Ch 1 The Information Systems (IS)
Strategy Triangle
IS Strategy Triangle - ANS-a simple framework for describing the alignment necessary
w/business systems and for understanding the impact of IS on orgs - relates business
strategy w/IS strategy & organizational strategy
highlights the alignment necessary btwn decisions regarding:
1. business strategy
2. information systems
3. organizational design
3 key points IS strategy triangle suggests: - ANS-1. successful firms have an overriding
business strategy that drives both organizational strategy and IS strategy - successful
firms must carefully balance all 3 strategies
2. IS strategy can itself affect and is affected by changes in a firm's business and
organizational design
- the business, IS, and organizational strategies must constantly be adjusted
3. IS strategy always involves consequences - intended or not - w/in business and
organizational strategies
- success can be achieved only by specifically designing all 3 components of the
strategy triangle so they properly complement each other
alignment - ANS-the situation in which a co.'s current and emerging business strategy is
enabled and supported yet unconstrained by technology
alignment is good but there are higher states, namely synchronization and convergence
synchronization - ANS-technology not only enables current business strategy but also
anticipates and shapes future business practice
convergence - ANS-goes one step further (than synchronization) by exhibiting a state in
which business strategy and technological strategy are intertwined and the leadership
team members operate almost interchangeably
, *alignment in this text means any of these 3 states & pertains to the balance btwn
organizational strategy, IS strategy, and business strategy
strategy - ANS-a coordinated set of actions to fulfill objectives, purposes, and goals
essence of a strategy is setting limits on what the business will seek to accomplish
starts w/a mission
mission - ANS-a clear and compelling stmt that unifies an org's effort and describes
what the firm is all about
- it's purpose
mission stmt - ANS-summed up in a few words what is unique about the firm
business strategy - ANS-a plan articulating where a business seeks to go and how to it
expects to get there
- the means by which a business accomplishes its goals
mgmt constructs this plan (the coordinated set of actions) in response to market forces,
customer demands, and organizational capabilities
- *market forces* create the competitive context for the business
- *customer demands* comprise the wants and needs of individuals and companies who
purchase the products and services available in the marketplace
- *organizational capabilities* include the skills and experiences that give the corp. a
currency that can add value in the marketplace
- i.e. Porter's generic strategy model; dynamic environment models
business models vs business strategy - ANS-some new mgrs confuse the concept of a
business models w/concept of a business strategy
- one of the components of the business strategy is the *business model*: the design of
how business will make money and how customers will get value from its products and
services
some might argue that a business model is the outcome of strategy
examples of common business models in the digital world: - ANS-*subscription:*
- customer pay a recurring fee for product/services
Strategy Triangle
IS Strategy Triangle - ANS-a simple framework for describing the alignment necessary
w/business systems and for understanding the impact of IS on orgs - relates business
strategy w/IS strategy & organizational strategy
highlights the alignment necessary btwn decisions regarding:
1. business strategy
2. information systems
3. organizational design
3 key points IS strategy triangle suggests: - ANS-1. successful firms have an overriding
business strategy that drives both organizational strategy and IS strategy - successful
firms must carefully balance all 3 strategies
2. IS strategy can itself affect and is affected by changes in a firm's business and
organizational design
- the business, IS, and organizational strategies must constantly be adjusted
3. IS strategy always involves consequences - intended or not - w/in business and
organizational strategies
- success can be achieved only by specifically designing all 3 components of the
strategy triangle so they properly complement each other
alignment - ANS-the situation in which a co.'s current and emerging business strategy is
enabled and supported yet unconstrained by technology
alignment is good but there are higher states, namely synchronization and convergence
synchronization - ANS-technology not only enables current business strategy but also
anticipates and shapes future business practice
convergence - ANS-goes one step further (than synchronization) by exhibiting a state in
which business strategy and technological strategy are intertwined and the leadership
team members operate almost interchangeably
, *alignment in this text means any of these 3 states & pertains to the balance btwn
organizational strategy, IS strategy, and business strategy
strategy - ANS-a coordinated set of actions to fulfill objectives, purposes, and goals
essence of a strategy is setting limits on what the business will seek to accomplish
starts w/a mission
mission - ANS-a clear and compelling stmt that unifies an org's effort and describes
what the firm is all about
- it's purpose
mission stmt - ANS-summed up in a few words what is unique about the firm
business strategy - ANS-a plan articulating where a business seeks to go and how to it
expects to get there
- the means by which a business accomplishes its goals
mgmt constructs this plan (the coordinated set of actions) in response to market forces,
customer demands, and organizational capabilities
- *market forces* create the competitive context for the business
- *customer demands* comprise the wants and needs of individuals and companies who
purchase the products and services available in the marketplace
- *organizational capabilities* include the skills and experiences that give the corp. a
currency that can add value in the marketplace
- i.e. Porter's generic strategy model; dynamic environment models
business models vs business strategy - ANS-some new mgrs confuse the concept of a
business models w/concept of a business strategy
- one of the components of the business strategy is the *business model*: the design of
how business will make money and how customers will get value from its products and
services
some might argue that a business model is the outcome of strategy
examples of common business models in the digital world: - ANS-*subscription:*
- customer pay a recurring fee for product/services
