Directory UMM :Data Elmu:jurnal:J-a:Journal Of Business Research:Vol51.Issue3.2001:
Journal of Business Research 51 (2001) 233 ± 247
A new six `S' framework on the relationship between the role of
information systems (IS) and competencies in `IS' management
George Philip*, Marilyn E. Booth
Queen's School of Management and Economics, The Queen's University of Belfast, Belfast BT7 1NN, UK
Received 1 December 1998; accepted 1 December 1998
Abstract
The role of information systems (IS) in increasing operational efficiency and strategic advantage has been the subject of much academic
research recently. A number of useful models have been developed by several researchers with varying degrees of success to provide a better
understanding of the technology's potential in a range of organisational environments. This paper will make a critical assessment of most of
the existing models, highlighting in each case, the positive and negative aspects and then proceed to outline the rationale for the development
of a new six `S' framework. The guiding principle in the development of this model has been that the adoption and diffusion of technology in
organisations is a non-linear process and that organisations need not graduate from step 1 to step 2, etc. as is the case with most existing
models. Each organisation's expectations from technology can be different and the fulfilment of these expectations hinges on the core
competence of the organisation to exploit technology as the opportunity arises. According to our model, IS has five potential roles to play in
an organisation. These are arranged around a `central core' entitled `Survival,' which emphasises that technology is an essential part of doing
business and that organisations would be unable to function without it. The other four roles, Sources and resources, Strategic, Service Value
Analysis (SVA) and S(C)yberspace act as `satellites' orbiting around this central hub. The sixth `S,' Sustainability, is the protective layer
concerned with the management processes associated with the use of technology. Based on a comprehensive review of the literature and case
studies in a small number of organisations, this paper will describe the applicability of this model as a methodological tool in enabling
organisations to understand clearly the relationship between good IS management practices and the successful use of technology in a
dynamic global environment. The model argues that whatever the role of information technology (IT) in organisations, sustainable advantage
will depend on the ability to manage the IS resources effectively on an on-going basis. D 2000 Elsevier Science Inc. All rights reserved.
Keywords: Six `S' framework; Information systems; `IS' management
1. Introduction
One of the most important characteristics of technology
is that it has always been in a state of evolution. This in turn
has influenced the way in which technology has been used
by organisations over the years. Thus, the early use of
technology was in automating routine and mundane internal
functions. The emergence of sophisticated and powerful
PCs and networks during the 1980s had elevated technology
into a new pedestal. Thus, the past 2 decades have witnessed
an unceasing torrent of publications championing the strategic potential of technology. A number of case studies and
anecdotal evidences have been used to promote information
technology (IT) as a competitive weapon without any regard
* Corresponding author. Tel.: +44-28 902 73 385.
E-mail address: [email protected] (G. Philip).
to the transient nature of any such advantage. Undoubtedly,
there have been a number of spectacular successes and,
equally well, there has been no shortage of failures. As for
the success stories, most of them were constructed around
large high profile American multinationals rather than based
on a systematic empirical study of a large number of small
and medium enterprises (SMEs). Indeed, there has been a
bandwagon effect in that some of these stories were used
repeatedly by several researchers long after any such strategic advantage to the target organisations has disappeared.
Several models and frameworks have also been created,
with limited success, to provide a better understanding of
the technology's potential in a range of organisational
environments. The purpose of this paper is to make a critical
assessment of the existing models, highlighting in each case,
the positive and negative aspects and then proceed to outline
the rationale for the development of a new six `S' framework. More specifically, the aim is to show how the most
0148-2963/01/$ ± see front matter D 2000 Elsevier Science Inc. All rights reserved.
PII: S 0 1 4 8 - 2 9 6 3 ( 9 9 ) 0 0 0 5 1 - X
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G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
valuable parts of the literature can be reconceptualised into a
format, which displays the highly dynamic and fluid nature
of the role played by information systems (IS) within
organisations. The guiding principle in the development of
this model is that the adoption and diffusion of technology
in organisations is a non-linear process and that organisations need not graduate from step 1 to step 2, etc. as is the
case with most existing models. Each organisation's expectations from technology can be different and the fulfilment
of these expectations hinges on the core competence of the
organisation to exploit technology as the opportunity arises.
First, a review of existing models will be presented to set the
context for describing the new conceptual framework.
2. Existing models on the role of IS
As mentioned above, to date, models dealing with IT's
role have tended to focus on how organisations can make
the most of the technology's strategic potential. A quick
scan of the literature will reveal that there is no shortage of
models and frameworks, each claiming to be the way
forward for achieving competitive advantage through IT.
Most of the early impetus for this approach came from
Porter's competitive strategy framework consisting of the
five external `threats' and three generic strategies to address
them. Researchers proposed that IT could be used in an
offensive or defensive fashion to face the competitive
threats effectively (Parsons, 1983; Cash and Konsynski,
1984; Porter and Millar, 1985). It is now acknowledged,
however, that such prescriptive strategies are appropriate
only for a static rather than the highly dynamic and
globalised business environment of the 1990s and beyond.
Models such as the strategic grid (McFarlan and McKenney, 1983) and the strategic opportunity matrix (Benjamin et
al., 1984) are aimed at helping management focus on those
areas where IT deployment could prove most beneficial.
While they can raise senior management awareness (valuable
in itself), Earl (1989) and Ahrens (1993) stress that they are
much too general to be of any practical value to specific
firms. Both can also be criticised because of their reliance on
the overused 2 2 grid structure, which places a limit on the
range of options available and oversimplifies the situation.
One potential strength of the strategic grid, however, is the
realisation that the `competitive' use of IT may not be
feasible for all firms. This point is also raised in Porter and
Millar's (1985) information intensity matrix. However, as
Earl points out, the value of these particular offerings is
severely limited because `they are generally too high level
and too descriptive to guide specific users to specific opportunities for strategic information systems' (Earl, 1989, p. 45).
These authors, and indeed any who base their work on
Porter's (1980, 1985) views, also seem to be suggesting that
all firms trying to deploy IT as a competitive weapon will be
successful. No attempts are made to address the situation
that would arise if the direct competitors were to introduce
similar systems at the same time and for similar purposes. In
the UK, for example, Tesco introduced the Club/loyalty
card, which was soon copied by Sainsburys and virtually all
other main supermarkets. The reliance on Porter's work also
creates a situation where individual buyers/suppliers are
seen as homogenous groups who will all respond in the
same way to the situations imposed upon them. Porter
(1996) recently attempted to answer his critics and to
salvage his generic framework; however, the degree of his
success in convincing his critics is still debatable.
Wiseman's (1985) strategic option generator is a more
useful offering in that it broadens out the available options
and provides a step-wise process enabling individual firms
to focus on their own specific needs. The focus on idiosyncratic solutions is a link to the core competence perspective,
then of course not fully articulated. Important advice to
managers comes in the form of three principles, which
suggest that IT will essentially enable a firm to utilise its
resources more effectively. The need for high levels of
alignment is also stressed, a practical link between the
successful use of IT, and the management process. However,
the basic problem with this approach, and indeed a range of
other advices (Hagmann and McCahon, 1993; Sabherwal
and Tsoumpas, 1993) is the emphasis on the concept of the
strategic information system, a belief that technology, in and
of itself, can provide advantage, a view long since rejected
as a misconception (Venkatraman, 1991).
The work of Ives and Learmonth (1984) also focuses on
the relationship between IT and the company's resources.
