4 10025 IS171 2018 1 1 1 Chap011

Chapter 11
Business/IT Strategies
for Development
McGraw-Hill/Irwin Copyright © 2013 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
 Discuss the role of planning in the business use of
information technology, using the scenario
approach, and planning for competitive
advantage as examples.
 Discuss the role of planning and business models

in the development of business/IT strategies,
architectures, and applications.
 Identify several change management solutions for

end-user resistance to the implementation of new
IT-based business strategies and applications.
11-2
Section 1
IT Planning Fundamentals
11-3
I. Introduction
 Simply knowing the importance and structure of e-
business is not enough. A Plan is needed to transition
from an old business design to a new e-business
design.
11-4
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
11-5
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
11-6
Components of an Organizational
Planning Process
11-7
Strategic Visioning Questions for e-Business
11-8
Converging Trends in Strategic Business/IT

Planning
11-9
Risk Assessment and Mitigation
 What are the four types of IT risks listed?

 Describe each risk.
 What could a firm do to mitigate each risk?
11-10
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
11-11
Bristow Helicopters: Technology-Supported
SWOT and Much More
 What needs did Bristow have?

 What key goal is identified?
 What software technology was used to make
these changes?
 How did the software work to accomplish this?
11-12
V. Business Models and Planning
 Conceptual framework of how a business can

deliver value to customers at a cost and still
turn a profit
11-13
Questions for All Business Models
11-14
Questions for e-Business Models
11-15
Iridium Satellite: Finding the Right
Business Model
 What product/market did Iridium originally

service?
 What product/market have they moved to?
 Why is this different from the way they
previously competed?
11-16
VI. Business/IT Architecture Planning
 Plans on how to use IT to support customer

value and business value goals
 Strategic Development – business strategies
that support a firm’s business vision
 Resource Management – strategic plans for
managing or outsourcing a firm’s IT resources
 Technology Architecture – strategic IT choices
reflecting an IT architecture that supports a
firm’s e-business and other IT initiatives
11-17
 Information Technology Architecture –

blueprint that contains:
 Technology Platform – complete infrastructure
supporting strategic use of IT for e-commerce and
business/IT applications
 Data Resources – databases and data warehouses
 Application Architecture – business applications
 IT Organization – organizational structure of the IS

function within a firm
11-18
 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
11-19
VII. Identifying Business/IT Strategies
 To optimize strategic impact, firms must continually
assess the value of IT/e-commerce applications
 Cost and Efficiency Improvements – low
internal/external connectivity and low use of IT
 Performance Improvement in Business Effectiveness –
high internal but low external connectivity, need to
improve collaboration
 Global Market Penetration – high external connectivity
and use of IT
 Product and Service Transformation – extensively
networked internally and externally
11-20
e-Business Strategy Examples
Describe each example listed.

Discuss each example and how it could
be used in a particular business.
Identify businesses (not those listed)
that could utilize each example.
11-21
VIII. Business Application Planning
IT proposals for addressing strategic
business priorities and planning for
application development
Business/IT Architecture Planning –
combines strategic planning methods
(SWOT, etc.) with recent modeling and
development methodologies
11-22
VIII. Business Application Planning
E-Business Architecture Planning
11-23
KI: The Importance of Strategic Planning
 Why is forming a strategic IT plan difficult at

most companies?
 What was the problem at KI?
 How has developing a strategic IT plan helped
the firm overall?
 What pitfalls, resistance, and cultural issues
might have been stumbling blocks along the
way?
11-24
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?
11-25
Section 2
Implementation Challenges
11-26
I. Implementation
 Carrying out the strategic plans developed in

the planning process
11-27
II. Implementing Information Technology
 Moving to e-business involves major

organizational change
11-28
II. Implementing Information Technology
Impact and Scope of Business Change

Caused By IT Implementation
11-29
III. End-User Resistance and Involvement
 New ways of doing things always generates

some resistance from those affected; end-user
involvement in the change process can help
minimize the resistance
11-30
III. End-User Resistance and Involvement
Obstacles to Knowledge Management

Systems
11-31
Société de Transport de Montréal: Smooth
Ride after a Bumpy Start
What problem did STM have?

Why did this problem occur?
How did the IT staff work to resolve this
problem?
What other issues/areas might this same
problem arise within?
Why would the same problem manifest
itself in other ares?
11-32
Understanding the Science Behind Change
What was the problem in IT at Blue

Cross?
What causes these problems?
How does understanding the problem
help?
How did Blue Cross address the
problem?
11-33
IV. Change Management
Managing organizational change is

important and can be difficult; people
are a major focus here
A Change Management Process – these 8
steps are just one way of visioning
change management
11-34
IV. Change Management
Key Dimensions of Change Management
11-35
DHL Express: The Challenges of Global
Change
What are the two extremes of the

pendulum for IT?
What as the problem at DHL?
What solution did DHL provide for this
problem?
How does this affect the IT department?
How does it affect DHL?
11-36
Reuters: Implementing Global Shared
Services
What problem did Reuters have, and

why?
What solution did they adopt?
Discuss the meaning of this solution.
How did this work out for Reuters?
11-37

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Chapter 11

 Discuss the role of planning and business models

 Identify several change management solutions for

 Strategic Planning – develop a firm’s mission,

 Tactical Planning – develop objectives,

 Operational Planning – implement/control day-

Strategic Visioning Questions for e-Business

Converging Trends in Strategic Business/IT

 What are the four types of IT risks listed?

 What needs did Bristow have?

 Conceptual framework of how a business can

 What product/market did Iridium originally

 Plans on how to use IT to support customer

 Information Technology Architecture –

 Data Resources – databases and data warehouses

 Application Architecture – business applications

 IT Organization – organizational structure of the IS

 Balanced Scorecard – measuring a company’s activities

 Customer Perspective – measures directly impacting

 Business Process Perspective – measures performance of key

 Learning and Growth Perspective – measures the firm’s

Describe each example listed.

 Why is forming a strategic IT plan difficult at

 Why might IT personnel be in a better position

 Carrying out the strategic plans developed in

 Moving to e-business involves major

Impact and Scope of Business Change

 New ways of doing things always generates

Obstacles to Knowledge Management

What problem did STM have?

What was the problem in IT at Blue

Managing organizational change is

Key Dimensions of Change Management

What are the two extremes of the

What problem did Reuters have, and

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