Part C - 5.

0 Role Of IS Planning Frameworks In IS Strategy Settings The integration and combining of suitable strategies leads to the generation of Information Systems Planning Frameworks. Pant & Ravichandran (2001) In order for an organisation to focus on the business objectives and goals this includes looking internally and externally, it is imminent organisations employ strategies which implement the correct information as well as the understanding of the information needed, through well documented Information Systems. Therefore in order to remain in a constant continuous progress, it is vital organisations review the skills of the existing resources and identifies any necessary changes that could be implemented, in order to provide more growth opportunities and increase the breadth of knowledge for the organisation. This will then allow organisations to implement successful IS planning for future IS strategies, as well as gaining an ability to understand the holistic issues that surround the needs for an IS. Battaligia (1991) calls it an action plan that shows the desired course of events necessary to align information use and needs with the strategic direction of the organisation. The identification of the information strategies gap, between where Asda are and want to be in the near future will then become the basis for the information systems mission objectives and strategies, as shown below.

Situation Analysis: Description of where we are today, internal and external, business and IS

GAP ANALYSIS

Strategy formulation: Description of where we want to be, business and IS

Strategy Implementation: Plans how we are going to get there from an IS standpoint
(Anita Cassidy 1998) Organisations such as Asda could face problems if they do not implement the correct strategy, it can result in failure through areas such as, lack of alignment between business strategies and IS strategies which could lead to uncoordinated management. There are three key strategic information systems planning frameworks that could be implemented by organisations such as Asda which could be used to assist in achieving future objectives and prospects, they are Cassidy (1998) four phase strategic framework, Robson (1997) linear phase framework and Ward and Griffiths (2002) strategic planning framework.

5.1 Cassidy (1998) Four Phase Strategic Framework Anita Cassidy (1998) developed a four phase planning process as shown below. The planning process will consist of four phases. pPhase 1 & 2 will be directly focussing on the businesses specific goals and objectives, whilst Phase 2 & 3 will focus on Information Systems, which will initially be focussed on the business itself

(Anita Cassidy 1998) Potential IntegrationThis will allow Asda to depict the strategic direction of the IS within the organisation as well as the business objectives through thorough assessment of current internal and external factors. The framework will also reduce the gap created amongst the current and future states of the organisation, allowing Asda to pin-point accurately the present and potential business position therefore allowing them to make any drastic changes to overcome any obstacles, if necessary. The fundamental principle behind the framework is to allow an organisation such as Asda to asses the internal and external objectives, in order to establish a gap to develop an IS led strategy. Cassidys framework is most beneficial if throughout the organisation the plan document and essential elements within the structure are allocated, obtained and some form of involvement is established from every department.

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5.2 Wendy Robson (1997) linear phase framework Robson (1997) developed the linear phase framework based upon Johnson and Scholes (1999) strategy management structure. It is presented in a linear style with a more analytical approach, highlighting three strategic planning elements, as shown below. Robson (1997) places great importance upon strategy and explained three elements within the linear phase framework, they are Strategic Analysis, Strategic Choice and Strategic Implementation This refers to an organisation planning framework for the purpose of accomplishing its aims and targets in the long run. Different types of strategies that Asda may have implemented are business unit strategy, corporate strategy, operational strategy etc.

(Rob 1997)

son

Organisations such as Asda could implement the following framework as the structure and what needs to be done within each strategy is clearly organised. Strategic Analysis involves the examination of the current strategy implemented by Asda and consequently developing an appropriate business strategy, allowing Asda to remain aware of what is happening externally as external factors remain a powerful influence within the organisation. Strategic choice refers to the selection of the appropriate business strategy. As at the time of strategic choice, the long term goals are appropriately configured which suit the objectives and goals of the company. Strategic analysis and choice of strategies are done with the help of a number of techniques, such as PEST, SWOT, Competitor Analysis etc. If the appropriate strategy is chosen, Asda would become more efficient to establish sustainability and achieving maximization in the firms valuation (MapsOfWorld.com 2008) Johnson & Scholes, (2003) stated that it is not an attempt to describe how the processes of strategic management necessarily take place in the political and cultural arenas of an organization. As the frameworks main fundamental reasoning will allow Asda to analyse long term objectives, and to anticipate, manage and evaluate any external influences that could affect the objectives. See diagram below.

