The Relationship Between Itis And Dynamic Strategy Commerce Essay

The relationship between IT and dynamic scheme is rooted in the relationship between the assorted forms of information systems development and the organizational constellations that a concern can follow. This relationship is supported by Burn ( 1993 ) who demonstrated that different phases of information systems development tended to necessitate companies to take different attacks to their scheme, based on the available organizational constellations. Indeed, this relationship revealed a form of strategic alliance in the administrations, based on the relationship between the organizational constellation and the phase of information systems development. This implies that the chief function of information engineering in back uping dynamic scheme is as an enabler of different strategic attacks, therefore a high degree of IT development is needed in order to back up the usage of dynamic schemes ( Burn, 1993 ) .

Another of import factor in the creative activity and care of a dynamic scheme is the fact that information is progressively being created “ faster than persons and organisations cart make sense of it ” ( Lerch and Harter, 2001, p. 63 ) . This non merely means that administrations are now able to roll up of all time more elaborate informations and information, but besides means that understanding and treating this information is more of import than of all time. The huge sum of available informations means that it has become even harder to obtain any grade of situational consciousness, with concerns fighting to understand the position and kineticss of an environment that is continually altering in so many ways. In this environment, a dynamic scheme can merely be efficaciously created if the concern is able to maintain gait with the rapid rate at which information is produced, and can analyze the information quickly plenty to maintain gait with the environment. IT and IS play a critical function in accomplishing this, by enabling directors to better categorise, analyse and act on the informations produced ( Lerch and Harter, 2001 ) .

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In add-on to the importance of information engineering in back uping an overall degree of dynamic scheme preparation, specialist information systems besides play a critical function in back uping the development of dynamic scheme in specific countries of the concern. One peculiar illustration of this is in the usage of client relationship direction schemes to back up higher degrees of client committedness and keeping. The chief theory around client keeping is that clients can merely be retained when their demands and outlooks are satisfied, and besides when the client is able to obtain just value from their minutess with the concern. Whilst satisfaction is comparatively easy to obtain, the impression of just value can alter quickly, most frequently when challengers launch offerings which are cheaper or subjectively superior ( Park and Kim, 2003 ) . As such, in order to efficaciously prosecute a client relationship direction scheme, concerns need to guarantee that they are cognizant of what represents just value from the point of position of their clients. This can merely be achieved if the administration is able to keep a high grade of client consciousness, through the effectual aggregation and analysis of client information. Information engineering and IT scheme both play a cardinal function in enabling this for concerns, and assisting them better retain their clients ( Park and Kim, 2003 ) .

In add-on to enabling specific facets of dynamic scheme, high terminal information engineering besides plays a critical function in enabling concerns to spread out and win in countries where the demand for dynamic scheme is even more marked. One illustration of this comes from the effort by many concerns to go electronically enabled. In order to accomplish this on an effectual degree, concerns need to use dynamic capablenesss to leverage their expertness in the electronic environment. Whilst the cardinal factor in wining in this market is a strong grade of airy managerial leading, companies besides need to demo the ability to develop advanced and dynamic IT capabilities in order to back up their concern aspirations. As such, a sound IT invention scheme will turn out the key to developing a dynamic electronic concern scheme to win in the new environment ( Hackbarth and Kettinger, 2004 ) .

One concluding illustration of a dynamic concern scheme which can be supported by IS and IT is a mass customization scheme, which focuses on wining in diversified markets utilizing the cost benefits of mass production and the selling entreaty of individualization. In this instance, information systems play a much more holistic function: non merely do they back up the procedure of scheme preparation, but they besides enable the full value concatenation, peculiarly in the direction of merchandise and procedure complexness degrees. Indeed, Dietrich et Al ( 2007 ) argue that a mass customisation scheme, and other advanced production attacks, can merely genuinely be achieved if information systems are integrated into the operations procedure, and therefore the scheme, at a cardinal degree.

