Information Systems Strategy Development at Sainsbury's Supermarkets Using “Soft” OR

How information systems strategy moderates the relationship between business strategy and performance

Some of the most inspiring OR successes in World War II addressed the deployment of new technology into military operations. Today information technology has strategic implications for most if not all organisations. In addition to their structuring and analytical expertise, OR practitioners have developed skills of intervention, knowledge of how organisations work and experience of implementing change. OR should therefore have much to contribute to information systems strategy development and implementation but there is little evidence of activity in the U.K. at least. The paper considers why this might be the case and challenges the OR community to get involved before it is too late. This lack of activity in the U.K. is particularly surprising given the development of an interest in ‘soft’ OR methods, which are well suited to the development of information systems strategy. As an example, the contribution of ‘soft’ OR methods to the development of an IS strategy for a large retailing chain is described.

After the multiple-case study of seven enterprises, this paper identifies the dimensional construct of information systems (IS) strategy of Chinese enterprises. The study shows: the four-dimensional construct of IS strategy proposed by Chan, Huff and Copeland is partly applicable to the enterprises in China. In fact, the IS strategy of our country encompasses three dimensions: business action support dimension, business decision support dimension and network embeddedness support dimension. Meanwhile, it finds that for different enterprises, the three dimensions of IS strategy can coexist in a enterprise but vary from one another and the supporting function of the same IS to business strategy can also be different.

Stakeholder influence in public sector information systems strategy implementation—The case of public hospitals in South Africa

The paper examines the operational, environmental (including political and European) and managerial imperatives and forces in understanding information systems (IS) strategy formulation within the Police Service. It shows the extent to which national bodies and national databases have proliferated without any framework, because of public dislike of a national police force. It also examines the political issues that have not yet been addressed by the IS strategy. It then places the police case within a wider context and suggests that factors present in the police case may exist in commercial organizations and that these factors would help to explain failed or delayed alignment between business strategies and IS strategies.

This study explored the relationship between the information system (IS) capability with the alignment of IS strategy and social capital and the relationship between the alignment of IS strategy and social capital with business performance. Moreover, this study also aimed to investigate the mediating role of the alignment of IS strategy and social capital in the relationship between IS capability and business performance. A cross-sectional field study (i.e. questionnaire survey) was conducted on 179 national scale bank branches across Indonesia. Partial least square (PLS) is utilized to test all of the research hypotheses. The result of the study showed that there are significant relationships between IS capability with the alignment of IS strategy and social capital and significant relationships between the alignment of IS strategy and social capital with business performance. Besides, this study also proved that the alignment of IS strategy with social capital has a significant role in mediating the relationship between IS Capability and Business Performance. This study contributes to the theory development by analyzing the research gap from the previous researchers considering social capital as the strategic factor in the relationship between IS capability and business performance. The findings of this study can provide a reference for companies (i.e. board of directors) in determining investment and information system use policy.

PurposeThis paper seeks to understand how strategic information systems (IS) alignment takes place in small and medium‐sized enterprises (SMEs).Design/methodology/approachThe paper employs a qualitative and quantitative analysis of data from 27 cases.FindingsA contingent model allows re‐interpretation of earlier findings that appear to be inconsistent. First, benefit realisation depends on alignment between IS and business strategies. Second, IS investment is frequently limited to supporting operations and transactions. Third, organizations with more sophisticated IS tend to perform less successfully than those with less complex systems, the greatest alignment and highest performance are reported for systems to improve efficiency, and organizations that adopt a low‐cost approach are unlikely to use IS strategically.Research limitations/implicationsThe paper extends understanding of the contingent nature of SMEs' investment in, and use of, IS, and of the effect of market position on IS management. It provides guidelines by describing the dominant paths to alignment. The limitations are that the SME sample is not random, the scoring protocols rely on author coding, whether the research identifies cycles of alignment, alternative interpretations of path hierarchy, and if an SME's location uniquely defines its alignment path.Originality/valuePerformance is a function of the alignment between IS strategy and other business domains. However, prior research has focused on outcomes, rather than the processes by which alignment is developed. Using multiple case data, this paper investigates alignment in SMEs, explaining why different SMEs follow different paths to alignment. Four paths are identified, with the path chosen contingent on an SME's market position.

Research in the field of strategic information systems planning (SISP) has primarily focused on information systems (IS) strategy formulation. Despite the great effort put into understanding and executing SISP, organisations still grapple with effectively translating strategic information systems plans into effective implementations. Effective IS strategy plan implementation is fundamental to the survival, profitability and shaping the future of an organisation. Contextual conditions are acknowledged as having a major bearing on the success of IS implementations in organizations. Since limited attention has been given to this situation of concern with respect to SISP, this study aimed to understand how contextual factors influence strategic IS plan implementation. A triangulated research design of an exploratory nature was employed, using qualitative data collected from 11 professionals across 6 organisations. Within each organisation, data was collected through semi-structured interviews from a business person and an IS person involved in strategic IS plan implementation. Company strategic IS plans were also studied. The results of the data analysis enrich understanding of how factors related to the SISP practice context, the IS function context, the stakeholder and management context, the organisational context and the environmental context shape strategic IS plan implementation.

Questions pertaining to the locus of information systems (IS) governance have been extensively examined in existing research. However, questions pertaining to the decision rationale applied for IS portfolio prioritization (why are certain initiatives approved, and why are certain others rejected), noted to be a critical component of IS governance, need further investigation. We submit that the IS strategy of a firm is likely to explain the decision rationale it applies to IS portfolio prioritization and maintain that it is critical to ensure this decision rationale is in congruence with the firm’s IS strategy. By extending prior theoretical work on IS strategy types, we develop theoretical profiles of the decision rationale applied to IS portfolio prioritization using three attributes: communicability of decision rationale, consistency in applying decision rationale, and risk appropriateness of decision rationale. Since the decision rationale applied for IS portfolio prioritization is often tacit, unknown even to the decision makers themselves, we employ the decision tree induction methodology to discover this tacit decision rationale. We analyze over 150 IS portfolio prioritization decisions on a multimillion dollar IS portfolio of a multibusiness, Fortune 50 firm and our findings, which support our propositions, indicate that firms that adopt different IS strategies rely on systematically different profiles of decision rationale for IS portfolio prioritization. Implications for IS governance practices are developed.