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Due to the easy usability and accessibility of the framework as well as being methodologically arranged in three stages, it will lead Asda to implement a clearer and relevant set goals, better quality decisions, and a more secure future as they will be better prepared for what will happen, resulting in the correct strategic direction.

5.3 Ward and Griffiths (2002) strategic planning framework Ward and Griffiths (2002) presented a framework which allows organisations to focus purely on their present situation and their future aspirations, ensuring an alignment of business objectives and strategies.

Ward and Griffiths (1996) Strategic planning Framework As external and internal factors are vital resources within the supermarket sector the framework is depicted upon the use of planning tools such as SWOT analysis, PEST analysis etc through three layers, they are: The external enviornwmnt; Pressure groups and stakeholders; Internal buisness strategising and planning

External Enviornment Organisations are influenced heavely by external factors such as environemntal factors. Many of these factors need to be thourghly analysed, understood and interpreted early in the business strategy process. Pressure groups and Stakeholders Organisations function under the direct influence of presssure groups and stake holders. Pressure groups are characterised by making demands of the organisation. Stakeholders have a direct financial intrest in the organsiation, and demand a fair share of wealth created. Business Startegy Formulation and Planning Process After deciding the strategy, the oganisation has to establish how to achieve these startegies by planning for the required actions and by effective developemnt and use of resources.

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Each framework continues to show some form of advantage to organisations, therefore it is essential and imperative Asda look to implement a framework as there are benefits. From the above discussion the most beneficial framework for Asda is Ward and Griffiths strategic framework (2002), as well as essential elements such as Phase 1 and 2 from Cassidys four phase strategic framework. This is because as there is great importance placed upon external factors over internal factors affecting Asda, Ward and Griffiths strategic framework (2002) will allow Asda to apply a thorough concentration on the organisation as well as the environment through models such as PEST analysis and Porters Five Forces model. The framework will also allow Asda to address the planning needs at all levels and across all functions in the organisation. Whilst the above discussion only consists of three frameworks, there are many other frameworks that could prove more beneficial to organisations such as Asda, for example Trish Hayward (1987) business strategy implementing management, application and technology strategy as well as Earl (1989) whom focused on information related strategies. 6.0 IS Led Change It is not the strongest species that survive, nor the most intelligent, but the ones most responsive to change. Charles Darwin With the evolution of technology, old practices adopted within organisations must be obliterated and new processes must be designed from scratch to fully leveraged new technologies. Furthermore, organizational change almost inevitability becomes a learning process in which unanticipated obstacles and opportunities emerge (Orlikowski & Hofman 1996). In reality not many organisations have the ability and resources to re-design information systems. However for Asda with the fear of what their competitors will be doing and the phenomenon of globalisation it is a necessity to manage IS led change, as the resistance against change could lead to failure and objectives not met. The need to manage change applies not only to new information systems, but is critically important to all business information management initiatives (Hussein 2008). As there is advancement in information technology and rising competition within the supermarket sector, organisations are looking to consider different forms of change (Appendix 9) and implement new modes of technology. Which, however may gain sustainable advantage for the Re-orientation Adaptation organisation can also create more problems through training and compatibilityIn response to an external stimulus. with current This is decided by the senior systems, whereas organisations could look to implement incremental changes. management is required but not A response team to ensure that
stores,forms of customer their employing Nadler et al. (1995) created a framework in a useful way showing the different rivals, meet more staff to meet customer demands etc demands etc change occurring within organisations, as shown below. they can continue e.g. building with necessary e.g. price matching more

Tuning No immediate need for change, new procedures may be used to become more efficient, such as reducing costs, promotions, improve suppliers etc

Re-orientation A significant change is initiated due to unique stimulus. No immediate need for change as it is pre-planned

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In terms of Asda one of the recent major development seen as a adaptation/ tuning change in accordance with Nadler et als theory can be seen through the development of Supplier Diversity as Asda look to improve production facilities. Rather than simply buying out failing franchises, Asda achieved very significant sales growth of over 110% in 2008 by identifying the problems of current suppliers and recognising the needs of customers, by working with ethnic minority suppliers to increase their ethnic food ranges and expand their ethnic minority supplier base. ASDA has helped small ethnic minority suppliers to expand and thrive to meet the needs of ASDAs growing customer base (BITC 2008). This has been achieved through investing in the businesses, imparting good business acumen and holding regular supplier meetings to discuss current and future opportunities.

