Chapter 1. The Information Systems Strategy Triangle Chapter Overview This chapter presents a very simple framework, the Information Systems Strategy Triangle, which links business strategy with organizational strategy and information strategy. The chapter describes this model, and builds on several other popular strategy models and organizational models. The goal of this chapter is to make sure every student has a basic understanding of both strategy and organizations (in many management programs, one or both of these are either reserved for the most senior students or left out entirely).
For students well versed in strategy and organizational behavior, this chapter is a review of key points from those two fields. Key Points in Chapter The Information Systems Strategy Triangle links business strategy with organizational strategy and information strategy. The use of the triangle is done to suggest that all 3 points are in balance in any organization, and if they are out of balance, then organizational tension or possibly crisis exists. A company is out of “alignment” when their business strategy is not supported by there IS. There are several implications from this model.
First, business strategy drives organizational and information strategy; Second, organizational strategy must complement business strategy. Third, information strategy must complement business strategy. Fourth, organizational and information strategy should complement each other. Finally, if a change is made to one corner of the triangle, it is necessary to evaluate the other two corners to insure balance is maintained. That means that if the business strategy is changed (i. e. such as becoming a "bricks and clicks" company) then the manager must also consider redesign of both the organization (i. . do we have people that can be successful in this new strategy) and the information systems (i. e. do we have the capability to process inquires taken off of the web). Strategy is defined and the mission of the organization is covered (with several example mission statements (figure 1. 2) and discussion of how Dell has creatively adjusted its business strategy to meet the rapidly changing computer industry. There are several ways to describe business strategy. This chapter summarizes 2 well-accepted models: the Porter generic strategies framework and the D'Aveni hypercompetition model.
Current examples are offered to illustrate the models. The Porter generic strategies framework (Differentiation, Cost Leadership, Focus) has spawned many variants. Two are presented here: shareholder value model and unlimited resources model. Depending on the business objectives, a particular strategy is employed to achieve those objectives. Chapter 2 discusses strategic use of information resources, building on these and other models. The chapter also summarizes several frameworks for describing organizational strategy. Included are the business diamond and the managerial levers framework.
The business diamond links 4 key components of the organization: business processes, values and beliefs, management control systems and tasks and structures. The managerial levers framework is somewhat more comprehensive, linking organizational structure variables, control variables and cultural variables. Chapters 3 and 4 build on these frameworks and more fully flesh out how to work with organizational strategy. Chapter 5 builds on the business process concepts. The information strategy suggested in this chapter, and embellished more fully in the architecture and infrastructure chapter, is a very basic model.
This framework highlights the four components of the information system, the hardware, software, networking and data, and the key managerial concerns for each, what, who and where. The Food for Thought section draws from Rosenzweigs “Misunderstanding the Nature of Company Performance: The Halo Effect and Other Business Delusions,” California Management Review, (49 4) Summer 2007, 6 -20”. He refers to problems Dell was having with its performance and suggests that they suffered from the halo effect (the basic human tendency to make specific inferences on the basis of a general impression).
He describes three misconceptions that are created by this effect. Illustrative Answers to Discussion Questions This is a summary chapter of the key models for the information systems strategy triangle, so discussion questions were provided to get students focused on and thinking about using these models. Below are some sample answers, but expect creative answers from your students that are not represented here (please send us some of your best answers so we can share them with other instructors). 1. Why is it important for business strategy to drive organizational strategy and IS strategy?
What might happen if business strategy was not the driver? Ans: The primary point in this chapter is that in any well-run organization, the business strategy drives the rest of the operational strategy, and information systems is no different. However, typically, managers seem to think that changing or upgrading an information system (or even a component of an information system) will only positively impact a business. Quite the opposite, in fact, is true. By making changes in organizational strategy or IT strategy first, the triangle is "out of balance" and there will be consequences in the affected areas.
For example, building a virtual organization, but not changing the business strategy to something like "insuring our people are productive and have the widest possible work place opportunities" can lead to significant disconnects between workers, their managers, and their customers. And, worse, without supplying the virtual worker with the appropriate information system (a computer at home, a laptop, etc) will lead to a decrease in productivity by the virtual worker, and a major disruption of business operations. 2.
