11
Developing Business/IT Strategies
McGraw-Hill/Irwin Copyright 2011 by The McGraw-Hill Companies, Inc. All rights reserved.
Learning Objectives
11-2
Planning Fundamentals
11-3
Scenario Approach
Gaining popularity
Less formal
Virtual world (microworld) exercises
Business scenarios are created and
evaluated
Alternative scenarios are then created
11-4
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
11-5
Balanced Scorecard
Measures activities in terms of vision and strategies
Financial performance
Impact on customers
Performance of key business processes
Companys learning curve and growth
Four processes
Translate vision into operational goals
Communicate vision and link to performance
Business planning
Feedback/learning and strategy adjustment
11-6
Strategic Matrix
11-7
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
Product and Service Transformation
High external and high internal connectivity
Develop and deploy new Internet-based
products and services to create a new
strategic
position in the marketplace
11-8
E-Business Strategy Examples
Market Creator
Channel Reconfiguration
Transaction Intermediary
Infomediary:
Self-Service Innovator
Supply Chain Innovator
Channel Mastery
11-9
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
11-10
Implementing Information Technology
11-11
End User Resistance and Involvement
Change generates resistance
Examples:
Customer Relationship Management (CRM)
Knowledge Management Systems (KM)
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
11-12
Keys to Solving End User Resistance
Create relationships
Understand the end-users situation
Provide education and training
Require involvement and commitment
End-users
Top management
All stakeholders
Eliminate frustration and inconvenience
11-13
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
11-14
Change Management Tactics
11-15