Strategic Information Systems Management 1st Edition - Free ebook download as PDF File .pdf), Text File .txt) or read book online Download as PDF, TXT or read online from Scribd .. The Landscape of Strategic Information Kevin Grant. Download as PDF, TXT or read online from Scribd Kevin Grant, Ray Hackney and David Edgar Strategic Information Systems Management Kevin Grant. This textbook is essential reading for all Information Systems modules with a strategic focus and for USA; Merlin Gardner, Deloitte Touche Tohmatsu, UK; Kevin Grant, Glasgow Caledonian University, How can I get PDF file of this book?.
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Trove: Find and get Australian resources. Books, images, historic newspapers, maps, archives and more. Request PDF on ResearchGate | Strategic Information Systems Management | Combining a rich blend of research, best Kevin Grant at University of Dundee. Computing · Decision Sciences & Operations Management Strategic Information Systems Management, 1st Edition. Kevin Grant, Ray Hackney, David Edgar.
She isxxixxxxAbout the Authorsregularly involved in the reviewing for journal papers, conferences and books. She has served as the track chair for the e-business and e-government track at the British Academy of Management BAM conference and has been involved in jointly organizing e-business and e-government Special Interest Group workshops.
Recently, she has been involved in a recently completed Knowledge Transfer Partnership based on the implementation of a practice management system for a patent agency. Professor Berghout has been given the alidade of being one of the most prominent IT management consultants in the Netherlands. He is active in the areas of IS, Management of Technology and Innovation, Project Management and Knowledge Management, which are considered through the lens of successful implementation in various organizational settings.
He held a visiting professor position at one of the top three national Korean universities Kyungpook National University, where he gave a course on Knowledge Management and Knowledge Management Systems in In addition, he has founded and has managed a niche consulting venture Catch the knowledge, advising companies in how to adopt new ways of working when achieving and securing their competitive advantages.
Its areas of expertise include business process renovations, setting up project management processes in companies, injecting knowledge management in existing business processes, revival and set-up of innovation processes, and leading big-scale organization-wide deployments of new technologies.
He is an economics graduate and holds a PhD for research into multimedia corporate strategy.
He has also completed an LL. M in IT and Telecommunications Law, specializing in intellectual property rights. His research interests include e-business, e-government, the convergence of technologies and intellectual assets management. His research work has been published in academic journals and presented to international conferences. He is an associate of DexEurope, a consultancy organization that brings together industry specialists and academics to provide tailored consultancy services and project management to development organizations in Eastern Europe.
Colin has also undertaken consultancy work for a World Bank programme investigating administrative capacity in accession countries to the European Union. His contribution was a report into e-government serviceAbout the Authorsxxxiprovision in Estonia and Poland, the results of which were presented to the World Bank conference in Bratislava in Colin has also been active in designing training programmes for executive clients including intellectual asset management for regional administrations in Hungary and Bulgaria; strategic management for smallscale family run firms, and the strategic use of intellectual property for Currie and Brown, an international firm specializing in surveying and project management.
David L. His research interests include management of information privacy, technology innovation, and entrepreneurial aspects of information technology.
His specialisms are online learning, games-based learning and database systems. He has published papers in a number of international journals as well as authoring the highly acclaimed books Database Systems: Professor Connolly also serves on the editorial boards of many international journals, as well as managing several large-scale externally funded research projects.
Professor Kevin C. Desouza is on the faculty of the Information School at the University of Washington. He founded the Institute for National Security Education and Research, an inter-disciplinary, university-wide initiative, in August and served as its Director until February In the private sector, he founded the Engaged Enterprise and its think-tank, the Institute for Engaged Business Research.
Dr Desouza has seven books to his name. In addition, he has published articles in prestigious practitioner and academic journals. Dr Desouza has advised major international corporations and government organizations on strategic management issues ranging from management of information systems, to knowledge management, competitive intelligence, government intelligence operations, and crisis management.
He is frequently an invited speaker on a number of cutting-edge business and technology topics for national and international, industry, and academic audiences.
His research led him to explore aspects of information security, privacy and assurance. Professor Dhillon has authored over research articles that have been published in various journals. He is also an author of six books, including Principles of Information Systems Security: Text and Cases Wiley, Professor Dhillon consults regularly with the industry and government and has successfully completed assignments in the US, UK, Portugal and India.
David Duncan is currently Chief Technology Officer CTO of Wolters Kluwer UK, an information company supporting professionals by providing consulting services, workflow software and publishing solutions.
David is particularly interested in finding better ways to support professionals in their day-to-day work and decision-making, whether through improvements in what is already traditional webbased information publishing or the development of newer software tools. He is an experienced technology leader with more than 20 years experience as a practitioner across a range of IT disciplines. Dr Peter Duncan has worked as an academic at Glasgow Caledonian University involved in teaching, research supervision and research.
