“I have seen the light”(Martin Luther King)




                     E-Strategizing
                        Ton AM Spil
                      31st August 2009

Information Systems and Change Management (BBT)
How much does ABN/AMRO
invest in ICT for each employee?

                   ‘Is there is a need
                   for ICT Strategy?’




  Oswald Coene
  Former General Director Getronics
6000 US Dollars


‘There is a big need
for ICT Strategy!’
What term would you use?

•   ISS,
•   ISP,
•   ICTS,
•   SISP,    Tapio Reponen
             Xtra reading
•   EBS
•   etc
•   etc
•   etc
Why do we need an IS/IT strategy?
       Why NOT? (Ward, page 47)
 •   Wrong investments
 •   Loss of control
 •   Systems not integrated
 •   No priorities
 •   No mechanisms of appointing resources
 •   Poor management information
 •   Gap between users and IT specialists
 •   Incoherent IT strategy
 •   Inadequate infrastructure
 •   Only Financial evaluation
 •   Sources of conflict
 •   Suboptimalizations
 •   Wrong system lifetime expectations
How to create “real” value?
• Telebaby®: Live Video Streaming from a Neonatal Ward
  Using the Internet




        Figure 12.8
Overview
1.Course introduction
2.E-business strategy
 (Amazon.com)
3.IT-Governance
4.E-strategizing
5.Imagine e-Strategy
 (e-volution,e-nough)
 University case
6. Next week
“There is no doubt that we still have not scratched
    the surface of possibilities of ICT” (Ward)




                   CEO PINKROCCADE


                                             Align




                                      rize




                                                     An
                                       ho




                                                       aly
                                             Agree

                                   Aut




                                                        ze
1. Course Introduction

 Philosophy
  Lectures
Organization
Assignments
E-Strategizing philosophy
•   Dynamic & Thematic
•   Balancing Incremental, Comprehensive & Transactional Strategy
•   Interorganizational
•   Socio-Technical
•   Tools and techniques




“Not having a strategy often is a powerful drive for innovation”
  (Wouters, 2000)

What’s Your Philosophy -> figure 12.6? Which missing?
What’s mine -> Syllabus
Lectures
1. Images of e-strategizing
2. Understanding history
3. Milestones from KPMG
4. Agreement (Reach and Range) & Alignment
   (MIT model)
5. Cap Gemini value engineering
6. Authorization (Top mgt participation) & Analysis
   (Tools)
7. Accenture Thinking Big
8. Wrap up
Organization
•   8 lectures
•   50 ways
•   1 tool card individual (1/6)
•   1 workshop (1/6) group (4 or 5
    students)
•   1 plan or paper (2/6 group or
    individual)
•   1 Defense (2/6) group or in(30
    min)
•   Blackboard
•   Paperless!?
What would YOU like to learn in
           these 8 lectures?
• The most difficult things to learn are things you
  think you already know!
2. E-Business Strategy

E-business, e-commerce and mobile commerce
               Bermuda triangle
        Interorganizational e-strategies
                 Amazon.com
Klaas Wagenaar and Axel Rückert

   “Definig a strategy for any
  organization is creative and
evolving process, which can be
 assisted by the use of tools,
    techniques and models”
Bermuda Triangle

                     Transactional




Comprehensive                          Incremental
                (Segars & Grover, 1999)
How are decisions made at the
                 network level?
                             market/price



                              Contractual
                               networks




                Hierarchic                  Relational
                networks                    networks

hierarchy/authority                                 community/trust
                                            Table 7.1 – source Powell 1990
Amazon.com (page 29)


In your opinion, what
industries/companies would
constitute a threat to
Amazon.com over the next three
to five years?
Explain.
Threats

• Book publishers
• Other internet-based book sellers
  (Buchhandel.de)
• Physical book stores (Broekhuis)
• Large retailers (Albert Heijn)
• Mail order companies (Wehkamp?)
• Internet service providers (KPN?)
• Computer Manufacturers (Dell?)
• E-book sellers
“Together we offer more”

• Fusion Getronics and Pink
  Roccade (2004)
Henk Bosma & Klaas Wagenaar
At announcement 1st of november
3. IT Governance
          (page 46)
                  Risk
              Resources
           Conflict Resolution
            Responsibilities

     ICT Management (Hilda Folkert)
ITGov institute (COBIT – Wim Grembergen)
IT Governance
•   Alignment
•   Value
•   Risk
•   Resources
•   Benefits
What happened to Oswald Coene?

