maps
and neutrosophic numbers for the sinos river basin
management. Neutrosophic Sets and Systems, 26(1), 16.
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IT STraTegy:
ISSueS and PracTIceS
T h i r d E d i t i o n
G l o b a l E d i t i o n
James D. McKeen
Queen’s University
Heather A. Smith
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Boston Columbus Indianapolis New York San Francisco
Hoboken
Amsterdam Cape Town Dubai London Madrid Milan Munich
Paris Montréal Toronto
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ConTEnTS
Preface 13
About the Authors 21
Acknowledgments 22
Section I Delivering Value with IT 23
Chapter 1 The IT Value ProPoSITIon 24
Peeling the Onion: Understanding IT Value 25
What Is IT Value? 25
Where Is IT Value? 26
Who Delivers IT Value? 27
When Is IT Value Realized? 27
The Three Components of the IT Value Proposition 28
Identification of Potential Value 29
Effective Conversion 30
Realizing Value 31
Five Principles for Delivering Value 32
46. Principle 1. Have a Clearly Defined Portfolio Value
Management
Process 33
Principle 2. Aim for Chunks of Value 33
Principle 3. Adopt a Holistic Orientation to Technology Value
33
Principle 4. Aim for Joint Ownership of Technology Initiatives
34
Principle 5. Experiment More Often 34
Conclusion 34 • References 35
Chapter 2 DelIVerIng BuSIneSS Value Through
IT STraTegy 37
Business and IT Strategies: Past, Present, and Future 38
Four Critical Success Factors 40
The Many Dimensions of IT Strategy 42
Toward an IT Strategy-Development Process 44
Challenges for CIOs 45
Conclusion 47 • References 47
Chapter 3 MakIng IT CounT 49
Business Measurement: An Overview 50
Key Business Metrics for IT 52
5
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6 Contents
Designing Business Metrics for IT 53
Advice to Managers 57
Conclusion 58 • References 58
Chapter 4 effeCTIVe BuSIneSS–IT relaTIonShIPS 60
The Nature of the Business–IT Relationship 61
The Foundation of a Strong Business–IT
Relationship 63
Building Block #1: Competence 64
Building Block #2: Credibility 65
Building Block #3: Interpersonal Interaction 66
Building Block #4: Trust 68
Conclusion 70 • References 70
Appendix A The Five IT Value Profiles 72
Appendix B Guidelines for Building a Strong Business–IT
Relationship 73
Chapter 5 BuSIneSS–IT CoMMunICaTIon 74
Communication in the Business–IT Relationship 75
What Is “Good” Communication? 76
48. Obstacles to Effective Communication 78
“T-Level” Communication Skills for IT Staff 80
Improving Business–IT Communication 82
Conclusion 83 • References 83
Appendix A IT Communication Competencies 85
Chapter 6 effeCTIVe IT leaDerShIP 86
The Changing Role of the IT Leader 87
What Makes a Good IT Leader? 89
How to Build Better IT Leaders 92
Investing in Leadership Development: Articulating the Value
Proposition 95
Conclusion 96 • References 97
MInI CaSeS
Delivering Business Value with IT at Hefty Hardware 98
Investing in TUFS 102
IT Planning at ModMeters 104
A01_MCKE0260_03_GE_FM.indd 6 26/11/14 9:32 PM
Contents 7
Section II IT governance 109
49. Chapter 7 effeCTIVe IT ShareD SerVICeS 110
IT Shared Services: An Overview 111
IT Shared Services: Pros and Cons 114
IT Shared Services: Key Organizational Success Factors 115
Identifying Candidate Services 116
An Integrated Model of IT Shared Services 117
Recommmendations for Creating Effective IT
Shared Services 118
Conclusion 121 • References 121
Chapter 8 SuCCeSSful IT SourCIng: MaTurITy MoDel,
SourCIng oPTIonS, anD DeCISIon CrITerIa 122
A Maturity Model for IT Functions 123
IT Sourcing Options: Theory Versus Practice 127
The “Real” Decision Criteria 131
Decision Criterion #1: Flexibility 131
Decision Criterion #2: Control 131
Decision Criterion #3: Knowledge Enhancement 132
Decision Criterion #4: Business Exigency 132
A Decision Framework for Sourcing IT Functions 133
Identify Your Core IT Functions 133
50. Create a “Function Sourcing” Profile 133
Evolve Full-Time IT Personnel 135
Encourage Exploration of the Whole Range
of Sourcing Options 136
Combine Sourcing Options Strategically 136
A Management Framework for Successful
Sourcing 137
