Corporate Information Strategy and Management

1
Corporate Information Strategy and Management

• MIS 495

2
Challenges of Managing in a Network Economy

• Conflicting perspectives
• IT managers viewed as technocrats interested in
  technology without much relevance to real world
  business
• Business executives viewed as being shortsighted,
  lacking the vision to exploit IT applications

3
Challenges of Managing in a Network Economy

• Realities in Modern Organizations
• IT can no longer be viewed as a tool to support
  back office transactions
• Information is a major asset/resource that must
  be managed well
• IT is becoming a core enabler and primary channel
  through which work is done
• Global village and virtual organizations have
  become the playing field
• Pressure on IT executives to assume leadership
  positions in not only defining and executing IT
  strategy but also business strategy
• Pressure on business executives to lead
  transformational change in their organizations

4
Module 1 Business Impacts

• IT and Strategy Chapter 1
• Understanding the forces shaping strategy
• Conducting a strategy audit
• Assessing IT impact
• Opportunities and risks
• IT and Organization Chapter 2
• Need for new organization design/capabilities
• Information, organization, and control

5
Module 1 Business Impacts

• Extending the Enterprise Chapter 3
• Understanding business networks
• Designing hybrid governance models
• Building collaborative communities
• Making the Case for IT Chapter 4
• Building business case for IT

6
IT and Strategy

• Chapter 1

7
Understanding Forces Shaping Strategy

• Organization interacts with environment to
• define strategy
• attract resources and build capabilities to
  execute strategy
• create value for stakeholders
• Concept of a business model
• Alignment of strategy with environment
• Components of a business model figure 1.1, pp.
  27

8
Conducting a Strategy Audit

• Four areas to consider figure 1.2, pp. 28
• Market/channel positioning
• Product positioning
• Value chain/value network positioning
• Boundary positioning
• An audit must address each of the four areas see
  audit tables 1.1-1.4
• Strategic shifts
• Strategies evolve over time options include
  enhancements, expansions, extensions, and exits

9
Assessing IT Impact Strategic Grid Analysis
High
OPERATIONS
Low
STRATEGY
Low
High
10
Searching for Opportunities

• Can IT reengineer core value activities and
  change basis of competition? AHSC AA
• Can IT change balance of power between
  buyers-sellers?
• Can IT build or reduce barriers to entry?
  Amazon
• Can IT increase or decrease switching costs?
• Can IT add value to existing products/svcs?
• Can IT create new products/services? GM
• Strategic risks disruption of current models,
  regulatory action

11
IT and Organization

• Chapter 2

12
Need for New Capabilities

• Organization environment interaction figure 2.1
• Environments are dynamic and uncertain
• Large firms must respond quickly to local needs
• Intelligence cannot be centralized
• Organizations need to have a global focus
• Small firms must act big to survive in global
  economy
• New business design figure 2.2
• Extended enterprise on demand

13
Information, Organization, and Control

• Organizing for innovation and execution
• Time synchronizing operating and management
  processes e.g.. Not making changes to portions
  of operations without considering impacts on
  partners, suppliers
• Organizing for accountability and collaboration
• Access to information in hierarchical versus on
  demand enterprise
• Flatter information curve figure 2.5 and
  redesign of collaborative structure, culture,
  incentives, authority etc.

14
Extending the Enterprise

• Chapter 3

15
Understanding Business Networks

• Organizations operate in industries
• Networks have to be created to achieve a common
  purpose
• Goals to consider in designing networks
• Differentiation creating specialized work units
• Integration links required to unite
  differentiated units
• Deeper links are required in turbulent
  environments pp. 81

16
Understanding Business Networks

• Framing decisions concerning
• network differentiation and unit groupings
  functional, product/service, geographic, table
  3.1
• governance of interdependencies
  market/transaction, hierarchical/contract,
  partnerships, table 3.2
• network ownership corporation, alliance,
  community, figure 3.1

17
Building Collaborative Communities

• Hybrid forms of governance are emerging uniting
  hierarchy, market, and partnership
• Network orchestrator role is emerging to
  coordinate inter-firm interdependencies within
  business ecosystems NASDAQ, GHX
• Orchestrators design solutions that reflect
  interest of all parties
• Collaborative community and trust co-evolve over
  time

18
Making the Case for IT

• Chapter 4

19
Business Case for IT

• Article discussion on Nov. 14th
• Shared versus stand-alone applications
• Investments in IT
• Logical approach
• Ground up
• Internal infrastructure first
• External networks last

20
Benefits from IT Investments

• Benefits from infrastructure investments
• Better functionality
• Flexibility
• Benefits from doing business on a networked
  infrastructure
• Streamlined internal and external operations
• Improved employee knowledge and productivity
• Increased commitment and loyalty of stakeholders