IT as a Transformation Driver in Business

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Questions and Answers

Match the following roles with their involvement in forming the IT management team:

Corporate CIO = Part of the team Business unit CIO = Part of the team Corporate systems architect = Recommended to be part of the team Business unit manager = Not mentioned in the passage

Match the following domains with their inclusion in describing the 'As-Is' state of the firm:

Business strategy = Needs to be specified Organizational infrastructure = Needs to be specified IT strategy = Needs to be specified IT security protocols = Not mentioned in the passage

Match the following components with their role in the 'SWOT' analysis:

Strengths = Formed by distinctive competencies Weaknesses = Not mentioned in the passage Opportunities = Identifies factors affecting future outcomes Threats = Not related to desired future outcomes

Match the following factors with their contribution to forming 'Strengths' in the 'SWOT' analysis:

Brand and research = Distinctive competencies Cost and pricing structure = Distinctive competencies Employee satisfaction levels = Not mentioned in the passage Market trends analysis = Not mentioned in the passage Signup and view all the answers

What is the primary direction Amazon is moving towards with its business model?

Becoming a platform for suppliers and buyers to complete transactions Signup and view all the answers

What strategic move is Amazon making to reach international markets?

Purchasing its own fleet of airplanes for Amazon Prime deliveries Signup and view all the answers

Which demographic factor should a globalization strategy for a major toy distributor consider?

Falling birth rates in Western Europe and Japan Signup and view all the answers

What is the significance of the high IT penetration in Saudi Arabia according to the passage?

Organizations should direct their efforts towards reaching Saudi consumers digitally Signup and view all the answers

How should the threat posed by each competitive force be evaluated in the IT Strategy Formulation Process?

Ranked on a scale of 1 (weak) to 5 (strong) to determine the role each threat plays Signup and view all the answers

Which of the following demographic factors is most likely to influence the success of an organization's strategy?

All of the above Signup and view all the answers

Which of the following is NOT a key consideration for a globalization strategy according to the passage?

Availability of skilled labor in target markets Signup and view all the answers

Which of the following is the primary reason for the high IT penetration in Saudi Arabia according to the passage?

Widespread adoption of smartphones and mobile internet access Signup and view all the answers

What is the primary purpose of the 'Strategy Alternatives Analysis' step in the IT Strategy Formulation Process?

To evaluate the feasibility and potential impact of different IT strategy alternatives Signup and view all the answers

What is the primary implication of the high IT penetration in Saudi Arabia for organizations operating in that market?

Organizations should prioritize reaching Saudi consumers through digital channels Signup and view all the answers

Study Notes

Dominant religion, prevailing attitudes, language, leisure time, and roles of men and women in society can impact product/service acceptance.
Cultural traits like sharing may not be tolerated by plagiarism detection systems.

Technical Environment

Technology is critical for competitive advantage and drives globalization.
Evaluating strategy alternatives involves considering technology's impact on product development, distribution, and communication.
Amazon.com's distribution mechanisms have changed with technology.

Macroeconomic Environment

Strategy alternatives must consider the state of the overall economy, interest rates, capital availability, inflation, and industry sector.
The Oil Prices Crisis of 2014 due to Fracking Technology directly and indirectly led to the cancellation of IT projects in the Middle East, including Bahrain.

IT Strategy

IT can drive business transformation, explore new markets, and create new processes.
Examples of firms that have used IT as a transformation driver include Dell, Cisco, and Amazon.com.
IT's capabilities can help organizations bridge geographical distances and span organizational boundaries.
IT strategy must align with business strategy to avoid failure.

IT Strategy Formulation Process

Senior executive support for IT, IT/business relationships, and IT involvement in strategy development are enablers.
Inhibitors include IT/business lack of relationships, IT failing to prioritize, and senior executives not supporting IT.
IT as a driver can spearhead the organization's strategies and drive organization strategic direction.
Describing the "As-Is" state involves specifying the current state of the firm in terms of the Strategic Alignment Model components.
SWOT analysis identifies strengths, weaknesses, opportunities, and threats confronting the firm.

Demographic Environment

Considerations such as consumer lifetimes, distribution of wealth, religious preference, and age groups can dramatically influence the success of an organization's strategy.
A globalization strategy alternative should consider the impact of demographic trends on physical infrastructure investments.

Strategy Alternatives Analysis

This step involves ranking the threat posed by each competitive force on a scale of 1 (weak) to 5 (strong) to determine the role each competitive threat plays in the IT strategies identified.

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Description

Learn about how firms like Dell, Cisco, and Amazon.com have used IT to transform their businesses by web-enabling their operations. Discover how IT capabilities can help organizations connect people and processes, span boundaries, and bridge geographical distances to explore new markets.