Business/IT Strategies for Development Chapter 11 Business/IT Strategies for Development

II. Organizational Planning Enterprise-wide plans are required to introduce IT/IS-based solutions to the entire firm. Strategic Planning – develop a firm’s mission, goals, policies Tactical Planning – develop objectives, procedures, rules, schedules, budgets Operational Planning – implement/control day-to-day operations

III. The Scenario Approach A less rigid but more realistic strategic planning methodology; combine known facts about the future with plausible alternatives Knowledge: Trends – Things we think we know something about Uncertainties – Elements we consider uncertain or unknowable

III. The Scenario Approach Components of an Organizational Planning Process

III. The Scenario Approach Strategic Visioning Questions for e-Business

IV. Planning for Competitive Advantage Evaluation of potential benefits/risk of using IT for competitive advantage SWOT ( strengths, weaknesses, opportunities, threats) Analysis – evaluate impact of each possible strategic opportunity Strengths – core competencies and resources Weaknesses – areas of substandard performance Opportunities – potential for new markets or innovation Threats – potential for losses

Business Models Conceptual framework of how a business can deliver value to customers at a cost and still turn a profit

Questions for All Business Models

Questions for e-Business Models

Iridium Satellite: Finding the Right Business Model Iridium originally focused on consumer telephone service Went bankrupt in 2000 and company redesigned Now focuses on companies in barren deserts, Earth’s poles, deep wilderness, disaster areas, and oceans. Also provides machine-to-machine communications. Why is this different from the way they previously competed?

VI. Business/IT Architecture Planning Balanced Scorecard – measuring a company’s activities in terms of its visions and strategies; not based on proven economic theory or decision sciences Financial Perspectives – measures of financial performance Customer Perspective – measures directly impacting customers Business Process Perspective – measures performance of key business processes Learning and Growth Perspective – measures the firm’s learning curve

The Role of IT in Business Process Design Why might IT personnel be in a better position to see organizational needs than other personnel? Why would IT be in the right place to provide solutions to these needs? What organizational and cultural issues might be stumbling blocks to adopting these solutions?

Section 2 Implementation Challenges

I. Implementation Carrying out the strategic plans developed in the planning process Moving to e-business involves major organizational change

What is Change Management? The CM Iceberg is a representation of some of the key forces that are in play in an organization facing change. Project management typically focuses on the top potion of the iceberg…Cost, Time, Quality/Scope. CM is focused on the focused on the less visible elements below the surface. In general, people fall into 4 major categories when it comes to change. These categories are represented by the 4 ovals… At the bottom of the iceberg, you have to very dynamic and powerful forces. The first is Perceptions and Beliefs…it really doesn’t matter what the reality of the situation is what’s important is what people BELIEVE because that’s their reality. The second is Power and Politics……doors can either be easily opened or soundly shut depending on how this force is managed.

II. Implementing Information Technology Impact and Scope of Business Change Caused By IT Implementation

III. End-User Resistance and Involvement Obstacles to Knowledge Management Systems

Individual prerequisites for change to occur Why should I change? What’s in it for me? Thinking & understanding Emotional/ Motivational Heart Head Behavioral What are the psychological aspects of change? Areas for focus in helping people change. There are other questions that characterize these arenas. These are for example. Hands What do I do differently?

A stepped approach to change Success Explain the diagram. Example: learning to run 5 miles in 40 minutes. You start with  mile jogging @ 10 minute pace, then maybe increase every few days. If you went out and ran 5 miles now, you’d probably quit the next day for soreness, and hate running. If you build up (or cut down) slowly, the behavior is more likely to stick. A journey of a thousand miles occurs one step at a time. Start X