Here, the authors pinpoint how systems can be used to
acquire and then use resources. Comparisons have been
drawn with Porter's value chain analysis. Indeed, both
provide valuable mechanisms for managers to think through
the issues, and to highlight ways in which technology could
be used. Managers are given a list of areas where IT could
prove useful, and are encouraged to think of ways in which
they could improve their position through the use of IT.
Their actual `strategic' value is minimal, though, (Bergeron
et al., 1991), since the emphasis would seem to be on
improving the status quo.
What all these models fail to grasp is the essential
character of the competitive climate, where the only certainty is change and dynamism. The nature of technological
change is also largely neglected. Later models do attempt to
incorporate this. For example, Feeny and Ives (1990)
recognise that sustaining IT-based advantages for any meaningful length of time is problematic. Their contribution is a
model which does not attempt to generate a list of potentially useful systems, but instead tries to help managers
assess how sustainable and long-lasting their own ideas are
likely to be. Thus, those managers are urged to focus on the
use of IT in areas that will be difficult for others to imitate.
While this may seem an obvious point, the real departure
stems from the argument that `companies should use IT to
enhance existing distinctive capabilities.' Thus, IT is not
seen as a source of direct competitive advantage, but a
G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
means of enhancing existing competencies, and facilitating
the development of new ones. This connection with the
competence-driven perspective is also explored by several
researchers (Clemons, 1991; Clemons and Row, 1991;
Booth and Philip, 1996, 1998) who suggest that IT's real
value stems from this ability to nourish existing skills and
strengths and to help create flexible organisational structures
that can transcend geographical and organisational boundaries. Similarly, Land (1994), while comparing the MIT
team's (1991) work on the centrality of IT in competitiveness and Kay's (1993) distinctive capabilities approach,
makes the interesting observation that outcomes are the
consequences of a range of factors operating in combination
or in parallel.
Feeny and Ives' (1990) views on sustainability also
reflect the growing belief that it is more realistic to view
IS as strategic necessities (Boynton et al., 1994; Davenport,
1994), as opposed to sources of long-lasting competitive
advantage in their own right. As customers become more
accustomed to systems, or rather the services they provide,
they assume greater importance and can become a standard
235
offering in the service which players in that industry find
they have to supply if they are to compete effectively
(Boynton et al., 1994) or even remain in business. The
system itself may provide no distinct advantage over rivals,
but they would be at a distinct disadvantage without it. The
diffusion of technology from first movers, through to
followers and from thence to strategic necessity, creates a
level competitive playing field, where only those who can
use their technology in fresher and more creative ways will
be able to gain advantage. This transient and fluid nature of
the advantage from IS is captured in Figs. 1 and 2.
The need for creativity and innovation has characterised
most of the recent approaches to the use of IT. One such
approach is business process reengineering (BPR) which
emphasises the importance of redesigning the processes
themselves before applying the technology medicine (Hammer, 1990; Venkatraman, 1991; Hammer and Champy,
1993). The work of those involved in the management of
the 1990s research programme (Scott Morton, 1991), and
especially Venkatraman's five levels of IT-induced business
reconfiguration, provides a useful way of expressing the
Fig. 1. The transient nature of the advantage from IT.
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G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
Fig. 2. Transient and fluid nature of the advantage from IS.
need to do more than simply `re-arranging the deck chairs
on the Titanic' (Hammer, 1990). In contrast to earlier
writers, Venkatraman (1991, 1994) makes no assumptions
about IT's competitive potential, and at the same time
acknowledges that things have to change if the technology
is to have any real benefit. Even at the lower levels of the
model, the technology can have a beneficial impact if the
company reassesses the way it does business, and more
importantly, how it handles the information at its disposal
(Venkatraman, 1994).
Venkatraman's model, as outlined earlier, suggests that
organisations begin with relatively simple systems, with no
real thought given to how the technology will progress or
develop. Exploitation is `localised' in the sense that there is
no real attempt to create a consistent approach, and decisions
are made by individuals or their departments. This is
equivalent to Galliers and Sutherland's (1991) `Ad Hocacry'
in that there is no real formal management structure involved. In the `internal integration' phase, problems have
been addressed and an organisation-wide approach adopted.
The three `revolutionary' levels recognised that IT can be
used to reposition the company, to change processes, structures and, eventually, the very nature of the company itself.
The recognition that there is much to gain from interorganisational arrangements stems from a belief that:
businesses operate within a larger network of
suppliers, buyers, intermediaries, and competitors
. . . the sources of competitive advantage lie partly
within a given organisation and partly in the larger
business network.
This is a clear link with competence-driven competitiveness, as is the admission (Venkatraman, 1994) that the
same route may not be right for every organisation.
However, the sequential movement is somewhat problematic in that it presupposes a more or less automatic
increase in benefits. Similarly, the model presumes that
IT-enabled reconfiguration is inevitable. This may not be
appropriate for every organisationÐeach will have their
own reasons for implementing the technology, and many
may never have to reengineer process or redefine business
networks. Their reasons for implementing IT are equally
valid. An approach which attempts to capture Venkatraman's idea of movement and change, without considering
it inevitable is more preferable.
3. The new six `S' framework
Having considered the available models, it is obvious that
they have a number of limitations. Models advocating the
use of IT for competitive advantage have to be reassessed in
the light of competence-driven approaches to competition.
Conversely, if the technology is to be used for other (equally
important) purposes, these have to be elucidated and explored. Finally, the IS management process is itself a critical
organisational competence, and a means of expressing the
critical nature of this competence must be found.
These factors led us to investigate how to conceptualise
a new model which would incorporate all the best features
of existing models, and at the same time provide more
clarity in understanding the different roles which IS can
G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
play within organisations. Based on a review of the
literature and empirical work, a new framework has been
developed. Specifically, it aims to demonstrate the relationship between the role set out for IT within the organisation,
and the IS management practices adopted. This new framework was used at a later stage in several case studies to
investigate the current state of IS use within organisations
in Northern Ireland.
The guiding principles governing the development of the
new framework are given below.
It should show the relationship between IS and IS
management. Whatever the role played by IS in
organisations, sustainable advantage depends on the
ability to manage the IS resources effectively on an
ongoing basis.
IT adoption, development, and diffusion within an
organisation is a non-linear, as opposed to a sequential
process. That is, organisations need not necessarily
graduate neatly from step 1 to 2, as is the case with
most of the existing models.
It should recognise that a new business can embrace
any one or more of the role(s) identified. New
enterprises have the advantage to harness the power
of new technologies, and may leapfrog or bypass
other established firms in their use of IT.
It should recognise the highly dynamic environment
of the 1990s.
It should recognise that while IT has the potential to be
strategic, it is more likely to be a strategic necessity. It
should also demonstrate that every organisation may
not have similar objectives for its technology.
It should incorporate competence-driven attitudes to
competitiveness, specifically the importance of the
interplay of skills and resources, and the view of the
organisation as an open system.
It should incorporate the transformational nature of
the technology outlined in Venkatraman's (1991)
model. Unlike Venkatraman, however, it should not
assume that benefits necessarily increase the more
revolutionary IT becomes.
The framework devised suggests that there are potentially five main roles played by IT within an organisation.
These are arranged around a `central hub' entitled `Survival,' which assumes that the technology is an essential part
of doing business, without which the organisation would be
unable to function. This is shown in Fig. 3 below. The four
other roles, Sources and Resources, Strategic, Service Value
Analysis (SVA) and (S)Cyberspace act as `satellites' orbiting around this central hub. The Sixth `S,' sustainability is
concerned with the management processes and practices
adopted. This acts as a protective outer layer: ensuring the
continued success in the use of IT. The term `Sustainability'
was chosen deliberately in order to highlight the criticality
of IS management process to the company as a whole.
