Professional Documents
Culture Documents
11
Developing Business/IT Strategies
Learning Objectives
11-2
Planning Fundamentals
11-3
RWC 1: IT/Business Alignment
11-4
Components of Organizational Planning
11-5
Scenario Approach
• Gaining popularity
• Less formal
• Virtual world (microworld) exercises
• Business scenarios are created and evaluated
• Alternative scenarios are then created
11-6
Strategic Visioning Questions
11-7
Trends that Affect Strategic Planning
11-8
Strategic Opportunities Matrix
11-9
SWOT Analysis
• Strengths
– Core competencies and resources
• Weaknesses
– Areas of substandard business performance
• Opportunities
– Potential for new business markets or innovative
breakthroughs
• Threats
– Potential for business and market losses
11-10
Business Models and Planning
• Vital questions
– Who are our customers?
– What do our customers value?
– How much will it cost to deliver that value?
– How do we make money in this business?
11-11
Questions for Business Models
11-12
The Business/IT Planning Process
11-13
Information Technology Architecture
11-14
Balanced Scorecard
www.steelwedge.com
11-16
Identifying Business/IT Strategies
11-17
Strategic Positioning Matrix
11-18
Strategic Matrix
• Cost and Efficiency Improvements
– Low internal and low external connectivity
– Recommend – Use the Internet as a fast, low-cost
way to communicate and interact with others
• Performance Improvement in Effectiveness
– High internal but low external connectivity
– Recommend – Increase use intranets and
extranets
11-19
Strategic Strategies
• Global Market Penetration
– High external but low internal connectivity
– Capitalize with e-commerce websites using
value-added information services and extensive
online customer support
11-20
E-Business Strategy Examples
• Market Creator
• Channel Reconfiguration
• Transaction Intermediary
• Infomediary:
• Self-Service Innovator
• Supply Chain Innovator
• Channel Mastery
11-21
Business Application Planning Process
11-22
Comparing Planning Approaches
11-23
E-Business Architecture Planning
11-24
Implementation Challenges
• Implementation
– Do what you planned to do
– Critical skill for managers
• Many companies are good at planning
• Few are good at executing the plan
– Even if senior management consistently identifies
e-business as an area of great opportunity and
critical need
11-25
RWC 2: Project Success
• People skills critical to project success
– Teamwork
– Support during tough times
• Bad relationships leading cause of failure
• Managers tend to go to software instead of
building relations
• Showing progress at short intervals helps
11-26
Implementing Information Technology
• Developments that have generated
organizational change
– Business process reengineering
– ERP systems
– Y2K compliance
– Shared service centers
– Just-in-time manufacturing
– Sales force automation
– Contract manufacturing
– Introduction of Euro currency
• E-business is the latest catalyst
11-27
Impact and Scope of Implementing IT
11-28
Impact and Scope of Implementing IT
11-29
End User Resistance and Involvement
• CRM failures
– CRM failure rate up to 75 percent
– Causes for failure
• Sales force automation problems
• Unaddressed cultural issues
• Sales staffs fearful and thus resistant 11-30
Obstacles to KM Systems
11-31
Keys to Solving End User Resistance
• Create relationships
– Understand the end-user’s situation
• Provide education and training
• Require involvement and commitment
– End-users
– Top management
– All stakeholders
• Eliminate frustration and inconvenience
11-32
Key Dimensions of Change Management
11-33
Change Management Programs
• Develop a change action plan
• Assign managers as change sponsors
• Develop employee change teams
• Encourage open communications and
feedback about organizational changes
11-34
Change Management Tactics
• Involve as many people as possible in e-
business planning and application
development
• Make constant change an expected part of
the culture
• Tell everyone as much as possible about
everything, as often as possible, in person
• Make liberal use of financial incentives and
recognition
• Work within company culture, not around it
11-35
A Change Management Process
11-36
Avnet Marshall’s Transformation
11-37
RWC 3: Crucial Strategic Planning Elements
11-38
RWC 4: The Science behind Change
11-39