Suppose managers in an organization decided to hand out laptop computers to all salespeople without making any other formal changes in organizational strategy or business strategy. What might be the outcome? What unintended consequences might occur? Ans: Sales people might not use them, with out training and reconfiguring their job. They may be used to the paper system and resist moving to the laptop systems. If they do use them, there will eventually be strain on the rest of the organization if it doesn't adapt to this new technology. For example, messaging might become messy if sales people use e-mail on their laptops and voice mail.
Where is the primary place to contact them? When someone is needed fast, it is a hindrance to have multiple places to check. Likewise, if the laptops are used for order entry, but the order process is not changed to accommodate the laptops, there will be problems. And support systems must be redesigned. It does a sales person little good to have to bring their laptop into the office for repairs, especially if they live a far distance away. Support processes will have to adapt to the mobility of the technology, or the company can expect to have agents further resist. 3.
Consider a traditional manufacturing company who wanted to take advantage of the Internet and the Web 2. 0 tools. What might be a reasonable business strategy and how would organizational and IS strategy need to change? Ans: A reasonable business strategy might be to provide what the customer wants when the customer wants it. The idea is to use the web as a mechanism to connect to customers, to take their orders, to provide services when the customer wants them and to link with suppliers and partners. To do that the organization would have to be organized around responsiveness, and would have to include elements of empowerment and authority.
It would not work to have a centralized decision making authority if the organization wants to be responsive because it would take to long to get information up and decisions back to the field. The manufacturing process might be organized around build-to-order rather than on market analysis and product histories, but then there would need to be a series of organizational processes and people that would be in place to make sure the manufacturing company is able to actually build the products when they are ordered.
The IS strategy to support this business strategy would be one of rethinking the use of the web as a tool for delivering information to customers, suppliers and employees. Also, to take advantage of the collaborative nature of Web 2. 0 technologies. Organizations could use these Web 2. 0 technologies to advertise, set up discussion groups, monitor discussions on social networking sites, use tools like Second Life to promote its products and services, etc. 4. This chapter describes key components of an IS strategy. Describe the IS strategy of a consulting firm using the matrix framework.
Ans: The matrix framework is a very simple structure for decomposing the confusing IS architecture of an organization. For a consulting firm, some of the components would look like this: |Element |What |Who |Where | |Hardware |Laptops, servers to store information |Consultants have their own laptops, managed |Laptops are mobile, traveling with | | |and back up laptops |by the centralized IS dept, who also "owns" |consultants.
Servers are fixed at | | | |the servers |corporate offices | |Software |Office suite, collaboration tools |Consultants have the software on their |All resides on laptops but is | | | |PCs/Laptops, but software is managed |backed up on servers.
Some | | | |centrally by the IS group |corporate applications are only on | | | | |the servers. | |Networking |Internet, hard wired connections from |ISP service is obtained from AT&T or AOL or |Global access is needed.
Nodes are| | |office, dial up and/or high bandwidth |other provider who has international access |not managed by the consulting | | |lines from remote (home and client) |numbers for dialing in. Company has own IS |company, but by the ISP they | | |locations |group provide the necessary servers to be |contract with. | | |connected to the internet | | |Data |Engagement data such as details of the|All data is "owned" by the company, but is |Data reside in the servers, but are| | |work done for clients, client data |made available to any consultant on an as |"replicated" to the laptops as | | |with info about who the client is, |needed basis |needed.
Information is not | | |previous engagements done for them, | |considered part of the company | | |etc. personnel data so consultants can| |until it is on the servers, | | |be identified and assigned to | |therefore information only residing| | |projects. |on the laptops would not be | | | | |recognized until uploaded to the | | | | |servers. | 5. What does this tip from Fast Company mean: “The job of the CIO is to provide organizational and strategic flexibility”?
Ans: The job of the CIO does not just narrow in on information systems (IS) or solely focus on developing IS strategy. Rather the CIO must work with top level executives and functional executives to insure that the IS strategy is aligned with the business and organizational strategy. A particular challenge for the CIO is to ensure that the IS architecture and infrastructure can support the business and organizational strategy.