Suppliers enjoy sales growth and have been able to invest in new warehouses, supply channels and recruit more staff. ASDA has seen increased customer satisfaction measured by Ethnibus and listening groups, and has increased investment into Ethnic Trading initiatives (BITC 2008).

Due to the ever-concerning increase in credit crunch with higher electricity and gas charges, motoring expenses and mortgages, families are cutting back on weekly shopping. Therefore supermarkets such as Asda have had to reduce prices which can be seen as a tuning change in accordance with Nadler et als theory, in order to remain competitive within the supermarket sector. Asda are to cut the cost of thousands of everyday groceries as well as promising to sell ten staple items, including bread, eggs and butter, for only 50p as part of a campaign that it claims will win over thousands of shoppers from rivals. With recent figures showing an unprecedented sales boom at budget supermarkets such as Aldi and Lidl has pushed Asda further in incorporating a change in prices (TimesOnline 2008) Asda have recently reported that they will achieve 1 billion in online revenue by 2011. A radical change at first which was implemented by Asda through the introduction of Home Shopping and Asda Direct Website at a time when the emergence of e-business became essential, has now, allowed Asda to generate such sales figures and implement a further radical change. Asda are going to implement a re-creation change as they look to create a further 7,000 jobs over the next 12 months through the opening of 10-12 superstores, 10 Living stores and 12 extensions to existing outlets. In addition to this, a further 1500 jobs will be created through the expansion of Home Shopping and Asda Direct. Chief Financial Officer, Judith McKenna commented "This major investment demonstrates our on-going commitment to bringing low prices and fantastic service to even more people across the UK (Austin 2008) The above are a few changes implemented by Asda to combat technological and social advances. This has allowed Asda to remain competitive and increase their customers as well as overall market share of the supermarket sector. All of the above changes at Asda has allowed them to operate more efficiently and economically resulting in reduced prices for its customers, therefore benefiting Asda. Although changes within an organisation can be seen as beneficial there are implications for both the way change is adapted and the potential consequences of change on an organisation. Wallace and Keil (2004) stated that the development of a new system must be carefully managed and orchestrated, and the way a project is executed is likely to be the most important factor influencing the outcome (Laudon and Laudon 2007). The diagram shown below

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illustrates the level of risk a change implemented within Asda could face in relevance with return. Paradigm shift involves rethinking the nature of a business, defining a new business model, and often changing the nature of the business e.g. building

Reengineering business process reengineering, when business processes are analysed, simplified, and redesigned. Automation - form of IT enabled change e.g. changes to the current Home Shopping, Asda Direct website

Rationalisation a deeper form of organisational change; a change that follows quickly from an early automation

The above changes mentioned can be associated with the diagram above, as firstly the radical change of the introduction of Home Shopping and Asda Direct website can be seen as a paradigm shift. As Asda at that time were looking to target a new market, where a new business model and a change in the nature of business had to be implemented. However any incremental changes to the website would not carry such a high risk as the website and its online revenue has been proven its worth. This could also be said about Asdas re-creation change, which includes the proposition of building many stores throughout the next year in order to remain competitive with their nearest rivals. This could back-fire as investing a lot of money is a high-risk in itself, but with the over-dominance of Tesco and the ever increasing emergence of recession could prove critical, therefore it is important for Asda to effectively manage its IS led change. 7.0 Change Management Lewin (1951) pointed out that change occurs as a transition between two dynamic states. When change is managed intentionally, Lewin recommended that three stages are involved, as shown below in accordance with Asda. Stages of change Unfreeze- the present position or behaviour by creating a climate of change through education, training, and motivation of future participants. Move- quickly from the present state to the new state by developing and implementing Asda Knowledge Management systems have been put in place to aid managers in training new employees. Asda adopted changes in their stock supplier, as buying out suppliers did not favour them.

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the new way of working.

In order to make sure their organization carries on operating smoothly without the implications of change issues. Refreeze- by making the system an accepted Asdas IS led changes tend to have been part of the way the organization works. managed appropriately, due to a high number (Levin, 1951) of employees relying upon systems in place, it is essential there is minimum disruption. As information systems within an organisation changes, employees are also needed to adapt to these changes through training etc as they will be working with these systems on daily basis. Therefore as much as it is essential to keep up-to-date with the phenomenon of technology it is also imperative employees are aware and trained to accept any changes. Adam et al. (1976) states that an individual will pass through the phases shown in the diagram below, during change.