The function of IT / IS in advancing dynamic strategic alteration

As discussed above, the literature strongly supports the statement that the alliance of IT and IS with concern scheme plays a critical function in making dynamic schemes. However, given the importance of alteration in the dynamic scheme procedure, it can besides be argued that IT and IS need to play a cardinal function in back uping dynamic strategic alteration in order for concerns to keep their dynamic schemes. This statement is supported by Sabherwal et Al ( 2001 ) who claim that dynamic strategic alliance can merely be achieved over a long period of clip if the company ‘s IS direction profile is set up to back up evolutionary alterations in scheme.

This statement is supported by Hsiao and Ormerod ( 1998 ) who argue that information engineering enabled strategic alteration is a critical facet of any dynamic scheme preparation. Indeed, their survey implies that strategic alteration is pursued is a series of alone ways, each of which rely on the effectual direction of information and information systems in order to accomplish. This research besides shows that IT plays an every bit critical function in both planned and emergent manners of alteration, irrespective of the alteration elements that thrust these manners.

One specific illustration of the function that information engineering can play in back uping dynamic strategic alteration is in the field of dynamic procedure modeling. Dynamic procedure modeling is used across the full set of operating and support maps of a concern, including the information systems, and plays a critical function in guaranting the continued alliance of all these facets during a strategic alteration procedure ( Giaglis et al, 2005 ) . This is a critical constituent of a dynamic strategic alteration, as alliance must be maintained in order to guarantee coherency throughout the concern. If different facets of the concern autumn out of alliance during the strategic alteration, the holds associated with realining them can interrupt the dynamic procedure and forestall the company from keeping its dynamic capablenesss and reactivity to market alterations. Information systems can help in avoiding this through the creative activity of dynamic simulation theoretical accounts that demonstrate the effects of a proposed strategic alteration on bing concern procedures, assisting directors be proactive and turn toing any alterations before they cause misalignment between organizational maps.

Indeed, true continued strategic concern alliance can merely be maintained throughout a dynamic strategic alteration procedure if the information engineering and information systems of the company are specifically configured to back up the dynamic procedure. This statement is put frontward by Chen et Al ( 2008 ) who argue that dynamic strategic alterations require dynamic capablenesss in order to guarantee strategic alliance procedure, and besides to get the better of any troubles encountered in both accomplishing and prolonging alliance. This is peculiarly of import in the IT context, given that the way dependences created in old alterations can move as barriers to future alliance. As a consequence, the information systems of the concern demand to be managed and directed, with a clear concern vision, to guarantee future strategic alliance, and therefore concern success.

Case study 1: Hewlett Packard

The first instance survey in this piece will be an scrutiny of Hewlett Packard, HP, specifically the actions taken by HP when it was engaged to develop a new information system for a big transnational auto maker. This new system was a critical facet in back uping a dynamic strategic alteration in the administration, traveling it off from a hierarchy and towards a worldwide web of mills and distribution installations ( Feurer et al, 2000 ) .

Analysis for the instance study 1

This execution focused on the creative activity of a new information system for a new country of the concern. As a consequence, it was non dependent on the company ‘s bing IT and IS. This meant that it provides a good illustration of how a system can be designed to carry through a specific function in the creative activity of a dynamic scheme, with the lone restraints being the web of providers and clients, and the demands of the parent company. The execution therefore used a balanced attack between people and engineering, assisting to back up a dynamic scheme that could respond more quickly to market demands, whilst besides integrating internal ends and restraints. The ensuing system supported a high degree of strategic alliance, every bit good as a high grade of dynamic strategic control ( Feurer et al, 2000 ) .

Critical contemplation on the instance study 1

The chief success factor underlying this instance survey was the usage of the information system to back up the deployment of flexible resources every bit tardily as possible in the production procedure. This non merely saved costs, but besides helped back up a mass customisation procedure, as described by Dietrich et Al ( 2007 ) . The usage of the information system to supply this grade of flexibleness besides helped the company utilize a series of advanced procedures to drive production in the web of mills, which encouraged further dynamic strategic development. This usage was supported by a discovery in the engineering enablers, which were driven by the cross functional squads working across HP and the auto maker. These discoveries made it possible for the system to be used to place the critical procedures which tend to hold the strongest impact on the ability of a company to accomplish its strategic aim ( Besanko et al, 2007 ) . The systems were so able to analyze these cardinal procedures and interpret them into high degree theoretical accounts of how the new organizational construction would interact with its environment, in footings of the nucleus, support and advanced procedures and how these could be proactively adapted to the environment to maximize overall public presentation. This is a critical facet of any strategic planning affecting information systems ( Ward and Peppard, 2002 ) , and played a farther cardinal function in the success of the overall execution, and the relevancy of this instance survey to the development of best pattern in the information systems field ( Eisenhardt, 1989 ) .