In making long-term decisions about IS architecture, the CIO must attempt to promote flexibility in the future with scalable architecture that meets the organization’s present and future needs. Further Discussion Questions 1. What is the difference between knowledge literacy and information literacy, and how does it affect decision-making? 2. What are some differences between technology that provides operational support and technologies that provide strategic advantage? 3. What specific Web 2. technologies could be used to further help and organization to “align” its strategy? Case Study 1-1: Roche’s New Scientific Method 1. How does the business strategy affect information systems and organizational decisions? In order to take advantage of advances in the genomics revolution, Roche is rethinking the way it builds teams (organizational strategy), rewards teams (organizational strategy), hires people (organizational strategy), creates a culture (organizational strategy) and processes data (IS strategy).
In particular, it is shedding its ultracompetitive approach in favor of culture-changing collaborative approaches. It is now recruiting through advertisements run on the back pages of Science magazine. Its IS strategy incorporates the GeneChip and FailFast approach to speed the screening of compounds that are tested. IS must be designed to handle the large volume of data that must be analyzed. 2. What generic strategy does Roche appear to be using based upon this case? Provide a rationale for your response.
Roche’s business strategy appears to be first to market with a new drug to cure cancer or other diseases whose genes are identified in through the genomics project. Thus, they appear to be applying the differentiation strategy of having a drug that adds value in the cure of a disease. (It could be argued, though, that Roche is applying a focus/differentiation strategy by concentrating on cancer or strokes… it is not entirely clear what Roche’s overarching business strategy is from the case). 3. Apply the hypercompetition model to Roche.
Which of the 7 Ss are demonstrated in this case? The hypercompetition model suggests that speed and aggressiveness of moves and countermoves in any given market can create strategic advantage. Clearly this case demonstrates Roche’s concern with a speedy discovery. An example is its ‘Fail Fast’ philosophy. To uncover successful drugs, it is conducting thousands of experiments… a series of small steps. To compete, Roche is taking advantage of its deep pockets and is relying on its timing and know-how. Below are some possible applications of D’Aveni’s 7-Ss: 7-S |Application | |Superior stakeholder satisfaction |Maximizing customer satisfaction by adding value through the discovery of | | |breakthrough drugs to cure cancer, stroke, or other disabling diseases | |Strategic soothsaying |Seeking new knowledge in a variety of ways: applying new technologies such as | | |GeneChip; advertising for new employees in a wide range of sources, including | | |Science magazine; leveraging on the knowledge of it employees through more | | |collaboration and teamwork | |Positioning for speed |Using IS to process large volumes of data more efficiently; applying ‘Fail Fast’ | | |philosophy to identify winners more speedily | |Positioning for surprise |Altering its organizational and IS strategies to speed the discovery of new | | |breakthrough drugs | |Shifting the rules of competition |Using breakthrough discoveries of revolutionary drugs to treat major diseases can| | |result in new ways to serve customers that transforms the industry; Trying to | | |take advantage of discoveries in the genomics projects | |Signaling strategic intent |? | |Simultaneous and sequential strategic thrusts |? | 4.
How do information systems support Roche’s business strategy? The article discusses a number of ways in which IS supports Roche’s business strategy: to screen compounds, to run simulations or GeneChip experiments with potential new drugs, and to identify and locate genes that are associated with stroke using Decode. Case Study 1-2: Google 1. How is Google’s mission statement related to its business strategy? Ans: Google’s primary goal is to organize the world’s information and make it universally accessible and useful (mission statement). Google continues to take risks and expand into new markets to further its reach into the information world.
It takes advantage of new avenues to expand its market share by making information freely available on its Intranet, and by willing to take risks by investing in speculative and strange projects if they see a large potential payoff. 2. How does Google’s information systems strategy support its business strategy? Ans: Through openness and innovation. It permits users to download their own software, maintain official and unofficial blogs, and buys and makes software to suit the needs of the business. IT encourages innovation by allowing employees to spend 20% of their time on a project of their own choosing. This “flexible” IT structure supports the innovation and creativity that its business strategy espouses. 3. How does Google’s organizational strategy supports its business strategy? Ans: Google has a culture of innovation and creativity.
However, it still provides a level of structure when making decisions. Specifically, Google’s mission statement relates to its business strategy by making data on all ongoing projects and systems available to all of its employees through its corporate Intranet. Any employee can see what is transpiring in other areas and can lend a hand through Google’s “free day” policy and other open work-environment strategies. 4. Which of Porter’s three generic strategies does Google appear to be using based upon this case? Provide a rationale for your response. Ans: Differentiation, though one may argue that cost leadership is also utilized with its very reasonable ad costs.
