corporate information strategy and management
TRANSCRIPT
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Corporate Information Strategy and Management
Abstract
In today’s competitive world of business, everyone is adopting new
strategy and revisiting their strategy to stay ahead of their competitors. As
information technology has made advancement at many levels, its use at
business level may not be surprising but has varying effects. Some
companies that have integrated their strategy with information technology
have achieved their objectives at their desired level whereas some have
failed in their attempt to do so. This research aims to provide the impact of
IT integrated corporate strategy in the business organizations and to assess
its role during the difficult times recession.
Introduction
The scenario in the world of business is changing every now and then
with new entrants in the market making sincere attempts to make it to the
top. Any organization either to survive or compete in the industry needs to
re-formulate its strategy keeping in view the market condition and rivals.
According to Grant (Bowman, E.H and Helfat, C.E., 2001) business strategy
deals with the ways in which a single business firm or an individual business
unit of a larger firm competes within a particular industry market whereas
corporate strategy deals with the ways in which a corporation manages a
set of business together. Chew E.K. and Gottschalk, P. (2009) states that
strategy is about creating a competitively differentiated position to win
customers in the marketplace. Yannis and Treacy (1986) mentioned that
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senior executives, strategic planners and information system managers are
nowadays formulating policies to include information technology to achieve
competitive advantage in the industry market. The technology offers great
array of capabilities at lower costs that has motivated the companies to
utilize the technology for better decision making process. Information
technology is useful in trying to improve the efficiency and effectiveness of
current organization and out maneuver the others in the competition. The
components of corporate strategy, which include internal, competitive and
business portfolio strategy, are affected by information technology that
improves the efficiency of the firm’s operation. It has become necessary in
today’s competitive climate for every business organization to utilize the
information technology in its operations to achieve the objectives in
scheduled time. Therefore the present study intends to find the importance
of information technology as part of corporate strategy and its usefulness to
the management and also to evaluate its impact during the turbulent times
of recession when most of the companies were going bankrupt and filing for
liquidation.
Research Question
The present study is research on the importance of information
technology in corporate organizations and management in taking decisions
with regard to achieving the objectives through various literature reviews.
It is intended to study the impact of IT strategy in development of
company’s internal strategy and how it is useful in attaining its goals and
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objectives. Therefore, a short study will be carried out in one of the
organizations to study its corporate information strategy and how it is
effective in taking managerial decision making process.
Review of literature
Arquilla and Borer (2007, p.4) relating information strategy to history
mentioned that the first giant leap came with electrical telegraph that
allowed information to move at the speed which was unheard at that time.
And presently, Information Technology (IT) is referred to as wildcard in
business by Applegate et al (2008, p.1), a source of opportunity and
uncertainty, of advantage and risk. It is further stated that the evolution of
technology, work and workforce over the past 40 years has dramatically
influenced the concept of organizations and the industries and IT is not
considered as a back office transactions tool, it has become a strategic part
of businesses enabling the redefinition of markets and industries and
strategies and designs of firm competing within the them. It is further
stated that ability to achieve alignment among the environment, strategy
and capabilities is central to the creation of successful business model that
delivers value to all stakeholders. Casidy (Chew and Gottschalk, 2009, p.76)
opines that true strategic alignment is achieved when IS/IT strategy is
developed concurrently with business strategy so that it ensures that all IS /
IT activities provide optimal support for the business goals, objectives and
initiatives. It is further stated that IS/IT strategy is a combined strategy
including business context and business direction, strategies like mission,
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vision, objectives, knowledge strategy, applications like knowledge
management systems, people, organization and technology are all combined
elements of an IS/IT strategy. McFlaran (Applegate, 2008, p.35) suggested
that an organization’s portfolio of IT initiatives and projects should be
assessed along two key dimensions based on the impact on the business
operations and the impact on strategy. Lucas C.H. (2009, p29) stresses
upon the importance of management by reiterating the need to develop a
corporate strategy for organizing and deploying competencies which will
then act as road map in identifying those core competencies which need to
be build and their required technologies. Chew, E.K. and Gottschalk P.
