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Report Reviewing the Strategic IS/IT and Organisational Implications of the Proposed Internet Investment.

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Introduction

Report Reviewing the Strategic IS/IT and Organisational Implications of the Proposed Internet Investment. 1.0 Introduction This report will discuss the strategic IS/IT and organisational implications of the E-commerce opportunity at Asda. I will be using Earl's Three Pronged Model1, consisting of a Top-Down, Bottom-Up, and Inside-Out strategic analysis to evaluate Asda's position. Also, included in this report will be a critique of Earl's model as a model, and as a choice in this situation. 2.0 Asda's E-commerce Opportunity in the Light of Earl's Model 2.1 Top-Down The implementation of this Top-Down approach will enable Asda to obtain a mission statement for the organisation. This will provide the management with a view for the future by looking at the business needs and objectives. This leg supports management in clearly defining their own mission statement by placing Asda's 'business into IS' (Earl 1989) focusing upon their own goals, objectives and customer needs. Asda's mission statement2 is very important enabling management to clearly identify and monitor the needs of their target market. The on-line shopping strategy will improve the shopping experience for a large part of their market, and achieves their objective of good customer service. ...read more.

Middle

and outside the organisation via environmental scanning to assess customer feedback with regard to services, products and deliveries. It will aid them to examine the requirements of Asda consumers in varied locations around the country, and realise an internal need for sufficient knowledge and training. Asda can use Benchmarking as tool, and set standards and procedures in comparison to Tesco. The success of Tesco direct is widely seen as confirmation that high street retailers can succeed in the e-commerce world by using their existing infrastructure to serve online customers. Tesco have always assembled online orders directly in local supermarkets, rather than from dedicated depots6. Asda also need to find out why Safeway, Somerfield and Budgens have all closed their in store picking systems and their online service, and also investigate how Iceland's combination of in store picking and warehouse picking works effectively. With the help of entrepreneurs and visionaries, Asda can be more aware of possible supportive innovation and technological movement within the market. 3.0 Critique of Earl's Model Earl's model is a useful tool as it looks at the organisation as a whole systematically, and provides insight on their situation. It can help provide clarification of Asda's business needs and strategy in IS use, evaluates the current IS provision and use, and provides innovation of new strategic opportunities afforded by IT. ...read more.

Conclusion

Hence, it does not seem to provide a tailored fit to the specific need of the business. The static nature of the model hinders the important assessment of frequent changes in the macro environment. 4.0 Conclusions Earl's model highlights significant benefits; it encourages Asda to maintain an independent clear business focus, supports the alignment of the organisations IS strategy with their existing corporate strategy as well as providing a consideration upon alternative offerings. Yet, major shortcomings are also illustrated by the models disregard for Asda's incapability to adjust to their specific requirements and lack of commendation for business nature understanding to enforce a competitive edge. Furthermore, there is no reference to maintaining the system, and future development. Earl's model has introduced many e-commerce opportunities for Asda, as it helps to produce a relevant, understandable business plan. As all Earl's 'legs' are connected together, it produces an achievable strategy for their picking method, which can be taken upon successfully with the usage of more research and communication. Although competitive advantage, and people issues are provided by Earl, they are not fully sufficient. Therefore, in order to carry out a more detailed and specific analysis, other tools will need to be used alongside Earl's model, such as; Porters Five Forces, Customer Relationship Management, Total Quality Management, and The Socio-Technical model. ...read more.

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