However, though the use of its innovative processes, and unique business model, Google has differentiated itself from its competitors by keeping a clean and simple interface (which most of the other search engines have emulated), and by continuing to invest in its employees, to provide innovation on a large scale. 5. Using D’Avenis Hpercompetitive Framework analyze Google’s strategy and the type of market disruption it has created. Ans: In some form or another Google has utilized almost all of D. Aveni’s framework. Specifically, it has gained superior stakeholder satisfaction through offering a superior product to its customers and adding new products that provide value to its customers (adsense, etc. ).
They are continually seeking out new knowledge through its innovative management styles and by its willingness to invest in risky projects that have a high-return potential. Google positions for speed and surprise by constantly innovating by setting limitations on how long it will take to make changes to its products and services. Through this innovative approach it is able to stay on the cutting edge of technology and lead this market of IT world. Through its new products and services (adsense, GoogleApps, etc. ) and its low cost marketing its shifts the rules of competition by finding new and better ways to serve its customers. Additional Mini Case: Cisco Systems*
Cisco Systems, Inc. was one of the early successes from the Internet. Cisco makes the routers, switches and other technologies necessary to make the Internet work. They provide products and services to customers who want to build their own networks or who want to connect to others. Customers include large enterprises with complex networking needs, service providers who provide network, cable, or other telecommunication services, and smaller businesses who want to connect to the Internet. And they have been quite successful, growing from revenues of $1. 3 billion in 1994 to $12. 2 billion in 1999, and their stock is up more than 2,300% in the same time period.
In order to fuel the explosive growth, Cisco executes a business strategy of acquiring companies to complement their core strengths. As of October 1999, Cisco had acquired 43 companies (the latest was just hours before this case was written) in fields related to their goal: Be the biggest supplier of equipment needed to build, run, and manage the Internet. The acquisitions provided Cisco with immediate infrastructure, technology, and smart people. John Chambers, the CEO and President of Cisco since 1991, described his strategy to Business Week magazine as, [Mergers and acquisitions] are a requirement, given how rapidly customer expectations change.
The companies who emerge as industry leaders will be those who understand how to partner and those who understand how to acquire. Customers today are not just looking for pinpoint products, but end-to-end solutions. A horizontal business model always beats a vertical business model. So you've got to be able to produce that horizontal capability in your product line, either through your own R, or through acquisitions. Cisco is not only a vendor of components for the Internet, they run their business on the Internet. Their business strategy has been to build the “ultimate model of an efficient Net company,” and to do so, they use the Internet for connecting to customers, suppliers, and other stakeholders.
Cisco connects to customers though a series of Web pages that allow customers to read and learn about products and services. In addition, like many companies, customers can learn about Cisco, order products, seek support and service, and contract for training. However, unlike many companies, Cisco sells more than 75% of their products over the Net, which amounts to about $30 million a day. And almost 80% of customer support issues are handled this way. There are several benefits to this method of doing business. First, that gives the customer control over part of the ordering process because they can choose and enter exactly what they want. Second, Cisco instantly gives them back information regarding availability and delivery, often without a person intervening.
It means Cisco can respond instantly to a customer order by accepting and managing the electronic order. And it means that response is less costly to Cisco than to competitors where human intervention is needed. But Cisco’s interaction with customers is only part of their success. Cisco has built an extensive network of suppliers, partners, resellers, and contractors who are also connected directly to Cisco. An order received by Cisco is sent to suppliers who manufacture some of the products for Cisco. The suppliers, in turn, are able to provide exactly what Cisco's customers want to Cisco. And this is done automatically by the information system.
In order to accomplish this e-business, Cisco has about 19,000 employees all over the world. Employees, too, interact with the Internet for much of their business. Recruiting and candidate screening is done on the network. Managers have access to staff records on the network. Information on competitors is available on the network. And all financial information is gathered and stored on the network, making it possible to virtually “close” business on any day of the quarter. That means they can accurately evaluate their entire company’s financial performance on any day of the year. Processes are virtually paper-free, where just about anything that can be done on the Net is done on the net.