• Rather entrepreneur
than manager pur sang.

He performed a classical
 management buy out.

Industrial Automation
180 people 70 million sales.
4. E-Strategizing

      What IS IT?
    Distinction IS/IT
An inclusive framework
What IS IT? (Chapter 3)

Vd Broek, 2008
Mentzas, 1997
King, 1988
Earl’s distinction between Information
Systems and Information Technology Strategy


                               IS Strategy
                                    - Business-driven
                                    - Top-down
                                    - Demand oriented

                                                  WHAT?

                                                           Information and
              IT infrastructure,
                                                           information services
              applications and
                                                           requirements
              services
                                   IT Strategy
                                    - Technology focused
                                    - Bottom-up
                                    - Supply oriented

                               HOW?


  “It should be remembered that IS existed in organizations
  Long before the advent of IT” (Ward – page 3)
Towards a more inclusive framework for Information Systems strategizing

                                         Galliers 2004

                                           Collaborative Business
                                                 Strategy
        Collaborative and
        Competitive
        Environment

                                              INFORMATION
                                             INFRASTRUCTURE
                                                STRATEGY                            EXPLOR-
                EXPLOIT-
                                             (Socio-technical environment)           ATION
                 ATION                       - IT, standards, data, architecture   STRATEGY
               STRATEGY                      - Information services (sourcing)
                                                                                     (Emergent)
                (Deliberate)                 - Human resources (skills, roles)
                                                                                   - communities of
                - codified ‘solutions’                                                practice
                    e.g., ERP systems                                              - flexible project
                - standardized                                                        teams
                    procedures                    CHANGE                           - knowledge brokers,
                - rules                                                                 sharing & creation
                - ‘knowledge                    MANAGEMENT                         - bricolage/
                    mgmt.’                       STRATEGY                              tinkering


                                             ON-GOING LEARNING
                                                 & REVIEW
Interorganizational e-strategy
                Market mechanisms
                E-business strategy




Hierarchical mechanisms        Relational mechanisms
IT-Governance                  Strategic IS thinking
(Exploitation)                 (Exploration)
What happened to Axel Ruckert?

• Equity Permira
• Alliances
• CEO Debitel
5. Images of e-strategy

         E-volution
  E-structure and e-culture
     E-strategy images
          E-nough
Images of strategy


The Hungarian map of the Alps
(Darwin’s) Evolution
In what era now?
IT evolution (page 8-26)
Bolwijn (1988) Organization   Spil (1996, 2004) Ward 2002
Performance criteria          Information
                              Focus
Efficiency                    Costs        DP era


Quality                       Functionality MIS era


Flexibility                   Integration   MIS era


Innovation                    Knowledge     SIS era


Diffusion (Spil, 2004)        Relevance     Organizational
                                            Capacity era
Mintzberg’s strategies & structures
             page 86
 Structure follows
   strategy?
 • What about culture?
 • Strategy Safari




             And what happened to Pink Elephant?
Handy on Culture
- Zeus Culture, after the powerful head of the gods,
an organization dominated by the personality and power
of one person, often the founder or owner.

- Apollo Culture, after the God of harmony and order,
dominated by rules and procedures.

- Athena Culture, after the warrior goddess, the symbol of the project
organization, the culture that dominates consultancies, advertising
agencies and, increasingly, all innovative businesses.

