Escolar Documentos
Profissional Documentos
Cultura Documentos
(Group #21)
For the Partial fulfillment of the Requirement for the Course Strategic
Management IT (SMIT/IV2031)
1
Table of Contents
Page
Acknowledgement----------------------------------------------------------------------------------
------------------3
Executive
Summary----------------------------------------------------------------------------------------------
-----4
CHAPTER
ONE-----------------------------------------------------------------------------------------------------
----5
1. Introduction-------------------------------------------------------------------------
-----------------------------5
1.1 Background----------------------------------------------------------------------------------
----------------5
1.2 Research
Questions-------------------------------------------------------------------------------------
---6
1.3 Purpose of the
Study---------------------------------------------------------------------------------------6
1.4 Audience of the
Study-------------------------------------------------------------------------------------7
1.5 Scope of the
Study----------------------------------------------------------------------------------------7
1.6 Limitation of the
Study-----------------------------------------------------------------------------------7
CHAPTER
TWO-----------------------------------------------------------------------------------------------------
--8
2
2. Research
Methodology------------------------------------------------------------------------
---------------8
2.1 Case Study
Research---------------------------------------------------------------------------------------8
2.2 Data
Collection-----------------------------------------------------------------------------------------
----10
2.3 Analysis and
Presentation-------------------------------------------------------------------------------11
2.4 Validation of
Results-------------------------------------------------------------------------------------11
CHAPTER
THREE--------------------------------------------------------------------------------------------------
---12
3. Literature
Review--------------------------------------------------------------------------------
-------------12
3.1 The Role of IS/IT in Business and organizational
Strategy-----------------------------------12
3.2 Business IT
Alignment---------------------------------------------------------------------------------13
3.3 Impact of IT on Business and
Strategy-------------------------------------------------------------15
3.3.1 Impact of IT on Business
Operations---------------------------------------------------------16
3.3.2 Impact of IT on
Strategy-------------------------------------------------------------------------16
CHATER
FOUR----------------------------------------------------------------------------------------------------
----19
3
4. Results and Analysis and Presentation of
results----------------------------------------------------19
4.1 Overview of the Case Company: Svenska Resenatverket
---------------------------------------19
4.2 Results----------------------------------------------------------------------------------------
--------------19
Acknowledgement
First of all we would like to acknowledge the course teaching team: Dr. Lazar
Rusu, Mohamed EL-Mekawy, Georg Hodosi and Haleh Mardanian for their
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inspiration and guidance when we are doing on this project. They have been
at our disposal for every help and advices we need. We like to use this
opportunity to thank you all.
We want to extend our thanks to Mickeal Robertson, CEO and the IT project
manager, Björn Höglind, of Svenska Resenatverket for taking their time and
willingly answering our Interview questions.
Group 21 Members
Executive Summary
6
the ways organization design their business processes, structures, strategies
and missions which are supported and sometimes even driven by IT
applications. To harvest this and many more benefits from the IT/IS,
organizations are aligning their business strategies with their IT strategies
and develop and maintain critical IT application to this end.
Chapter One
1. Introduction
7
1.1 Background
8
The report is structured into five chapters where chapter one is
introduction, chapter two is the part where we defined the methodology we
employed in conducting the study, chapter three is the literature review,
Chapter four is Analysis and presentation of study results. Conclusions are
made and recommendations are also forwarded in chapter five of the report.
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1.4 Audiences of the Study
This Study is done as part of academic exercise but the output from
the study could be used by the case organization in their endeavors of
making use of IT in their different business processes and help them improve
the already existing ones. They could be considered as the audiences of our
study as the output could help them at the end of the day. Of course, as
academic exercise, the course instructors and supervisors are our audiences
as they evaluate it from different perspectives; fellow classmates could also
be considered our audiences as the output will be presented to them and
they might learn from this study or further enrich it.
1.5 Scope of the Study
The scope of the study is limited only to exploring strategic use of IT in
the case company, Svenska Resenatverket. We limited our study only to
Svenska Resenatverket to make the project manageable within the time
framework of the study. Otherwise, we firmly believe that studying Strategic
use of IT in diversified organizations could help to investigate thoroughly how
organizations are using IT and for what purpose, how it varies from
organization to organization, etc.