Develop a Sourcing Strategy 137
Develop a Risk Mitigation Strategy 137
Develop a Governance Strategy 138
Understand the Cost Structures 138
Conclusion 139 • References 139
Chapter 9 BuDgeTIng: PlannIng’S eVIl TwIn 140
Key Concepts in IT Budgeting 141
The Importance of Budgets 143
The IT Planning and Budget Process 145
A01_MCKE0260_03_GE_FM.indd 7 26/11/14 9:32 PM
8 Contents
Corporate Processes 145
51. IT Processes 147
Assess Actual IT Spending 148
IT Budgeting Practices That Deliver Value 149
Conclusion 150 • References 151
Chapter 10 rISk ManageMenT In IT 152
A Holistic View of IT-Based Risk 153
Holistic Risk Management: A Portrait 156
Developing a Risk Management Framework 157
Improving Risk Management Capabilities 160
Conclusion 161 • References 162
Appendix A A Selection of Risk Classification
Schemes 163
Chapter 11 InforMaTIon ManageMenT:
STageS anD ISSueS 164
Information Management: How Does IT Fit? 165
A Framework For IM 167
Stage One: Develop an IM Policy 167
Stage Two: Articulate the Operational
Components 167
Stage Three: Establish Information Stewardship 168
Stage Four: Build Information Standards 169
52. Issues In IM 170
Culture and Behavior 170
Information Risk Management 171
Information Value 172
Privacy 172
Knowledge Management 173
The Knowing–Doing Gap 173
Getting Started in IM 173
Conclusion 175 • References 176
Appendix A Elements of IM Operations 177
MInI CaSeS
Building Shared Services at RR Communications 178
Enterprise Architecture at Nationstate Insurance 182
IT Investment at North American Financial 187
A01_MCKE0260_03_GE_FM.indd 8 26/11/14 9:32 PM
Contents 9
Section III IT-enabled Innovation 191
Chapter 12 TeChnology-DrIVen InnoVaTIon 192
The Need for Innovation: An Historical
53. Perspective 193
The Need for Innovation Now 193
Understanding Innovation 194
The Value of Innovation 196
Innovation Essentials: Motivation, Support,
and Direction 197
Challenges for IT leaders 199
Facilitating Innovation 201
Conclusion 202 • References 203
Chapter 13 when BIg DaTa anD SoCIal CoMPuTIng MeeT 204
The Social Media/Big Data Opportunity 205
Delivering Business Value with Big Data 207
Innovating with Big Data 211
Pulling in Two Different Directions: The Challenge
for IT Managers 212
First Steps for IT Leaders 214
Conclusion 215 • References 216
Chapter 14 effeCTIVe CuSToMer exPerIenCe 217
Customer Experience and Business value 218
Many Dimensions of Customer Experience 219
The Role of Technology in Customer Experience 221
54. Customer Experience Essentials for IT 222
First Steps to Improving Customer Experience 225
Conclusion 226 • References 226
Chapter 15 BuSIneSS InTellIgenCe: an oVerVIew 228
Understanding Business Intelligence 229
The Need for Business Intelligence 230
The Challenge of Business Intelligence 231
The Role of IT in Business Intelligence 233
Improving Business Intelligence 235
Conclusion 238 • References 238
A01_MCKE0260_03_GE_FM.indd 9 26/11/14 9:32 PM
10 Contents
Chapter 16 TeChnology-enaBleD CollaBoraTIon 240
Why Collaborate? 241
Characteristics of Collaboration 244
Components of Successful Collaboration 247
The Role of IT in Collaboration 249
First Steps for Facilitating Effective Collaboration 251
Conclusion 253 • References 254
55. MInI CaSeS
Innovation at International Foods 256
Consumerization of Technology at IFG 261
CRM at Minitrex 265
Customer Service at Datatronics 268
Section IV IT Portfolio Development and Management 273
Chapter 17 ManagIng The aPPlICaTIon PorTfolIo 274
The Applications Quagmire 275
The Benefits of a Portfolio Perspective 276
Making APM Happen 278
Capability 1: Strategy and Governance 280
Capability 2: Inventory Management 284
Capability 3: Reporting and Rationalization 285
Key Lessons Learned 286
Conclusion 287 • References 287
Appendix A Application Information 288
Chapter 18 IT DeManD ManageMenT: SuPPly ManageMenT
IS noT enough 292
Understanding IT Demand 293
The Economics of Demand Management 295
Three Tools for Demand management 295
56. Key Organizational Enablers for Effective Demand
Management 296
Strategic Initiative Management 297
Application Portfolio Management 298
