¶ … array of reasons why corporations need to invest in IT. First, the dynamic economic environments in which businesses operate today "have helped create a challenging business environment and an 'economic imperative' for information technology" (Bakos & Treacy, 1986). Secondly, technology increases a corporation's capability, while significantly reducing costs (Bakos & Treacy, 1986). Third, the fact that the technology-utilization abilities of businesses are improving due to globalization necessitates a corporation's investment in information technology (Bakos & Treacy, 1986).
Strategic planning is crucial to the success of any organization because i) it enables organizations to respond to the dynamic business environment by providing platforms through which adjustments regarding organizational directions can be made (ASCO, 2009); ii) it instills a sense of direction within the organization and contributes towards the creation of milieu whereby employees aim their focus on a common goal (ASCO, 2009); iii) it is promotional to the creative and open "exchange of ideas, including putting disagreements on the table and working out effective solutions" (ASCO, 2009).
Strategic planning only becomes effective once the adopted business strategies are implemented (ASCO, 2009). Regardless of how well a strategic plan is conceived by management, it would remain ineffective as long as the rest of the organization misinterprets or blocks it. An organizational unit that is in need of strategic planning would be characterized by; a diminishing interest of workers and failure to respond to its intended purpose, loss of community interest and finances (and a preference for the status-quo), members leaving to join other organizations within the same line, and high levels of uncertainties regarding the future (ASCO, 2009).
The effectiveness of strategic planning is based upon a three-stage process; the identification of core processes, the establishment of appropriate measures, and the establishment of accountability for changes (Cascella, 2002). Processes are the...
Once the core processes have been identified, they are measured against the adopted strategy (Cascella, 2002). If the strategies are found to be effective, accountability and quality implementation is ensured "through effective performance management or linking compensation, including both financial and non-financial rewards (Cascella, 2002, p. 67).
Question Three
An e-business model can be defined as "an approach to conducting electronic business on the internet" (Philips, 2003, p.76). E-business, in addition to the buying and selling of goods (e-commerce), encompasses business-partner collaborations and customer service via the internet (Philips, 2003). Any business transaction online comprises of two entities; a consumer and a business; the resultant business relationships give rise to the four e-business models -- business to business / B2B (business dealings between two businesses), business to customer / B2C and customer to business / C2B (for instance, in e-shops and e-malls), and customer to customer/C2C ( online sites such as e-bay) (Philips, 2003).
Reduced transaction costs, increased global reach, increased convenience, improved information content, increased customer loyalty and higher accessibility are some of the benefits associated with e-business models (Philips, 2003).
Question Four
During project identification and selection, prospective projects are not only identified, but also ranked, before particular ones are selected and subjected to further cost-benefit analyses (Preis, n.d.). During such cost-benefit analyses, a number of factors are examined, for instance; what base infrastructure would be required for a certain project? What technology will be used for is implementation? Enterprise architecture provides answers to questions such as these (Preis, n.d.).
Enterprise architecture provides means through which a corporation can manage its investments in IT, especially when experiencing poor stock market performance, and during spin-offs,…