(2009, p.84) further states the importance of IS/IT regarding achieving the
benefits of company, studying the hierarchical perspective of operational,
tactical, and strategic management, etc. Banerjee U.K. (2008, p.148)
mentioned that IT is fast becoming an integral part of overall business
planning, understood and managed senior and top levels for management
strategizing and policy making. It is further stated that IT can operate as
catalyst helping in achieving the fundamental changes in managing
business. The technologies are utilized to forge new kinds of strategic
actions like electronic alliance and relationship marketing involving
databases and analysis on clients, industry, products, prices, markets and
quality. The use of IT in business and industry has increased rapidly due to
its utility factors like providing data and other information related to
production, market, sales, workforce, etc. helping the computer – numerate
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managers and executives in decision making process. The impact of IT can
be understood from the fact that during 2003, on an average companies
spend 4 percent of their revenues on IT and in United States, 40% of IT
investments are not sufficient to realize the goals of country. The number
further increases as Applegate mentions that $148 billion was purchased on
software purchases, $40 billion on custom built software for insiders and
additionally $40 billion for software that will be used by outside parties.
(Applegate, 2008, p.35)
According to Lucas (2009, p.29) management must combine corporate
wide technologies and production skills into competencies for competitions
that are the collective learning in the organization about how to integrate
multiple technologies and coordinate diverse production capabilities. The
core competencies which are identified should be able to provide access to
a wide variety of different markets, make a significant contribution to the
end product and must be difficult to imitate. Applegate (2008, p.41) has laid
much importance on assessing whether IT can change the basis of
competition, nature of relationships, the balance of power among buyers
and suppliers, build or reduce barriers to entry, increase or decrease costs,
and whether it can add value to the existing products and services which is
nothing but a PESTLE analysis regarding the use of IS/IT in the business.
Further, relating the organizations to information processing systems,
Applegate (2008, p.42) mentions those limitations in vertical and horizontal
information processing capacity directly influences the range of
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organizational choices available to managers facilitating them to execute
strategy.
The literature review presents a broad understanding of the use and
importance of Information Technology (IT) in the decision making process
by the management in the business. The advancement of technology and
competition in the market has motivated the management to include the
information technology its corporate strategy so as to enable quick and
correct decision making based on accurate data and information. Though
the review rightly presents a broad overview of the importance of IT in
corporate strategy and the management process, it is necessary to extend
the study to gather information regarding its utility and effectiveness during
the recession when most of the companies were filing for liquidation.
Research Methodology
Ranjit Kumar (2005) states that there are several ways to find
answers to professional questions depending on the methods ranging from
fairly informal which are based upon clinical impressions, strictly scientific,
adhering to the conventional expectations of scientific procedures. Research
is one of the ways to find the answers which are undertaken within a
framework of a set of philosophies using procedures, methods and
techniques that have been tested for their validity and reliability which is
designed to unbiased and objective.
Research methodology is the path to finding answers to the research
questions by choosing from a multiplicity of methods, procedures, models
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which helps in achieving the objectives of research (Ranjit Kumar, 2005).
John W.C. (2003) emphasis on using mixed methodology which includes
quantitative as well qualitative, as individually these methods fall short of
major approaches that is been used today in social and human sciences.
Qualitative methodology is used to gather information through survey that
provides answer to the research question and provides valuable insights in
the area of research from the organizations perspective. Whereas
Quantitative methodology is also employed to gather information from
maximum respondents as far as possible as the issue is related to the use of
information strategy in management processes and gathering information in
quantum will lead to appropriate analysis with regard to research question.
Therefore, qualitative as well as quantitative methods are employed for the
purpose of this research.