Enterprise Architecture 298
Business–IT Partnership 299
Governance and Transparency 301
Conclusion 303 • References 303
A01_MCKE0260_03_GE_FM.indd 10 26/11/14 9:32 PM
Contents 11
Chapter 19 TeChnology roaDMaP: BenefITS, eleMenTS, anD
PraCTICal STePS 305
What is a Technology Roadmap? 306
The Benefits of a Technology Roadmap 307
External Benefits (Effectiveness) 307
Internal Benefits (Efficiency) 308
Elements of the Technology Roadmap 308
Activity #1: Guiding Principles 309
Activity #2: Assess Current Technology 310
57. Activity #3: Analyze Gaps 311
Activity #4: Evaluate Technology
Landscape 312
Activity #5: Describe Future Technology 313
Activity #6: Outline Migration Strategy 314
Activity #7: Establish Governance 314
Practical Steps for Developing a Technology
Roadmap 316
Conclusion 317 • References 317
Appendix A Principles to Guide a Migration
Strategy 318
Chapter 20 eMergIng DeVeloPMenT PraCTICeS 319
The Problem with System Development 320
Trends in System Development 321
Obstacles to Improving System Development
Productivity 324
Improving System Development Productivity: What we
know that Works 326
Next Steps to Improving System Development
Productivity 328
Conclusion 330 • References 330
58. Chapter 21 InforMaTIon DelIVery: PaST, PreSenT, anD
fuTure 332
Information and IT: Why Now? 333
Delivering Value Through Information 334
Effective Information Delivery 338
New Information Skills 338
New Information Roles 339
New Information Practices 339
A01_MCKE0260_03_GE_FM.indd 11 26/11/14 9:32 PM
12 Contents
New Information Strategies 340
The Future of Information Delivery 341
Conclusion 343 • References 344
MInI CaSeS
Project Management at MM 346
Working Smarter at Continental Furniture International 350
Managing Technology at Genex Fuels 355
Index 358
A01_MCKE0260_03_GE_FM.indd 12 26/11/14 9:32 PM
59. PrEFACE
Today, with information technology (IT) driving constant
business transformation,
overwhelming organizations with information, enabling 24/7
global operations, and
undermining traditional business models, the challenge for
business leaders is not
simply to manage IT, it is to use IT to deliver business value.
Whereas until fairly recently,
decisions about IT could be safely delegated to technology
specialists after a business
strategy had been developed, IT is now so closely integrated
with business that, as one
CIO explained to us, “We can no longer deliver business
solutions in our company
without using technology so IT and business strategy must
constantly interact with
each other.”
What’s New in This Third Edition?
• Six new chapters focusing on current critical issues in IT
management, including
IT shared services; big data and social computing; business
intelligence; manag-
ing IT demand; improving the customer experience; and
enhancing development
productivity.
• Two significantly revised chapters: on delivering IT functions
through different
resourcing options; and innovating with IT.
•
TwonewminicasesbasedonrealcompaniesandrealITmanagementsi
60. tuations:
Working Smarter at Continental Furniture and Enterprise
Architecture at Nationstate
Insurance.
•
Arevisedstructurebasedonreaderfeedbackwithsixchaptersandtwo
minicases
from the second edition being moved to the Web site.
All too often, in our efforts to prepare future executives to deal
effectively with
the issues of IT strategy and management, we lead them into a
foreign country where
they encounter a different language, different culture, and
different customs. Acronyms
(e.g., SOA, FTP/IP, SDLC, ITIL, ERP), buzzwords (e.g.,
asymmetric encryption, proxy
servers, agile, enterprise service bus), and the widely adopted
practice of abstraction
(e.g., Is a software monitor a person, place, or thing?) present
formidable “barriers to
entry” to the technologically uninitiated, but more important,
they obscure the impor-
tance of teaching students how to make business decisions about
a key organizational
resource. By taking a critical issues perspective, IT Strategy:
Issues and Practices treats IT
as a tool to be leveraged to save and/or make money or
transform an organization—not
as a study by itself.