1.6 Limitations
We believe that this is a big project of great importance where by
students can get hands on experience of research in IT. It is our firm belief
that it needs to be done in large organizations to get well informed
information about the subject areas that need to be covered in the project.
One of the limitations that we faced is that the interviewees are not up-to-
date of those book terminologies which we must have to use in our interview
questions which have got impact on the amount of information we got from
the interview. Thanks to the methodology we use, we manage to clarify
issues on the spot to get the required information.
The other limiting factor worth mentioning here is the mobility of
members from the group which forced us start working after some time. This
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has got its own limitations in the phases of the projects like submission of
progress report.
Chapter Two
2. Study Methodology
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Different authors gave different types of case study research that one
need to choose from based on the purpose of the research. In the list of
different types of case study research are: Explanatory, Exploratory,
Descriptive, and Multiple, Intrinsic, Instrumental and collective case study
research [10]. “Yin categorizes case studies as explanatory, exploratory, or
descriptive. He also differentiates between single, holistic case studies and
multiple-case studies while Stake identifies case studies as intrinsic,
instrumental, or collective” [10]. Definition of what each of these types
mean is given in table 1 below.
Primary Sources
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Interview Questionnaire is used to collect data from the case company,
Svenska Resenatverket. We used open format questions as major data
collection technique from the concerned personnel in the sections mainly
from the CEO, who is also in charge of the Business processes of the
company and the CTO. This gives the respondent the opportunity to express
their feelings and opinion which we believe helped us get true, insightful and
even unexpected suggestions.
Interview Questions are used to collect data about what IT applications
are there in the company, how IT is used in their business processes, how
they manage IT functionalities, Strategic use of IT, Problems they face in the
use of IT, Business and IT alignment, etc.
Secondary Sources
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2.4 Validation of Study Result
Chapter Three
3. Review of Literature
We are living in the age where information is the only source for taking
decisions in any organization for making it successful. IT is playing an
important role in designing different business models. “Designing a
business process is largely a matter of diligence and creativity. Emerging It
technology however are beginning to facilitate the process of process design
some computer aided systems engineering (CASE) products are design
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primarily to draw process model”[13]. Business study drive both information
and organization strategy and for successful business strategy both
organizational and IS should be strong. The firms’ IT infrastructure support
their organizational structure; the software, hardware, and the network
design they implement will unilaterally decide whether they will be able to
get market competitive advantage or not.
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“Strategic alignment focuses on the activities that management
performs to achieve cohesive goals across the IT and other functional
organizations (e.g., finance, marketing, H/R, manufacturing)” [6]. Business IT
alignment is the application of IT in a given business processes in harmony
with the business goals, objectives and needs, which addresses two fold
Optimized
questions: the question of how IT is aligned with Processes
business and how the
business could and should be aligned with IT [6].
Level 3
Level 2
Level 1
Level 1
According to Luftman (2000), companies whose business-IT alignment is
judged to this level is said to have the lowest level of Strategic alignment
maturity.
Level 2
Companies that achieved the maturity level of committed process are
recognized as having committed to begin the process for strategic alignment
maturity (Luftman, 2000). It can’t be said that companies at this level of
maturity meet business-IT alignment for it requires for the business and IT
folks to be fully aware of the different uses of IT in business (Luftman, 2000).
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Level 3
Companies that meet this level of maturity achieve an established and
focused Strategic alignment maturity which focuses on specific business
objectives (Luftman, 2000).
Level 4
This level of maturity is where companies have a managed strategic
alignment maturity. The improved/managed process level of maturity
requires firms to have a managed strategic alignment maturity which shows
good governance and services (Luftman, 2000). The roles that IT plays at
this maturity level firm are to support the enhancements of business process
to attain sustainable competitive advantage and to contribute to business
success in an innovative and imaginative ways (Luftman, 2000).
Level 5
Companies that reach Level 5 maturity level is defined as having an
optimally aligned strategic alignment maturity (Luftman, 2000). Companies
or firms that achieved this level of maturity often achieve integration
between the IT strategic planning process and the strategic business process
through a sustained governance process (Luftman, 2000).
