1. Business/Information Technology Strategies
Chapter 9
Developing
Business/Information
Technology Strategies

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.

3. Learning Objectives (continued)
Identify several change management solutions for end user resistance to the implementation of new e-business strategies and applications.

4. Planning Fundamentals
Section I
Planning Fundamentals

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

6. Organizational Planning (continued)
The planning process (continued)
Building a shared vision and deciding on goals
Deciding what actions to take to achieve goals

7. Organizational Planning (continued)
Strategic Planning
Strategic Visioning
Tactical Planning
Operational Planning

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

9. The Scenario Approach to Planning (continued)

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

11. Planning for Competitive Advantage (continued)

12. Planning for Competitive Advantage (continued)
SWOT analysis
Strengths (internal)
Weaknesses (internal)
Opportunities (external)
Threats (external)

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.

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.

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

16. e-Business Planning
The e-Business planning process has three major components
Strategy development
Resource management
Technology architecture

17. e-Business Planning (continued)
IT architecture major components
Technology platform
Data resources
Applications architecture
IT organization

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

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

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.

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.

22. Identifying e-Business Strategies (continued)

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

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

25. Implementation Challenges
Section II
Implementation Challenges

26. Implementation
A process of carrying out the plans for change in e-business strategies and applications that were developed during the planning process.

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

28. Implementing IT (continued)

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

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

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

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

33. Change Management (continued)
Key tactics for change (continued)
Make liberal use of financial incentives and recognition
Work within the company culture

34. Change Management (continued)

35. Change Management (continued)
A change management process
Create a change vision
Define a change strategy
Develop leadership
Build commitment

36. Change Management (continued)
Change management process (continued)
Manage people performance
Deliver business benefits
Develop culture
Design organization

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?

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?

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?

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?

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?

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?

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?

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?

45. Real World Case 2 (continued)
What change management challenges surfaced in each project?
Where those challenges handled properly by the companies involved?

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?

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?

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?

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?

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?

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?

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?

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?

54. Real World Case 5 (continued)
Were the change management methods revealed in this case adequate for the changes being made?

55. Real World Case 5 (continued)
What further changes should be made in IT systems to better support Cincinnati Bell’s business convergence?