Slide1: Information Systems and Alignment Levels First Tuesday March 4, 2003 Genève Yves Pigneur HEC Lausanne yves.pigneur@unil.ch (+41 21) 692.3416


Agenda: Agenda Roles of information systems Information, decision and coordination Alignment with business Business model Alignment with environment Market Scorecard Alignment with evolution Scenario Conclusion


Information systems LEVEL 0: Information systems LEVEL 0 MIS ERP DSS BSC CSCW workflow SCM CRM 0.1 0.2 0.3


3 levels of adaptation: Scenarios 3 levels of adaptation EVOLUTION Market scorecard Business model 1 2 3


Alignment with business LEVEL 1: Alignment with business LEVEL 1 [Venkatraman, 1993] Business model


Slide6: e-Business Model Framework (eBMF) Customer relationship Product innovation Financial Aspects Infrastructure operation Capability Configuration Partnership Channel Customer Proposition Cost Revenue Relationship Profit Business model HOW? WHO? WHAT? HOW MUCH?


Value Proposition: Value Proposition Illustration


Distribution channel: Distribution channel Illustration Advertising of new mobile phone models Mobile phone catalogue Advertising of new Nokia and other mobile phones Phone subsidies by operators, in store sales force Promotion of state-of-the art Nokia equipment Mobile phone catalogue Only Nokia USA Support, games, cartoons, ring tones Profile evaluator, phone comparison, product catalogue Support, games, cartoons, ring tones Nokia.com Nokia.xy (Country websites) Telecom operators Club Nokia (Web site per nation) Nokia Concept Stores CHANNEL Awareness Evaluation Purchase After sales Nokia Snowboard World cup, Beach volleyball Nokia Events Personalized support, games, ring tones, editors Qualified Nokia sales personnel In store sales of Nokia equipment In store sales of Nokia and other equipment Promotion of state-of-the art Nokia equipment Courses on the use of Nokia phone features Advertising of new mobile phone technology & models Advertising of new mobile phone technology & models Purchase of games, images, ring tones Support Support, games, SMS, MMS, ring tones Nokia Academy C U S T O M E R B U Y I N G C Y C L E R A N G E O F C H A N N E L S


Infrastructure management: Illustration upload images Print of images Delivery of items Marketing of product services Printing infrastructure Packing staff ColorMailer Website enables value for ACTIVITIES RESOURCES PARTNERS Infrastructure management


Balanced scorecard (BSC) & Intangible Assets Monitor: Balanced scorecard (BSC) & Intangible Assets Monitor Customer perspective Innovation perspective Financial perspective Internal perspective How do the customers perceive us? In which process do we have to prove excellence? How to improve our services and our quality? How do shareholder perceive us? MEASURE [Kaplan, 1992]


Alignment with environment LEVEL 2: Alignment with environment LEVEL 2 CAPTURE VISUALIZE Multi-perspective MODEL DATA WAREHOUSE GRAPHICS WIRELESS LANDSCAPE


Market Scorecard (MSC): Market Scorecard (MSC) MARKET perspective Innovation perspective Financial perspective INDUSTRY perspective ACTORS Industry analysis supply demand APPLICATIONS Market survey ISSUES Influence analysis ACCOUNTS Financial analysis Disruptive technology NEW


Applications (products and services): Applications (products and services) APPLICATIONS [Durlacher, 2001] m-business


Market survey: Market survey Market survey [Durlacher, 2001] TheFeature.com Gartner group m-business


Application analysis: Application portfolio Application analysis [Ward, , 2002] STRATEGIC Applications that are critical to sustaining future KEY OPERATIONAL Applications that are essential for success HIGH POTENTIAL Applications that may be important In achieving the future SUPPORT Applications that are valuable for success High STRATEGIC IMPACT OF IT low High IMPORTANCE OF IT APPLICATIONS low EMERGING GROWTH DECLINE MATURITY 1 2 4 3


Actors and stakeholders: Actors and stakeholders Network Device Service Content Needs ACTORS Device maker Device retailer Equipment vendor Technology enabler Network operator ISP Virtual operator Venue (WLAN) Content provider Portal Content aggregator Application provider User Car manufacturer Travel/transportation Logistics Government Regulation authority Standardization group Customer union Payment agent Billing party Bank/FSP PKI provider m-business


Actor/actor analysis: Actor/actor analysis Industry analysis Bargaining power Bargaining power threats threats Rivalries among the Barriers to entries [Porter, 2001] Competitive forces


Issues, conflicts and challenges: Issues, conflicts and challenges Network Device Service Content Needs Application development Billing and pricing Gaming Vs office GSM Vs WLAN Vs ad hoc network interoperability infrastructure sharing Phone Vs PDA Vs laptop Dedicated Vs generalized Multi-modality Spectrum availability Safety & health Security & privacy Digital divide ISSUES Integration Generalization Centralization Killer app. Disruptive technology Regulation m-business


Actor/issue analysis: Actor/issue analysis [Allas, 2001] Source McQinsey Quarterly Actor analysis


Application/issue analysis: Application/issue analysis Disruption analysis [Raffi, 2002] Sony and Microsoft: the battle of convergence Source Harvard Business Review


Alignment with future LEVEL 3: 1 2 3 A B C D ? Clear-enough future forecast Traditional toolkit Alternate futures Discrete options Game theory Decision analysis True ambiguity No basis for forecast analogies Pattern recognition Range of futures No natural option Scenario planning Levels of uncertainty: [Courtney, 1997] Alignment with future LEVEL 3 SIMULATE


Scenario planning: Scenario planning m-business [Flament, 2001] [Sideris, 2002] [Karlson, 2002] SCENARIO


Slide23: Slowed Adoption and Installed Base Causal Loops Market Saturation and Network Benefits Causal Loops Strategic modeling Simulation SIMULATE [Constance, 2001] m-business


Synthesis: Synthesis 3 levels of maturity, adaptability, utility and … complexity for Information systems IS aligned with the business Align strategy, business and IT with with Business model IS aligned with the environment Assess the markets forces with Market scorecard and analysis: adoption, application portfolio, competitive forces, actor/issue, disruption, … IS aligned with the future Tame the future uncertainty with Scenarios and simulation