Technology strategies include hardware and software (software is discussed later), the hardware side of this strategy takes a look at components like; computer servers, computer client (PC dumb terminal), printers, networking, components of a network like LAN (Local Area Network) WAN (Wide Area Network) or intranet. Also you have to think of components like the role of the internet, e-commerce, extranet.
Not only do technology strategies consist of hardware/software but also clerical (manual) processes, when combined they mutually enhance each other which is the overall aim of technology strategies. A technology strategy document is usually designed to be read by non-technical stakeholders involved in business planning within an organisation. It should be free of technical jargon and information technology acronyms.
There are many types of strategy for technology which are used to maintain and control a business, a server would hold information which needs to be secure, information is one of the most important factors of a successful business so the security of this is very important, security could be physical (locked doors, closed circuit television etc) or software, where a password would be needed to access the information.
Another technology strategy consists of whether you are going to have an ‘in-house’ or ‘external provision’. In house would be a department which would build the whole infrastructure of the information systems within the business, this centralised department would be responsible for maintaining all of the systems to ensure efficient productivity. External provision also known as ‘de-centralised’ are very similar to outsourcing where another company would be used to build and maintain the businesses system, this choice has many advantages but could be very difficult to gain contact of personell due to their amount of clients not to mention it’s more expensive than ‘in-house’.
Chapter 4 - Information strategies
Information strategies are the backbone of a successfully run business, it is believed that information strategy is a ‘living document’ that needs to be reviewed quarterly, measured against and modified if necessary, information strategies are an organized blue print for capturing, processing, integrating, delivery and presentation of information in a clean, consistent and timely manner. All information in an organisation should meet a certain quality, this strategy is essential if an organisation wants to find a piece of accurate and qualified information fast and easy. Information is an organisational asset and should be maintained as such. This strategy enables the capture, cleanse and integration in a central repository which is then delivered to an internal or external user in a clean, consistent and timely manner. This asset adds major value to any business with its accessibility and accuracy but like any asset it depreciates over time therefore needs to be governed. A strategy is needed to capture, store, govern and deliver all information to the internal or external user of this information. An information strategy should be recognized as an asset and therefore should be managed as one, governance policies need to be set to protect information from unauthorised access and removal. There are a lot of roles needed to manage the information within an organisation, these roles are filled by one or more people, here are some examples of roles needed: information strategist (provides strategic direction), information steward (enterprise’s information specialist in areas such as finance, product, customer or vendor), information architect (maintains the enterprise model ensuring redundancies in the enterprise model are minimized), metadata specialist (responsible for capturing, maintaining, distributing information), information quality specialist (provides best practices, pitfalls and direction – this person is missing in most businesses and is essential to maintain quality information).
Information strategy also needs to identify the areas an organisation needs to focus on whose process entails the following focus areas: master data management (MDM), data integration, information quality, business intelligence (BI), enterprise contact management (ECM), knowledge management (KM) and competitive intelligence (CI). In a whole information strategies are very important in a business to provide an insight into future trends and gain a competitive edge in the market today.
Chapter 5 - Business Strategy
A business strategy is an analytical management tool or blueprint that is used for planning the future path of the business for how you intend it to succeed. It is what’s embedded or included in your strategic plan, which is a result of the analysis, thinking and organisation of the strategic plan process. It will address both the internal and external business environments, the approach to competition, vision and also the allocation of company resources and calls on strong commitment in its formulation and execution. To create a sound business strategy you must have a realistic understanding of the business realities and ‘encapsulate a statement of an organisations mission or vision so that there is a clear and consistent point of focus’ (king 1987). A business strategy provides the ability to understand competitive complexities through a systematic approach with competitive advantage as its aim, both the internal and external environment needs to be evaluated to determine a position and market approach. It should define the path to be taken with a concise plan of action to accelerate any change in the current state, it should also include key performance and outcomes to determine if the strategy is successful.
Chapter 6 - Business Software
The term ‘Business software’ covers a whole range of packaged or bespoke application software, this software helps the business increase or measure productivity. Business application software covers a large variation within the business environment. Typical business software would include a whole range of product to suit the job needed, example: a businesses server could be running Microsoft windows small business server and the payroll could be using sage 50 forecasting, this software is capable of forecasting information from the given data helping companies extensively by providing them with accurate and sufficient information, sage 50 also provides a “what if?” scenario helping the business see the impact of a potential decision made, this would be a great asset to any business.
Here is a list of typical business software with a brief explanation of it’s functionalities:
Flexiserver management software - automatic employee time attendance logging. It also features additional tools for quality assurance monitoring and reporting, and works perfectly with home or remote working staff.
Express inventory - Manage stock, procurements and reporting
HourGuard - Keep track of how long you are spending on tasks
Fling – ftp software to automatically upload files
Filefort – reliable file backup software
MEO – encrypt and decrypt files and keep data secure
Express talk – make phone calls using your pc
VRS – record and log calls
Those are just a few examples of the thousands of software that are available for a business, choosing which software to use in the business depends on what tasks you need to complete or achieve.
Most business software can be summed up into different categories, each category could have an endless choice of different packaged software that will be suffice to accomplish the tasks needed, typical categories are:
Online analytical processing – features management, decision support and executive IS which inspects data from many different perspectives.
Business performance management – help optimize a businesses performance via automation and analyzing methodologies and processes.
Digital dashboards – visually based summaries of organisations data
Reporting software – generates aggregated views of data keeping management informed on the businesses assets.
Data mining – analyzing customer data to find latest trend information
Chapter 7 - Business Software Types
There are several types of business software which are used to gain a competitive edge on the market, such types include:
Application (business) software provides functionality to automate a business process for increased efficiency and accuracy.
