Bài giảng Information Systems in Business - Chapter 11 Developing Business/IT Strategies

Developing Business/IT StrategiesChapter11McGraw-Hill/IrwinCopyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved.Discuss the role of planning in the business use of information technology, using the scenario approach and planning for competitive advantage as examplesDiscuss the role of planning and business models in the development of business/IT strategies, architectures, and applicationsIdentify several change management solutions for end user resistance to the implementation of new IT-based business strategies and applicationsLearning ObjectivesPlanning FundamentalsIT created a seismic shiftJust knowing the importance and structure of e-business is not enoughMust be able to transform an old business design to a new e-business designScenario ApproachGaining popularity Less formalVirtual world (microworld) exercisesBusiness scenarios are created and evaluatedAlternative scenarios are then createdSWOT AnalysisStrengths Core competencies and resourcesWeaknessesAreas of substandard business performanceOpportunitiesPotential for new business markets or innovative breakthroughs ThreatsPotential for business and market losses Balanced ScorecardMeasures activities in terms of vision and strategiesFinancial performanceImpact on customersPerformance of key business processesCompany’s learning curve and growthFour processesTranslate vision into operational goalsCommunicate vision and link to performanceBusiness planningFeedback/learning and strategy adjustmentStrategic MatrixCost and Efficiency ImprovementsLow internal and low external connectivityRecommend – Use the Internet as a fast, low-cost way to communicate and interact with othersPerformance Improvement in EffectivenessHigh internal but low external connectivityRecommend – Increase use intranets and extranetsStrategic StrategiesGlobal Market PenetrationHigh external but low internal connectivityCapitalize with e-commerce websites using value-added information services and extensive online customer supportProduct and Service TransformationHigh external and high internal connectivityDevelop and deploy new Internet-based products and services to create a new strategic position in the marketplaceE-Business Strategy ExamplesMarket CreatorChannel ReconfigurationTransaction IntermediaryInfomediary: Self-Service InnovatorSupply Chain InnovatorChannel MasteryImplementation ChallengesImplementation Do what you planned to do Critical skill for managersMany companies are good at planningFew are good at executing the planEven if senior management consistently identifies e-business as an area of great opportunity and critical needImplementing Information TechnologyDevelopments that have generated organizational changeBusiness process reengineeringERP systemsY2K complianceShared service centersJust-in-time manufacturingSales force automationContract manufacturingIntroduction of Euro currencyE-business is the latest catalystEnd User Resistance and InvolvementChange generates resistanceExamples: Customer Relationship Management (CRM)Knowledge Management Systems (KM)CRM failuresCRM failure rate up to 75 percentCauses for failureSales force automation problemsUnaddressed cultural issuesSales staffs fearful and thus resistantKeys to Solving End User ResistanceCreate relationshipsUnderstand the end-user’s situationProvide education and trainingRequire involvement and commitmentEnd-usersTop managementAll stakeholdersEliminate frustration and inconvenienceChange Management ProgramsDevelop a change action planAssign managers as change sponsorsDevelop employee change teamsEncourage open communications and feedback about organizational changesChange Management TacticsInvolve as many people as possible in e-business planning and application developmentMake constant change an expected part of the cultureTell everyone as much as possible about everything, as often as possible, in personMake liberal use of financial incentives and recognitionWork within company culture, not around it