What developments have occured in the past two decades that requires an alignment of the Information Systems Strategy Triangle to help in the decision-making process?

Chapter1 provides a lengthy discussion about business strategies, organizational strategies, and information systems strategies.

Write two to three paragraphs to address the questions below.

Need around 250 words and must be in APA format. Please refer the attachmnet for additional details. And also site any other references you use?

Managing and Using Information Systems:
A Strategic Approach – Sixth Edition
Keri Pearlson, Carol Saunders,
and Dennis Galletta
© Copyright 2016
John Wiley & Sons, Inc.
Chapter 1
The Information Systems
Strategy Triangle
Kaiser Permanente (KP) Opening Case
• What was KP’s business strategy in 2015?
• On what were bonuses to doctors based under the “fix me” system?
• What would the new idea be called instead of a “fix me” system?
• What is the new basis for end-of-year bonuses?
• What goal alignment has helped KP’s success?
• What IS components are part of this?
• Could only the IS components be changed to achieve their success?
• Could only the strategy be changed to achieve their success?
© 2016 John Wiley & Sons, Inc.
3
The Information Systems Strategy Triangle
Business Strategy
Organizational Strategy
Information Strategy
These need to be balanced.
© 2016 John Wiley & Sons, Inc.
4
What is a “Strategy?”
• Coordinated set of actions to fulfill objectives, purposes, or goals
• It sets limits on what the organization seeks to accomplish
• Starts with a mission
Company Mission Statement
Zappos
To provide the best customer service possible. Internally we call
this our WOW philosophy.
Amazon
We seek to be Earth’s most customer-centric company for three
primary customer sets: consumer customers, seller customers and
developer customers.
Sell good merchandise at a reasonable profit, treat your customers
like human beings and they will always come back for more.
L.L. Bean
© 2016 John Wiley & Sons, Inc.
5
Business Strategy
What is a business strategy?
• It is where a business seeks to go and how it expects to get
there
• It is not a business model, although it includes business
models as one component of a business strategy
• Business models include subscriptions, advertising, licenses,
etc.
• Business models do not include where the business seeks to
go, and only the revenue portion of how it expects to get
there
© 2016 John Wiley & Sons, Inc.
7
Generic Strategies Framework
• Michael Porter: How businesses can build a competitive
advantage
• Three primary strategies for achieving competitive advantage:
• Cost leadership – lowest-cost producer.
• Differentiation – product is unique.
• Focus – limited scope – can accomplish this via cost leadership or
differentiation within the segment
© 2016 John Wiley & Sons, Inc.
8
Three Strategies for Achieving
Competitive Advantage
Strategic Target
Strategic Advantage
Industry Wide
Uniqueness
Perceived by
Customer
Low Cost Position
Differentiation
Cost Leadership
Particular
Segment Only
Focus
© 2016 John Wiley & Sons, Inc.
9
Three Strategies for Achieving
Competitive Advantage
Examples
Strategic Target
Strategic Advantage
Industry Wide
Particular
Segment Only
Uniqueness
Perceived by
Customer
Low Cost Position
Differentiation
Cost Leadership
Apple
Wal-Mart
Marriott
© 2016 John Wiley & Sons, Inc.
Focus
Ritz Carlton
10
Dynamic Strategies
• Beware of Hypercompetition
• Can lead to a “red ocean” environment
• Cutthroat competition – zero sum game
• Every advantage is eroded—becoming a cost.
• Sustaining an advantage can be a deadly distraction from creating
new ones.
• D’Avenis says: Goal of advantage should be disruption, not
sustainability
• Initiatives are achieved through series of small steps. Get new
advantage before old one erodes.
• Better to adopt a “blue ocean” strategy
• Change the industry; create new segments/products
© 2016 John Wiley & Sons, Inc.
11
Creative Destruction
• GE’s Approach under Jack Welch
• Ask people to imagine how to destroy and grow your
business
• DYB: Imagine how competitors would want to destroy your
business.
• GYB: Counteract that by growing the business in some way
to:
• Reach new customers/markets
• Better serve existing customers
© 2016 John Wiley & Sons, Inc.
12
Summary
Strategic Approach
Key Idea
Application to
Information Systems
Porter’s generic
strategies
Firms achieve
competitive advantage
through cost leadership,
differentiation, or focus.
Understanding which
strategy is chosen by a
firm is critical to choosing
IS to complement the
strategy.
Dynamic environment
strategies
Speed, agility, and
aggressive moves and
countermoves by a firm
create competitive
advantage.
The speed of change is
too fast for manual
response making IS
critical to achieving
business goals.
© 2016 John Wiley & Sons, Inc.
13
Organizational Strategy
Organizational Strategy
• What is organizational strategy?
• Organizational design and
• Choices about work processes
• How do you manage organizational, control, and
cultural variables?
• Managerial Levers
© 2016 John Wiley & Sons, Inc.
15
Managerial Levers
© 2016 John Wiley & Sons, Inc.
16
Information Systems Strategy
IS Strategy
• What is an IS Strategy?
– The plan an organization uses in providing
information services.
• Four key IS infrastructure components
© 2016 John Wiley & Sons, Inc.
18
Information systems strategy matrix.
What
Who
Where
Hardware
The physical devices
of the system
System users and
managers
Physical location of
devices (cloud,
datacenter, etc.)
Software
The programs,
applications, and
utilities
System users and
managers
The hardware it
resides on and
physical location of
that hardware
Networking
The way hardware is
connected to other
hardware, to the
Internet and to other
outside networks.
System users and
managers; company
that provides the
service
Where the nodes,
wires, and other
transport media are
Data
Bits of information
stored in the system
Owners of data; data
administrators
Where the
information resides
© 2016 John Wiley & Sons, Inc.
19
Illustration in a Consulting Firm
What
Who
Where
Hardware
Laptops, servers to
store info and back
up laptops
Consultants have
laptops, managed by
the IS Dept.
Laptops are mobile;
servers are
centralized
Software
Office suite;
collaboration tools
Software is on
consultants’ laptops
but managed
centrally
Much resides on
laptops; some only
resides on servers
Networking
Internet; hard wired
connections in
office; remote lines
from home, satellite,
or client offices
ISP offers service;
Internal IS group
provides servers and
access
Global access is
needed; Nodes are
managed by ISPs
Data
Work done for
clients; personnel
data
Data owned by firm
but made available to
consultants as
needed
Resides on cloud
and copies “pulled”
into laptops as
needed.
© 2016 John Wiley & Sons, Inc.
20
One IS Strategy: Social Strategy
• Collaboration
• Extend the reach of stakeholders to find and connect with
one-another
• Engagement
• Involve stakeholders in the business via blogs;
communities
• Innovation
• Identify, describe, prioritize new ideas
© 2016 John Wiley & Sons, Inc.
21
Managing and Using Information Systems:
A Strategic Approach – Sixth Edition
Keri Pearlson, Carol Saunders,
and Dennis Galletta
© Copyright 2016
John Wiley & Sons, Inc.