Relationship between Business Strategy and IT Strategy Essay

Category: Organization,
Published: 16.12.2019 | Words: 936 | Views: 159
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The partnership between a company and its THIS resources extends far further than the use of IT as a mere tool in proper delivery of business operations. Rather, both are associated deeply. The relationship starts with the alignment of Corporate Strategic Planning (CSP) with Info Systems Planning (ISP). Determining an entity’s mission and goals and developing competitive strategies to meet up with those desired goals is CSP.

This is a great iterative method. ISP is known as a systematic technique of establishing the information needs of your organization. INTERNET SERVICE PROVIDER also includes developing systems, solutions and sources once these types of needs are known. ISP is successful only if it is carried out keeping in mind the mission, desired goals and competitive strategy determined through CSP (Hoffer, George, and Valacich, 1994).

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The processes of CSP and ISP run parallel and require three steps. Initial, current company position can be described along with the current IS processes, data, human resource and technological products on hand. Secondly, the specified future express of business is determined.

This kind of simultaneously yields required upcoming IS scenario. Third step is to create a strategic want to achieve the envisioned foreseeable future state. ISP plays an essential role by simply identifying the schedule of projects to undertake to bring IS situation in accordance with corporate placement (Hoffer, George, and Valacich, 1994). With this construction laid out, we will solution the inquiries about Lowry’s dream of collaborative computing and the concept of B2B exchange.

Are there problems with strategy formulation? In the case of collaborative processing, the technique was seriously flawed because of these reasons. Jack Lowry was and so enthusiastic in pursuit of dream that he failed to properly determine whether the persons outside Goldman were looking forward to such an focused project however. He dedicated two years and millions of dollars in laying the earth without finding a partner willing to make a commitment (Worthen, 2001) mainly because his view of importance in the project pertaining to Goldman and its partners was erroneous.

Collaborative computing was undoubtedly an idea worth materializing. However , it had been ahead of its time. An organization in a different position might have had far better results seeing that Goldman stayed much lower in supply sequence and did not possess the influence to bring regarding an industry vast change.

This required a deep change of complete industry including supply cycle, manufacturers and customers. Consequently , the approach had serious problems in timing, placement and power to implement. Same is true to get the case of B2B trading exchanges. The idea of bringing together suppliers and clients in a market is undoubtedly very beneficial but the technique used for the idea was not created properly. This failed to recognize the real problem: lack of application and companies to make these exchanges useful (Sawhney, 2002) and aimed at creating exchanges.

The correct approach would have been to provide application and providers to assist in collaboration among all stakeholders and the exchanges could come automatically being a logical effect. Were there difficulties with strategy setup? Lowry utilized Goldman as being a laboratory to work on his collaborative computer dream and used vast amounts in the process.

Since Goldman would not hold the placement in the industry to effect the change imagined by Lowry, the execution of his strategy got this basic problem. To get automotive industry, businesses such as GM or Kia from USA or Toyota from Japan were in much better placement to apply Lowry’s fantasy because of their dominance in the industry as well as the dependence of entire sector on these kinds of giants. They also had advantage of being along with the chain since they had been the penultimate buyers with the industry together direct connection with consumers, the greatest buyers of finished items. The case intended for B2B exchanges also experienced flawed performance of the thought since they attempt to solve a problem that would not even can be found.

They had to re situation themselves and alter strategies to start getting positive results. They transformed their emphasis from building a trade exchange which was not needed to solving individual business problems through IT alternatives. This gave them a buyer portfolio that could later become geared towards the goal of creating a operate exchange. Were there problems with the strategic method? In case of collaborative computing, the procedure was flawed since Lowry did not set significant hard work in identifying whether virtually any supporters of his principle exist outdoors Goldman, can he find partners all set to invest into his suggested system.

He assumed that he will locate partners conveniently based just on cursory investigation just before dedicating significant resources towards the project. The proper process would have been to make partners prior to a significant investment into the project in order to avoid failing to look for any spouse after two years. In case of B2B exchanges, the procedure had the problem that the methods were turned.

The experts desired to have an entire industry on board to create the exchange. The first right step, because they later noticed, was to resolve the problems of individual consumers that may afterwards yield a portfolio to be used to make an exchange. The scenario leads to the final outcome that in both instances, the ideas and concepts were great but approaches were largely inappropriate.

The cases strengthen the importance of the relationship between CSP and ISP each and every level.