Organizational and Strategic Flexibility

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Organizational and Strategic Flexibility

Organizational and Strategic Flexibility

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Why is it important for business strategy to drive organizational strategy and IS strategy? What might happen if the business

strategy was not the driver?

2. In 2015, the NFL decided to hand out Microsoft Surface tablets to all coaches for use during games, and there are reports that in the future, they will add HoloLens devices to provide augmented reality.18 A HoloLens device is a high‐definition, head‐mounted display that allows coaches to see the plays with text and animation superimposed right on the live images. If the NFL simply handed them out without making any other formal changes in organizational strategy or business strategy, what might be the outcome? What unintended consequences might occur?

3. Consider a traditional manufacturing company that wants to build a social business strategy. What might be a reasonable business strategy, and how would organization and IS strategy need to change? How would this differ for a restaurant chain? A consumer products company? A nonprofit?

4. This chapter describes key components of an IS strategy. Describe the IS strategy of a consulting firm using the matrix framework.

5. What does this tip from Fast Company mean: “The job of the CIO is to provide organizational and strategic flexibility”?19

K E Y T E R M S

apps (p. 27) blue ocean strategy (p. 24) business model (p. 20) business strategy (p. 21) collaboration (p. 28) cost leadership (p. 22) creative destruction (p. 24) differentiation (p. 22)

dynamic capabilities (p. 24) engagement (p. 28) focus (p. 22) hypercompetition (p. 23) Information Systems Strategy

Triangle (p. 18) innovation (p. 28) IS strategy (p. 26)

managerial levers (p. 25) mission (p. 19) organizational strategy (p. 25) red ocean strategy (p. 24) social business strategy (p. 27) strategy (p. 19)

18 Sean Michael, “NFL Teams Will Use Surface Pro 3s in 2015 and May Use HoloLens in the Future,” WinBeta (August 7, 2015), http://www.winbeta. org/news/nfl‐teams‐will‐use‐surface‐pro‐3s‐2015‐and‐may‐use‐hololens‐future (accessed August 21, 2015). 19 “Technology: How much? How fast? How revolutionary? How expensive?” Fast Company (March 2002), http://www.fastcompany.com/44651/ technology‐how‐much‐how‐fast‐how‐revolutionary‐how‐expensive (accessed August 21, 2015).

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30 The Information Systems Strategy Triangle

Lego has long been an industry leader in children ’ s toys with its simple yet unique building block‐style products. A Danish carpenter whose family still owns Lego today founded the privately held company in 1932. But by 2004, the company found itself close to extinction, losing $1 million a day. A new CEO was brought in, and within fi ve years sales were strong, profi ts were up, and naysayers who felt the new strategy was going to fail were proved wrong. In fact, sales, revenues and profi ts continued to be strong. Revenues grew from 16 billion Danish krone (DKK) in 2010 to over 28 billion DKK in 2014, and in the same period, profi t almost doubled from 3.7 billion DKK to 7 billion DKK.

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