- Dionysius Culture, in which the individual has the freedom to develop
his or her own ideas in the way they want - an artists' studio, perhaps, or
a hospital.
University case




What structure and culture?
Porter & PESTEL
      •   New entrants
      •   Political
      •   Economic
      •   Buyers
      •   Social
      •   Substitutes
      •   Technological
      •   Suppliers
      •   Ecological
      •   Legal
MIT Alignment model (page 44)
Infusion & Diffusion (Page 49)



             Opportunistic     Complex


Diffusion

             Traditional      Backbone


                   Infusion
Infusion & Diffusion
  Getronics Pinkroccade?
  KPN gets approval take over Getronics
  Tuesday 9 october 2007

                      Amazon

                                          Eric van der Meijden
                         University       ICT director KPN
                                Bank
Diffusion




                      Infusion
6. Next week on E-strategizing
“If you want to tell the future
  you have to know history”
    Chapter 2-5 & Galliers

Es lecture 1 2009

  • 1.
    “I have seenthe light”(Martin Luther King) E-Strategizing Ton AM Spil 31st August 2009 Information Systems and Change Management (BBT)
  • 2.
    How much doesABN/AMRO invest in ICT for each employee? ‘Is there is a need for ICT Strategy?’ Oswald Coene Former General Director Getronics
  • 3.
    6000 US Dollars ‘Thereis a big need for ICT Strategy!’
  • 4.
    What term wouldyou use? • ISS, • ISP, • ICTS, • SISP, Tapio Reponen Xtra reading • EBS • etc • etc • etc
  • 5.
    Why do weneed an IS/IT strategy? Why NOT? (Ward, page 47) • Wrong investments • Loss of control • Systems not integrated • No priorities • No mechanisms of appointing resources • Poor management information • Gap between users and IT specialists • Incoherent IT strategy • Inadequate infrastructure • Only Financial evaluation • Sources of conflict • Suboptimalizations • Wrong system lifetime expectations
  • 6.
    How to create“real” value? • Telebaby®: Live Video Streaming from a Neonatal Ward Using the Internet Figure 12.8
  • 7.
    Overview 1.Course introduction 2.E-business strategy (Amazon.com) 3.IT-Governance 4.E-strategizing 5.Imagine e-Strategy (e-volution,e-nough) University case 6. Next week
  • 8.
    “There is nodoubt that we still have not scratched the surface of possibilities of ICT” (Ward) CEO PINKROCCADE Align rize An ho aly Agree Aut ze
  • 9.
    1. Course Introduction Philosophy Lectures Organization Assignments
  • 10.
    E-Strategizing philosophy • Dynamic & Thematic • Balancing Incremental, Comprehensive & Transactional Strategy • Interorganizational • Socio-Technical • Tools and techniques “Not having a strategy often is a powerful drive for innovation” (Wouters, 2000) What’s Your Philosophy -> figure 12.6? Which missing? What’s mine -> Syllabus
  • 11.
    Lectures 1. Images ofe-strategizing 2. Understanding history 3. Milestones from KPMG 4. Agreement (Reach and Range) & Alignment (MIT model) 5. Cap Gemini value engineering 6. Authorization (Top mgt participation) & Analysis (Tools) 7. Accenture Thinking Big 8. Wrap up
  • 12.
    Organization • 8 lectures • 50 ways • 1 tool card individual (1/6) • 1 workshop (1/6) group (4 or 5 students) • 1 plan or paper (2/6 group or individual) • 1 Defense (2/6) group or in(30 min) • Blackboard • Paperless!?
  • 13.
    What would YOUlike to learn in these 8 lectures? • The most difficult things to learn are things you think you already know!
  • 14.
    2. E-Business Strategy E-business,e-commerce and mobile commerce Bermuda triangle Interorganizational e-strategies Amazon.com
  • 15.
    Klaas Wagenaar andAxel Rückert “Definig a strategy for any organization is creative and evolving process, which can be assisted by the use of tools, techniques and models”
  • 17.
    Bermuda Triangle Transactional Comprehensive Incremental (Segars & Grover, 1999)
  • 18.
    How are decisionsmade at the network level? market/price Contractual networks Hierarchic Relational networks networks hierarchy/authority community/trust Table 7.1 – source Powell 1990
  • 19.
    Amazon.com (page 29) Inyour opinion, what industries/companies would constitute a threat to Amazon.com over the next three to five years? Explain.