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resource requirement. Fulfilling priorities and resources tightly will achieve
goals and performance targets. So, project portfolio is an important issue for
organizational formation. McFarlan suggests that project portfolio can be
assessed with two key dimensions: 1. the impact on business operations 2.
the impact on strategy. Depending on the alignment of IT to strategy and
business, organization can be placed in one of four quadrants: a. support b.
factory c. turnaround d. strategic
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improvements. It is needed to improve a firm’s cost profile but small impact
in the whole industry.
21
Figure 3: McFarlan’s Strategic Grid [12]
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Chapter Four
Under this part of the report, we presented the study result and the
analysis of the results. These are the findings that we got as a result of the
Interview we made with the CIO and CTO of the company. Before we go into
this, of course the company’s historical background is presented.
4.2 Results
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• The knowledge of the IT People is the main factor based on which they
define what technology to use.
• The company is operating in Sweden but has got basis in Britain.
• IT plays a vital role as they don’t exist without IT.
• IT decisions are made daily.
• Most of the IT costs of the company are advertisement on Google.
• There is quite good understanding between the IT and the Business
folks.
• There is good communication between the company and other
partners.
• They make decisions all together.
• There is no defined ways of evaluating projects after completion.
• IT supports the business Strategy.
• The staff has got the required skills.
• The IT and Business Staff has got very good understanding of each
other.
• The Most critical Application is flightradar24.com
• The IT Business alignment maturity level of the company is at level 3+
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4.3.1 Analysis of IS/IT in Business and
organizational Strategy in Svenska
Resenatverket
For questions we raised as part of assessing the role of IT/IS in the
business and organizational Strategy at Svenska Resenatverket, the CEO
explained that the company is based on IT and their very existence depends
on IT. Accordingly, IT is not only supporting their business but also driving
their business. It is found out that the company has got a structure which
they are satisfied of in that it helps them achieve their business objective.
The IT strategy emanates from the business strategy in the sense that it
supports the company’s business goal.
We have posed questions to both the CEO and CTO to know how their IT and
Businesses are aligned in a way of addressing the 6 components that are
used to measure business IT alignment stated by Luftman (2000). Here
under, before presenting the analysis, we found it important to refresh what
these 6 components are and show the elements that are under each
component that directly or indirectly helps us measure the IT-Business
alignment maturity level of a firm. What is really there at our case company,
Svenska Resenatverket? But before we go into the specific situation at
Svenska Resenatverket, it is necessary to show up the pictorial dipction of
the elements in each component and see how they interact.
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COMMUNICATIONS GOVERNANCE
COMPETENCY/VALUE
Understanding of MEASUREMENTS Business Strategic
Business By IT Planning
IT Metrics
Understanding of IT by IT Strategic Planning
Business Business Metric
Reporting/
Inter/Intra- Balanced Metric Organization
Organizational Structure
Learning Service Level
Agreements Budgetary Control
Protocol Rigidity
Benchmarking IT Investment
Management
Knowledge Formal Assessments/
Sharing reviews Steering
Committee(s)
Liaison(s) Continues Improvement
effectiveness Prioritization Process
SIX IT BUSINESS
PARTNERSHIP
SCOPE &ALIGENMENT
ARCHITECTURE SKILLS
Business PerceptionMATURITY CRITERIA
of IT Value Traditional Innovation,
Enabler/Driver, External Entrepreneurship
Role of IT in
Strategic Business Standards Articulation Locus of Power
Planning Architectural
Integration: Management Style
Shared Goals, Risk,
Rewards/Penalties -Functional Change Readiness
Organization
IT Program Career crossover
Management -Enterprise
Education, Cross-
Relationship/Trust -Inter-enterprise Training
Style
Architectural Social, Political
Sponsor/Champion Transparency Trusting
Environment
Flexibility Managing
Figure ion(s)
2: effectiveness
Strategic Alignment Maturity Criteria (Luftman,
Emerging Technology
2000)
Being described by these components highlighted in the picture above, it is
possible to describe where a given company is with regards to the level of IT-
Business Alignment maturity it has achieved.
A. Communication Maturity
One of the parameters to measure in assessing the business IT alignment
maturity level is communication. It is meant to measure how well the
companies business and IT folks understand each other, how frequently they
connect to each other and how effectively they communicate their
organizational outputs or information with the counterparts and others that
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they are working with either in the form of informing or to make decision
upon [8]. Here under is the description of what the different elements that
one should look into look like at our company as part of assessing its overall
communication maturity level.