He has taught a range of undergraduate, postgraduate including MBA and professional doctorate modules in the areas of strategy, information systems, intellectual capital management and research methods. His main research areas relate to the impact of information systems on professional services firms particularly the legal services sector ; and the management of intellectual capital. Peter has been involved in a number of knowledge transfer activities and was holder of a Glasgow Caledonian University Knowledge Transfer Grant for a project relating to developing the understanding of business information management by solicitors in Scotland.
Peter has published in a number of national and international journals relating to business, information systems and legal practice. His main areas of research and teaching are in the field of strategic management, specifically dynamic capabilities, business uncertainty and complexity, and innovation.
He has worked with a range of organizations on business transformation projects in particular relating to e-business strategies and knowledge or talentAbout the Authorsxxxiiimanagement.
He has a wide range of academic experience from programme development to international collaboration. This consultancy expertise is supported by and complemented by Professor Edgars research interests.
In recent years, these have started to be contextualized around the strategic development of organizations in complex and transitional environments and have involved working with colleagues in a range of countries and industry sectors.
He has also supervised to completion 14 PhD students. His research interests are concerned with the effective management and development of information systems and he has published widely in these areas.
He is well known for his work in relation to development techniques and methodologies and is author, with David Avison, of a major text in this area entitled Information Systems Development: Methodologies, Techniques and Tools, now in its fourth edition. He is also known for his research in the areas of IS strategy and alignment, outsourcing, and executive information systems.
His most recent research is concerned with the development of flexible information systems to enhance organizational agility. Stuart has developed and managed numerous undergraduate and postgraduate programmes in Business Information Technology and Business Information Management. He has been a specialist reviewer in business computing and business management for the QAA. Stuart has been a visiting lecturer managerial economics, management science and business computing both in Europe and in India.
In India, he has worked extensively with the British Council as a Business IT specialist delivering many lectures and seminars. He also has significant experience in the development of collaborative overseas programmes,xxxivAbout the Authorsnotably in Greece, Singapore and India. He has written extensively in the field of Management Science and Business IT and has over 30 publications in the field.
His current areas of teaching interest are in managerial economics, information resource management and business computing systems. His research interest are varied, with particular focus at the moment on the digital economys role in Indian economic development, the nexus between IS research and IS teaching, information management and risk reduction, high performance websites and document mark-up.
Stuart Fitz-Gerald is a committed user of LaTeX document preparation system and promotes its use whenever he is able. Before entering employment in the academic world, he worked in the government computing service and HM Customs and Excise.
Arnoud has authored various book chapters on business change and British aviation, and published his work in leading journals such as California Management Review. Prior to joining Cranfield School of Management, Arnoud was the Assistant Director and co-founder of the European Virtual Institute for Gas Turbine Technology EVIGTI , a non-profit organization facilitating collaborative instrumentation research and development between major gas turbine and aero-engine manufacturers, specialist supply chain companies and university research groups across Europe.
Tom joined Deloitte in , focusing primarily on the CIO agenda and IT effectiveness issues, after spending several years as a systems integration consultant with Accenture, where he undertook a number of technical and business facing roles in the utilities sector. Prior to his consultancy career, he undertook a PhD funded by the NHS in lay and professional perspectives within the medical profession, specifically looking from a sociological perspective at the relationship between institutions, organizations and professionalism.
He is now applying these learnings to the IT profession. Tom works predominantly with public sector organizations to improve the role that ITcan play in delivering public services, identifying key areas for improvement and supporting the implementation of new organization designs, processes and controls. Tom has supported a number of professional IT bodies to create a new IT qualification, and he is now working with several organizations to apply his unique knowledge of IT professionalism to create more effective IT organizations.
This includes skills assessments, benchmarking, CPD schemes and recruitment. As a leader in the field of management information systems, Galliers has published widely in many of the leading international journals on information systems and has authored or co-authored a number of books, including Exploring Information Systems Research Approaches: Prior to joining academia Kevin worked in the public sector.
Finally, Kevin holds an educational doctorate in the nexus between teaching, research, scholarship and consultancy awarded by thexxxviAbout the AuthorsUniversity of Edinburgh in and holds a higher education-based teaching qualification and is a Fellow of the British Computer Society and Chartered IT Professional and a Fellow of the Higher Education Academy. In , he joined Price Waterhouse where he qualified as a Chartered Accountant and focused on providing audit, financial advisory and IT assurance services to a variety of clients.
He joined Deloitte in to focus on consultancy where he continues to work today. In the past 16 years at Deloitte, Merlin has worked for a diverse range of consultancy clients, from small owner managed businesses to a major government department.
These clients have spanned many sectors and have included leading private sector organizations such as Aviva, Marsh, Cendant, Hilton Group and Specsavers, as well educational and academic institutions such as HEFCE, education colleges, the Wellcome Trust and the Research Council. Merlin has worked with RCUK and many of the Research Councils on a variety of projects, many relating to grant administration strategy, services and systems.