Sense of wellbeing & performance

Time

Asda have implemented and managed these phases into their job opportunities. Part-time manager programs have been made available for those employees whom may have difficulties of committing to full-time hours, as fears of employees letting go once the pressure of keeping-up with the number of hours increased. Asda has taken an approach to its

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Part-Time Manager programme changing the culture by communicating the business benefits and needs of part-time managers.

Part D - 8.0 Importance of Planning tools in IS planning frameworks It is imperative for organisations to implement planning tools when planning organisational strategies, as it is a key component to the success of any Information Systems function and is also an important factor in assisting organisations to meet its objectives. It is essential a strategy is employed as its fundamental reason lies purely on senior management having the ability to think about the future prospects of the organisation. With the continual building upon the current Information Systems as well as the Business strategy, as a result this will support the growing requirements and strategic direction of the business. Without this discipline the organization can become solely consumed with working through day-to-day issues and not remain consistent with objectives and measure progress.

Business Strategy Information Strategy

Corporate Goals & Objectives

Anita Cassidy (1998)

This allows organisations such as Asda to proactively manage the direction of current business objectives whilst continually building upon future targets, therefore allowing them to be in a position to support the growing requirements and strategic direction of Asda. As explained by Anita Cassidy (1998) there are drivers that organisations like Asda could implement in the strategic planning process, as shown below:
Key Success Factors are drivers of Application, Technical and Service

Strategic Business

Key Success Factors

Key Strategic Issues

Strategy & Plan for Application Architecture

Strategy & Plan for Technical Architecture

Application Architecture is a driver of Technical and Service

Technical Architecture is a driver of Service

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Implementing the above diagram could prove beneficial for Asda including the business drivers, as stated by Anita Cassidy (1998) they have been identified in Anita Cassidy (1998) the business strategic plan as key success factors and key strategic issues. There are many tools available for Asda to use to assist in analysing both internal and external strengths and weaknesses of the organisation, as implementing a framework within the organisation can only benefit Asda (Appendix 10). As the environment has a great importance upon Asda and their strategic objectives both internally and externally, the most suitable planning framework in accordance with Asda is Cassidys four phase framework in particular Phase 1 and 2 as it concentrates on the specific business goals and objectives. Asda will also benefit from using Ward and Peppards strategic framework which includes a thorough concentration on the organisation as well as the environment through models such as SWOT analysis, a PEST analysis and Porters Five Forces model. The diagram below highlights the utilisation of the PEST analysis, SWOT analysis and Porters Five forces planning tools within Ward and Griffiths (1996) strategic planning framework.

Strategy & Plan for Service Architecture above

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(Ward and Griffiths 2002)

8.1 SWOT Analysis The SWOT analysis can provide multiple benefits for organisations like Asda, as it is imperative to know and understand how it fits in and interacts with the surrounding environment both internally (Strengths and Weaknesses) and an external view (Threats and Opportunities). In accordance with Cassidys four phase framework, phase 1 and 4 will be incorporated with the SWOT analysis.

Opportunities and Threats

Strengths and

Weaknesses
The SWOT analysis will allow organisation such as Asda to establish any opportunities for them, as well as capitalising on their strengths.

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8.2 - PEST Analysis A PEST analysis will benefit organisation such as Asda in many ways. The fundamental advantage behind a PEST analysis is that it considers the main external factors that influence the way in which the business operates. This can be incorporated with Cassidys Phase 3 as well as Ward and Griffiths (2002) strategic planning framework, as it focuses on the external factors. PEST analysis can also be used to assist a company in seeing where its weaknesses lie and how it can best make the most of its current position within the market.

Political Economical Social Technological Environmental Legal

Employing a IS planning strategy is something that most companies can benefit from as they identify any gaps within the organisation, a PEST analysis is one of the most conclusive ways of identifying these gaps and opportunities.

