Abstract
This chapter discusses digital strategies that can be used in business contexts. The chapter begins by discussing different enterprise configurations that can be used with computerization. The chapter then provides an overview of enterprise IT services. Next, key indicators of sustainable performance for IT services are analyzed using the balanced score card perspective. The chapter then puts forth a four-part IT management planning model. Next, a strategic model is put forth for integrating business systems, applications, and infrastructure. The chapter then discusses how to align digital and business strategies, and it analyzes the structure of the digital aims and strategies of business. The chapter concludes by applying these concepts to examples.
TopEnterprise Computerization Configurations
Regarding the IT configuration of an enterprise, the following types can be distinguished, which are supported to varying degrees depending on the larger configuration of the enterprise. The hybrid configuration presented below (Figure 14) is most fitting for the modern period (Targowski, 2003).
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An offline enterprise is a system where IT applications are unintegrated data processing routines. These routines support individual workplaces that are unconnected with one another, and data is usually entered periodically. Such enterprises are usually individual shops, craft workshops, etc. (i.e., those run by families) (Figure 1).
Figure 1. Offline enterprise model with application islands (darkened fields are key systems)
Figure 2. An online model of an enterprise, which, based on cooperative supply chains, constitutes an extended enterprise (the darkened field is a key network system)
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Integrated enterprise IT systems use a common database, minimizing data redundancy, and are supported by software such as SAP, Oracle, Baan, and others (Figure 3).
Figure 3. An integrated enterprise model based on a common database (the darkened field is a key system)
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In Agile companies, the production of goods and provision of services are adapted to the needs of the customer (Figure 4). Agility in producing goods tailored to the demands of customers consists in integrating information systems (e.g., computer aided engineering [CAE], computer aided design [CAD], computer aided planning [CAP], computer aided manufacturing [CAM], computer aided storage and retrieval [CAS&R], robotics, computer aided quality control [CAQ], and others) into one computer integrated manufacturing (CIM) system. Table 1 shows the evolution of the factory system from the point of view of production flexibility.
Table 1. Evolution of the factory system from the point of view of production flexibility
| Factory Orientation | Mass
Production | Flexible
Production | Mass
Specialization -
According to a Customer’s Needs |
| Period | 1900-1970 | 1971-2000 | 2001+ |
| Number of machine tools | 150 | 50-30 | 25-20 |
| Number of products made | 10-15 | 100-1000 | Unlimited |
| Percentage of production shortages | 25% | 0.02% | <0.0005% |
Key Terms in this Chapter
Mobile Enterprise: An enterprise computerization configuration that makes use of remote user access to centralized IT systems via devices such as smart phones.
Cloud Enterprise: An enterprise computerization configuration that makes use of cloud services, such as cloud computing.
Key Performance Indicator: Quantifiable measurements used to evaluate how a company is performing.
Balanced Score Card Approach: An approach used to measure and evaluate key performance indicators of a business.
Enterprise Computerization Configuration: The way in which an enterprise uses and integrates IT technologies into their business.
Virtual Enterprise: An enterprise computerization configuration in which most employees work from home.
Chief Information Officer: A company executive whose duties include managing and overseeing processes related to information processing and computer technology.