For the past two years, he has been supporting the procurement and implementation of a million government technology programme, working in the implementation workstream.
Ray has served on the Board of the United Kingdom Academy of Information Systems, acted as an Associate Editor and reviewer for a number of national and international journals and is case editor for International Journal of Information Management.
Rays research interests are in strategic knowledge management; business and government process design and organizational change and transformation. Finally, Ray has authored and co-authored over journal papers in the field of information systems may of which feature in prestigious IS and business journals.
Professor Feng Li is Chair of E-Business Development at Newcastle University Business School, and his research has focused on using information and communications technologies to facilitate the development of new strategies, business models, and organizational designs. He has worked closely with organizations in banking, telecommunications, car manufacturing, retailing, electronics, the creative industries and the public sector through research, consultancy and executive development.
As the Director of Engagement for the Business School and Newcastle Science City, Feng manages the interface between the Business School and the four Science City science themes and industry, coordinates the activities of four Professors of Practice based in the Business School and leads research on science-based businesses.
He has also served as BAM track chair for e-business andAbout the Authorsxxxviie-government since He has served as a guest editor and is on the editorial boards of several refereed international journals.
His research on internet banking strategies and business models and on the evolving telecommunications value networks and pricing models have been reported extensively by the media.
His book, What is e-Business? Research by Sue Newell focuses on innovation, specifically, on understanding how knowledge is transferred and innovation fostered within and across organizations.
Much of her work has taken place at ikon, a research unit for innovation, knowledge and organizational networking that she cofounded at the University of Warwick in the UK. In addition, Professor Newell pursues research in the design, implementation and use of IT; ethics and social responsibility issues, including equal opportunity; and the evaluation of management development initiatives. Her corporate consulting experience includes engagements in industries from health care to pharmaceuticals to manufacturing.
Professor Newell has written on knowledge management and the evolving workplace in two books, Managing Knowledge Work and Creating the Healthy Organization: Well-being, Diversity and Ethics at Work. Laszlo has held numerous positions within the Hungarian economic development sector including leadership of EU projects and programme management of development schemes at ministerial and regional level. He has been an advisor to the Hungarian government for over twenty years specializing in regional development issues and partnerships.
Originally qualifying as a Chartered Management Accountant in , he undertook a number of industry roles that focused on financial analysis, systems and management accounting services before moving into a career in information technology.
During his early IT career, David focused on the delivery of multi-country enterprise resource planning projects, the approach to the ongoing support and development of these business systems, and ultimately into the leadership of the IT function. In performing these early IT roles, David has worked and lived in the UK, Germany and America, giving him an insight into the differing cultural aspects of change that IT projects can facilitate.
David joined Deloitte in and has been involved in projects that cross various stages of the IT development life cycle,xxxviiiAbout the Authorsboth in the private and public sector. For the last three years, David has worked with UK central government departments in the delivery of large-scale transformational outsourcing and software delivery programmes.
Prior to this, Professor Powell was Professor of Information Management at the University of Bath, having completed two terms as deputy dean of the business school.
He also holds an honorary chair in operational information systems at the University of Groningen, Netherlands. Prior to becoming an academic, he worked in insurance, accounting and computing. He is the author of seven books on information systems and financial modelling including Management Accounting: He has published numerous book chapters and his work has appeared in over 90 international journals and over conferences.
He is also associate editor for a number of journals including the IRMJ and on a number of other editorial boards. He is a member of the British Computer Society and sits on their strategic education forum panel and the management qualifications working group. He is a fellow of the higher education academy. Currently she is responsible for the academic development, direction and management of 25 staff and has a cross-school function for strategic planning.
Her current research is in the areas of intellectual capital management and knowledge management, particularly in the public sector. She has several national and international journal publications in this area as well several book chapters.
Vivien has established close links with local private and public sector organizations and has been part of a team-providing consultancy in knowledge management to large organizations, such as Glasgow City Council and IBM.
She is often invited to give presentations to local business people and to supervise internal and external PhD students in the area of knowledge management. Internationally, she has developed and delivered academic programmes in Kuwait, Malaysia and Oman. He has a PhD in Information Systems which centred on the use of systems thinking within the field of knowledge elicitation. Mark has written and co-written more than 70 refereed papers in areas relating to systems thinking, information systems, e-learning, games-based e-learning and e-business.
Mark has also won outstanding paper awards at international conferences relating to work on e-learning, games-based learning and virtual campuses. His main teaching areas are information systems analysis and design, internet marketing, e-business and m-business.
Her doctoral thesis, obtained at the London School for Economics and Political Science LSE , examined the practical impact of EU and UK e-business and innovation policy initiatives developed for SMEs and entrepreneurs, based on the experiences of the adoption and implementation of e-business models by seven UK case organizations. The self-directed research thesis of her masters degree, obtained at the University of Londons Birkbeck College, examined the issues surrounding the use of the internet in cultural organizations.