Organizations can use data in various ways to create business value. However, many firms struggle to use data as an integral part of their information systems (IS) and business strategies to innovate their business model and increase business value. As approaches for data-based value creation are still nascent or in development, conceptual work reflecting the diversity of data-based value-creation strategies within organizational settings is scarce. Based on a sample of 75 ventures, we develop a data strategy taxonomy to manifest the key characteristics of data-based strategy-making. We use the taxonomy and conduct a cluster analysis to derive four strategic types of data-based value creation: data for efficiency, data for complements, data for niche innovations, and data for attention and market control. Based on an evaluation of 12 firms where we conducted interviews, the four strategic types of data-based value creation provide a more thorough understanding of how organizations strategically integrate data into their business and IS strategy. The ‘data for attention and market control’ strategic type extends classic findings on IS and business strategies arising from the pervasive market power and leadership position derived from data. As a practical implication, our results guide decision-makers to plan, communicate, and seize their data strategy ambitions.

Today's organizations increasingly plan new information systems (IS) to better compete. Through such planning, they attempt to align their IS strategy and their business strategy. This study tested the impact of business and information technology (IT) change on strategic information systems planning (SISP) horizon, of horizon on the planning itself, and of the planning on the alignment of IS strategy and business strategy. A questionnaire defined business change, IT change, and alignment as multi-item scaled questions, and planning horizon as a single, nonscaled one. It defined a multi-item scaled SISP measure as both a second-order construct and as single-order constructs for its individual phases. A postal survey collected data from 161 IS executives. Constructs were extensively validated. The analysis used structural equation modeling, and surprisingly found that business change predicted longer SISP horizons, but IT change predicted neither longer nor shorter ones. Planning horizon predicted SISP itself (as a second-order construct and as all of its phases), and such planning (as a second-order construct, and as strategic awareness and strategy conception phases) predicted alignment of IS strategy and business strategy. These findings suggest that practitioners more carefully assess their own degree of caution in setting planning horizons in response to business and IT change. In fact, the findings suggest it may not be necessary for practitioners to shorten planning horizons in a rapidly changing environment.

Putting Soft OR Methods to Work: Information Systems Strategy Development at Richards Bay

Utilization of information systems or technology in an organization is needed to improve organizational efficiency. This relates to the rapid development of information systems or technology that affect the ongoing business processes. The effectiveness is in the form of aligning business strategy with information system strategy and business transformation. However, the dilemma faced especially in Government agencies such as the Balikpapan City Department of Transportation is how to align business strategies and information systems strategies that will be used so as to achieve organizational goals. Responding to the problem, it is necessary to align between the business needs of the organization and the needs of the application to support the vision and mission to be achieved by the Balikpapan City Department of Transportation. This can be achieved by using the framework of The Open Group Architecture Framework (TOGAF) which provides a detailed method of how to build, manage and implement an enterprise architecture known as the Architecture Development Method (ADM), hereafter referred to as TOGAF ADM. This research produces a mapping of business needs and application needs to support the vision and mission to be achieved through the information systems or technology architecture design including business architecture modeling, information system architecture, and technology architecture on the Balikpapan City Department of Transportation.

Many corporate executives are convinced that today's e-commerce operations require a fundamental review of business strategy. Operations management researchers also call for substantiating operations strategy research to an e-commerce environment. However, no empirical research has explored information systems strategic issues using operations strategy theory. Drawing on both operations strategy and the information systems strategy literature, this exploratory research proposes a conceptual framework integrating both operations strategy and information systems strategy models, and then applies this new proposed framework to an e-commerce setting. This research not only provides a conceptual framework systematically to explore e-commerce strategic issues, but also provides empirical evidence on the relationships between its various constructs. Results of this exploratory study indicate that the business environment appears to have a tangible impact on strategic choices in operations. It also appears that links between the business environment and operations strategy in e-commerce, as well as the alignment between the information systems strategic orientation and operations strategy, determines e-commerce business performance success. Results show that high-performing e-commerce companies and low-performing e-commerce companies use different information systems strategies to support their operations strategy. The types of strategies these companies use are identified in this study.

PurposeThe purpose of this paper is to identify the factors that managers have to take into consideration when they implement the strategic information systems planning (SISP) process to develop information systems (IS) in the logistics sector.Design/methodology/approachData were collected using questionnaires to IS executives in Greek small- and medium-sized enterprises (SMEs) of the logistics sector. Factor analysis is performed on the detailed items of the SISP process constructs.FindingsThe results of this paper indicate that IS executives do not focus on defining goals, which will be used to improve the operations of the supply chain for the IS development. Both IS executives and managers from the logistics department of each organization should participate in the process of information technology (IT) strategy formulation and implementation. Executives from the logistics department of each organization should be aware of implementing environmental and organizational analysis with greater meticulousness, to identify IT opportunities and apply IT strategy with greater agility rather than now.Practical implicationsA strategic planning process for IS development in the logistics sector is required to achieve the consistently IS planning objectives. This is an important challenge for executives in SMEs who do not concentrate on implementing a strategic planning process for IS development.Originality/valueThis paper examines the factors that influence the strategic development of IS in the logistics sector and improve the effectiveness of decision-making regarding the supply chain’s operation.