237
The framework has been given a circular appearance to try
and capture the essence of dynamism and non-linearity.
Another feature is that while one role may dominate within
an organisation, other aspects may be present. Similarly, there
is also a scope for differences between business units in the
same firm. There is no real `order' to the elements, although,
as detailed, some form of reengineering will be necessary to
achieve the degree of cross-functionality and flexibility
necessary in a virtual company. For the rest, the strategic
level may never be reached by some companies, while those
that do may, with the pace of change, find themselves
`slipping' to a form of survival. As shown in Fig. 3, the
difference between these five roles is primarily logical and
that there is no clearly definable boundaries between them.
That is, the roles are interdependent rather than standalone
entities as outlined in the following description of each role.
3.1. IS for survival
This is the most basic role which IT can play in an
organisation. It has a heavy internal focus and is synonymous with the data processing era. It deals with such
operations as accounting, payroll, automation of manufacturing functions, etc. This role corresponds with Venkatraman's localised exploitation and internal integration. The
major benefits will be in terms of operational efficiencies
and cost reductions. The focus will be on the performance of
everyday tasks through IT, with a range of standard, perhaps
off-the-shelf, applications. In a manufacturing environment,
this could involve automation of repetitive tasks to reduce
the time and effort in a particular process but with no other
major changes to that process. The absence of automation at
this basic level can make any organisation unable to function in a modern competitive environment.
Survival can also incorporate the use of systems which,
when first introduced, may have led to some form of
advantage. However, that advantage has long gone, and
the system concerned will have evolved into a `must have'
tool which even the smallest players and newest entrants
will have. An example may be the use of EPOS from corner
shops to supermarkets. Such systems have even gone
beyond the level of strategic necessity: they are regarded
as essential, and the organisation may require such applications simply to be taken seriously by both customers and
suppliers, not to mention rivals.
While the emphasis may be on operational efficiencies, an
organisation-wide approach can be taken, and the potential
pitfalls of purely localised exploitation avoided. Systems may
be integrated through some form of internal network, although
as yet, there will be no linkage with those outside the business.
3.2. IS for sources and resources
The basis for this framework is the Resource Dependency theory which suggests that for a company to
function, needs to interact with its external environment
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G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
Fig. 3. The six `S' framework.
for the input of raw materials and other resources, and to
get its finished product to the market place (Sabherwal
et al., 1994). This role views an organisation as a system
with all its input coming from, and all its output going
back to, the environment and IT provides an efficient
vehicle in the acquisition (from suppliers), processing,
and eventual marketing of products/services to customers.
This role marks the beginning of links to other organisations, and adopts the competence-driven view that organisations are basically collections of resources. Clemons
and Row (1991) suggest that increased integration of
resources is a key role for IT allowing companies to
gain access to resources which they may not have
themselves. Klein and Kromen (1995, p. 43) argue that
such co-operation `can become a forceful strategy to
develop competencies.'
Organisational effectiveness stems from the ability to
manage those relationships, ensuring a free flow of
resources into and out of the company (Pfeffer and
Salancik, 1978):
The effective organisation is the organisation which
satisfies the demands of those in its environment from
whom it requires support for its continued existence.
The Resource Dependence view has been advocated as a
reason for introducing inter-organisational systems (Sabherwahl and Vijayasarthy, 1994), while IT itself can be seen as
a key resource. Systems that facilitate the entry of resources
into a buyer company and their exit from suppliers are
obvious instruments in controlling or even stabilising the
flow of resources from one company to another. Klein and
Kromen (1995) also point to the bridging effect between the
company's resources, while Venkatraman (1994, p. 80)
refers to inter-organisational systems as `an efficient conduit' for the exchange of information.
The use of inter-organisational systems at this level is
merely associated with stabilising, formalising, and maintaining resource acquisition relationships. No attempts are
made to redefine actual relationships through organisational
structure changes. Here, organisational boundaries remain
G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
well defined, and it is assumed that systems are merely
being used to automate and speed up paper-based exchanges
between the relevant players. So, EDI linkages can be
considered to fall into this category. As Spinardi et al.
(1996) show, such systems at first create no real changes
to the actual relationships between and among participants.
Rather, that change is incremental and gradual in nature.
3.3. IS for strategic purposes
Most of the research in IS during the 1980s and 1990s
has focused on this framework which takes the premise that
IT can be used to gain valuable advantage over rivals by
moving it from the back room to the firing line. If the
previous role can be thought of as facilitating the entry of
resources into the company, then this role is concerned with
exploiting the full potential of those resources for competitive advantage. Creativity and innovation are the driving
force behind this role and it is now widely acknowledged
that any advantage gained will be transient unless there is
on-going management of the IS resource.
This is also the most problematic role to define, given the
lack of consensus as to the causes of competitiveness, while
the very essence of strategy is that it is unique and idiosyncratic to the firm concerned. Similarly a system can often
only be seen to have been strategic after the fact. Thus,
perhaps the most useful way of thinking about this role is in
terms of using systems to do something special, providing
some form of product or service which rivals cannot hope to
emulate. While past views of competitiveness through IT
may have stressed the technology as a source of direct
advantage in its own right, in this framework, the view is
taken that the technology (or increasingly, the information
produced) is more likely to create advantage by enhancing
the skills and resources at the firm's disposal (Clemons,
1991; Clemons and Row, 1991; Brady and Targett, 1995).
In this respect, the technology becomes a tool (as opposed to
a weapon), a way of enhancing the skills which the
company has at its disposal, and a mechanism for exploiting
the ideas and strategic visions of talented individuals. Thus,
systems which enhance existing relationships, or which
support existing strategies in a way which helps the organisation to outperform its rivals and attract customers, are
the norm in this category. Systems which help the company
to deliver products or services at the lowest cost within the
industry, and those which help it to deliver a unique product,
are also included.
Traditionally, the focus has been on the use of IS to gain
control in customer and supplier relationships. In such
cases, the systems introduced have done much more than
automate transactions, as in the previous role; they have also
added an extra dimension to the relationship by encouraging
the customer or supplier through convenience or speed. At
the same time, the more dominant firm may have tried to
build in switching costs (Cash and Konsynski, 1984; Porter
and Millar, 1985; Haeckel and Nolan, 1993). Alternatively,
239
firms were encouraged to use data on customers to improve
service, or invest in systems so advanced that they act as a
deterrent to the potential new entrant. The technology's
ability to enable faster delivery to the customer or client
has long been recognised, although his has become increasingly difficult as a strategy in its own right due to the
proliferation of packaged software.
Current attention is focused on the potential of information for getting closer to, and anticipating customer needs
through data mining. Bessen (1993), for example, points to
IT's potential as a `micromarketing' tool that enables
companies to accurately pinpoint groups of like-minded
customers. In banking and retail, detailed information on
customers can assist in the accurate targeting of products
and service. For Brady and Targett (1995), the interpretation
of data gathered from standard EPOS systems has had a
significant competitive impact in three separate situations.