And Cisco’s success internally only provides additional fuel for their story externally: Doing business on the Internet is the only way to go. *Adapted from: “Meet Mr. Internet,” Business Week, Sept. 13, 1999, pg. 128-140, from Cisco website, www. cisco. com on October 28, 1999, and from “John Chambers: The Art of the Deal,” Business 2. 0, October 1999, website: www. business2. com/articles/1999/10/text/chambers. html Questions for Discussion: 1. How does the business strategy affect information systems and organizational systems decisions? 2. Why does Cisco management insist on putting all of their business processes on an internal network? 3.
How does candidate screening on a network support their business strategy? 4. What options does Chambers, CEO of Cisco, have other than to use the Internet so aggressively? The point of this case is to look at a star organization in the area of linking business strategy, organizational strategy and information systems strategy. Cisco has been a leader almost from it's beginning. 1. How does the business strategy affect the information systems and organizational systems decisions? - Ans: It's clear that Cisco's information systems are a critical component of their business strategy. They would not be able to link their supply chain with such depth without it.
And their organizational strategy also supports the business strategy, by taking great pains to integrate acquired companies into the Cisco family. Acquisitions don't work if everyone leaves the company when it's acquired. So Cisco managers have had to really think through the organizational strategy. Further, by acquiring companies, Cisco is able to "grow" in a modular fashion both with technology and with people, another key component of the organizational strategy. 2. Why does Cisco management insist on putting all of their business processes on the internal network? Ans: Several reasons. First, managers "walk the talk" meaning they do their business as they suggest their customers do business... sing internet technologies. By running their business processes this way, they are a living example of how it can be done. But also, by using the internal network as they do, they make it possible for employees to do business anywhere. As the company grows and acquires other companies, the internal network becomes the backbone of the acquired company more easily than traditional methods used by companies with business processes not on a network. Paperless work environment implies that work can be done anyplace, since all needed records are available anyplace. 3. How does the candidate screening on their network support their business strategy?
Ans: By using the network to initially screen candidates, Cisco is assured of only getting applicants who are somewhat knowledgeable of the internet. They may not want to have to completely train new hires on that basic understanding. 4. What other options does Chambers, CEO of Cisco, have than to use the Internet so aggressively? Ans: Good open ended question. I'm not sure he has other options, given the nature of Cisco, and the evolution of e-business. If he were to not use it so aggressively, he would be selling his company short. It is interesting to note that Chambers has gone on the record as a big supporter of e-learning, and that the Cisco site gives many suggestions on how to set up e-learning.
Of course, e-learning is important for companies as a training tool, but it is another application on the Internet, and as such will help Cisco sell more product and services. Supplemental Readings Cases: Sun Microsystems, Inc: Web Services Strategy by Eisenmann, T. R. , Suarez, F. F. Harvard Business School Publishing. 2005 (20 pages) Microsoft and IBM have excluded Sun Microsystems from the board of the Web Services Interoperability Organization (WS-I), an industry consortium that will shape the evolution of Web services standards. Sun managers must decide whether to join WS-I as a contributing member--a less influential role that lacks the veto and agenda-setting powers of a board position.
Sun has recruited leading IT vendors--including several WS-I board members--to create technologies that compete with proposed standards jointly developed by Microsoft and IBM. Volkswagen of America: Managing IT Priorities by Austin, R. D. , Ritchie, W. & Garrett, G. Harvard Business School Publishing. 2005 (19 pages) Describes the efforts of Volkswagen of America, the U. S. subsidiary of Volkswagen AG, to arrive at a process for setting IT funding priorities so that they align with business priorities and the company's overall strategy. Kemps LLC: Introducing Time-Driven ABC by Robert S Kaplan,. ; Harvard Business School Publishing; 08/03/2005; (10 pages) Managers use the information to enhance process efficiencies, negotiate new terms with customers, and attempt to win new business.
The company now faces some crucial decisions about how to forge new relationships with key customers UCB: Managing Information for Globalization and Innovation (A) by McFarlan, F. Warren; Brian ; DeLacey; Harvard Business School Publishing; 02/12/2003; (47 pages) his case presents a complex total MIS strategy case for a $3 billion European pharmaceutical/chemicals company based in Brussels. It covers corporate strategy alignment of IT portfolio, IT operations issues, and global coordination of IT. Offshoring at Global Information Systems, Inc. ; by William E. Fruhan, Jr. Harvard Business School Publishing; 04/23/2004; (19 pages) This case explores the topic of offshoring high-tech jobs several perspectives.
