W3 - The Strategic Framework and BPR for e-Business

Source / Reference:
1)  "System Planning in the Information Age" by Cornelius H. Sullivan, Jr; Sloan Management Review (pre-1986); Winter 1985; 26, 2; ABI/INFORM Global, pg. 3

2) “Making the Most of Your Company's Knowledge: A Strategic Framework” by Georg von Krogh, Ikujiro Nonaka, Manfred Aben, Long Range Planning, Vol 34, issue 4, 2001, p421-439
http://www.sciencedirect.com/science/article/pii/S0024630101000590

3) “Information technology as a facilitator for enhancing dynamic capabilities through knowledge management” by Peter J. Sher, Vivid C. Lee, Information & Management, Vol 41, issue 8, 2004, p.933-945

http://www.sciencedirect.com/science/article/pii/S0378720603001472

4) “Three Steps To Strategic Planning Excellence In Wholesale Distribution Companies” by ComputerWeekly.com

http://bitpipe.computerweekly.com/detail/RES/1327504902_418.html

5) “Assessing the True Value of Business Analytics” by ComputerWeekly.com

http://bitpipe.computerweekly.com/detail/RES/1281470501_581.html

6) “Technology strategy, management and socio-economic impact” by J. McLoughlin, J. Kaminski and B. Sodagar, Heritage Management Series, Vol2, 2007

http://public-repository.epoch-net.org/publications/HERITAGE_MANAGEMENT/heritage_management.pdf

7) “Business Plan Tips : SWOT Business Analysis” by Dr. David Furse

http://www.youtube.com/watch?v=pSCa2kTMAo8

Subject:

In Lec 3- The Strategic Framework and BPR for e-Business

Response:

Strategic framework applies its functions to strategy formulation, no matter it is corporate/ business strategy, IS strategy or IT strategy. To provide a broader context of company, strategic framework as analysis techniques and tools sweep the current situation such as external environment, pressure groups and stakeholders, and internal business strategizing and planning.  A series of analysis for strategic planning including PEST, SWOT and internal context definitely helps management understand more about their company status and fulfill different aspects, for examples, business level, environment level, management level and IS strategy level. Thus it is convenient for management to easily and clearly make decision on top-down strategy. However, currently businessmen may ask “What analysis do I need to use and is it enough to draw decision?”

Strategic planning is defined the great importance. According to ComputerWeekly.com’s research, the best investments should be carefully selected to create profitable growth in the future. Once it fails to make the right commitments at the right time, it will miss opportunities and increase its risk. Strategic planning can be maximized the potential in the market by firstly assessing the true value of business and build a big picture of your markets. For these, strategic framework is believed to work out when there is a strategy being developed.

According to Georg von Krogh, Ikujiro Nonaka, Manfred Aben, strategic framework can create a certain amount of knowledge of enterprise. Knowledge management can be further developed as improved performance, competitive advantage, innovation, the sharing of lessons learned, integration and continuous improvement of the organization can be recognized as knowledge during the analysis.

Examples of strategic analysis in which competitive advantages can be known, are PEST and SWOT. Although PEST and SWOT analysis are commonly seen all over the teaching materials and the internet, Dr. David Furse pointed some of the key messages about SWOT. Let’s go through the basic concept of PEST and SWOT analysis first.

PEST analysis analyzes the impact of the macro environment like political, economic, social and technical factors, while SWOT analysis analyzed the strengths, weaknesses, opportunities and threats in internal and external aspect.

For SWOT analysis, Dr. David Furse mentioned some insights on the video as below. Normally people will stop when they reach SWOT profile, but there are still two key points. One is what are likely/least to happen and what impact if they happen. Another is about high impact but not likely to happen. They should be put in the watching list. Also, one is high probability but low impact. But we can be more cautious one have high probability and high impact.

For system planning, a research paper introduced a new model that is correlation with system diffusion and system infusion which marks down different degree of critical success factor, electric, stages of growth and business system planning.

Besides, there is a case for heritage management. It separates into four ways to analyze the situations, business strategy, impact context, stakeholders and socio-economic impact and outcomes. That mixes a holistic impact model. It shows that which strategic framework business use should depend on its business nature and needs. The selection of strategic framework can be appropriately mixed. 

To conclude, a specific strategic framework can clearly outline of the situation of industry, market share, but it may also match management’s experience, international vision and other analysis.

W4 - Strategic Alliance Model

Source / Reference:
1)  "Strategic Alignment: Leverage Information Technology for transforming organization" by J C Henderson and N Venkartraman 1993
http://search.proquest.com/docview/26252741/134A6C8B53F19A4F606/1?accountid=16210

2)  “transforming the enterprise: The alignment of business and information technology strategies” by J. N. Luftman

http://search.proquest.com/docview/222418675/fulltextPDF/134BC9F624A4310E788/2?accountid=16210

3) “CW Buyer's Guide: Optimizing networks for cloud computing and virtualization” by ComputerWeekly.com 2012

http://bitpipe.computerweekly.com/detail/RES/1328026347_407.html

4) “The Future of Innovation Management: The Next 10 Years” by ComputerWeekly.com 2011

http://bitpipe.computerweekly.com/detail/RES/1328031157_402.html

Subject:
In Lect 4 - Which alignment strategy in SAM model is the best? and why?

Response:

Nowadays, strategic alignment between business and Information Technology is regarded as a fundamental issue to business that strategic alignment model is an important driving force to achieve business value through investments in IT way. There are four SAM models, namely strategy execution, technology transformation, competitive potential and service level, applying different linkage of business strategy, information technology strategy, organizational infrastructure and processes, and IT infrastructure and processes. Four alignment strategies completely carry out the driving force of achieving competitive advantage through different way. No specific one can be the best model as different model leading the business success depends on industry nature, business value, culture and goals of business. The most suitable alignment strategy matching most of the above criteria deserves “the best model”.

The basic concept of SAM is illustrated as bellows.

SAM models is shown as follows.

Some may think “Service Level” Alignment approach is the best because it focuses on customer satisfaction that matches most of business value of enterprise according to 2 articles found in ComputerWeekly.com. For example, serving industry requires operation of speed, flexibility and thoughtfulness that "Service Level" alignment approach must help. A typical case can be shown by Money Back Card of ParknShop which makes use of RFID technology in terms of loyalty program to attract their customer to buy more goods. Secondary benefits of Money Back Card are convenient their customers to carry and distribute to their family members to spend more in ParknShop as the reward is by family count. As a result of uplifting the sales volume, it can easily be seen that enterprise can take advantage of information technology so as to improving business process and business competence.

However, it is not every business suits “Service Level” Alignment approach. Every alignment strategy has its own advantages to specific industry or business. For some small or middle-size traditional enterprise, they regard IT as supporting role. They don’t need IT to provide featured product or service. “Strategy execution” Alignment strategy is more suitable. Besides, “Technology Transformation” Alignment suits the company which aims at technology leadership that business strategy drives needs to develop IT strategy while “Competitive Potential” Alignment suits the corporate which targets on business leadership that IT enables strategic opportunities to business. Easy Spot of Promise can be shown as a case of “Technology Transformation” alignment that its business strategy raises the use of technology to enhance the customer service so as to reach the simple, speedy and convenient operation. Furthermore, Apple inc.  shows an example of “Competitive Potential”. Apple inc. develops popular and featured smartphones to maintain the product leadership.

Therefore, no alignment strategy is the best. Each alignment strategy has its particular benefits to specific industry or company. It should depend on which alignment strategy fulfills competitive advantage and achieve ultimate business goals.