This document discusses planning strategies for business and information technology. It covers topics like scenario planning, competitive advantage planning, business models, and e-business planning. The key aspects of planning covered are evaluating the environment, building shared visions and goals, and deciding on actions. Business strategies are identified using a strategic positioning matrix based on connectivity and IT use levels.

1. 1
Chapter
9
Developing
Business/Information
Technology Strategies
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2. 2
Learning Objectives
Discuss the role of planning in the business use
of information technology, using the scenario
approach and planning for competitive
advantage.
Discuss the role of planning and business
models in the development of e-business
strategies, architectures, and applications.
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3. 3
Learning Objectives (continued)
Identify several change management solutions
for end user resistance to the implementation
of new e-business strategies and applications.
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4. 4
Section I
Planning Fundamentals
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5. 5
Organizational Planning
The Planning Process
Team building, modeling, & consensus
Evaluating organizational accomplishments
and the resources they have acquired
Analyzing the business, economic, political,
and societal environment
Anticipating and evaluating the impact of
future developments
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6. 6
Organizational Planning (continued)
The planning process (continued)
Building a shared vision and deciding on
goals
Deciding what actions to take to achieve
goals
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7. 7
Organizational Planning (continued)
Strategic Planning
Strategic Visioning
Tactical Planning
Operational Planning
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8. 8
The Scenario Approach to Planning
Teams participate in a “microworld”
A variety of business scenarios are created
Alternative scenarios are created by teams or
by business simulation software based on..
A variety of developments, trends, and
environmental factors
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9. 9
The Scenario Approach to Planning (continued)
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10. 10
Planning for Competitive Advantage
Especially important in today’s competitive,
complex environment
Involves an evaluation of potential benefits
and risks
May include the competitive forces and
competitive strategies models, as well as a
value chain model of basic business activities
Use a strategic opportunities matrix to
evaluate strategic potential
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11. 11
Planning for Competitive Advantage (continued)
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12. 12
Planning for Competitive Advantage (continued)
SWOT analysis
Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)
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13. 13
Business Models and Planning
A conceptual framework that expresses the
underlying economic logic and system that
prove how a business can deliver value to
customers at an appropriate cost and make
money.
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14. 14
Business Models and Planning (continued)
Specifies what value to offer customers, and
which customers to provide this value to using
which products and services at what prices.
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15. 15
Business Models and Planning (continued)
Specifies how the business will organize and
operate
Focuses attention on how all the essential
components fit into a complete system
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16. 16
e-Business Planning
The e-Business planning process has three
major components
Strategy development
Resource management
Technology architecture
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17. 17
e-Business Planning (continued)
IT architecture major components
Technology platform
Data resources
Applications architecture
IT organization
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18. 18
Identifying e-Business Strategies
The Strategic Positioning Matrix
Cost and efficiency improvements
Low level of connectivity and use of IT
Strategy: use the Internet and Web to
communicate and interact
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19. 19
Identifying e-Business Strategies (continued)
Strategic Positioning Matrix (continued)
Performance improvements in business
effectiveness
High level of internal connectivity and
pressures to substantially improve
business processes, external connectivity is
low
Strategy: making major improvements in
business effectiveness. Use intranets and
extranets to connect the organization with
stakeholders
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20. 20
Identifying e-Business Strategies (continued)
Strategic Positioning Matrix (continued)
Global Market Penetration
Must capitalize on a high degree of
customer and competitor connectivity and
use of IT.
Strategy: develop e-business and e-
commerce applications to optimize
interaction with customers and build
market share.
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21. 21
Identifying e-Business Strategies (continued)
Strategic Positioning Matrix (continued)
Product and Service Transformation
All stakeholders are extensively networked
Strategy: implement Internet-based
technologies including e-commerce
websites and e-business intranets and
extranets.
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22. 22
Identifying e-Business Strategies (continued)
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23. 23
e-Business Application Planning
Begins after the strategic phase has occurred
Includes..
Evaluation of proposals for using IT to
accomplish the strategic priorities
Evaluation of the business case for investing
in e-business development projects
Developing and implementing e-business
applications and managing the development
projects
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24. 24
e-Business Application Planning (continued)
Another alternative for planning – e-business
architecture planning
Combines contemporary methods and
alternative planning scenarios with
methodologies such as component-based
development
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25. 25
Section II
Implementation Challenges
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26. 26
Implementation
A process of carrying out the plans for change
in e-business strategies and applications that
were developed during the planning process.