The issues presented include determining the stock price consequences of offshoring, examining the economic consequences of the offshore job to both the transferring and receiving countries, considering the competitive consequences of not offshoring, and thinking through the challenge of investing in a career that is vulnerable to future offshoring. British Airways: Using Information Systems to Better Serve the Customer by Sasser, W. Earl, Jr. ; Klein, Norman; Harvard Business School, 1994 Explores the uses of scanning technology, interactive software, and powerful data bases to assist customer relations representatives in resolving customer The Ritz Carlton: Using Information Systems to Better Serve the Customer by Sasser, W. Earl, Jr. ; Jones, Thomas O. ; Klein, Norman; Harvard Business School 1995
Explores the interface of an information system that keeps track of guests and their preferences, and the people systems that deliver multiple services. (Note: supplement this case with “Room for Two, Scott Berinato, CIO Magazine, May 15, 2002, http://www. cio. com/archive/051502/two_content. html) Manheim Auctions, Communications of AIS, June, 1999, Volume 1 Article 20 http://cais. aisnet. org/articles/default. asp? vol=1=20 (setting: global) This is an online case that explores the question of setting up an online auction in the US and globally. IS strategy must be aligned with organizational and business strategy Introducing Expert Systems at The Corporation by Liebowitz J. , Idea Publishing Group. IT5555, 8 pages (setting: US)
This case study highlights the concept the “management” of the technology is usually the limiting factor causing the demise of a project rather than the “technology” itself. This real case study involves creating an awareness of a new technology within the company and trying to start a much-needed project using this technology. Risks and Rewards at Frontier Communications: Improving Customer Service Using Client/Server Technology by Mathieson, K. and T. Toland , Idea Publishing Group. IT5561, 11 pages (setting: US) The case shows how a firm can improve a critical business function with new technology. In addition, the case shows that a firm can use new technology to build mission-critical information systems and examines the risks and benefits of restructuring.
Business Reeingineering at a Large Government Agency by McGarry, N. and T. Beckman, Idea Publishing Group. IT5562, 25 pages (setting: US) This case describes the difficulties and successes encountered in a reengineering effort. A team of consultants undertook reengineering the delivery of compensation and benefits at a large quasi-governmental agency. Benefits included six programs which accounted for time-intensive processes such as “cafeteria plan,” options enrollment period where information is dispersed to assist employees in plan selection and retirement accounts. End-User computing at BRECI: The Ordeals of a One-Person IS Department by. Moffitt, K. Idea Publishing Group.
IT5563, 11 pages (setting: US) The intention of the case study is to show an unsuccessful attempt at the introduction and use of information technology in a small business, leading to the finding that the application and understanding of technology is lacking in many small businesses that could benefit greatly from its use. Implementing a Wide-Area Network at a Naval Air Station: A Stakeholder Analysis Hocevar, S. P. , B. A. Frew, and V. C. Bayer. Idea Publishing Group. IT5568, 13 pages (setting: US) This case study illustrates the use of a non-traditional approach to determine the requirements for the Naval Air Systems Team Wide-Area Network (NAVWAN).
It is considered to be non-traditional because the case data enable the use of Stakeholder Analysis and SWOT (strengths, weaknesses, opportunities, threats) assessments to determine the requirements instead of asking functional proponents about function and data requirements. Reengineering the Selling Process in a Showroom by Crnkovic, J. , N. Janicijevic, and G. Petkovic, Idea Publishing Group. IT5630, 14 pages (setting: Yugoslavia) The case study describes a process of successful re-engineering of a small Yugoslavian showroom wholesale company (“Wissol”) during the period of economy in transition. An established organizational solution was not supported by adequate IS support. It opens possibilities for designing IS prototype and for planning future steps in IT and IRM. Enterprise Wide Strategic Information Systems Planning for Shanghai Bell Corporation by Long, Y. , F. Fui-hoon Nah, and Zhanbei Shu.