POLITICAL - Trading policies - Employment Law - Taxation (Corporate, Consumer) SOCIO-CULTURAL - Branding - Demographics - Lifestyle changes - Health and welfare ENVIRONMENTAL - Packaging - Recycling 06008050 12

ECONOMIC - Interest Rates - Inflation - Economic growth - Exchange rates - stage of business cycle TECHNOLOGICAL - Stock Control - Government spending on research - Energy use and costs LEGAL - Competition Commission - Employment Law - Trade Regulations.

8.3 Porters Five Forces model Organisation like Asda can incorporate Porters Five Forces model within their organisation as it will allow them to develop a broad and sophisticated analysis of the organisation amongst their competitors position within the market. This can be incorporated with Cassidys phase 1 and 3 as it allows Asda to look at the Conceptual business goals and objectives against their rivals which, when brought together can determine long-term profitability and competitive advantage.

Existing competitive rivalry between suppliers Bargaining power of buyers Power of suppliers

Threat of substitute products Threat of new market entrants

9.0 Conclusion The development of technology has meant that many organisations are faced by change, throughout integration of systems and strategies; therefore they must manage change throughout the organisational structure. Whilst looking at the three strategies it is imperative Asda look to implement a strategy within the organisation, as it improves the overall business strategic objective and goals. Matching an appropriate framework as mentioned above is essential in assessing the current and future position of organisations such as Asda. This is important for Asda as they look to gain competitive advantage by the use of information systems and strategies.

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Appendices Appendix 1 Asda is a British supermarket chain which retails food, clothing, toys and general merchandise. It became a subsidiary of the American retail giant Wal-Mart. the worlds largest retailer, in 1999 and is the second largest chain in the UK with 122,000 colleagues at 259 stores and 19 depots across UK. Asda offer Britains best value weekly shop with prices that are independently shown to be lower than our main competitors with an excellent mix of fresh food, grocery, clothing, home, leisure and entertainment goods. Asda lead the way in giving UK customers the products they want at the lowest prices and continue to widen the price gap between our competitors as well as having a well-deserved reputation for being the best and the friendliest in the industry. (Asda 2008) Appendix 2 The four main levels of information systems are strategic, management, knowledge and operational level systems

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Operational level systems IS that monitoring the basic activities and transactions of the organisation. This type of system within Asdas supports operational managers by observing the basic activities and transactions of the supermarket. Knowledge level systems IS that support knowledge and data workers within an organisational structure. Within Asda the purpose of knowledge level systems is to help the supermarket incorporate new knowledge into the business and to help the organisation control the flow of paperwork. Management level systems Provide the controlling, administrative activities, monitoring and decision-making of middle managers. Management level systems in general make available periodic reports rather than immediate information on operations. Strategic level systems Help senior management deal with long-term trends both within the firm and within the external environment. Their most important concern is corresponding changes in the external environment with existing organisational ability.

Appendix 3 Type of system ESS DSS Information Inputs Aggregate data; external, internal Low-volume data or massive databases optimized for data analysis; analytical models and data analysis tools Summary transaction data; high-volume data; simple models Transactions; events Processing Graphics; simulations; interactive Interactive; simulations; analysis Information Outputs Projections; responses to queries Special reports; decision analysis; responses to queries Users Senior managers Professionals; Staff managers

MIS

Routine reports; simple models; low-level analysis Sorting; listing; merging;

Summary and exception reports Detailed reports; lists; summaries

Middle managers

TPS

Operations personnel;

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updating Source: Hussain (2008) pp.79 Appendix 4

supervisors

TPS at Asda will exhibit the following characteristics:

Rapid Processing TPS systems are designed to process transactions virtually instantly to ensure that customer data is available to the processes that require it. Reliability TPS systems are therefore designed to incorporate comprehensive safeguards and disaster recovery systems. These measures keep the failure rate well within tolerance levels. Standardisation Transactions must be processed in the same way each time to maximise efficiency. To ensure this, TPS interfaces are designed to acquire identical data for each transaction, regardless of the customer. Controlled Access Since TPS systems can be such a powerful business tool, access must be restricted to only those employees who require their use. Restricted access to the system ensures that employees who lack the skills and ability to control it cannot influence the transaction process. Consistency TPS systems exist within a set of operating rules (or integrity constraints). If an integrity constraint states that all transactions in a database must have a positive value, any transaction with a negative value would be refused. and many more qualities such as, Isolation, Durability, Atomicity etc. Appendix 5 Sales/Marketing systems -Customer Service -Promotion Tracking -Price Changes -Sales Order Information System -Sales Support System Manufacturing/ Production systems -Scheduling -Purchasing -Operations -Shipping/Receiving -Purchase Systems -Quality Systems Finance/Account ing Systems -General Ledger -Billing -Cost Accounting Other Types -Global E trak systems -ICON construction system On-line shopping