Similarly, the manipulation of accurate and up-to-the-minute
data has been the key to success for Mrs. Fields Cookies and
their retail operational intelligence (ROI) system (Haeckel
and Nolan, 1993). Jackson and Humble (1994, p. 36) argue
that `IT can be used to help an organisation achieve outrageous levels of customer satisfaction,' a factor which they
believe to be an increasingly important element of the search
for competitiveness. Such high levels of customer service
are the driving force behind many of the systems operated
by Otis Elevator (Jelassi, 1993), and increasingly, data
mining activities.
Similarly, IT also has the potential to play an active
facilitating role in the competence-driven route to competitiveness, where relationships, both internal and external, are
emphasised (Pralahad and Hamel, 1990; Kay, 1993; Farbey
et al., 1994). Experience within the sources and resources
role could lay some of the groundwork for innovation in this
area. The technology also has the capacity to enable more
flexible organisational structures, faster product design and
development, and process changes. These changes can, in
turn, create new standards of service and delivery to the
increasingly demanding and impatient customer (Edwards,
1997). Systems also open up opportunities for competition
on a more global scale. Pyburn (1991, p. 89) points to the
fact that the systems most likely to be strategic are those
which capitalise on idiosyncrasy and have `thousands of
small impacts throughout the firm rather than one colossal
and, often, easily duplicated success.'
Once advantage has been gained, it is likely that other
players within the industry will replicate the systems, thus
turning what may have been a unique service into a
standard offering. Venkatraman and Short (1992) and
Peters (1995) demonstrate how this can lead to a situation
where further innovations are necessary to stay ahead. In
these and other cases, the focus shifts to becoming a player
in a larger business network. Alternatively, the new strategic necessity could lead the company back to survival or
enable it to assume a curious position somewhere on a
continuum between the survival and strategic elements, but
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retaining the more advanced management stance of the
strategic role.
3.4. IS for SVA (BPR)
It has been suggested that much of the disillusionment
with IT may stem from the fact that it has traditionally been
used to merely speed up or automate existing ways of doing
business, using methods which are not taking full advantage
of the technology's potential, and which are unsuitable for
the demands of an increasingly dynamic and customeroriented marketplace (Davenport and Short, 1990). So,
while the survival role may be appropriate for some organisations (especially in the initial stages of their IT adoption), others find that something more than automation is
required. SVA refers to the identification of new ways of
doing business through the redesigning or complete rethinking of the way in which individual processes are performed.
BPR is often viewed as a way of improving competitiveness
and responsiveness, as well as the actual sustainability or
longevity of advantage. Hammer and Champy (1993, p. 32)
define reengineering as:
the fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements
in critical contemporary measures of performance,
such as cost, quality, service and speed.
While early attitudes to reengineering may have went
too far and resulted in ruthless `slash and burn' exercises
(`business bulimia' according to Martinsons and Revenaugh, 1997), lessons can still be drawn from such
recommendations, specifically that advantages cannot be
sustained by plodding along in the same ways that have
traditionally been followed. The need for faster responses
and delivery may also make a more cross-functional
approach more appropriate.
IT is a key enabler in the move to more flexible and
cross-functional process arrangements. Ford (Hammer and
Champy, 1993; Mowshowitz, 1994) and Chrysler (Teng et
al., 1994) have both improved between department cooperation, taken several steps out of unwieldy process (in Ford's
case significantly reducing costs in terms of personnel), and
improved responsiveness to the customer. Similarly, American Express (Ballou, 1995) found that radical change was
necessary to improve cost, quality, and speed of service.
Willcocks and Smith (1995) present three cases, one in a
UK hospital, detailing how IT has been used in this way.
These three organisations' experiences show that it is by no
means an `easy' choice, but one fraught with difficulties and
risks, where many organisations fail to achieve the hopedfor benefits.
While the BPR or SVA role is likely to be temporary, it
marks a permanent departure in the organisational role
played by IT. Davenport and Short (1990) suggest that the
relationship between IT's capabilities and BPR is a cyclical
or `recursive' one, and that redesign should become an
institutional way of life. Such redesign efforts will be
likely to occur at intervals in the future as companies try
to produce ever more flexible structures, faster responses,
and more creative strategies. This represents a particular
challenge for those responsible for the technology and its
management. Martinsons and Revenaugh (1997) urge that
it is:
imperative to create an environment which encourages the shared learning and continual improvement that are imperative to maintain the competitive
edge and build on the foundation of a re-engineering success.
Venkatraman (1994) adds that, to be truly effective,
reengineering efforts must also be directed across organisational boundaries, as is the case in the final role
(S)Cyberspace.
3.5. IS and (S)Cyberspace
The virtual organisation (Davidow and Malone, 1992), is
one which depends on the powers of cyberspace for its
operation, existing in a network or computer-mediated
relationships with suppliers, customers and other organisations. This type of structure could be expected to offer
greater possibilities for flexibility; innovation; and customisation of service, as well as the ability to significantly
reduce product life cyclesÐall ways of coping with fast
changing marketplaces. Partnerships between different organisations may be highly temporal, only existing for as
long as is absolutely necessary (Chesbrough and Teece,
1996). Davidow and Malone (1992, p. 240) argue that such
a company is essentially characterised by `time, learning,
and adaptability.'
Mowshowitz (1994, p. 268) points to an organisation
which is characterised by `ever-shifting job responsibilities
and authority structures that permit extraordinary flexibility
in modes of functioning and responsiveness to the environment.' Responsiveness and speed are key elements in
satisfying the customer who expects a more tailored and
personalised service. Chesbrough and Teece (1996, p. 65)
also point to the increased flexibility and choices offered by
such a structure, arguing that:
. . . virtual companies co-ordinate much of their
business through the marketplace, where free agents
come together to buy and sell one anothers' goods and
services: thus virtual companies can harness the
power of market forces to develop manufacturing,
marketing, distribution and support their offerings in
ways that fully integrated companies can't duplicate.
The development of global networks such as the Internet,
coupled with redefined processes and relationships, have
G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
hastened the emergence of the virtual company (Clemons,
1991; Davidow and Malone, 1992), or the `Martini' organisation (due to the emphasis on producing products/services available at any time, and in any place). In such a
company, products often do not exist until absolutely
necessary, and are generally information-based. The emphasis here is on providing a flexible, tailored (customised) and
fast response for the all-important customer, who may
actually help in the product's design, while suppliers and
customers are viewed as part of the business itself (Davidow
and Malone, 1992). This can be seen as a move towards the
`boundaryless' company promoted by General Electric
among others (Kay, 1993; Syrett and Kingston, 1995).
The experiences of Rosenbluth Travel (Clemons, 1991;
Benjamin and Wigand, 1995) show how the creation of
virtual alliances improves not only speed and responsiveness, but also enables the company to trade in geographically remote areas.
The spread of this type of company has been most
apparent in the financial services sector (for example, Holland and Lockett, 1995; Loebbecke and Jelassi, 1997),
where the success of First Direct and Direct Line (CSFI,
1995) shows that customers do want to use the new
electronic distribution channels with their attendant convenience. Jensen (1995), chairman and CEO of Visa International, highlights the folly of ignoring such developments,
and suggests that those involved in the field of financial
services will have to embrace those new modes of delivery
if they are to maintain their customer base. Tailoring
responses to individual customer requirements is also rising
up the agenda, as Jensen looks forward to the creation of a
`structure that will enable each customer to be treated as a
segment of one.' Bauer (1995) points to another advantage
of the use of virtual delivery channels, suggesting that they
are up to 20 times cheaper than the equivalent transactions
performed manually.