Idea Publishing Group. IT5581, 16 pages (setting: China) This case examines Shanghai Bell Corporation, Limited, a leading telecommunications enterprise located in Shanghai, China’s initiative to develop its new generation Information Technology/Information Systems (IT/IS) plan. The issues covered include alignment of IT strategy with evolving business needs, application of a methodology to develop the enterprise-wide strategic IT/IS plan, and the evaluation of strategic planning project success. Other cases: - Tesco PLC (HBS case 503-036, March 6, 2003) - PassAct, Inc. (HBS Case 602-026, March 13, 2003) - Telewest Communications, PLC (HBS case 802-011, Oct. 5, 2002, setting: UK) - Government E-Procurement: Electronic Tendering System in the Hong Kong SAR (UHK case HKU238, June 25, 2002, setting: Hong Kong) - Wyndham International: Fostering High Touch with High Tech (HBS case 803-902, Feb. 11, 2003, setting: global) - iSteelAsia--2001 (HBS case 302-074, Dec. 17, 2001, setting: Asia) - Alibris (A) (HBS case 601-111, Mar. 13, 2002, setting: internet) - Webvan (HBS case 602-037, Mar 13, 2003) - British Airways: Using Information Systems to Better Serve the Customer, Sasser, W. Earl, Jr. ; Klein, Norman; Harvard Business School, Nov. 1994. Product Number: 9-395-065 - The Ritz Carlton: Using Information Systems to Better Serve the Customer, Sasser, W. Earl, Jr. ; Jones, Thomas O. Klein, Norman; Harvard Business School Case 9-395-064, May 1995 - Manheim Auctions, Communications of AIS, June, 1999, Volume 1 Article 20 http://cais. aisnet. org/articles/default. asp? vol=1&art=20 (setting: global) - Introducing Expert Systems at The Corporation” by Jay Liebowitz, Idea Publishing Group. IT5555, 8 pages (setting: US) - Risks and Rewards at Frontier Communications: Improving Customer Service Using Client/Server Technology,” K. Mathieson and T. Toland , Idea Publishing Group. IT5561, 11 pages (setting: US) - Business Reeingineering at a Large Government Agency,” N. McGarry and T. Beckman, Idea Publishing Group. IT5562, 25 pages (setting: US) - End-User computing at BRECI: The Ordeals of a One-Person IS Department,” K. Moffitt. Idea Publishing Group.
IT5563, 11 pages (setting: US) - Implementing a Wide-Area Network at a Naval Air Station: A Stakeholder Analysis,” S. P. Hocevar, B. A. Frew, and V. C. Bayer. Idea Publishing Group. IT5568, 13 pages (setting: US) - Reengineering the Selling Process in a Showroom,” J. Crnkovic, N. Janicijevic, and G. Petkovic, Idea Publishing Group. IT5630, 14 pages (setting: Yugoslavia) - Enterprise Wide Strategic Information Systems Planning for Shanghai Bell Corporation,” Y. Long, F. Fui-hoon Nah, and Zhanbei Shu. Idea Publishing Group. IT5581, 16 pages (setting: China) - Enron – What Went Wrong (Ivey case 9B04C001, 2001) (setting: large organization, US) - Information
Systems Strategy at the Toronto Stock Exchange (Ivey case 8B00E05, 1999, 13 pages: setting: medium organization, Canada) - Tesco PLC (HBS case 503-036, March 6, 2003) - PassAct, Inc. (HBS Case 602-026, March 13, 2003) - Telewest Communications, PLC (HBS case 802-011, Oct. 15, 2002, setting: UK) - Government E-Procurement: Electronic Tendering System in the Hong Kong SAR (UHK case HKU238, June 25, 2002, setting: Hong Kong) - Wyndham International: Fostering High Touch with High Tech (HBS case 803-902, Feb. 11, 2003, setting: global) - iSteelAsia--2001 (HBS case 302-074, Dec. 17, 2001, setting: Asia) - Alibris (A) (HBS case 601-111, Mar. 13, 2002, setting: internet) - Webvan (HBS case 602-037, Mar 13, 2003) Readings/Articles:
Warren McFarland ; Richard Nolan, “Information Technology and the Board of Directors” Harvard Business Review 83(3) 2005 Most boards remain largely in the dark when it comes to IT spending and strategy, despite the fact that corporate information assets can account for more than 50% of capital spending. This article spells out the conditions under which boards need to change their level of involvement in IT decisions, explaining how members can recognize their firms' IT risks Tarun Khanna, Krishna G Palepu & Sinha, Jayant “Strategies That Fit Emerging Markets” Harvard Business Review 83(2) 2005 If Western companies don't come up with good strategies for engaging with emerging markets, they are unlikely to remain competitive.