As in the first two editions of this book, this third edition
combines the experi-
ences and insights of many senior IT managers from leading-
edge organizations with
61. thorough academic research to bring important issues in IT
management to life and
demonstrate how IT strategy is put into action in contemporary
businesses. This new
edition has been designed around an enhanced set of critical
real-world issues in IT
management today, such as innovating with IT, working with
big data and social media,
13
A01_MCKE0260_03_GE_FM.indd 13 26/11/14 9:32 PM
14 Preface
enhancing customer experience, and designing for business
intelligence and introduces
students to the challenges of making IT decisions that will have
significant impacts on
how businesses function and deliver value to stakeholders.
IT Strategy: Issues and Practices focuses on how IT is changing
and will continue to
change organizations as we now know them. However, rather
than learning concepts
“free of context,” students are introduced to the complex
decisions facing real organi-
zations by means of a number of mini cases. These provide an
opportunity to apply
the models/theories/frameworks presented and help students
integrate and assimilate
this material. By the end of the book, students will have the
confidence and ability to
tackle the tough issues regarding IT management and strategy
62. and a clear understand-
ing of their importance in delivering business value.
Key Features of This Book
• AfocusonITmanagement issues as opposed to technology
issues
• CriticalITissuesexploredwithintheirorganizationalcontexts
•
ReadilyapplicablemodelsandframeworksforimplementingITstrat
egies
•
Minicasestoanimateissuesandfocusclassroomdiscussionsonreal-
worlddeci-
sions, enabling problem-based learning
• Provenstrategiesandbestpracticesfromleading-
edgeorganizations
•
UsefulandpracticaladviceandguidelinesfordeliveringvaluewithIT
• Extensiveteachingnotesforallminicases
A Different ApproAch to teAching it StrAtegy
The real world of IT is one of issues—critical issues—such as
the following:
• HowdoweknowifwearegettingvaluefromourITinvestment?
• HowcanweinnovatewithIT?
• WhatspecificITfunctionsshouldweseekfromexternalproviders?
•
HowdowebuildanITleadershipteamthatisatrustedpartnerwiththeb
usiness?
• HowdoweenhanceITcapabilities?
• WhatisIT’sroleincreatinganintelligentbusiness?
•
63. Howcanwebesttakeadvantageofnewtechnologies,suchasbigdataan
dsocial
media, in our business?
• HowcanwemanageITrisk?
However, the majority of management information systems
(MIS) textbooks are orga-
nized by system category (e.g., supply chain, customer
relationship management, enterprise
resource planning), by system component (e.g., hardware,
software, networks), by system
function (e.g., marketing, financial, human resources), by
system type (e.g., transactional,
decisional, strategic), or by a combination of these.
Unfortunately, such an organization
does not promote an understanding of IT management in
practice.
IT Strategy: Issues and Practices tackles the real-world
challenges of IT manage-
ment. First, it explores a set of the most important issues facing
IT managers today, and
second, it provides a series of mini cases that present these
critical IT issues within the
contextofrealorganizations.Byfocusingthetextaswellastheminica
sesontoday’s
critical issues, the book naturally reinforces problem-based
learning.
A01_MCKE0260_03_GE_FM.indd 14 26/11/14 9:32 PM
Preface 15
64. IT Strategy: Issues and Practices includes thirteen mini cases—
each based on a real
company presented anonymously.1 Mini cases are not simply
abbreviated versions of
standard, full-length business cases. They differ in two
significant ways:
1. A horizontal perspective. Unlike standard cases that develop
a single issue within
an organizational setting (i.e., a “vertical” slice of
organizational life), mini cases
take a “horizontal” slice through a number of coexistent issues.
Rather than looking
for a solution to a specific problem, as in a standard case,
students analyzing a mini
case must first identify and prioritize the issues embedded
within the case. This mim-
ics real life in organizations where the challenge lies in
“knowing where to start” as
opposed to “solving a predefined problem.”
2. Highly relevant information. Mini cases are densely written.
Unlike standard
cases, which intermix irrelevant information, in a mini case,
each sentence exists for
a reason and reflects relevant information. As a result, students
must analyze each
case very carefully so as not to miss critical aspects of the
situation.
Teaching with mini cases is, thus, very different than teaching
with standard cases.
With mini cases, students must determine what is really going
on within the organiza-
tion. What first appears as a straightforward “technology”
problem may in fact be a
65. political problem or one of five other “technology” problems.