• Understanding of Business By IT
At our case company, according to the CEO, there is a strong understanding
between the IT and Business folks in the sense that the company’s IT people
understands their business functions well as the business is totally based on
IT. This means that the company’s IT folks know their business and the
potential impact or importance of IT for their functionalities. The Business
people also understand the potential use of IT for their Business.
• Inter/Intra-Organizational Learning
• Knowledge Sharing
There a high intention and value for knowledge sharing at Svenska
Resenatveket but there is no established formal forums to do that.
• Liaison(s) effectiveness
According to the CEO, it seems that Svenska Resenatveket is effective with
accomplishing its business objectives.
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From the aforementioned descriptions we rated the communication maturity
to be 4-.
B. Competency/Value-Measurement Maturity
This is one of the 6 parameters that one needs to look into during assessing
companies for their IT business alignment. It is a parameter to measure how
well companies measure its performance and projects [8]. Here under are
the description of different elements based on which the competency/value
measurement Maturity is measured specific to Svenska Resenatverket.
IT is the driving force of the Business at Svenska Resenatverket and the business
processes are totally dependent on the IT. This means that there is a good balance
of the two metrics.
• Continues Improvement
At Svenska Resenatverket, they believe in continuous improvements to get
acquainted with the ever changing IT development. This is simply because
their business depends and driven by IT and if not update and make
improvements accordingly they believe that they will be knocked out of the
business.
We rated maturity level for Competency /Value measurement to be at 3+
and the company should perform continuous assessment and evaluations of
their businesses functionalities and projects to achieve higher level
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C. Governance Maturity
The third parameter that is taken into consideration while measuring IT
business alignment maturity is governance maturity. “This dimension deals
with how well the company connects its business strategy to IT priorities,
technical planning, and budgeting” [8]
• IT Strategic Planning
At Svenska Resenatverket, the IT Manager and the CEO are the main people
who are in charge of designing the IT Strategic Plan. As the company’s
business is based and derived by IT, we feel that the IT Manager having a
lion share of impact but as CEO is the main person planning the business
strategic plan it is the CEO who is ultimately responsible for the IT Strategic
plan as well.
• Organizational Structure
Svenska Resenatverket has got flat organizational structure. It is not a
centralized decision making approach that they follow; departments have
got the power to make decisions at their level. These they believe help them
achieve their business objectives.
D. Partnership Maturity
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The fourth parameter to measure the maturity level of IT and business
alignment is partnership maturity. It is to measure the partnership that exists
between the IT department and the Business units in a given company in a
way of meeting the business goal of the company [8].
• Sponsor/Championing(s) effectiveness
It is learned that the company has no problem with regard to sponsoring IT
initiatives as Businesses in the company are totally based on the
investments made on IT projects that support the business goals.
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This is a parameter that looks into how IT helps the company to grow and
compete and also whether it is only giving business support or is more
things.
• Traditional Enabler/Driver
In Svenska Resenatverket IT is both an enabler and driver of the Business
and the company.
F. Skills Maturity
The last issue to consider when measuring business IT alignment is skill
Maturity. It looks into Management style, readiness for change, etc.
• Management Style
The company follows a decentralized decision making approach and open
and transparent management style.
• Change Readiness
There is a good outlook for change but there is a sense of sticking to a
technology they have already knowledgeable of such as PHP. There is a lack
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of readiness in the sense that their employees who are developing
applications for example are experts in one area and not in some tools such
as java.
• Social, Political Trusting Environment
There is a good social and trusting situations that exists among the
employees and the management where they share knowledge and
experiences freely.
The Skill maturity Level is 3+.
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put barrier for competitors in the market. As they are ranked highly, they can
easily bargain with suppliers of various information and resources. In that
way IT has impact on strategy too. As a whole, Resenatverket actually is in
strategic quadrant.
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PHP
Prototype
Automatic dependent surveillance-broadcast (ADS-B)
The Web2.0 is the most critical application for the business strategy as
their strategy is to provide the customers all over the world flight data and
last minutes flight and now a day’s web 2.0 is the backbone of the internet
other than this Java, PHP, prototype and ADS-B are the application used for
developing the different programs so these are also the important
applications for the business.