4. The sixth `S' of the framework: sustainability
The common denominator in all the five roles described so far is the Sustainability framework. That is,
whatever role IS plays in organisations, the process of IS
management will determine the continued success or failure of that particular role. As competence in IS management increases, organisations can move into, and benefit
from, more innovative use of IS such as strategic, SVA,
and (S)Cyberspace.
The nature of IS management efforts necessary for each
role is, however, different. This issue will now be discussed,
taking each role in turn, and relating it to the IS management
process. While it is difficult to come up with a precise
definition, many researchers have identified a range of
issues for good IS management practice. Since these issues
are well documented, only a brief reference to them will be
made here. Galliers (1991), for example, makes the point
241
that the approach to IS management should not be confined
solely to IT-related or technical issues, but:
also such organisational issues as change management
and a human resources strategy associated with ISÐin
other words a strategy that takes into account the
manner in which one might move from A to B, and
the necessary organisation, people and skills associated with this movement. (Galliers, 1991, p. 60)
For the purpose of this discussion, the IS management
process is taken to include: The IS planning efforts,
management attitudes and commitment, alignment efforts,
overall responsibility for IT issues, and skill in technology forecasting.
Management attitudes are the focus of attention for a
wide range of authors who argue that commitment and
support are central to a successful planning effort (Galliers,
1991; Earl, 1993; Norton, 1995), and also if the technology
is to be deployed in an innovative fashion. Commitment is
also seen as a valuable resource in its own right, and a prerequisite for successful IT usage (Powell and Dent-Micallef,
1997). The planning approach is also considered by Galliers
and Sutherland (1991), who see a gradual progression from
decisions concerning IS made on an ad hoc basis, to a much
more integrated situation. The importance of achieving
alignment in that planning effort is included too, given the
priority attached to this within the literature as a whole.
Commitment itself may be displayed in a range of
different ways, from encouragement from the sidelines to
more tangible measures as active involvement in the ITrelated planning process. Indeed, the very establishment of a
planning process is a sign of support, as is the creation of an
IT position at board level.
Thus, in the survival role, where systems focus on
efficiency, one might expect the least structured approach
to IS management. The systems needed for this purpose are
usually designed or bought by the IT manager or his
department without much direct involvement of top level
managers. Most of the applications automated at this level
are largely routine tasks and a software might be readily
available to do this. However, this should not mean that
planning efforts, or the link with the business strategy and
objectives, should be ignored. In line with Galliers and
Sutherland's (1991) model, the approach at this basic level
is rather disorganised and characterised by an emphasis on
technical aspects.
Once an organisation seeks connection with other organisations for inner organisational communication under the
sources and resources role, top managerial involvement
becomes increasingly important. Top managers will have
to set the ground rules and carry out the delicate negotiations in order to establish rapport with other affected parties
in the relationship. As Clemons and Row (1993) says,
different parties in the supply chain may have different
objectives. This might inhibit information sharing and
242
G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
consequently, impose severe restrictions on establishing
IOS relationship (Fearon and Philip, 1998). It is the
responsibility of senior managers to address those problems. Also increasing cooperation between the IS staff
and business managers is needed to deal with both the
internal and external concerns of participating organisations
for IOS. A more structured planning approach might be
expected given the connections with other companies. The
needs of those using the inter-organisational systems may
call for more business understanding on behalf of the IT
staff, a fact reflected in the character of their department,
and by closer relations between the IT staff and their
business colleagues.
Active support from the management will probably have
occurred before the customer or supplier connection has been
established. That support may extend to an active role in ITrelated decision-making, but the IT department retains overall responsibility, as highlighted by Venkatraman (1994).
At the strategic level, IT is used to directly support the
business, and closer integration between the business and IT
domains is widely recognised as the key to success in such
an endeavour. Ideally, the management and IT department
would work closely to generate IT-based initiatives. Obviously, this calls for a high degree of mutual understanding,
which is likely to be channelled through formal contacts in
the planning process, and an increase in overall alignment
efforts. More displays of active commitment might also be
expected. The technology itself is likely to be more widely
used right through the company, and its potential understood
by the staff throughout the organisation.
SVA, or BPR calls for a very different approach than for
any of the previous roles. Willcocks and Smith (1995, p.
472) contend that `Central to BPR practice is a holistic
approach to strategy, structure, process, people and technology.' Managing the introduction of change is the key to
success; so, while changes may be radical in nature, they
should be phased in, and people kept informed. Both the IT
department and corporate managers must have a clear and
shared vision of business strategy.
Davenport and Short (1990, p. 178) also point to the
disruption caused by the BPR effort, and suggest that `both
high-level and broad support for change are necessary.'
Support for IT also calls for closer alignment between
business and IT goals, and more concerted efforts to
improve that alignment. As Fiedler et al. (1995, p. 17)
state: `As IT is used to enable more radical and strategic
change to be achieved, it becomes increasingly important
that it is planned and co-ordinated to support the overall
organisation's business plan and goals.' Indeed, Teng et al.
(1994, p. 105) see the `integration of corporate and IS
strategic planning' as a central success factor in the whole
effort. So, there is more emphasis on planning and alignment; IT and the business staff are likely to work closely
together for at least the duration of the change project.
Thus, users at various levels within the organisation are
likely to be involved.
In the final role, IT is the business in the sense that it
underlies the organisation's whole existence. Commitment
at all levels is essential, and especially that of senior
management. This is highlighted by Loebbecke and Jelassi
(1997, p. 144)Ð`top management awareness and commitment to technological innovation is a necessary ingredient
for successfully implementing IT-based solutions that cut
across business units, processes, and ultimately alter the
organisational structure.' That awareness and commitment
are likely to be a necessary prerequisite for the formation of
strategic alliances. Management are also likely to have a real
understanding of IT, and perhaps, a `vision' of how they
wish the organisation to progress. Their interest will probably be matched right throughout the organisation, creating
a situation where IS and business staff work easily together
towards the identification of new opportunities.
As alignment, and efforts to achieve it, are high on the
agenda within the organisation, there is a corresponding need
to take account of the needs and goals of virtual partners.
Holland and Lockett (1995, p. 1119) put the success of one
such partnership arrangement down to `the vision which has
enabled all parties in the agreement to evolve strategies
which are mutually beneficial.' They continue: `It is important for organisations to have personnel who can adapt
quickly to the new form of business partnership that are
being created.' Thus, the flexibility of the organisation as a
whole is matched by the versatility of its workforce.
Movement to, and beyond, the strategic level also requires excellent skills in technology forecasting. This is
particularly so, if organisations are seeking to achieve
sustainable advantage. Technology forecasting refers to the
ability of the organisation to anticipate and respond effectively to technological advances in the outside world both in
the short- and long-term, and being able to understand the
consequences and impact of these developments on one's
business. Forecasting skills also include the ability to anticipate the intentions of one's competitors regarding IT use. The
lack of forecasting skills can have devastating impact on
organisations which was clearly demonstrated in the case of
IBM. IBM failed to see the potential impact of PC development in the late 1970s and early 1980s on their business.