Detective work is, there-
fore, required. The problem identification and prioritization
skills needed are essential
skills for future managers to learn for the simple reason that it
is not possible for organi-
zations to tackle all of their problems concurrently. Mini cases
help teach these skills to
students and can balance the problem-solving skills learned in
other classes. Best of all,
detective work is fun and promotes lively classroom discussion.
To assist instructors, extensive teaching notes are available for
all mini cases. Developed
by the authors and based on “tried and true” in-class experience,
these notes include case
summaries, identify the key issues within each case, present
ancillary information about the
company/industry represented in the case, and offer guidelines
for organizing the class-
room discussion. Because of the structure of these mini cases
and their embedded issues, it
is common for teaching notes to exceed the length of the actual
mini case!
This book is most appropriate for MIS courses where the goal is
to understand how
IT delivers organizational value. These courses are frequently
labeled “IT Strategy” or
“IT Management” and are offered within undergraduate as well
as MBA programs. For
undergraduate juniors and seniors in business and commerce
programs, this is usually
the “capstone” MIS course. For MBA students, this course may
be the compulsory core
course in MIS, or it may be an elective course.
66. Each chapter and mini case in this book has been thoroughly
tested in a variety
ofundergraduate,graduate,andexecutiveprogramsatQueen’sSchoo
lofBusiness.2
1 We are unable to identify these leading-edge companies by
agreements established as part of our overall
research program (described later).
2
Queen’sSchoolofBusinessisoneoftheworld’spremierbusinessscho
ols,withafacultyteamrenowned
for its business experience and academic credentials. The
School has earned international recognition for
its innovative approaches to team-based and experiential
learning. In addition to its highly acclaimed MBA
programs,Queen’sSchoolofBusinessisalsohometoCanada’smostp
restigiousundergraduatebusiness
programandseveraloutstandinggraduateprograms.Aswell,theScho
olisoneoftheworld’slargestand
most respected providers of executive education.
A01_MCKE0260_03_GE_FM.indd 15 26/11/14 9:32 PM
16 Preface
These materials have proven highly successful within all
programs because we adapt
how the material is presented according to the level of the
students. Whereas under-
graduate students “learn” about critical business issues from the
book and mini cases
for the first time, graduate students are able to “relate” to these
same critical issues
67. based on their previous business experience. As a result,
graduate students are able to
introduce personal experiences into the discussion of these
critical IT issues.
orgAnizAtion of thiS Book
One of the advantages of an issues-focused structure is that
chapters can be approached
in any order because they do not build on one another. Chapter
order is immaterial; that
is, one does not need to read the first three chapters to
understand the fourth. This pro-
vides an instructor with maximum flexibility to organize a
course as he or she sees fit.
Thus, within different courses/programs, the order of topics can
be changed to focus on
different IT concepts.
Furthermore, because each mini case includes multiple issues,
they, too, can be
used to serve different purposes. For example, the mini case
“Building Shared Services
at RR Communications” can be used to focus on issues of
governance, organizational
structure, and/or change management just as easily as shared
services. The result is a
rich set of instructional materials that lends itself well to a
variety of pedagogical appli-
cations, particularly problem-based learning, and that clearly
illustrates the reality of IT
strategy in action.
The book is organized into four sections, each emphasizing a
key component of
developing and delivering effective IT strategy:
68. • Section I: Delivering Value with IT is designed to examine the
complex ways that
IT and business value are related. Over the past twenty years,
researchers and prac-
titioners have come to understand that “business value” can
mean many different
things when applied to IT. Chapter 1 (The IT Value Proposition)
explores these con-
cepts in depth. Unlike the simplistic value propositions often
used when imple-
menting IT in organizations, this chapter presents “value” as a
multilayered busi-
ness construct that must be effectively managed at several
levels if technology is
to achieve the benefits expected. Chapter 2 (Delivering
Business Value through IT
Strategy) examines the dynamic interrelationship between
business and IT strat-
egy and looks at the processes and critical success factors used
by organizations to
ensure that both are well aligned. Chapter 3 (Making IT Count)
discusses new ways
ofmeasuringIT’seffectivenessthatpromotecloserbusiness–
ITalignmentandhelp
drive greater business value. Chapter 4 (Effective Business–IT
Relationships) exam-
ines the nature of the business–IT relationship and the
characteristics of an effec-
tive relationship that delivers real value to the enterprise.
