Professional Documents
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Learning Objectives
Discuss the role of planning in the business use of information technology, using the scenario approach and planning for competitive advantage. Discuss the role of planning and business models in the development of e-business strategies, architectures, and applications.
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Identify several change management solutions for end user resistance to the implementation of new e-business strategies and applications.
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Section I
Planning Fundamentals
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Organizational Planning
The Planning Process Team building, modeling, & consensus Evaluating organizational accomplishments and the resources they have acquired Analyzing the business, economic, political, and societal environment Anticipating and evaluating the impact of future developments
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The planning process (continued) Building a shared vision and deciding on goals Deciding what actions to take to achieve goals
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SWOT analysis Strengths (internal) Weaknesses (internal) Opportunities (external) Threats (external)
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Specifies what value to offer customers, and which customers to provide this value to using which products and services at what prices.
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Specifies how the business will organize and operate Focuses attention on how all the essential components fit into a complete system
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e-Business Planning
The e-Business planning process has three major components Strategy development Resource management Technology architecture
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IT architecture major components Technology platform Data resources Applications architecture IT organization
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Strategic Positioning Matrix (continued) Performance improvements in business effectiveness High level of internal connectivity and pressures to substantially improve business processes, external connectivity is low Strategy: making major improvements in business effectiveness. Use intranets and extranets to connect the organization with stakeholders McGraw-Hill/Irwin
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Strategic Positioning Matrix (continued) Global Market Penetration Must capitalize on a high degree of customer and competitor connectivity and use of IT. Strategy: develop e-business and ecommerce applications to optimize interaction with customers and build market share.
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Strategic Positioning Matrix (continued) Product and Service Transformation All stakeholders are extensively networked Strategy: implement Internet-based technologies including e-commerce websites and e-business intranets and extranets.
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Another alternative for planning e-business architecture planning Combines contemporary methods and alternative planning scenarios with methodologies such as component-based development
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Section II
Implementation Challenges
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Implementation
A process of carrying out the plans for change in e-business strategies and applications that were developed during the planning process.
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Implementing IT
Requires managing the effects of major changes in key organizational dimensions such as business processes organizational structure Managerial roles Employee work assignments Stakeholder relationships
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Implementing IT (continued)
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End user involvement in the development of new information systems Involvement and commitment of top management and all business stakeholders
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Change Management
People are a major focus of organizational change management Developing innovative ways to measure, motivate, and reward performance Designing programs to recruit and train employees in the core competencies Also involves analyzing and defining all changes facing the organization
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Key tactics for change Involve as many people as possible Make constant change an expected part of the organizational culture Tell everyone as much as possible about everything as often as possible, preferably in person
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Key tactics for change (continued) Make liberal use of financial incentives and recognition Work within the company culture
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A change management process Create a change vision Define a change strategy Develop leadership Build commitment
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Change management process (continued) Manage people performance Deliver business benefits Develop culture Design organization
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Discussion Questions
Planning is a useless endeavor, because developments in e-business and e-commerce, and in the political, economic, and social environments are moving too quickly nowadays. Do you agree with this statement? Planning and budgeting processes are notorious for their rigidity and irrelevance to management action. How can planning be made relevant to the challenges facing an ebusiness enterprise?
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What planning methods would you use to develop e-business and e-commerce strategies and applications for your own business? What are several e-business and e-commerce strategies and applications that should be developed and implemented by many companies today?
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How can a company use change management to minimize the resistance and maximize the acceptance of changes in business and technology? Many companies plan really well, yet few translate strategy into action. Do you think this is true?
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What major business changes beyond e-business and e-commerce do you think most companies should be planning for the next ten years?
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What are the benefits and possible limitations of the Rowe Companies ROI methodologies for IT project planning? What is the business value of the ROI evaluation methodology required for project planning by Merrill Lynch?
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Do you agree with the IT investment decisions being made by the Rowe Companies in response to changing economic conditions?
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How can a company identify, measure, and compare the business/IT innovation as well as the profitability of IT projects in their planning process?
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Implementation challenges What business benefits resulted from the integration projects of Verizon Wireless, F.X. Coughlin, and A-dec?
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What change management challenges surfaced in each project? Where those challenges handled properly by the companies involved?
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What are several change management actions these companies could have taken to increase the acceptance of their IT integration challenges? What other change management methods could be used to improve the acceptance of business/IT changes like those implemented at each company?
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Challenges of Implementing CRM Systems What are several reasons for the high failure rate in implementing CRM systems?
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What could PeopleFirst and Cessna have done to avoid the failures in their first tries at implementing CRM systems?
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How have Allstate and Sprint Corp. helped to ensure their successful CRM implementations? What are other things companies could do to help implement CRM systems?
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Why is aligning IT projects with business objectives a good business/IT strategy in challenging economic times? And in good times?
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Does Cornings business/IT planning process for its new production and supply chain system prove the value of aligning IT with business goals?
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Were the change management methods revealed in this case adequate for the changes being made?
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What further changes should be made in IT systems to better support Cincinnati Bells business convergence?
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