Her areas of interest are e-business, technology and innovation policies for SMEs and entrepreneurs, and innovation policy development. She has written widely on these subjects. John is a graduate of the University of Glasgow and has been employed in the IT and Information Services industry in both the public and private sectors. John was responsible for planning and managing the transfer of IT systems from the former Strathclyde Regional Council to the 12 new unitary authorities, following local government reorganization in Walk-through TourLearning objectives appear at the start of every chapter to help you monitor your understanding and progress.
Introduction an introduction to each chapter outlines the kinds of principles and issues you will meet in each section. Conclusion each chapter ends with a comprehensive summary that provides a thorough recap of the key issues, helping you to assess your understanding and revise key content. Review questions and tasks are provided to help reinforce and test your knowledge and understanding, and provide a basis for group discussions and activities.
Key further reading comprehensive references at theend of each chapter allow you to explore the subject further and act as a starting point for projects and assignments. Each is enabled and enhanced by developments in information and communications technologies ICTs such as the internet, mobile and satellite communications and fibre optic cable. These new technologies have contributed to the emergence of the digital economy based on the global network of communications.
The digital economy is characterized by the use of ICTs to undertake business processes e-business , effect transactions along the supply chain e-commerce and the coordination of entrepreneurial activities based on knowledge, innovation and creativity.
Strategies for competitive advantage in this new economy are not based on mass production and cost reduction, but have evolved to include firms ability to seek opportunities and adapt to changes in market conditions, embrace change through innovation and embed learning in the organization.
Strategic management, although not a discipline in itself, forms an important part of the study of organizations. Typically, strategic management is expressed from a top-down perspective of the decisions of managers in organizations. Strategic management involves setting the goals of the organization, choosing the most appropriate actions for achieving aims, and fulfilling the aims over a set timeframe.
Managers involved in formulating a strategy undertake a series of decisions and actions designed to achieve stated aims based on an analysis of their internal and external environments. Strategic management is by its very nature iterative and, therefore, involves a process of feedback and learning as a means of informing future actions. How strategy happens is a theme that has generated significant academic debate Pascale, ; Mintzberg and Quinn, ; Ansoff, Mintzberg makes the distinction between intended, realized and emergent strategies.
Intended strategy is conceived at executive level management in organizations and is the outcome of a process of negotiation, bargaining and compromise between participants. The realized strategy is the one that is actually implemented and may only be partially related to the intended strategy. Realized strategy, in Mintzbergs view, is determined by emergent strategy; that is, the strategy that emerges from the perceptions and discussions made by participants in formulating the intended strategy in light of changes in the external environment.
Two divergent schools of thought evolved around the question of how strategy happens the Design School, where strategy is viewed as a rational and analytical process, and the Emergence School, where strategy is seen as the product of high-level organizational decision-making.
The origins of strategic management as a focus for research can be traced to business case studies produced in the s and the work of Peter Drucker and Philip Selznick Drucker was one of the most prolific writers in strategic management and developed the concept of management by objectives MBO.
Importantly, he recognized the value of intellectual capital in organizations, and the role of what he termed knowledge workers in the success of firms. Selznick is credited with developing the first model to match internal and external factors as a basis for analysing the strengths and weaknesses of firms.
Strategic management in the s and s was characterized by planning and control in organizations which relied on forecasting techniques, budgetary control mechanisms and systems for project management. Much of the early discourse on strategic management stems from the discipline of industrial organization or industrial economics.
The Austrian School of economics has also been instrumental in influencing thinking around strategic management.
In particular, Schumpeter developed theoretical perspectivesChapter 1 Business Strategy for the Digital World3on new value creation through technological change and innovation. Sources of innovation in Schumpeters view included new products, new means of production, new markets, new sources of supply and the reorganization of industries.
The concept of creative destruction was arguably Schumpeter s most significant contribution. Here, technological change creates opportunities for entrepreneurs to acquire rents before the innovation that underpins the change becomes diffused throughout the industry.
The so-called Schumpeterian rents arose from risktaking activity by knowledgeable entrepreneurs in a rapidly changing, uncertain and complex environment. The resonance of the Schumpeterian view in relation to the modern e-business environment is unambiguous and accounts for the continuing reference to his work among more contemporary theorists. Industrial economics and industrial organization provided the basis for the development of strategic management theories in the s.
The dominant approach in this era was the structureconductperformance paradigm developed by Mason in the s and further elaborated upon by Bain and Scherer The model has it that performance was dependent upon the conduct displayed by downloaders and sellers in any given market based on a range of criteria such as prices, investment, advertising, technological development, firm collaboration and so on.
In turn, conduct was dependent on the structure of each given market defined by the number and size distribution of sellers and downloaders, the degree of product differentiation, entry barriers, cost structures, integration and diversification. In time, the linear relationship between the three elements comprising the SCP model was challenged and the dominance of the paradigm gave way to the Positioning Approach most commonly associated with the Harvard School.