Chapter 5 (Business–IT
Communication) explores the business and interpersonal
competencies that IT staff
will need in order to do their jobs effectively over the next five
to seven years and
what companies should be doing to develop them. Finally,
69. Chapter 6 (Effective IT
Leadership) tackles the increasing need for improved leadership
skills in all IT staff
and examines the expectations of the business for strategic and
innovative guid-
ance from IT.
A01_MCKE0260_03_GE_FM.indd 16 26/11/14 9:32 PM
Preface 17
In the mini cases associated with this section, the concepts of
delivering
value with IT are explored in a number of different ways. We
see business and
IT executives at Hefty Hardware grappling with conflicting
priorities and per-
spectives and how best to work together to achieve the
company’s strategy. In
“Investing in TUFS,” CIO Martin Drysdale watches as all of the
work his IT depart-
ment has put into a major new system fails to deliver value. And
the “IT Planning
atModMeters”minicasefollowsCIOBrianSmith’seffortstocreateas
trategic
IT plan that will align with business strategy, keep IT running,
and not increase
IT’sbudget.
• Section II: IT Governance explores key concepts in how the IT
organization is
structured and managed to effectively deliver IT products and
services to the orga-
nization. Chapter 7 (Effective IT Shared Services) discusses
70. how IT shared services
should be selected, organized, managed, and governed to
achieve improved organi-
zational performance. Chapter 8 (Successful IT Sourcing:
Maturity Model, Sourcing
Options, and Decision Criteria) examines how organizations are
choosing to source
and deliver different types of IT functions and presents a
framework to guide sourc-
ingdecisions.Chapter9(Budgeting:Planning’sEvilTwin)describes
the“eviltwin”
of IT strategy, discussing how budgeting mechanisms can
significantly undermine
effective business strategies and suggesting practices for
addressing this problem
while maintaining traditional fiscal accountability. Chapter 10
(Risk Management
in IT) describes how many IT organizations have been given the
responsibility of
not only managing risk in their own activities (i.e., project
development, operations,
and delivering business strategy) but also of managing IT-based
risk in all company
activities (e.g., mobile computing, file sharing, and online
access to information and
software) and the need for a holistic framework to understand
and deal with risk
effectively. Chapter 11 (Information Management: Stages and
Issues) describes how
new organizational needs for more useful and integrated
information are driving
the development of business-oriented functions within IT that
focus specifically on
information and knowledge, as opposed to applications and
data.
71. The mini cases in this section examine the difficulties of
managing com-
plex IT issues when they intersect substantially with important
business issues.
In “Building Shared Services at RR Communications,” we see
an IT organiza-
tion in transition from a traditional divisional structure and
governance model
to a more centralized enterprise model, and the long-term
challenges experi-
enced by CIO Vince Patton in changing both business and IT
practices, includ-
ing information management and delivery, to support this new
approach. In
“Enterprise Architecture at Nationstate Insurance,” CIO Jane
Denton endeavors
to make IT more flexible and agile, while incorporating new and
emerging tech-
nologies into its strategy. In “IT Investment at North American
Financial,” we
show the opportunities and challenges involved in prioritizing
and resourcing
enterprisewide IT projects and monitoring that anticipated
benefits are being
achieved.
• Section III: IT-Enabled Innovation discusses some of the ways
technology is
being used to transform organizations. Chapter 12 (Technology-
Driven Innovation)
examines the nature and importance of innovation with IT and
describes a typi-
cal innovation life cycle. Chapter 13 (When Big Data and Social
Computing Meet)
discusses how IT leaders are incorporating big data and social
media concepts
72. A01_MCKE0260_03_GE_FM.indd 17 26/11/14 9:32 PM
18 Preface
and technologies to successfully deliver business value in new
ways. Chapter 14
(Effective Customer Experience) explores the IT function’s role
in creating and
improvinganorganization’scustomerexperiencesandtheroleoftech
nologyin
helping companies to understand and learn from their
customers’ experiences.
Chapter 15 (Business Intelligence: An Overview) looks at the
nature of business
intelligence and its relationship to data, information, and
knowledge and how
IT can be used to build a more intelligent organization. Chapter
16 (Technology-
Enabled Collaboration) identifies the principal forms of
collaboration used in orga-
nizations, the primary business drivers involved in them, how
their business value
is measured, and the roles of IT and the business in enabling
collaboration.