The applications discussed above other than ADS-B are the basic
requirement for any business which want to be launched on the internet;
without these application they will not be able to sustain or carryon their
business. Svenska Resenatverket is the typical example of the company
which is using only these basic IT applications to develop programs and
websites and these program and websites are carrying their business goals
and through these program and websites they achieve their business goals
and objective and they are quite successful in that as per the CEO of the
company. The company is using in-house development mechanism which
allows them to save cost and the uniqueness. During the flight crises due to
volcano eruption in Iceland they got a highest numbers of visitors on their
sites and they worked 24/7 to make information available for the customers.
When a question about the company’s sustainability without IT is
asked the CEO simply answered that they can’t even think it. Our future is
linked with the IT.
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Chapter Five
5.1 Conclusions
5.2 Recommendations
36
at: www.cioindex.com/nm/.../2779-IT%20Alignment%20Maturity
%20Model.pdf Accessed April 17, 2010
[10]. Baxter, Pamela and Jack, Susan (2008). “Qualitative Case Study
Methodology: Study Design and Implementation for Novice Researchers”
in The Qualitative Report Volume 13, Number 4 December 2008. PP.544-
559. [Online]. Available at: http://www.nova.edu/ssss/QR/QR13-
4/baxter.pdf accessed May 2, 2010
7. Appendices
7.1. Appindix A: Information about the Case Company
A. Name of the company: Svenska Resenatverket
Adress: Svenska Resenätverket AB. Kungsgatan 48. 111 35 Stockholm.
Website: http://www.resenatverket.se/
B. Information about the Interview
Date of the Interview:
Place of the Interview: Kungsgatan 48. 111 35 Stockholm.
Interviewees: Mickeal Robertson (CEO) and, Björn Höglind (IT Project
Manager)
Telephone: 08 - 558 015 00
Fax number: 08 - 558 015 01
Email: internetkonsult@gmail.com
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A. For Business Manager or Chief executive Officer to assess
Business IT alignment
1. How well do the IT and business folks connect easily and understand
each other?
2. Does your company communicate effectively with consultants,
vendors, and partners? How?
3. Does it disseminate organizational learning internally?
4. How well does your company measure its own performance and the
value of its projects before and after the completion?
5. Do you improve your internal processes so the next project will be
better?
6. Do the projects you undertake flow from an understanding of the
business strategy? Do they support that strategy?
7. Do you think the business and IT departments have true partnerships
based on mutual trust and sharing risks and rewards?
8. Does the staff have the skills needed to be effective?
9. How well does the technical staff understand business drivers and
speak the language of business?
10. How well does the business staff understand relevant technology
concepts?
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C. For Business Manager or Chief executive to Assess Role of
IT on Business and Organization Strategy
1. Who is responsible for It management in your organization
2. What are your criteria for choosing new technologies?
3. How you will define your company's It architecture?
4. Are you satisfy with your current IT structure
5. Is your company Architecture is global?
6. Your architecture and programmers are ready to adopt new changes?
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Interviewer 1:
Q3 how you will define your company's It architecture?
CEO. We just talk before doing anything and this we think is enough because we
have logic that help us lot
Interviewer 1:
Q4 are you satisfy with your current IT structure
CEO: No actually we need PHP programmers and we are searching.
Interviewer 1:
Q5. Is your company Architecture is global?
CEO. Yes we are working two countries Sweden and In Britain.
Interviewer 1:
Q6 your architecture and programmers are ready to adopt new changes ?
CEO: yes we are ready for these changes
Interviewer 2:
Q 1. Does IT play a vital role in your business or it’s an extra cost?
CEO: No. It’s a necessary part of my company.
Interviewer 2:
Q2. Do you need zero-defect of IT operation?
CEO: Obviously. Without IT for few moments, the business will suffer a huge
loss.
Interviewer 2:
Q3: Do you take decision related to IT in your business meeting?
CEO: Yes, there is always a daily meeting. Critical decisions are taken in board
meeting. Everybody from business and IT is aware of the decision. IT and business
are related strongly in this company.
Interviewer 2:
Q4. Do you think IT reduces your business cost? How much is your investment in IT?