The role and importance of key elements of the model, such as entry barriers and industry concentration, is a focus of contention between the Harvard and Chicago Schools of strategic management thinking.
The Harvard School views these as a means of securing above average industry profits, whereas the Chicago School as articulated by Demsetz, , and Barney, view entry barriers as informational, and concentration because of efficiency.
In essence, the Chicago School views superior performance as stemming from the better use of underlying assets deployed by a firm rather than the exercising of economic power by restricting supply.
This thinking can be seen in the development of the Resource-Based View RBV of the firm that was destined to dominate the s and beyond. The s ushered in a period of economic, market turbulence, and great uncertainty leading to a shift in emphasis away from planning and towards strategy as firms sought ways and means of improving performance and profitability.
The theoretical perspectives relating to firm size, growth and the portfolio of assets they owned dominated strategic management thinking in this era. The Profit Impact of Marketing Strategies PIMS found favour amongst many analysts and was widely used to determine the link between profitability and strategy. The premise of the original theory was those large firms with high market share often proved to be the most profitable; a position that was later challenged by Harvard School writers such as Porter who noted that small and medium sized businesses could also achieve high profitability.
Much depended on the ability of the firm to position itself favourably in the market, hence the emergence of the Positioning Approach to strategy. The Positioning Approach developed by the Harvard School achieved prominence throughout the s and many of the frameworks and models developed to aid analysis of the internal and external environment are still widely used.
The initial output of the school featured a descriptive account of strengths, weaknesses, opportunities and threats SWOT as a basis for analysis of both the internal and external environments.
By combining the SWOT framework with selected concepts from industrial economics, Porter developed the five-forces explained below and value chain unpacked below models for external and internal analysis respectively. These theoretical models can be used as a basis of determining why some firms strategies are more successful than others and why some industries are more attractive than others. The five forces model focuses on the key factors that determine the competitive environment at industry level.
It is not suitable for understanding the strategies of individual firms. For that, the value chain model is applicable where analysis is based around the identified value-adding activities categorized under primary or support activities.
The value chain model is recognition by the Harvard School that sources of competitive advantage could reside within an organization and that internal activities have strategic significance, a theme that was central to the development of the Resource-Based View RBV.
The Harvard School responded to the coherence of the RBV by updating its assessment of what strategy is. Porter incorporated some of the RBV ideas into his revised definition of strategy including the need to make trade-offs between value-adding activities and the need to create a hard-to-replicate fit among parts of the chosen value-adding activities carried out in firms.
Porters revision of his strategic management thinking was influenced by the emergence of the internet as an important, and disruptive, technology in the business landscape. Senge set the scene by linking a firms success to the effective management of information and creation of an organizational structure that supports the use of information in generating learning, innovation and creativity. The internet provides an effective medium for information gathering, storage and use and many firms have based their business models around the applications of this medium of communication.
This gave rise to the concept of the virtual value chain. Porters original model was designed with a manufacturing company in mind but he later revisited the concept to offer an account of the influence of the internet in driving added value Porter, Slater highlighted the key difference by recognizing that while the internet can be used to share information among key stakeholders such as suppliers and customers, unlike physical goods it does not diminish through use.
This alters the supply and demand dynamic sufficiently to require firms to develop strategies to exploit the opportunities and deal with the threats that this change brings. A key distinction is that where the physical value chain acts as a support mechanism, the virtual value chain has a strategic function.
The significance of this is evident when discussing the development of the digital economy. The Resource-Based View RBV , as developed Wernerfelt and Barney , has its roots in industrial organization and industrial economics and the work of Coase and Williamson The RBV more closely links the internal capabilities of firms to levels of competitiveness Grant, Prahalad and Hamel contributed to the understanding of the RBV by discussing strategic management from the perspective of the creation of core competenciesChapter 1 Business Strategy for the Digital World5around which firms build and deploy a portfolio of assets to achieve a competitive advantage.
The RBV can be used as a basis for determining which of a firms resources can best be deployed to create a competitive advantage, and how those resources help sustain a competitive advantage Eisenhardt and Martin, The RBV was developed to reflect fully the broad range of resources available to organizations in their quest for competitive advantage. In particular, the RBV recognizes the intangible assets as well as the tangible ones that comprise the resources within organizations.
The model emphasizes the use of firm-specific resources or assets such as skills, expertise, experience and knowledge that workers possess. Resources and organizational capabilities are closely related. Resources are the portfolio of available assets that are owned by the firm, and organizational capabilities are the attributes that transform those resources into added value.
In contrast to the environmental model developed by Porter , the RBV focuses on the internal analysis of resources and organizational capabilities as a source of competitive advantage. The coherence of the RBV arguments encouraged Porter to revisit his conceptualization of strategy and led to his recognition that hard-to-replicate fit among the parts of an organizations activity system plays a key role in determining competitiveness.