IBM certainly had the know how to produce PC but was
complacent and focused on mainframes with the disastrous
consequence that Apple computers became the dominant
player in the PC market until the late 1980s. Another
example is the emergence of the Internet, and companies,
which have the ability to anticipate and respond to the
business potential of this global data network can achieve
considerable advantage over their rivals in the medium- to
long-term. A specific case in point is the Browser development for the WWW. Fearing that the dominance of the
Netscape browser would be used as a cover to undermine
the Windows95 operating system, Microsoft made a preemptive strike by developing its own browser software
(Explorer) and made it available free of charge as an integral
part of its operating system. As a result Netscape's share of
G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
the market plummeted from over 80% in 1995 to about 50%
in 1997, while Microsoft's share went up from less than 3%
to over 40% during the same period. It is now widely
accepted that having the best high technology product in
itself does not guarantee success in the market place. For
example, the software graveyard is littered with the remains
of such great products as Lotus 1-2-3, WordPerfect, dBase,
etc. Similarly, Betamax videos are superseded by its `inferior' cousin, VHS, and Apple operating systems overtaken by
DOS/Windows. The moral of the story is that the evolutionary nature of technology makes forecasting skills, and by
implication competence in IS management, an invaluable
asset in a modern competitive environment.
Table 2
Comparison of case alignment efforts
Cases
Action
Survival
(Company A)
Sources and resources
(Company B)
No formal mechanisms
Strategic
(Company C)
5. Case studies
The purpose of this paper largely has been to discuss the
new six `S' framework. However, having developed the
new model, we
A new six `S' framework on the relationship between the role of
information systems (IS) and competencies in `IS' management
George Philip*, Marilyn E. Booth
Queen's School of Management and Economics, The Queen's University of Belfast, Belfast BT7 1NN, UK
Received 1 December 1998; accepted 1 December 1998
Abstract
The role of information systems (IS) in increasing operational efficiency and strategic advantage has been the subject of much academic
research recently. A number of useful models have been developed by several researchers with varying degrees of success to provide a better
understanding of the technology's potential in a range of organisational environments. This paper will make a critical assessment of most of
the existing models, highlighting in each case, the positive and negative aspects and then proceed to outline the rationale for the development
of a new six `S' framework. The guiding principle in the development of this model has been that the adoption and diffusion of technology in
organisations is a non-linear process and that organisations need not graduate from step 1 to step 2, etc. as is the case with most existing
models. Each organisation's expectations from technology can be different and the fulfilment of these expectations hinges on the core
competence of the organisation to exploit technology as the opportunity arises. According to our model, IS has five potential roles to play in
an organisation. These are arranged around a `central core' entitled `Survival,' which emphasises that technology is an essential part of doing
business and that organisations would be unable to function without it. The other four roles, Sources and resources, Strategic, Service Value
Analysis (SVA) and S(C)yberspace act as `satellites' orbiting around this central hub. The sixth `S,' Sustainability, is the protective layer
concerned with the management processes associated with the use of technology. Based on a comprehensive review of the literature and case
studies in a small number of organisations, this paper will describe the applicability of this model as a methodological tool in enabling
organisations to understand clearly the relationship between good IS management practices and the successful use of technology in a
dynamic global environment. The model argues that whatever the role of information technology (IT) in organisations, sustainable advantage
will depend on the ability to manage the IS resources effectively on an on-going basis. D 2000 Elsevier Science Inc. All rights reserved.
Keywords: Six `S' framework; Information systems; `IS' management
1. Introduction
One of the most important characteristics of technology
is that it has always been in a state of evolution. This in turn
has influenced the way in which technology has been used
by organisations over the years. Thus, the early use of
technology was in automating routine and mundane internal
functions. The emergence of sophisticated and powerful
PCs and networks during the 1980s had elevated technology
into a new pedestal. Thus, the past 2 decades have witnessed
an unceasing torrent of publications championing the strategic potential of technology. A number of case studies and
anecdotal evidences have been used to promote information
technology (IT) as a competitive weapon without any regard
* Corresponding author. Tel.: +44-28 902 73 385.
E-mail address: [email protected] (G. Philip).
to the transient nature of any such advantage. Undoubtedly,
there have been a number of spectacular successes and,
equally well, there has been no shortage of failures. As for
the success stories, most of them were constructed around
large high profile American multinationals rather than based
on a systematic empirical study of a large number of small
and medium enterprises (SMEs). Indeed, there has been a
bandwagon effect in that some of these stories were used
repeatedly by several researchers long after any such strategic advantage to the target organisations has disappeared.
Several models and frameworks have also been created,
with limited success, to provide a better understanding of
the technology's potential in a range of organisational
environments. The purpose of this paper is to make a critical
assessment of the existing models, highlighting in each case,
the positive and negative aspects and then proceed to outline
the rationale for the development of a new six `S' framework. More specifically, the aim is to show how the most
0148-2963/01/$ ± see front matter D 2000 Elsevier Science Inc. All rights reserved.
PII: S 0 1 4 8 - 2 9 6 3 ( 9 9 ) 0 0 0 5 1 - X
234
G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
valuable parts of the literature can be reconceptualised into a
format, which displays the highly dynamic and fluid nature
of the role played by information systems (IS) within
organisations. The guiding principle in the development of
this model is that the adoption and diffusion of technology
in organisations is a non-linear process and that organisations need not graduate from step 1 to step 2, etc. as is the
case with most existing models. Each organisation's expectations from technology can be different and the fulfilment
of these expectations hinges on the core competence of the
organisation to exploit technology as the opportunity arises.
First, a review of existing models will be presented to set the
context for describing the new conceptual framework.
2. Existing models on the role of IS
As mentioned above, to date, models dealing with IT's
role have tended to focus on how organisations can make
the most of the technology's strategic potential. A quick
scan of the literature will reveal that there is no shortage of
models and frameworks, each claiming to be the way
forward for achieving competitive advantage through IT.
Most of the early impetus for this approach came from
Porter's competitive strategy framework consisting of the
five external `threats' and three generic strategies to address
them. Researchers proposed that IT could be used in an
offensive or defensive fashion to face the competitive
threats effectively (Parsons, 1983; Cash and Konsynski,
1984; Porter and Millar, 1985). It is now acknowledged,
however, that such prescriptive strategies are appropriate
only for a static rather than the highly dynamic and
globalised business environment of the 1990s and beyond.
Models such as the strategic grid (McFarlan and McKenney, 1983) and the strategic opportunity matrix (Benjamin et
al., 1984) are aimed at helping management focus on those
areas where IT deployment could prove most beneficial.
While they can raise senior management awareness (valuable
in itself), Earl (1989) and Ahrens (1993) stress that they are
much too general to be of any practical value to specific
firms. Both can also be criticised because of their reliance on
the overused 2 2 grid structure, which places a limit on the
range of options available and oversimplifies the situation.
One potential strength of the strategic grid, however, is the
realisation that the `competitive' use of IT may not be
feasible for all firms. This point is also raised in Porter and
Millar's (1985) information intensity matrix. However, as
Earl points out, the value of these particular offerings is
severely limited because `they are generally too high level
and too descriptive to guide specific users to specific opportunities for strategic information systems' (Earl, 1989, p. 45).
These authors, and indeed any who base their work on
Porter's (1980, 1985) views, also seem to be suggesting that
all firms trying to deploy IT as a competitive weapon will be
successful. No attempts are made to address the situation
that would arise if the direct competitors were to introduce
similar systems at the same time and for similar purposes. In
the UK, for example, Tesco introduced the Club/loyalty
card, which was soon copied by Sainsburys and virtually all
other main supermarkets. The reliance on Porter's work also
creates a situation where individual buyers/suppliers are
seen as homogenous groups who will all respond in the
same way to the situations imposed upon them. Porter
(1996) recently attempted to answer his critics and to
salvage his generic framework; however, the degree of his
success in convincing his critics is still debatable.