The best way to do this, the authors have found, is by using the five contexts framework. The five contexts are a country's political and social systems, its degree of openness, its product markets, its labor markets, and its capital markets. “Linking business strategy with information technology” Chief Executive. (92): 52-70. 1994 Mar. Companies have spent billions on IT. The value of IT depends on how it is used strategically to improve the organization, not on how much it costs. If many CEOs feel shortchanged, however, it may be because they have failed to manipulate IT to maximum advantage. In a roundtable discussion, CEOs and experts explore ways to align strategy and infrastructure.
They agree that the CEO can no longer afford to be a bystander, merely passing judgment on proposals put forward by the CFO or CIO. The members of the roundtable underscore that too often; technology competence is thought to be an end in itself. Companies should not benchmark their IT; they should benchmark their core competence. Eryn Brown, “Nailing the Housing Boom,” Fortune. September 30, 2002. http://www. fortune. com/fortune/articles/0,15114,368439,00. html Article is available online. Describes how IT has helped KB Homes change the nature of its business from a cyclical business to a non-cyclical business. Some questions that come to mind are: (1) How has IT changed the nature of the way KB Home does business?
Give some examples of how managing the information has impacted KB Home. and (2) In your opinion, will managing information the way this article describes change the cyclicality of the home building business? What advantages and disadvantages do you see for KB Home with this change? Regina F. Maruca, “Are CIOs Obsolete? ” Harvard Business Review. 78 (2): 55-63. 2000 March-April. Interviews with six experts (CIOs, consultants, professor) on the issue. Robert S. Kaplan and David P. Norton, “Having troubles with your strategy? Then map it. ” Harvard Business Review. 78(5): 167-176. 2000 Sep/Oct. A workforce needs clear and detailed information to execute a business strategy successfully.
Until now, there have not been many tools that can communicate both an organization’s strategy and the processes and systems needed to implement that strategy. But Kaplan and Norton, the creators of the balanced scorecard, have adapted that seminal tool to create strategy maps. Petter Gottschalk, “Studies of key issues in IS management around the world”, International Journal of Information Management. 20(3): 169-180. 2000 Jun. Information systems departments face many challenges in today’s rapidly changing environment. One approach to understanding these challenges is to survey IS managers to elicit what they consider are key issues. Studies of key IS management issues have been conducted for some years in many nations and regions.
Based on such studies and a theoretical framework, this paper predicts the 4 key issues into the 21st century. For future studies of key issues in IS management around the world, this paper provides an overview of research approaches to initial key issues selection and key issues surveys. Marianne Broadbent, Peter Weill, “Improving business and information strategy alignment: Learning from the banking industry”, IBM Systems Journal. 32(1): 162-179. 1993. An empirical study was conducted to examine business and information strategy alignment in the Australian banking industry. Differences in the banks’ organizational practices are used to identify 15 propositions concerning the alignment of business and information strategy.
The results indicate the emergence of strategy-enabling, information-based advantages require a firm to have consistent practices in 4 areas: firm wide strategy-formation processes, organization structures and accountabilities, information system responsibilities and policies, and technology strategy. Books: Carr N. G. Does IT Matter? Information Technology and the Corrosion of Competitive Advantage MA: Harvard Business School Press, 2002. R. D'Aveni Hypercompetition: Managing the Dynamics of Strategic Maneuvering. New York: Free Press, 1994. P. Evans and T. Wurster Blown to Bits. Boston, MA: Harvard Business School Press, 2000. M. Porter, Competitive Advantage. New York: Free Press, 1985. M. Porter, Competitive Strategies. New York: Free Press, 1988. Websites: www. cisco. com The cisco website is an excellent source of additional information on the importance of linking business, organizational and IT strategy.
Look at the annual report letter from the CEO, and at the numerous cultural and organizational references Cisco describes as part of their various programs and opportunities. www. brint. com This @Brint website is a good general starting place for articles and other web links related to the management and use of IT in business. This page contains many links to other portals on more specific topics such as e-business strategies, organizational strategies, business strategies, and IT management. www. cio. com CIO and CIO. com are published by CXO Media Inc. to meet the needs of CIOs (Chief Information Officers) and other information executives. CIO is read by more than 140,000 CIOs and senior executives who oversee annual IT budgets in excess of $175 million. CIO. com serves over 12 million pages annually.