As previously noted, the RBV emphasises intangible resources and the generation and sharing of knowledge as a resource. As the term suggests, the KBV of the firm emphasizes knowledge as the key resource in organizations. Competitive advantage is derived from the superior use and integration of tacit knowledge know-how , rather than explicit knowledge knowing about.
Nonaka and Takeuchi highlight the differences between knowledge and information by emphasizing the action-orientated characteristics of the former. The KBV emerged as a result of the growing recognition throughout the s that competitive advantage did not necessarily stem from the dynamics of the industry in which firms compete, but rather from the process of acquisition and use of resources by a firm. Grant noted that the acquisition and use of knowledge needs to become firmly embedded in an organization through policies, routines, systems, culture and so on.
Information technology plays a key role in the formation of the KBV as it aids the gathering, storage, use and dissemination of knowledge both throughout the organization and to external partners. One of the main criticisms of strategic management is the static nature of many of the models designed to aid understanding of what is essentially a dynamic phenomenon. Teece et al. These capabilities refer to the ability to integrate, build and reconfigure internal and external competencies with competitive environments characterized by rapid change.
The dynamic capabilities theory allows the fluid dimension that is lacking in the RBV by focusing attention on how resources can be developed and integrated into the firm and then released as a means of creating a competitive advantage. In a rapidly changing environment, the ability of firms to find new means of creating a competitive advantage is key.
Dynamic capabilities can help gain a competitive advantage by reconfiguring current resources, gaining new resources or making better use of other resources.
This section has outlined the key developments in the evolution of strategic management theories and offered a critique of the relative merits and limitations6Strategic Information Systems ManagementTable 1. The emergence of the internet onto the business landscape in the mids provided an example of how innovation and technological development can effect change.
This in turn provides the impetus for academics to adapt existing theories or invent new ones to aid their understanding of the new realities affecting strategic management. Table 1. Technological change has had a fundamental effect on the business community too as the means of producing and selling products, communicating with customers and stakeholders, and administering the business process have all been subject to transformation using new technologies.
This allowed previously disjointed computer systems to link up on a global scale and ensured the commercial viability of the internet as a medium of communication. Managers of firms quickly realized the potential of using the internet and its adoption by commercial businesses showed exponential growth throughout the late s and into the new millennium. Competitive advantage was sought by exploiting opportunities for extending market share, producing new products and services, establishing new types ofChapter 1 Business Strategy for the Digital World7relationships with customers and suppliers and creating efficiencies in business functions.
The use of the internet for these purposes was termed e-business. There are many different definitions of e-business and the term is sometimes used interchangeably with the term e-commerce as there is an overlap between these two concepts. Whilst e-commerce is concerned with download-side and sell-side transactions, e-business extends to incorporate electronic marketing, procurement, customer service, distribution, transactions fulfilment and the automation of business processes.
The internet can be used for communicating with, and selling products or services to, customers. This is termed business-to-consumer B2C trade.
The sale of products or services to other businesses is termed business-to-business B2B. The internet and other ICTs have played a key role in transforming business by providing the means to increase efficiency, speed and quality of delivering products and services to customers.
Some of the key attributes include increasing efficiency in the process of transactions between downloaders and sellers; giving customers access to information on prices, availability, discounts, delivery times, sales policies and promotional material; increasing collaboration between partners along the supply chain Kaplan and Sawhney, ; Muhanna, ; offering constant availability so that transactions can occur at any time in the connected world; the removal of traditional boundaries in organizations such as time and distance; the automation of internal processes to increase efficiency and speed Dutta and Segev, ; and the building of more in-depth and longer-lasting relationships with customers through personalization and customization of products and services Amit and Zott, ; Baura et al.
The emergence of the digital economy has transformed both business and the wider economy. The key factors that can determine competitive advantage in the digital economy involve firms being flexible, opportunistic, quick to market, collaborative and specialized in their niche. Many activities and functions are undertaken by small groups of workers in various locations around the globe, all of whom rely on ICTs to communicate with partners and customers.
The generation and sharing of knowledge underpins the competitive drivers of innovation and creativity in a rapidly evolving business environment. The differences between the traditional economy and the digital economy are significant. For example, organizational structures have evolved from being hierarchical to networked or virtual. Many employees work remotely from the centres of business and use technology as a means of communication, collaboration and coordination in their working lives.
This also reflects the changes that new technologies has brought to the productive process as the emphasis swings away from reliance on heavy machinery to mass produced products and more towards knowledge and creativity. This change is evident in the factors that drive growth and competitive advantage in the digital economy. Growth is highly dependent on innovation, knowledge and creativity as firms seek continually to add value to customers. Competitive advantage invariably stems from the ability of firms to link innovation, knowledge and creativity to the speed and efficiency with which they can produce and sell high quality, value added products and services to customers.
The production process in many modern businesses needs to be agile and flexible enough to adapt to the demands of constant change. The concept of change also permeates throughout the firm to inform the dominant culture within the organization. The development of the digital economy in general and e-business in particular, has drawn the attention of academic writers.