Frowler (2002) mentions the situations where goal of the information
gathering is not about data generation of population but to describe a set of
people in a more general way. The researchers carry out pilot studies to
measure the range of ideas, views and opinions about the topic which may
vary from people to people. The systematic sampling method has been used
for selecting the number of respondents to be surveyed so as to complete
the research. The present research is carried out to evaluate the
performance and impact of strategy on the overall business. The sample
selected for this study comprises of 20 Managers throughout the
organization, 2 senior executives, review of their corporate strategy with
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regard to information technology. Further the process of coding or data
reduction is explained which involves five separate phases like deciding on
a format, designing the code, coding, data entry, and data cleaning.
Accordingly the collection information will be analyzed to derive answer to
the research question and arrive at a conclusion.
The research undertaken is type of human experimentation which is
any manipulation, test or procedure of an experimental nature performed
on a human being as a part of scientific or social science investigation.
(Deni and Judy, 1997) As the present study is related to the strategy of
particular company, it is necessary that research ethics are fully complied
during the process. Therefore consent will be obtained from the top
executives in the company and utmost transparency will be maintained
while conducting the survey by explaining the reason for survey to everyone
surveyed for the purpose of data collection. Further strict confidentially
need to maintained on the individual information as well as company’s
collective information and assurance may be provided on not using the
information other than to derive answer for the present study. (Gregory I,
2003)
Therefore using the above methodology, the researcher attempts to
study and evaluate the performance of corporate information strategy in the
management process during the turbulent times of recession and to
document findings. In spite of certain constraints like finance and time, the
researcher intends to conduct the study on the above research question.
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Project Plan
As the research is an attempt to study the corporate strategy, a
company which has good number of branches at various locations will be
good for the purpose of research. Therefore, an organization will be
selected to investigate in detail regarding its corporate information strategy
and the importance of IT in management process. It is assumed that more
than 20 managers will be interviewed with their due consent and also
atleast five top level managers regarding the strategy and how they
managed during the recession period and was IT of any use during this
period. Later the collected data will be compiled, analysed and documented
along with secondary data compared with the literature review as well to
identify the solutions for the research question.
Time Frame
Study of various literature and documentation – 45 days
Primary Data (Survey and Interview) - 15 days
Data Analysis - 5 days
Final Documentation and Findings 10 days
References
1. Applegate, L.M., Austin, D.M. and McFarlan, F.W.(2008) Corporate Information Strategy, 5th Ed., Tata-McGraw Hill, United States.
2. Arquilla, J and Borer D.A. (2007) Information strategy and warfare: a guide to theory and practice, Routledge.
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3. Bowman E.H and Helfat C.E. (2001) Does Corporate Strategy Matter? Strategic Management Journal, Vol, 22, No. 1, John Wiley & Sons, pp. 1-23
4. Chew E.K and Gottschalk, P. (2009) Information Technology Strategy Management: Best Practices, Idea Group, United States.
5. Deni Elliot and Judy E Stern (1997) Research Ethics – A Reader, UPNE, USA
6. Frowler J.F. (2002) Survey Research Methods, Vol. 1, Ed 3, Sage Publication.
7. Gregory Ian (2003) Ethics in Research, Continuum Research Methods Series, Continuum International Publishing Group.
8. John W.C. (2003)Research Design: Qualitative, Quantitative and Mixed Method Approaches, ed. 2, Sage Publications.
9. Lucas. H.C., (2009) Information Technology: Strategic Decision Making For Managers, Wiley-India
10. Ranjit Kumar (2005) Research Methodology: A Step by step guide for beginners, Ed. 2 SAGE Publications, India.
11. Utpal Kumar Banerjee (2008) Management strategy for information technology, Concept Publishing Company
12. Yannis B.J and Treacy M.E. (1986) Information Technology and Corporate Strategy: A Research Perspective, MIS Quarterly, Vol, 10, No. 2, Management Information Systems Research Centre, University of Minnesota, pp. 107-119
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