9
Developing
Business/Information
Technology Strategies
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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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9 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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Section I
• Planning Fundamentals
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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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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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Organizational Planning (continued)
• Strategic Planning
• Strategic Visioning
• Tactical Planning
• Operational Planning
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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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The Scenario Approach to Planning
(continued)
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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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Orasa T.
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Planning for Competitive Advantage
(continued)
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Planning for Competitive Advantage
(continued)
• SWOT analysis
– Strengths (internal)
– Weaknesses (internal)
– Opportunities (external)
– Threats (external)
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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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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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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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e-Business Planning
• The e-Business planning process
has three major components
– Strategy development
– Resource management
– Technology architecture
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e-Business Planning (continued)
• IT architecture major components
– Technology platform
– Data resources
– Applications architecture
– IT organization
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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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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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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 ecommerce applications to optimize
interaction with customers and build
market share.
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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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Identifying e-Business Strategies (continued)
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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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e-Business Application Planning (continued)
• Another alternative for planning – ebusiness architecture planning
– Combines contemporary methods and
alternative planning scenarios with
methodologies such as componentbased development
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Section II
• Implementation Challenges
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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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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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Implementing IT (continued)
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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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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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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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9 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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9 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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9 Change Management (continued)
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9 Change Management (continued)
• A change management process
–
–
–
–
–
–
–
–
Create a change vision
Define a change strategy
Develop leadership
Build commitment
Manage people performance
Deliver business benefits
Develop culture
Design organization
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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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9 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 ecommerce strategies and applications
that should be developed and
implemented by many companies today?
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9 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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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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References
• James A. O'Brien; George M. Marakas.
Management Information Systems:
Managing Information Technology in the
Business Enterprise 6th Ed., Boston:
McGraw-Hill/ Irwin,2004
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