CEO: Yes, IT reduces business cost. In a gross amount, 60-70% of total investment
is in IT.
Interviewer 2:
Q5. Do you have local business manager? Do they have control over your IT
systems?
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CEO: No, there is no other branch of the company, so no local business manager
for other branches. But there are developers from outside of the company. They are
aware of all the IT decisions.
Interviewer 3:
Q.1 how well does the IT and business folks connect easily and understand
each other?
CEO: I think we all work with IT and there is a good understanding.
Interviewer 3:
Q2. Does your company communicate effectively with consultants, vendors,
and partners? How?
CEO: Yes we do.
Interviewer 3:
Q3. Does it disseminate organizational learning internally?
CEO:Yes we are all working and make decisions together and we exchange
information daily.
Interview 3:
Q4. How well does your company measure its own performance and the
value of its projects before and after the completion?
CEO Many of our projects are in progress which has been running for three
years and we are still working on it. So it is not a finished project and is a
continuous work. So we can’t say we started it here and finished it there as
we are still working on.
Interview 3:
Q5. Do you improve your internal processes so the next project will be
better?
CEO
Interview 3: definitely yes
Q6. Do the projects you undertake flow from an understanding of the
business strategy? Do they support that strategy?
CEO: Yes, it is
Interview 3:
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Q7. Do you think the business and IT departments have true partnerships
based on mutual trust and sharing risks and rewards?
CEO: Yes we do
Interview 3:
Q8. Does the staff have the skills needed to be effective?
CEO: yes, we have a very good understanding; everyone knows what to do,
and how to do as well
Interview 3:
Q9. How well does the technical staff understand business drivers and speak
the language of business?
CEO:
Interview 3:
Q10. How well does the business staff understand relevant technology
concepts?
CEO: the understanding is very good
Interviewer 1:
Q1. Who is responsible for It management in your organization
CEO: it me as CEO
Interviewer 1:
Q2 what are your criteria for choosing new technologies?
CEO: we are mostly working with PHP java script and some flash because
programmers are working with these languages since a long time
Interviewer 1:
Q3 how you will define your company's It architecture?
CEO: we just talk before doing anything and this we think is enough because we
have logic that help us lot
Interviewer 1:
Q4 are you satisfied with your current IT structure
CEO: No actually we need PHP programmers and we are searching.
Interviewer 1:
Q5 Is your company Architecture is global?
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CEO: yes we are working in two countries: Sweden and In Britain.
Interviewer 1:
Q6 Is your architecture and programmers are ready to adopt new changes?
CEO: yes we are ready for these changes
Interviewer 1:
What are the key critical IT applications of the business and what is the
impact of those applications on your business and without them what
sort of an output you have? Impact of those IT applications on
business.
CEO:
We have the web applications which are developed in PHP and .Net
and we know only them and it is not possible for us to survive without
them.
Interviewer 1:
Now days there are many WebPages that you can easily draw in flash
or something like that?
CEO:
It’s not possible for us to use these new technologies for us because
our system required the PHP and .Net platform.
Interviewer 1:
Do you think that because of these IT applications you have a market
advantage?
CEO:
Yes we are getting the market advantage.
Interviewer 1:
How you can say that you are having the advantage?
CEO:
We have the better understanding of the how the web works, how the
Google works, search engine customization so I think the pages we
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produce are better than the other companies. Our understanding is
better than the others.
Interviewer 1:
What you think of your business without these IT application and
languages what impact it made on your business?
CEO:
We cannot survive without these, PHP etc..
Interviewer 1:
What approaches you use while purchasing or making these
application (cost or Quality)?
CEO:
As we are three person and we basically working on the PHP so this is
our only choice and we have the quality in mind to provide the best
product to our customers.
Interviewer 1:
We are done. Thanks for your time
Robin
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Sajjadul Robin
Umar Shah
Imran Ali
Yigezu Balcha
Jorro
Defining the Project Time table in line with the X X
course time table
Perparation of Pregress reports X X
Looking for Companies and arranging Interview X X
dates
Preparation of Background research X X X X
Literature review X X X X
Interview questionnaire X X X X
Interview X X X
Title page X
Summary X
Acknowledgments X
Table of contents X
Introduction X X
Conclusions X X
References X X X X
Appendices X X
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