Lecture Business management information system - Lecture 10: Planning the sense-and-respond approach of strategy-making. In this chapter, the following content will be discussed: The traditional view of planning with the sense-and-respond approach of strategy-making, presenting seven IS planning techniques, seven planning techniques, skandia future centers, shell oil.
Planning The sense-andrespond approach of strategy-making Lecture 10 Today lecture n The traditional view of planning with the sense-andrespond approach of strategy-making, presenting seven IS planning techniques n Case examples include ă Skandia Future Centers ă Shell Oil, SKANDIA FUTURE CENTERS Case example: Formulate Strategy Closest to the Action n Skandia Future Centers (SFC), located in Stockholm, Sweden, is an incubator for testing ideas on IT, social relationships, and networking for the Skandia Group, the 150-year old giant Swedish financial services company n The center acts as an inspirer and advisor to those who the strategy making within Skandia SKANDIA FUTURE CENTERS Case example: Formulate Strategy Closest to the Action n The center was created in 1996 by Leif Edvinsson to give Skandia a laboratory to break out of its current ways of thinking and to provide a place where different generations can collaborate on on-the-edge projects n The mission is to explore five key driving forces of the business environment: SKANDIA FUTURE CENTERS Case example: Formulate Strategy Closest to the Action n The European insurance market, demographics, technology the world economy, and organization and leadership n goal is to devise a vision of the company’s future SKANDIA FUTURE CENTERS Case example: Formulate Strategy Closest to the Action 3-Generation Teams: n One of the first concepts used at the center was 3G teams, getting three generations (25+, 35+, 45+) to work together n The teams were part-time and cross-cultural; coming from Venezuela, Germany, Sweden, and the United States n The participants were chosen by peers as well as nominated from different parts of the company n n n SKANDIA FUTURE CENTERS Case example: Formulate Strategy Closest to the Action “When you ask for answers, you get a debate When you focus on questions, you get a dialog,” says Edvinsson Based on their questions, participants arrived at a number of interesting contexts for the questions, such as the evolution of the financial community around the world and the evolution of IT These contexts were presented to 150 Skandia senior executives, not through a report, but through scenarios of these five future environments performed by professional actors in a theater play SKANDIA FUTURE CENTERS Case example: Formulate Strategy Closest to the Knowledge Café: Action n n n n The play led to the first knowledge café among the 150 executives The café was created by one of the 3G teams and a few of the executives At the café, the 150 gathered for one hour around standup tables at different Skandia sites Each table had coffee and a laptop loaded with groupware software from Ventana Software SKANDIA FUTURE CENTERS Case example: Formulate Strategy Closest to the Action n The entire project was videotaped and sent to a larger community, along with the questions and a video of the play and the café n The goal of this project was to show the power of collective intelligence SKANDIA FUTURE CENTERS Case example: Formulate Strategy Closest to the Action n The knowledge café accelerated innovation at Skandia, transforming it into an innovation company n The effect has been demonstrated by Skandia’s growth, to become a global innovative financial service company Today’s Sense-and-Response Approach cont q Roger Woolfe and his colleagues recommend that IT experiments include those that test painful infrastructure issues, such as how to create and maintain common, consistent data definitions; q How to create and instill mobile commerce standards among handheld devices; how to implement ecommerce security and privacy measures; and how to determine operational platforms, such as ERP and SCM Seven Planning Techniques q Due to the importance and the difficulty of systems planning, it is valuable to use a framework or methodology q A number of techniques have been proposed to help IS executives a better job of planning Seven Planning Techniques n The seven presented here take different views of IS planning, including n IT in organizations, defining information needs, understanding ¨ ¨ ¨ The competitive market, categorizing applications into a portfolio, mapping relationships, and surmising about the future Seven Planning Techniques Stages of Growth Critical Success Factors Competitive Forces Model Value Chain Analysis Seven Planning Techniques E-business Value Matrix Linkage Analysis Planning Scenario Planning Stages of Growth n Richard Nolan and Chuck Gibson observed that many organizations go through four stages in the introduction and assimilation of a new technology Stage 1: Early Successes The first stage is the beginning use of a new technology Although stumbling occurs, early successes lead to increased interest and experimentation n Stages of Growth conti n Stage 2: Contagion ă q q Based on the early successes, interest grows rapidly as new products and/or services based on the technology come to the marketplace They are tried out in a variety of applications; growth is uncontrolled and therefore rises rapidly This proliferation stage is the learning period for the field, both for uses and for new products and services Stages of Growth n Stage 3: Control q Eventually it becomes apparent that the proliferation must be controlled q Management begins to believe the costs of using the new technology are too high and the variety of approaches generates waste q The integration of systems is attempted but proves difficult, and suppliers begin efforts toward standardization Stages of Growth conti n Stage 4: Integration ă ă ă At this stage, the use of the particular new technology might be considered mature The dominant design of the technology has been mastered, setting the stage for newer technologies, wherein the pattern is repeated An organization can be in several stages simultaneously for different technologies Stages of Growth … n Example (Figure 4-5): ă DP Era ă Micro 1960 early 80s era early 80s late 90s ă Network era late’90s – 2010? Stages of Growth cont n The eras overlap each other slightly at points of technology discontinuity ă Proponents of the proven old dominant design struggle with proponents of the new and unproven designs n ‘Inevitably’ the new (proven) win out n Importance of the theory is understanding where a technology or company resides on the organizational learning curve ă e.g too much control at the learning and experimentation stage can kill of new uses of technology Stages of Growth n Management principles differ from stage to stage n Different technologies are in different stages at any point in time Stages of Growth ă Management needs to tolerate, even encourage, experimentation ă Because the management principles differ from one stage to another, and because different technologies are in different stages at any point in time, the Stages of Growth model continues to be an important aid to the systems planning process summary n Seven Planning Techniques n Case examples include Skandia Future Centers ă Shell Oil ă ... the head of the FSC was appointed as Chair Professor of Intellectual Capital at the University of Lund, Sweden n Looking at the future, Edvinsson reckons that the success of the firm of the future...Today lecture n The traditional view of planning with the sense-andrespond approach of strategy-making, presenting seven IS planning techniques n Case examples include... n n n n The play led to the first knowledge café among the 150 executives The café was created by one of the 3G teams and a few of the executives At the café, the 150 gathered for one hour around