Operating system (server and client side) used to control the work of a server/client within a multi-tasking environment.
Network software is used to allow provision of an electronic function to enable or control the fast, efficient and accurate delivery of data and information.
File management (database) software (DBMS) is used to organize data and control access to it within a storage capacity (database).
Office software is essential to aid in the daily chores of office work.
End-user query language enables clients to write their own programs to enable them to access their data, and finally
software security that backs up data in a secure state and provides security.
Business software is acquired to meet new business requirements, this software can be acquired by two methods, either in-house development or a packaged solution. An in house development comprises of the company employing its own systems analyst, programmers and client staff to specify, design, develop and implement a business software solution, this is often described as a tailor made solution.
A packaged solution is obtained from an external supplier, it is very unlikely to fit the exact specifications needed but can be a cheaper option, the correct term for this option is external procurement.
Business software packages control, filter, analyze and present Information either on screen or in printed form enabling the organisation to utilise, incorporate and exploit such information to dynamically ctreate a robust business in today’s market.
Chapter 8 –
Relationship between business software and various strategies
The information strategy is an important factor in business strategic planning, the work of Ives & Learmonth (1983), Wiseman & MacMillan (1984) and potter & miller (1985) has led to wide acceptance of the idea that information systems do not merely facilitate existing business practices but may themselves shape the business, be used to secure competitive advantage or required through competitive necessity. I think they can sometimes cause restriction of freedom of action, otherwise business plans could be ruled out by the inability to create new, or modify existing information systems to support them. An example of this is in the late 1980’s when it was widely reported that a planned merger between two UK mortgage lenders had to be abandoned due to the incompatibility of their computer systems. I think we have entered a new era of IS use, where businesses are critically dependant upon their investment in information system and IS/IT planning. “A business has crept unerringly away from the computer room, through the IS department and is now clearly a process that depends on users and senior management involvement for success. Hence, it is important to use the tools and techniques of business strategic analysis and planning to cement that relationship. More specific IS/IT planning approaches have to be knitted into this pattern of business strategic management.” (Simon and Schuster 1980) Also there is this quote from Galliers (1991) “while it is invariably argued that SISP (strategic information system planning) should be closely associated with the business planning process (if only part of it), it is still too often the case that the link is tenuous at best, with the two processes being undertaken in isolation from each other and with little business planner involvement in SISP and vice versa “(p. 60). I think part of the reason for this may be that information system professionals and business planners often view the organisation through different mental models. The alignment of software and various strategies have been recognized as a crucial factor for an organisation to gain a competitive advantage in today’s corporate environment, All the elements of the strategic triangle & business software interact with each other in both the internal and external business environment, the technology strategy needs good solid information from the information strategy to enable the business strategy to have good development to provide a solid backbone for a successful business.
The strategy triangle (shown below) is a hierarchical structure which is split into 3 different fields, the foundation of the pyramid consists of technology strategy, above that is information strategy and finally on the top is business strategy. The technology strategy would suggest that with information combined it becomes two thirds of a complete business, the major reason for having an information strategy is the business mandate for it, business groups have become very savvy in accessing, manipulating and utilising information and they demand it to be available, complete and accurate therefore with business strategy at the top, this would complete the whole system. But they definitely all accentuate one another to produce an efficiently run business whether its small or large.
Chapter 9 - Conclusion
I believe that the alignment of business software and an organisation’s various strategies translates into both tangible and intangible benefits both internally and in the market place. Alignment between the hierarchical relationships in the strategic triangle suggests that IT strategy tends to be driven by business strategy allowing the exploitation of IT functionality to achieve business goals. Building a process that promotes clarity and consistency and having a formal communication process between the business and IT decision makers is challenging yet essential and rewarding. I believe that all strategies in the triangle depend on each other in order for a business to be a successful competitor in today’s market.
References
David, F (1989). Strategic Management. Columbus: Merrill Publishing Company. p122-123.
James M Matarazzo (1994). Information for management : a handbook. Washington, D.C: Special Libraries Association. p45-46.
King, W.R (1978). Strategic planning for management information systems. 2nd ed. Boston: MIS Quarterly. p27-37.
Simon and Schuster (1980). Top management strategy : what it is and how to make it work. New York: National Association of Business Economists. p34-35.
Bibliography
Baets W. (1992). Aligning Information Systems with Business Strategy. J. Strategic Inf: Sys. p205-213
Bergeron F. & Raymond L. (1992). Planning of Information Systems to Gain a Competitive Edge. J. Small: Bus Management. p21-26
Clemons E.K. (1986). Information Systems for Sustainable Competitive Advantage Information & Management. p131-136
David, F (1989). Strategic Management. Columbus: Merrill Publishing Company. p122-123.
Galliers R.D. (1991). Strategic Information Systems Planning: Myths, Reality and Guidelines for Successful Implementation. Eur. J: Inf. Syst. p55-64
Ives B. & Learmonth C.P. (1984). The Information System as a Competitive Weapon Commun: ACM 27, p1193-1201
James M Matarazzo (1994). Information for management : a handbook. Washington, D.C: Special Libraries Association. p45-46.
King, W.R (1978). Strategic planning for management information systems. 2nd ed. Boston: MIS Quarterly. p27-37.
Simon and Schuster (1980). Top management strategy : what it is and how to make it work. New York: National Association of Business Economists. p34-35.
Wiseman C. & Macmillan I. (1984). Creating Competitive Weapons from Information Systems. J. Bus. Strat p33-35
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