The mini cases in this section focus on the key challenges
companies face in
innovating with IT. “Innovation at International Foods”
contrasts the need for pro-
cess and control in corporate IT with the strong push to
innovate with technology
and the difficulties that ensue from the clash of style and
culture. “Consumerization
73. of Technology at IFG” looks at issues such as “bring your own
device” (BYOD) to
the workplace. In “CRM at Minitrex,” we see some of the
internal technological and
political conflicts that result from a strategic decision to
become more customercen-
tric. Finally, “Customer Service at Datatronics” explores the
importance of present-
ing unified, customer-facing IT to customers.
• Section IV: IT Portfolio Development and Management looks
at how the IT func-
tion must transform itself to be able to deliver business value
effectively in the
future. Chapter 17 (Managing the Application Portfolio)
describes the ongoing
management process of categorizing, assessing, and
rationalizing the IT applica-
tion portfolio. Chapter 18 (IT Demand Management: Supply
Management is Not
Enough) looks at the often neglected issue of demand
management (as opposed
to supply management), explores the root causes of the demand
for IT services,
and identifies a number of tools and enablers to facilitate more
effective demand
management. Chapter 19 (Technology Roadmap: Benefits,
Elements, and Practical
Steps) examines the challenges IT managers face in
implementing new infrastruc-
ture, technology standards, and types of technology in their
real-world business and
technical environments, which is composed of a huge variety of
hardware, software,
applications, and other technologies, some of which date back
more than thirty
74. years. Chapter 20 (Emerging Development Practices) explores
how system develop-
ment practices are changing and how managers can create an
environment to pro-
mote improved development productivity. And Chapter 21
(Information Delivery:
Past, Present, and Future) examines the fresh challenges IT
faces in managing the
exponential growth of data and digital assets; privacy and
accountability concerns;
and new demands for access to information on an anywhere,
anytime basis.
The mini cases associated with this section describe many of
these themes
embedded within real organizational contexts. “Project
Management at MM” mini
case shows how a top-priority, strategic project can take a
wrong turn when proj-
ect management skills are ineffective. “Working Smarter at
Continental Furniture”
minicasefollowsaninitiativetoimprovethecompany’sanalyticssoit
canreduce
its environmental impact. And in the mini case “Managing
Technology at Genex
Fuels,” we see CIO Nick Devlin trying to implement
enterprisewide technology for
competitive advantage in an organization that has been limping
along with obscure
and outdated systems.
A01_MCKE0260_03_GE_FM.indd 18 26/11/14 9:32 PM
Preface 19
75. SupplementAry mAteriAlS
online instructor resource center
The following supplements are available online to adopting
instructors:
• PowerPointLectureNotes
• ImageLibrary(textart)
• ExtensiveTeachingNotesforallMinicases
•
AdditionalchaptersincludingDevelopingITProfessionalism;ITSo
urcing;Master
Data Management; Developing IT Capabilities; The Identity
Management Challenge;
Social Computing; Managing Perceptions of IT; IT in the New
World of Corporate
Governance Reforms; Enhancing Customer Experiences with
Technology; Creating
Digital Dashboards; and Managing Electronic Communications.
•
Additionalminicases,includingITLeadershipatMaxTrade;Creatin
gaProcess-Driven
Organization at Ag-Credit; Information Management at
Homestyle Hotels; Knowledge
Management at Acme Consulting; Desktop Provisioning at
CanCredit; and Leveraging
IT Vendors at SleepSmart.
For detailed descriptions of all of the supplements just listed,
please visit
www.pearsongloableditions.com/McKeen.
courseSmart etextbooks online
76. CourseSmart* is an exciting new choice for students looking to
save money. As an alter-
native to purchasing the print textbook, students can purchase
an electronic version of
the same content and save up to 50 percent off the suggested list
price of the print text.
With a CourseSmart etextbook, students can search the text,
make notes online, print
out reading assignments that incorporate lecture notes, and
bookmark important pas-
sages for later review. www.coursesmart.co.uk.
