1. Experimenting a Modeling Approach for Designing Organization’s Strategies in the Context of Strategic Alignment Laure-Hélène Thevenet* 1, Camille Salinesi*, Anne Etien *, Ines Gam*, Ménel Lassoued* *Centre de Recherche en Informatique, University Paris 1, France 1 BNP Paribas

2. Outline Context and Motivation Proposition of an approach – to design organization strategies – document the strategic alignment Illustration with a case-study

3. Context and Motivation: Importance of Strategic Alignment Improves Business Performance Helps providing return on IT investments Top priority However, alignment between strategies and functional level remains ineffective and seldom considered Organisation strategy Organization’s Strategy Organization’s Strategy Organisation strategy Organization’s Strategy Organization’s Strategy Organisation strategy Business Processes Business Processes Organisation strategy Information Systems Information Systems Organisation strategy Business Processes Business Processes Organisation strategy Information Systems Information Systems Alignment Strategic level Functional level Agility Visibility Tracing evolutions Impact analysis

4. Context and Motivation: strategic alignment Our requirements for a good strategic alignment documentation were to: be formalized using modeling rules, reflect the complexity of strategic alignment in a simple manner show alignment as well as mis-alignment be scalable to real-world organization sizes, Need to document organizations’ strategic objectives few modeling techniques available to document them, the level of formality not adapted to work on strategic alignment weak compatibility with the objectives relative to IS Need to document strategic alignment However, methodologies do not provide means to evaluate if there is fit and to which extent.

5. Related works – goal modeling technique i* – The relationships between actors and their goals – Bleistein et al. (BSCP framework) MAP CREWS-L’Ecritoire : – Goal modeling and scenario analysis KAOS : – Goals are linked through AND/OR decomposition links Very few method exist to address the issue of strategic alignment.

6. Proposal Description of the organizations’ strategic objectives in the context of strategic alignment – Use of the Map formalism Enhancement of the Map formalism to document organizations’ strategic objectives Definition of links between strategic map and functional map Experimentation on the case study of Seven Eleven Japan

7. Proposed approach Strategic maps Contribution links Functional maps

8. Seven Eleven Japan case study Largest chain in the Japanese convenience retailing industry SEJ’s strategy more specifically relies on: – use information to meet customer’s demands – the optimization of storage space Main strategic objectives : – Get better value of SEJ stores by answering to any client’s needs; – Live in harmony with the local communities; – Respect the environment.

9. SEJ’s Strategic map for “Get better value of SEJ stores” from stakeholders’ vision Source Intention Strategy= manner to attain the target goal Target Intention = goal to achieve By coordinating logistics of products By anticipating problems Increase the sources of value By answering quickly to store requests By providing organisational efficiency By rationalizing the organisation By availability towards customers and in shops By being visible by customers By guarantying product quality Start By cooperation with allies and partner Control the resources Stop (change the organization strategy) By shareholders By organisational change Ressources : time, space, partners, stores, products, services Sources of Value : customers, product quality, organsiation quality, sales (results of product, store (space), time, customer) a b c d (3) (2) (1) (2) (3) (4) (1) (2) Caption objective section strategy Section = (source intention, target intention, strategy)

10. Functional Map “Organize networks of franchisee stores” Start Stop Define offers (3) By creating partnerships Supervise the shops By stock optimisation By sales monitoring (2) By geographical development (1) By catalogue construction By tutorial system By ajustment/ training Keep the accounting books (1) By paying the debts (2) By recovery of the amounts to perceive (1) By recovery of the outstanding debts Using the accounting results By franchise management By bone of contentious By withdrawal of a geographical zone Maintain the image By marketing (promotions) (1) By installing the communication equipment By definition of the communication policy By advertising campaign a b c d e f (1 ) (2 ) (3 ) (1 )

11. Increase the sources of value By availability towards customers and in shops Start a c (1 ) Start Define offers By creating partnerships By geographical development By catalogue construction a b (3 ) (1 ) (2 ) Supervise the shops d By sales monitoring (2 ) Example of Contribution links Necessary : the fulfilment of the section AC1 cannot occur if that of sections AB1, AB2, AB3 and BD2 is not performed. If evolution impacts these sections, it is inevitable to verify that the link is preserved Is Sufficient To : realising AB1, AB2, AB3 and BD2 is enough to satisfy the fulfilment of the section AC1 (AB,AB2,AB3 AND BD2) are Necessary and Sufficent to AC1 Part of strategic map Part of funtional map

12. Contribution links Different contribution links between functional elements and strategic elements : – Necessary – Sufficient – Useful – Constrained by – Contradictory with – Possibility to combine different links Use to analyze alignment – Detect redundancies in IS – Help in impact analysis – Identify new requirements to improve strategic alignment

13. The strategic level Organization Strategic Objective Strategy has for target v actor External actor Internal actor Vision Expressed by v 1* * 1 Makes Intervene v * * * 1 1..* 1 * Satisfies needs of v Refines> 2..* Corresponds to v Comprises > Describes ^ Strategic map 0..* Section 0..* has for source v 1 1 1 Organization Strategy 1* Goal

14. Link between strategic and functional level Strategic levelFunctional level FormulaSection Functional Element Attribute Contribution Link target source 0..1 Strategic Element 2 * Formula Section 2 * Functional map Strategic map 2 * NecessaryUsefulSufficientConstrainedContradictory Refines > > 0 * 0..1 Atomic Link Composed Link

15. Conclusion We proposed – the use of MAP formalism, to model both strategic and functional levels. – the definition of contribution links We show on an example the pertinence of the approach This approach is included in a larger project – CADWA approach for DW (use of map at the strategic level) – ACEM approach (use of map in a context of alignment)

16. Conclusion Perspectives: definitions of contribution links analysis of evolutions and evaluation of their consequences; documentation of the used process to define the strategic maps and contribution links. Complementary experiments : 1. Interviews with industrials to explore the usability of strategic maps in an industrial context. 2. Empirical evaluation of the various qualities expected from the strategy modeling language. 3. Comparative analysis of i* with the Map approach to document organization’s strategy.