Wiseman's (1985) strategic option generator is a more
useful offering in that it broadens out the available options
and provides a step-wise process enabling individual firms
to focus on their own specific needs. The focus on idiosyncratic solutions is a link to the core competence perspective,
then of course not fully articulated. Important advice to
managers comes in the form of three principles, which
suggest that IT will essentially enable a firm to utilise its
resources more effectively. The need for high levels of
alignment is also stressed, a practical link between the
successful use of IT, and the management process. However,
the basic problem with this approach, and indeed a range of
other advices (Hagmann and McCahon, 1993; Sabherwal
and Tsoumpas, 1993) is the emphasis on the concept of the
strategic information system, a belief that technology, in and
of itself, can provide advantage, a view long since rejected
as a misconception (Venkatraman, 1991).
The work of Ives and Learmonth (1984) also focuses on
the relationship between IT and the company's resources.
Here, the authors pinpoint how systems can be used to
acquire and then use resources. Comparisons have been
drawn with Porter's value chain analysis. Indeed, both
provide valuable mechanisms for managers to think through
the issues, and to highlight ways in which technology could
be used. Managers are given a list of areas where IT could
prove useful, and are encouraged to think of ways in which
they could improve their position through the use of IT.
Their actual `strategic' value is minimal, though, (Bergeron
et al., 1991), since the emphasis would seem to be on
improving the status quo.
What all these models fail to grasp is the essential
character of the competitive climate, where the only certainty is change and dynamism. The nature of technological
change is also largely neglected. Later models do attempt to
incorporate this. For example, Feeny and Ives (1990)
recognise that sustaining IT-based advantages for any meaningful length of time is problematic. Their contribution is a
model which does not attempt to generate a list of potentially useful systems, but instead tries to help managers
assess how sustainable and long-lasting their own ideas are
likely to be. Thus, those managers are urged to focus on the
use of IT in areas that will be difficult for others to imitate.
While this may seem an obvious point, the real departure
stems from the argument that `companies should use IT to
enhance existing distinctive capabilities.' Thus, IT is not
seen as a source of direct competitive advantage, but a
G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
means of enhancing existing competencies, and facilitating
the development of new ones. This connection with the
competence-driven perspective is also explored by several
researchers (Clemons, 1991; Clemons and Row, 1991;
Booth and Philip, 1996, 1998) who suggest that IT's real
value stems from this ability to nourish existing skills and
strengths and to help create flexible organisational structures
that can transcend geographical and organisational boundaries. Similarly, Land (1994), while comparing the MIT
team's (1991) work on the centrality of IT in competitiveness and Kay's (1993) distinctive capabilities approach,
makes the interesting observation that outcomes are the
consequences of a range of factors operating in combination
or in parallel.
Feeny and Ives' (1990) views on sustainability also
reflect the growing belief that it is more realistic to view
IS as strategic necessities (Boynton et al., 1994; Davenport,
1994), as opposed to sources of long-lasting competitive
advantage in their own right. As customers become more
accustomed to systems, or rather the services they provide,
they assume greater importance and can become a standard
235
offering in the service which players in that industry find
they have to supply if they are to compete effectively
(Boynton et al., 1994) or even remain in business. The
system itself may provide no distinct advantage over rivals,
but they would be at a distinct disadvantage without it. The
diffusion of technology from first movers, through to
followers and from thence to strategic necessity, creates a
level competitive playing field, where only those who can
use their technology in fresher and more creative ways will
be able to gain advantage. This transient and fluid nature of
the advantage from IS is captured in Figs. 1 and 2.
The need for creativity and innovation has characterised
most of the recent approaches to the use of IT. One such
approach is business process reengineering (BPR) which
emphasises the importance of redesigning the processes
themselves before applying the technology medicine (Hammer, 1990; Venkatraman, 1991; Hammer and Champy,
1993). The work of those involved in the management of
the 1990s research programme (Scott Morton, 1991), and
especially Venkatraman's five levels of IT-induced business
reconfiguration, provides a useful way of expressing the
Fig. 1. The transient nature of the advantage from IT.
236
G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
Fig. 2. Transient and fluid nature of the advantage from IS.
need to do more than simply `re-arranging the deck chairs
on the Titanic' (Hammer, 1990). In contrast to earlier
writers, Venkatraman (1991, 1994) makes no assumptions
about IT's competitive potential, and at the same time
acknowledges that things have to change if the technology
is to have any real benefit. Even at the lower levels of the
model, the technology can have a beneficial impact if the
company reassesses the way it does business, and more
importantly, how it handles the information at its disposal
(Venkatraman, 1994).
Venkatraman's model, as outlined earlier, suggests that
organisations begin with relatively simple systems, with no
real thought given to how the technology will progress or
develop. Exploitation is `localised' in the sense that there is
no real attempt to create a consistent approach, and decisions
are made by individuals or their departments. This is
equivalent to Galliers and Sutherland's (1991) `Ad Hocacry'
in that there is no real formal management structure involved. In the `internal integration' phase, problems have
been addressed and an organisation-wide approach adopted.
The three `revolutionary' levels recognised that IT can be
used to reposition the company, to change processes, structures and, eventually, the very nature of the company itself.
The recognition that there is much to gain from interorganisational arrangements stems from a belief that:
businesses operate within a larger network of
suppliers, buyers, intermediaries, and competitors
. . . the sources of competitive advantage lie partly
within a given organisation and partly in the larger
business network.
This is a clear link with competence-driven competitiveness, as is the admission (Venkatraman, 1994) that the
same route may not be right for every organisation.
However, the sequential movement is somewhat problematic in that it presupposes a more or less automatic
increase in benefits. Similarly, the model presumes that
IT-enabled reconfiguration is inevitable. This may not be
appropriate for every organisationÐeach will have their
own reasons for implementing the technology, and many
may never have to reengineer process or redefine business
networks. Their reasons for implementing IT are equally
valid. An approach which attempts to capture Venkatraman's idea of movement and change, without considering
it inevitable is more preferable.
3. The new six `S' framework
Having considered the available models, it is obvious that
they have a number of limitations. Models advocating the
use of IT for competitive advantage have to be reassessed in
the light of competence-driven approaches to competition.
Conversely, if the technology is to be used for other (equally
important) purposes, these have to be elucidated and explored. Finally, the IS management process is itself a critical
organisational competence, and a means of expressing the
critical nature of this competence must be found.
These factors led us to investigate how to conceptualise
a new model which would incorporate all the best features
of existing models, and at the same time provide more
clarity in understanding the different roles which IS can
G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
play within organisations. Based on a review of the
literature and empirical work, a new framework has been
developed. Specifically, it aims to demonstrate the relationship between the role set out for IT within the organisation,
and the IS management practices adopted. This new framework was used at a later stage in several case studies to
investigate the current state of IS use within organisations
in Northern Ireland.
The guiding principles governing the development of the
new framework are given below.
It should show the relationship between IS and IS
management. Whatever the role played by IS in
organisations, sustainable advantage depends on the
ability to manage the IS resources effectively on an
ongoing basis.
IT adoption, development, and diffusion within an
organisation is a non-linear, as opposed to a sequential
process. That is, organisations need not necessarily
graduate neatly from step 1 to 2, as is the case with
most of the existing models.
It should recognise that a new business can embrace
any one or more of the role(s) identified. New
enterprises have the advantage to harness the power
of new technologies, and may leapfrog or bypass
other established firms in their use of IT.
It should recognise the highly dynamic environment
of the 1990s.