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27. 27
Implementing IT
Requires managing the effects of major
changes in key organizational dimensions such
as
business processes
organizational structure
Managerial roles
Employee work assignments
Stakeholder relationships
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28. 28
Implementing IT (continued)
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29. 29
End User Resistance and Involvement
Change can generate fear and resistance to
change
Keys to countering end user resistance
Proper education and training
End user involvement in organizational
changes
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30. 30
End User Resistance and Involvement (continued)
End user involvement in the development of
new information systems
Involvement and commitment of top
management and all business stakeholders
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31. 31
Change Management
People are a major focus of organizational
change management
Developing innovative ways to measure,
motivate, and reward performance
Designing programs to recruit and train
employees in the core competencies
Also involves analyzing and defining all
changes facing the organization
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32. 32
Change Management (continued)
Key tactics for change
Involve as many people as possible
Make constant change an expected part of
the organizational culture
Tell everyone as much as possible about
everything as often as possible, preferably in
person
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33. 33
Change Management (continued)
Key tactics for change (continued)
Make liberal use of financial incentives and
recognition
Work within the company culture
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34. 34
Change Management (continued)
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35. 35
Change Management (continued)
A change management process
Create a change vision
Define a change strategy
Develop leadership
Build commitment
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36. 36
Change Management (continued)
Change management process (continued)
Manage people performance
Deliver business benefits
Develop culture
Design organization
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37. 37
Discussion Questions
Planning is a useless endeavor, because
developments in e-business and e-commerce,
and in the political, economic, and social
environments are moving too quickly
nowadays. Do you agree with this statement?
“Planning and budgeting processes are
notorious for their rigidity and irrelevance to
management action.” How can planning be
made relevant to the challenges facing an e-
business enterprise?
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38. 38
Discussion Questions (continued)
What planning methods would you use to
develop e-business and e-commerce strategies
and applications for your own business?
What are several e-business and e-commerce
strategies and applications that should be
developed and implemented by many
companies today?
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39. 39
Discussion Questions (continued)
How can a company use change management
to minimize the resistance and maximize the
acceptance of changes in business and
technology?
“Many companies plan really well, yet few
translate strategy into action.” Do you think
this is true?
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40. 40
Discussion Questions (continued)
What major business changes beyond
e-business and e-commerce do you think most
companies should be planning for the next ten
years?
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41. 41
Real World Case 1 – The Rowe Cos. & Merrill Lynch
What are the benefits and possible limitations
of the Rowe Companies ROI methodologies
for IT project planning?
What is the business value of the ROI
evaluation methodology required for project
planning by Merrill Lynch?
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42. 42
Real World Case 1 (continued)
Do you agree with the IT investment decisions
being made by the Rowe Companies in
response to changing economic conditions?
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43. 43
Real World Case 1 (continued)
How can a company identify, measure, and
compare the business/IT innovation as well as
the profitability of IT projects in their
planning process?
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44. 44
Real World Case 2 – Verizon, F.X. Coughlin, & A-dec
Implementation challenges
What business benefits resulted from the
integration projects of Verizon Wireless, F.X.
Coughlin, and A-dec?
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45. 45
Real World Case 2 (continued)
What change management challenges surfaced
in each project?
Where those challenges handled properly by
the companies involved?
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46. 46
Real World Case 2 (continued)
What are several change management actions
these companies could have taken to increase
the acceptance of their IT integration
challenges?
What other change management methods
could be used to improve the acceptance of
business/IT changes like those implemented at
each company?
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47. 47
Real World Case 3 – PeopleFirst, Cessna, Allstate, & Sprint
Challenges of Implementing CRM Systems
What are several reasons for the high failure
rate in implementing CRM systems?
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48. 48
Real World Case 3 (continued)
What could PeopleFirst and Cessna have done
to avoid the failures in their first tries at
implementing CRM systems?
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49. 49
Real World Case 3 (continued)
How have Allstate and Sprint Corp. helped to
ensure their successful CRM
implementations?
What are other things companies could do to
help implement CRM systems?
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50. 50
Real World Case 4 – Corning Inc.
Business/IT Planning Strategies in
Challenging Times
Do you agree with how CIO Richard Fishburn
has defended Corning’s IT department from
an economic downturn?
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51. 51
Real World Case 4 (continued)
Why is aligning IT projects with business
objectives a good business/IT strategy in
challenging economic times?
And in good times?
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52. 52
Real World Case 4 (continued)
Does Corning’s business/IT planning process
for its new production and supply chain
system prove the value of aligning IT with
business goals?
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53. 53
Real World Case 5 – Cincinnati Bell
Change Management Challenges of Business
Convergence
Was the reorganization of Cincinnati Bell as
revealed in this case a good business strategy?
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54. 54
Real World Case 5 (continued)
Were the change management methods
revealed in this case adequate for the changes
being made?
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55. 55
Real World Case 5 (continued)
What further changes should be made in IT
systems to better support Cincinnati Bell’s
business convergence?
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