Contributions include analysis8Strategic Information Systems Managementof e-business models Timmers, ; Lee, ; Ropers, ; value-adding activities Rayport and Sviokla, ; Amit and Zott, ; consumer behaviour Kauffman and Wang, and strategies for competitive advantage Shin, ; Combe, among others. The development of e-business has forced a review of the value of traditional business models and focused attention on how ICTs, including the internet, can be used as a basis for creating new types of business models and the strategies that are built around them.
Many e-business model definitions feature an architecture for information flows that underpin value added product or service delivery and a source of revenue subscription, advertising, etc.
Key components of e-business models typically comprise strategy, structure, business processes, value chain and core competencies. Technology is another key feature that should be included. Crucially, an e-business model differs from traditional models by emphasizing the technologydriven interactivity of key actors along the supply chain as a means of adding value, increasing efficiency, and building new relationships with suppliers and customers and creating partnerships.
However, the development of e-business models has not been without its critics. Porter noted that the empirical use of the e-business model concept was unclear and lacked theoretical rigour.
Another effect of the digital revolution has been the evident convergence of industries and technologies. Where once, industries such as telecommunications, broadcasting and computing were separate sectors, now they have converged to provide a range of products and services that rely on the overlap of activities and attributes that characterize each.
For example, media content in the form of video, audio or text-based products can be distributed via the internet, satellite, cable, compact disc and accessed through different platforms such as television, home computer, mobile wireless phone or PDAs among others.
The convergence has not only been evident in the technologies that support these industries, but also in the firms that supply the products and services. Collaboration and consolidation have been key features of the global multimedia industry with more and more market share being vested in fewer firms. Firms such as News Corporation and Google have become increasingly powerful as they acquire ever-greater influence in the supply of media products and services around the world.
Other industries have also been radically changed by the digital revolution such as financial services, travel, retailing and logistics and distribution. All have acquired the types of hardware and software that helps deliver better quality products and services faster, and often cheaper than ever before. Key to the success of competing firms in the digital world is the creation of effective strategies for competitive advantage.
This chapter focuses on the theoretical perspectives of the Positioning Approach, the Resource-Based View and dynamic capabilities to aid the understanding of strategies for e-business in the digital world. The Positioning Approach presents the generic strategies, five forces and the value chain models as a basis for analysing the external and internal environments of firms that engage e-business activities as a means of creating a competitive advantage.
The ResourceBased View is used as a means of identifying specific resources and capabilities that are difficult for rivals to imitate and that enable superior performance in the e-business environment. This includes complementary resources and capabilities that link online and offline activities. The dynamic capabilities theory focuses attention on the capacity of the firm to renew existing competencies in a rapidly changing environment.
Chapter 1 Business Strategy for the Digital World Porters models of generic strategy, five forces and value chain provide the theoretical underpinnings of the analysis. The generic strategies model is, as the name suggests, applicable to many firms. The five forces model is similarly generic and focuses on competitiveness and external factors.
The value chain model, on the other hand, has an internal focus and can be applied to individual firms. The model features strategies of cost leadership, differentiation and focus. Each can help firms achieve a competitive advantage. Cost leadership refers to firms who are able to produce and sell products or services at lower cost compared to rivals.
Differentiation is a strategy for competitive advantage based on a firms ability to make the product or service different from that produced by rivals. The difference must add value to customers.
A focus strategy is the choice of market segment that firms aim their products or service at. The choice may entail a narrow focus, whereby the scope of the market segment is detailed and clearly identified, or a broad focus where the scope of the market is defined by a group of segments.
Porter argues that a firm can achieve competitive advantage by being the least cost producer in the industry. In e-business this may allow the firm to lower prices below those of rivals, however, as competition in the internet economy is intense, the scope for doing so may be limited. More likely is the opportunity for lowering transaction costs. Transaction costs are all those costs associated with the downloading and selling process such as searching for products and services, marketing information, decision-making and exchange.
There are numerous ways firms can seek a cost leadership position including the adoption of a broad market focus; minimizing marketing costs and customer service; limiting the range of products sold; employing the minimum number of staff; and investing only in cost reducing technologies such as information-based logistics.
Cost leaders invariably imitate existing and successful business models rather than incur the cost of creating new and innovative ones. Another key element of the generic strategy model is differentiation. Many factors drive differentiation such as timing, location, partnerships, organizational learning and scale and scope of activities. Some of the most prominent means of differentiating products or services in e-business include creating a strong brand and reputation; offering high quality website with ease of navigation and quick transactions and fulfilment; creating effective marketing campaigns; offering customized and personalized products and services; and offering delivery times better than rivals as part of a superior customer service.
A focus strategy refers to a market segment targeted by a firm for selling its products or services. Firms may target a particular group of customers with distinct profiles based on age, incomes, geographical location, tastes, interests, gender and so on. Firms can channel resources into specializing in providing the types of products and services that customers want in those segments. For example, effective marketing10Strategic Information Systems Managementand research into the market segment may reveal downloading habits or reactions to product offerings that informs the firms future strategy.