* This product may not be available in all markets. For more
details, please visit www.coursesmart.co.uk or
contact your local Pearson representative.
the geneSiS of thiS Book
Since 1990 we have been meeting quarterly with a group of
senior IT managers from a
number of leading-edge organizations (e.g., Eli Lilly, BMO,
Honda, HP, CIBC, IBM, Sears,
Bell Canada, MacDonalds, and Sun Life) to identify and discuss
critical IT manage-
ment issues. This focus group represents a wide variety of
industry sectors (e.g., retail,
manufacturing, pharmaceutical, banking, telecommunications,
insurance, media, food
processing, government, and automotive). Originally, it was
established to meet the com-
panies’ needs for well-balanced, thoughtful, yet practical
information on emerging IT
management topics, about which little or no research was
available. However, we soon
recognized the value of this premise for our own research in the
rapidly evolving field
77. of IT management. As a result, it quickly became a full-scale
research program in which
we were able to use the focus group as an “early warning
system” to document new IT
management issues, develop case studies around them, and
explore more collaborative
approaches to identifying trends, challenges, and effective
practices in each topic area.3
3 This now includes best practice case studies, field research in
organizations, multidisciplinary qualitative
and quantitative research projects, and participation in
numerous CIO research consortia.
A01_MCKE0260_03_GE_FM.indd 19 26/11/14 9:32 PM
20 Preface
As we shared our materials with our business students, we
realized that this issues-based
approach resonated strongly with them, and we began to
incorporate more of our research
intotheclassroom.Thisbookistheresultofourmanyyears’workwiths
eniorITmanag-
ers, in organizations, and with students in the classroom.
Each issue in this book has been selected collaboratively by the
focus group after
debateanddiscussion.Asfacilitators,ourjobhasbeentokeepthegrou
p’sfocusonIT
management issues, not technology per se. In preparation for
each meeting, focus group
members researched the topic within their own organization,
often involving a number
78. of members of their senior IT management team as well as
subject matter experts in
the process. To guide them, we provided a series of questions
about the issue, although
members are always free to explore it as they see fit. This
approach provided both struc-
ture for the ensuing discussion and flexibility for those
members whose organizations
are approaching the issue in a different fashion.
The focus group then met in a full-day session, where the
members discussed all
aspects of the issue. Many also shared corporate documents with
the group. We facilitated
the discussion, in particular pushing the group to achieve a
common understanding of
the dimensions of the issue and seeking examples, best
practices, and guidelines for deal-
ing with the challenges involved. Following each session, we
wrote a report based on the
discussion, incorporating relevant academic and practitioner
materials where these were
available. (Because some topics are “bleeding edge,” there is
often little traditional IT
research available on them.)
Each report has three parts:
1. A description of the issue and the challenges it presents for
both business and IT
managers
2. Models and concepts derived from the literature to position
the issue within a con-
textual framework
79. 3. Near-term strategies (i.e., those that can be implemented
immediately) that have
proven successful within organizations for dealing with the
specific issue
Each chapter in this book focuses on one of these critical IT
issues. We have learned
over the years that the issues themselves vary little across
industries and organizations,
even in enterprises with unique IT strategies. However, each
organization tackles the
same issue somewhat differently. It is this diversity that
provides the richness of insight
in these chapters. Our collaborative research approach is based
on our belief that when
dealing with complex and leading-edge issues, “everyone has
part of the solution.”
Every focus group, therefore, provides us an opportunity to
explore a topic from a
variety of perspectives and to integrate different experiences
(both successful and oth-
erwise) so that collectively, a thorough understanding of each
issue can be developed
and strategies for how it can be managed most successfully can
be identified.
A01_MCKE0260_03_GE_FM.indd 20 26/11/14 9:32 PM
AbouT THE AuTHorS
James D.
McKeenisProfessorEmeritusattheQueen’sSchoolofBusiness.Heh
asbeen
working in the IT field for many years as a practitioner,
80. researcher, and consultant. In
2011, he was named the “IT Educator of the Year” by
ComputerWorld Canada. Jim has
taught at universities in the United Kingdom, France, Germany,
and the United States.
His research is widely published in a number of leading journals
and he is the coau-
thor (with Heather Smith) of five books on IT management.
Their most recent book—IT
Strategy: Issues and Practices (2nd ed.)—was the best-selling
business book in Canada
(Globe and Mail, April 2012).
Heather A. Smith has been named the most-published researcher
on IT management
issuesintwosuccessivestudies(2006,2009).Aseniorresearchassoci
atewithQueen’s
University School of Business, she is the author of five books,
the most recent being IT
Strategy: Issues and Practices (Pearson Prentice Hall, 2012).
She is also a senior research
associatewiththeAmericanSocietyforInformationManagement’sA
dvancedPractices
Council. A former senior IT manager, she is codirector of the IT
Management Forum and
the CIO Brief, which facilitate interorganizational learning
among senior IT executives.
In addition, she consults and collaborates with organizations
worldwide.
21
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