(BPC 2008)

Major function of systems Major Application Systems

Order -Payroll -Funds Control Management Systems

Appendix 6 Strategy Support While computers cannot create business strategies by themselves they can assist management in understanding the effects of their strategies, and help enable effective decision-making. MIS systems can be used to transform data into information useful for decision making.

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Computers can provide financial statements and performance reports to assist in the planning, monitoring and implementation of strategy. MIS systems provide a valuable function in that they can collate into coherent reports unmanageable volumes of data that would otherwise be broadly useless to decision makers. By studying these reports decision-makers can identify patterns and trends that would have remained unseen if the raw data were consulted manually. Data Processing Not only do MIS systems allow for the collation of vast amounts of business data, but they also provide a valuable time saving benefit to the workforce. Where in the past business information had to be manually processed for filing and analysis it can now be entered quickly and easily onto a computer by a data processor, allowing for faster decision making and quicker reflexes for the enterprise as a whole. (BPC 2004)

Appendix 7

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1. Asda should follow continuous analysis of internal and external factors affecting the organization, through tools such as SWOT analysis. 2. Asda must make clear statements of objectives and goals, allowing them to measure future and current states of the organization. It will also give a clear future direction of the organization 3. Strategy formulation can be broken down into formulation of different strategic options and then selection 4. After strategy development, enactment of the strategy occurs as strategy implementation 5. Control at Asda within the organizational structure will be needed to detect problems and adjust the strategy accordingly. A generic IS strategy development process model (Hussain, 2008)

Appendix 8 Identify the role of IS/IT

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Information Management Strategies (IMS)

Improve and form relationships within organisational structure Contribute towards meeting standards Can aid in setting goals and aims Can help in setting Resource Limits Setting up Policies and Guidelines Setting Performance targets, priorities and specific goals Accomplishes processes for reusing, creating awareness and learning across organisations Aids in developing Knowledge Maps for guidance Knowledge sharing process is: High Attempts to bring under one set of practices various standards under one roof Approaches Techno-centric These are usually divisional or function based They can be Demand Oriented They can be Business focussed Aligning IS Development with business needs Formulated at the level of Strategic Business Unit. They should relate to the business strategy Will comprise of short term Helps support the future direction of company Be responsive to dynamic environment changes

Knowledge Management Strategies (KMS)

Information Systems Strategies (ISS)

Appendix 9 Type of Change Description

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Incremental Change Discontinuous Change Organisational Change Anticipatory Reactive Appendix 10

Small modifications made by an organisation in reaction to its environment. Change entailing a key renovation within an industry. Includes both incremental and discontinuous change to organisations Change initiated without any instantaneous requirement to react. A direct rejoinder to a change in an organisations environment.

PEST Analysis The PEST analysis is an essential tool that should be implemented by Asda as it very important that an organization considers its environment. A PEST analysis is undertaken to help an organisation gain an understanding of the wider business environment and may be carried out as part of an ongoing process of environmental analysis or scanning. The aim is to provide information to assist those responsible for strategy development and decision making. PEST analysis may be used in the context of overall organisational strategy or more specifically to evaluate the feasibility of a new product or service, or expansion into a new market. (Goliath 2005) Porters Five Forces The Porter's 5 Forces tool is a simple but powerful tool for understanding where power lies in a business situation. This is useful, because it helps you understand both the strength of your current competitive position, and the strength of a position you're looking to move into. With a clear understanding of where power lies within Asda and its competitors, they can take fair advantage of a situation of strength, improve a situation of weakness, and avoid taking wrong steps. The tool can be used to identify whether new products, services or businesses have the potential to be profitable. SWOT Analysis A SWOT analysis will provide information for Asda to match the firms resources capabilities to the competitive environment in which it operates. The SWOT analysis show Asdas strengths and weaknesses which they are capable of capitalising on. They also allow Asda to combat any threats by taking advantage of their strengths opportunities. and will will and

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