Alfred Chandler created a business model based on business strategy, organizational strategy, systems and IT strategy. For more such innovative content on management studies, join WeSchool PGDM-DLP Program: http://bit.ly/ZEcPAc

1. I.T. for Management
Section2
Chapter 13
Aligning Information System
using Chandlers Method

2. Aligning Information System
using Chandlers Method
The Alfred Chandlers model is a Simple but very
effective business model
In the Alfred Chandler model each of the three
sides of the triangle represent the strategies in the
business
Alfred chandler presented a simple business
model based on
Business Strategy
Organizational Strategy
Systems & IT Strategy

3. Aligning Information System
using Chandlers Method
Business Strategy
One of the best cases on this subject is that of
Mrs.Fields Cookies
Mrs. Cookies started the business of cookies
The business strategy was to replicate the formula
of success of the first store in each of 400 stores
The success of stores summed up as
•Hot fresh,baked cookies made as per the unique recipe
developed by Mrs. Field
•A distinct upbeat stores culture which attracted customers
•Hourly sales initiative & forecasting techniques

4. Aligning Information System
using Chandlers Method
Organizational Strategy:
The organizational strategy supported the business
strategy in more than one ways as summed up
•Mrs.Field insisted on flat organization.
•Mrs. Field believed if she had to exert her
influence and communication at the individual
stores level she must eliminate all in between
levels.she believed technology would have to
support her in terms of communication facilities
•This also support the idea that most of the middle
management layers act either as information
processor

5. Aligning Information System
using Chandlers Method
Organizational Strategy:
•Mrs.Field however believed that maintaining a
performance oriented and upbeat stores culture would
require a direct contact
•In Mrs. Field’s case culture also means a young and
high energy team at all times.To a young managers
directly reporting
•An upbeat culture also meant a young & high energy
team all times.She therefore hired young college
students to mange stores
•Managing stores however also required other back
office & analytical functions

6. Aligning Information System
using Chandlers Method
Systems & IT strategy
•IT is used to empower people and not as means of surviving
& controlling them
•Using IT for empowerment also means that the need for
several supervisory levels is eliminated to the company
•With communication technology Mrs. field implemented
email,voice mail& form mail
•Automated softwares were provided to tale decisions for
managers. A very high level of Automation also reduces
the effective head count
•The systems, Processes and software also Encapsulated
the experience of Mrs. Fields
• The systems used in Mrs. Fields case were based on a
Centralized database

7. Aligning Information System
using Chandlers Method
Learning for the CIO fro the above case
•One of the key learnings in the Fields case was that
business, organization and strategies must be Coherent
• Changes in one Strategy must reflect on changes in the
other
• Domestic banks are now able to do a BPR thanks to an
easing up of union pressures
• The model can be used as a tool for carrying out an IT
Effectiveness study
•Highlights the importance of driving IT on the basis of
philosophies of underlying organizational strategies and
those of conducting business
•Infrastructure matters but alignment of the vision for IT with
the vision for business & organization makes the difference

8. Aligning Information System
using Chandlers Method
End of chapter 13