Personalization and customization may be features of this strategy as specialist knowledge of the market segment helps firms design and produce products and services to match the needs of the target individual or group. There are also cost benefits to be gained by targeting a small number of target groups, rather than spreading resources more thinly across a large number of market segments or even the whole market.
Activities that add value in this setting are referred to as the virtual value chain. The virtual value chain differs from traditional value chains, as it is not limited by organizational boundaries such as time and distance.
Among the many advantages that use of the internet can offer firms, the most prominent ones include real-time communications links with supply chain partners and customers; increased efficiency in marketing and selling; improved logistics; and reduced transaction costs. Information is the resource that firms use to add value by creating linkages between suppliers, partners and customers. Porter proposed the value chain model as a means of identifying those activities that form the basis of a firms strategy for achieving competitive advantage by driving down costs or differentiating the product or service.
The four key steps to value chain analysis include: The primary activities include inbound and outbound logistics, operations, marketing, and sales and service. The support activities include firm infrastructure, human resources, technology and procurement. Primary activities directly add value to the end product or service.
The support activities indirectly add value by providing the support necessary for the effective execution of the primary activities. The application of the value chain model identifies the activities that the firm should undertake; how those activities should be undertaken; and the configuration of those activities that enables value adding to products or service and forms the basis of increasing the firms competitiveness in the industry.
Porter s definition of value is determined by the amount downloaders are willing to pay for a product or service. Added value is measured by the total revenue after the cost of production has been met. Differentiation of products or services can add value in all the value chain activities. Key sources of added value derive from the choices of activities that are to be undertaken; the links between primary and support activities; integration of supply chain partners; the timing of activities; or location advantages.
The value chain model is most appropriately applied to manufacturing firms although Porter and Miller , recognized the value adding potential of information technology characterized by physical flows of materials. Thus, adaptations were needed for firms with core activities involving information flows such as insurance, banking, stock trading, etc.
Chapter 1 Business Strategy for the Digital World11The emergence of the internet, and with it e-business and e-commerce, made the need for a new value chain model acute as firms sought to contextualize their strategies around the new medium of communication. Rayport and Sviokla developed the virtual value chain model that more closely matched the activities of firms engaged in gathering, organizing, selecting, synthesizing and distributing information via electronic means.
As Bhatt and Emdad note, there is a strategic dimension to the role of information in the virtual value chain when it is integrated with physical activities to create value added products or services. For example, activities may include the gathering of information necessary to organize and coordinate the logistics of matching demand with supply criteria. The physical value chain activities may include the actual distribution of the product to customers.
This is evident in the virtual value chain of the postal distribution company FedEx as illustrated in Case Study 1. One way the company succeeded in achieving this was to offer customers added value service by developing and implementing software that allowed them to track the progress of their packages from sender to destination.
In many organizations, this is a vital added value as important functions and decisions may rely on the delivery times of packages. For example, the transport of drugs in theMini Case Study 1. The business model is built around the collection, storage and distribution of postal packages. The key to competitive advantage lies in bringing the packages to customers quicker and more efficiently than rivals.
Support activities Infrastructure: Buildings, computers, transport, warehousing, ISFedEx has many decades of experience in this industry sector and has built a brand name and reputation that ensures a high level of brand loyalty.
However, the company needs to continue to innovate and add value to customers to maintain that loyalty and with it competitive advantage. Human resources: Key skills in management, technology, functions Technology: Inbound logisticsReal-time supply inventoryICTs, internet, applications software, hardware Online downloading of materials Outbound logisticsDistribution tracking systemsOperationsAutomated distribution quality controlMarketing and salesOnline marketingServicePersonalized customer relationsPrimary activitiesSource: Porter 12Strategic Information Systems Managementmedical sector may mean the difference between life and death for a patient.
Contracts that are time dependent and cannot be signed off electronically rely on quick delivery. If customers can closely estimate arrival times of packages, their brand loyalty increases.
Strategic Information Systems Management. Description Combining a rich blend of research, best practice and policy, Strategic Information Systems Management is the eagerly awaited new introduction to the interconnected world we live and work in.
A top-ranked team of global experts combine both industrial and scholarly perspectives, bringing a wealth of experience to make this the complete introduction for 21st century business. This textbook is essential reading for all Information Systems modules with a strategic focus and for broader Strategic Management, Information Management and professional courses.
Contributions come from these global experts: Table of contents 1. Business Strategy for the Digital World 2.
Information Systems Development Approaches 4. Disruptive Technologies and Applications 5. Global Issues in Information Management 8. Strategic Knowledge Management 9. Review quote 1. His wide range of specialist expertise includes: His research interests are the Strategic Management of Information Systems within a variety of organisational contexts, with an increasing speciality in government sectors.