  • 20.
    Threats • Book publishers •Other internet-based book sellers (Buchhandel.de) • Physical book stores (Broekhuis) • Large retailers (Albert Heijn) • Mail order companies (Wehkamp?) • Internet service providers (KPN?) • Computer Manufacturers (Dell?) • E-book sellers
  • 21.
    “Together we offermore” • Fusion Getronics and Pink Roccade (2004) Henk Bosma & Klaas Wagenaar At announcement 1st of november
  • 22.
    3. IT Governance (page 46) Risk Resources Conflict Resolution Responsibilities ICT Management (Hilda Folkert) ITGov institute (COBIT – Wim Grembergen)
  • 23.
    IT Governance • Alignment • Value • Risk • Resources • Benefits
  • 24.
    What happened toOswald Coene? • Rather entrepreneur than manager pur sang. He performed a classical management buy out. Industrial Automation 180 people 70 million sales.
  • 25.
    4. E-Strategizing What IS IT? Distinction IS/IT An inclusive framework
  • 26.
    What IS IT?(Chapter 3) Vd Broek, 2008 Mentzas, 1997 King, 1988
  • 27.
    Earl’s distinction betweenInformation Systems and Information Technology Strategy IS Strategy - Business-driven - Top-down - Demand oriented WHAT? Information and IT infrastructure, information services applications and requirements services IT Strategy - Technology focused - Bottom-up - Supply oriented HOW? “It should be remembered that IS existed in organizations Long before the advent of IT” (Ward – page 3)
  • 28.
    Towards a moreinclusive framework for Information Systems strategizing Galliers 2004 Collaborative Business Strategy Collaborative and Competitive Environment INFORMATION INFRASTRUCTURE STRATEGY EXPLOR- EXPLOIT- (Socio-technical environment) ATION ATION - IT, standards, data, architecture STRATEGY STRATEGY - Information services (sourcing) (Emergent) (Deliberate) - Human resources (skills, roles) - communities of - codified ‘solutions’ practice e.g., ERP systems - flexible project - standardized teams procedures CHANGE - knowledge brokers, - rules sharing & creation - ‘knowledge MANAGEMENT - bricolage/ mgmt.’ STRATEGY tinkering ON-GOING LEARNING & REVIEW
  • 29.
    Interorganizational e-strategy Market mechanisms E-business strategy Hierarchical mechanisms Relational mechanisms IT-Governance Strategic IS thinking (Exploitation) (Exploration)
  • 30.
    What happened toAxel Ruckert? • Equity Permira • Alliances • CEO Debitel
  • 31.
    5. Images ofe-strategy E-volution E-structure and e-culture E-strategy images E-nough
  • 32.
    Images of strategy TheHungarian map of the Alps
  • 33.
  • 34.
  • 35.
    IT evolution (page8-26) Bolwijn (1988) Organization Spil (1996, 2004) Ward 2002 Performance criteria Information Focus Efficiency Costs DP era Quality Functionality MIS era Flexibility Integration MIS era Innovation Knowledge SIS era Diffusion (Spil, 2004) Relevance Organizational Capacity era
  • 36.
    Mintzberg’s strategies &structures page 86 Structure follows strategy? • What about culture? • Strategy Safari And what happened to Pink Elephant?
  • 37.
    Handy on Culture -Zeus Culture, after the powerful head of the gods, an organization dominated by the personality and power of one person, often the founder or owner. - Apollo Culture, after the God of harmony and order, dominated by rules and procedures. - Athena Culture, after the warrior goddess, the symbol of the project organization, the culture that dominates consultancies, advertising agencies and, increasingly, all innovative businesses. - Dionysius Culture, in which the individual has the freedom to develop his or her own ideas in the way they want - an artists' studio, perhaps, or a hospital.
  • 38.
  • 39.
    Porter & PESTEL • New entrants • Political • Economic • Buyers • Social • Substitutes • Technological • Suppliers • Ecological • Legal
  • 40.
  • 41.
    Infusion & Diffusion(Page 49) Opportunistic Complex Diffusion Traditional Backbone Infusion
  • 42.
    Infusion & Diffusion Getronics Pinkroccade? KPN gets approval take over Getronics Tuesday 9 october 2007 Amazon Eric van der Meijden University ICT director KPN Bank Diffusion Infusion
  • 43.
    6. Next weekon E-strategizing “If you want to tell the future you have to know history” Chapter 2-5 & Galliers