Case study 2: Queensland Heath

The 2nd instance survey in this piece is a survey of Queensland Health, QH, which is one of the largest Australian authorities bureaus. This bureau implemented a centralized IT service direction theoretical account as portion of a dynamic strategic alteration off from a map based strategic focal point, and towards a service based focal point ( Tan et al, 2010 ) .

Analysis for the instance study 2

The execution of the system was widely seen as a success, with the system sing a big figure of discoveries, both organizational and technological. The chief organizational factor that supported the success of the instance survey was that the committedness of senior direction was obtained, therefore directing all the administration ‘s resources towards the successful execution of the system, and the resulting organizational alteration. This was supported by the high degree of committedness and skill shown by the undertaking title-holder, who recognised the demand to incorporate a alteration direction scheme into the information system execution, to guarantee that the systems execution acted to back up an aligned dynamic alteration, instead than impede it. In the technological country of the survey, the administration made certain to keep close relationships with the sellers that installed the system, in order to ease a high degree of engineering transportation to the in house staff, every bit good as utilizing a benefits realization program to track the undertaking benefits and guarantee they were realised ( Tan et al, 2010 ) .

Critical contemplation on the instance study 2

The chief acquisition point from this survey is the importance of incorporating any information systems execution with a valid and strict alteration direction scheme in order to drive successful alteration. This is in line with the statements of Keen ( 1981 ) who notes that information systems will merely move to back up an organizational alteration, and maintain strategic alliance in that alteration, if the information systems themselves are implemented utilizing organizational alteration rules. This success factor was besides supported and underlined by the function played by the alteration title-holder in accomplishing organizational support for the alteration, every bit good as the procedure of obtaining committedness from senior direction. This combination of factors implies that the most of import factor in guaranting that IT and IS support dynamic strategic alteration attempts is the demand to utilize effectual alteration direction methodological analysiss to drive the full procedure.

In add-on to this, the consequences and larning from the technological facets of the instance survey indicates that the administration needs to guarantee that it has the needed degree of proficient and technological expertness in order to run and keep the system and guarantee it is accomplishing its ends. The chief factor in guaranting that this is achieved is the demand to guarantee a high degree of engagement in the execution procedure and, if external sellers are used, to guarantee a high degree of cognition and engineering transportation from said sellers. The usage of a benefits realization program, or other method of tracking and driving undertaking benefits, is besides of import in guaranting that IS and IT executions are successful in accomplishing their ends.


In the modern concern environment, administrations can merely make and keep relevant and successful strategic way if they follow a procedure of dynamic strategic preparation. Failure to follow this procedure will go forth the company unable to maintain up with market and environmental tendencies, and therefore will be surpassed by superior rivals. Information systems and information engineering can back up the procedure of dynamic scheme preparation by doing information more available to concerns, and back uping the attempts of said concerns to analyze and explicate their scheme by supplying tools to back up their scheme preparation attempts. This is supported by the literature, which demonstrates how information systems can back up both the development of dynamic schemes and dynamic strategic alteration at both the general and specific degree.

The importance of information systems to the procedure of scheme preparation and strategic alteration is besides supported by the instance surveies. As the HP instance survey shows, information systems can play a critical function in developing a scheme and deploying it, by back uping the procedure of strategic find and associating the procedures of the administration to the strategic environment. Similarly, the instance survey of QH demonstrates the importance of utilizing strict methods when driving strategic alteration. Not merely must these methods be used to back up the alteration itself, but besides in the deployment of the information systems, to guarantee that said systems will back up the overall and non move to impede it in any manner. An apprehension of the importance of information systems in supplying the information needed for scheme preparation was critical in the success of both of the instances examined in this piece.


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