It should recognise that while IT has the potential to be
strategic, it is more likely to be a strategic necessity. It
should also demonstrate that every organisation may
not have similar objectives for its technology.
It should incorporate competence-driven attitudes to
competitiveness, specifically the importance of the
interplay of skills and resources, and the view of the
organisation as an open system.
It should incorporate the transformational nature of
the technology outlined in Venkatraman's (1991)
model. Unlike Venkatraman, however, it should not
assume that benefits necessarily increase the more
revolutionary IT becomes.
The framework devised suggests that there are potentially five main roles played by IT within an organisation.
These are arranged around a `central hub' entitled `Survival,' which assumes that the technology is an essential part
of doing business, without which the organisation would be
unable to function. This is shown in Fig. 3 below. The four
other roles, Sources and Resources, Strategic, Service Value
Analysis (SVA) and (S)Cyberspace act as `satellites' orbiting around this central hub. The Sixth `S,' sustainability is
concerned with the management processes and practices
adopted. This acts as a protective outer layer: ensuring the
continued success in the use of IT. The term `Sustainability'
was chosen deliberately in order to highlight the criticality
of IS management process to the company as a whole.
237
The framework has been given a circular appearance to try
and capture the essence of dynamism and non-linearity.
Another feature is that while one role may dominate within
an organisation, other aspects may be present. Similarly, there
is also a scope for differences between business units in the
same firm. There is no real `order' to the elements, although,
as detailed, some form of reengineering will be necessary to
achieve the degree of cross-functionality and flexibility
necessary in a virtual company. For the rest, the strategic
level may never be reached by some companies, while those
that do may, with the pace of change, find themselves
`slipping' to a form of survival. As shown in Fig. 3, the
difference between these five roles is primarily logical and
that there is no clearly definable boundaries between them.
That is, the roles are interdependent rather than standalone
entities as outlined in the following description of each role.
3.1. IS for survival
This is the most basic role which IT can play in an
organisation. It has a heavy internal focus and is synonymous with the data processing era. It deals with such
operations as accounting, payroll, automation of manufacturing functions, etc. This role corresponds with Venkatraman's localised exploitation and internal integration. The
major benefits will be in terms of operational efficiencies
and cost reductions. The focus will be on the performance of
everyday tasks through IT, with a range of standard, perhaps
off-the-shelf, applications. In a manufacturing environment,
this could involve automation of repetitive tasks to reduce
the time and effort in a particular process but with no other
major changes to that process. The absence of automation at
this basic level can make any organisation unable to function in a modern competitive environment.
Survival can also incorporate the use of systems which,
when first introduced, may have led to some form of
advantage. However, that advantage has long gone, and
the system concerned will have evolved into a `must have'
tool which even the smallest players and newest entrants
will have. An example may be the use of EPOS from corner
shops to supermarkets. Such systems have even gone
beyond the level of strategic necessity: they are regarded
as essential, and the organisation may require such applications simply to be taken seriously by both customers and
suppliers, not to mention rivals.
While the emphasis may be on operational efficiencies, an
organisation-wide approach can be taken, and the potential
pitfalls of purely localised exploitation avoided. Systems may
be integrated through some form of internal network, although
as yet, there will be no linkage with those outside the business.
3.2. IS for sources and resources
The basis for this framework is the Resource Dependency theory which suggests that for a company to
function, needs to interact with its external environment
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Fig. 3. The six `S' framework.
for the input of raw materials and other resources, and to
get its finished product to the market place (Sabherwal
et al., 1994). This role views an organisation as a system
with all its input coming from, and all its output going
back to, the environment and IT provides an efficient
vehicle in the acquisition (from suppliers), processing,
and eventual marketing of products/services to customers.
This role marks the beginning of links to other organisations, and adopts the competence-driven view that organisations are basically collections of resources. Clemons
and Row (1991) suggest that increased integration of
resources is a key role for IT allowing companies to
gain access to resources which they may not have
themselves. Klein and Kromen (1995, p. 43) argue that
such co-operation `can become a forceful strategy to
develop competencies.'
Organisational effectiveness stems from the ability to
manage those relationships, ensuring a free flow of
resources into and out of the company (Pfeffer and
Salancik, 1978):
The effective organisation is the organisation which
satisfies the demands of those in its environment from
whom it requires support for its continued existence.
The Resource Dependence view has been advocated as a
reason for introducing inter-organisational systems (Sabherwahl and Vijayasarthy, 1994), while IT itself can be seen as
a key resource. Systems that facilitate the entry of resources
into a buyer company and their exit from suppliers are
obvious instruments in controlling or even stabilising the
flow of resources from one company to another. Klein and
Kromen (1995) also point to the bridging effect between the
company's resources, while Venkatraman (1994, p. 80)
refers to inter-organisational systems as `an efficient conduit' for the exchange of information.
The use of inter-organisational systems at this level is
merely associated with stabilising, formalising, and maintaining resource acquisition relationships. No attempts are
made to redefine actual relationships through organisational
structure changes. Here, organisational boundaries remain
G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
well defined, and it is assumed that systems are merely
being used to automate and speed up paper-based exchanges
between the relevant players. So, EDI linkages can be
considered to fall into this category. As Spinardi et al.
(1996) show, such systems at first create no real changes
to the actual relationships between and among participants.
Rather, that change is incremental and gradual in nature.
3.3. IS for strategic purposes
Most of the research in IS during the 1980s and 1990s
has focused on this framework which takes the premise that
IT can be used to gain valuable advantage over rivals by
moving it from the back room to the firing line. If the
previous role can be thought of as facilitating the entry of
resources into the company, then this role is concerned with
exploiting the full potential of those resources for competitive advantage. Creativity and innovation are the driving
force behind this role and it is now widely acknowledged
that any advantage gained will be transient unless there is
on-going management of the IS resource.
This is also the most problematic role to define, given the
lack of consensus as to the causes of competitiveness, while
the very essence of strategy is that it is unique and idiosyncratic to the firm concerned. Similarly a system can often
only be seen to have been strategic after the fact. Thus,
perhaps the most useful way of thinking about this role is in
terms of using systems to do something special, providing
some form of product or service which rivals cannot hope to
emulate. While past views of competitiveness through IT
may have stressed the technology as a source of direct
advantage in its own right, in this framework, the view is
taken that the technology (or increasingly, the information
produced) is more likely to create advantage by enhancing
the skills and resources at the firm's disposal (Clemons,
1991; Clemons and Row, 1991; Brady and Targett, 1995).
In this respect, the technology becomes a tool (as opposed to
a weapon), a way of enhancing the skills which the
company has at its disposal, and a mechanism for exploiting
the ideas and strategic visions of talented individuals. Thus,
systems which enhance existing relationships, or which
support existing strategies in a way which helps the organisation to outperform its rivals and attract customers, are
the norm in this category. Systems which help the company
to deliver products or services at the lowest cost within the
industry, and those which help it to deliver a unique product,
are also included.
Traditionally, the focus has been on the use of IS to gain
control in customer and supplier relationships. In such
cases, the systems introduced have done much more than
automate transactions, as in the previous role; they have also
added an extra dimension to the relationship by encouraging
the customer or supplier through convenience or speed. At
the same time, the more dominant firm may have tried to
build in switching costs (Cash and Konsynski, 1984; Porter
and Millar, 1985; Haeckel and Nolan, 1993). Alternatively,
239
firms were encouraged to use data on customers to improve
service, or invest in systems so advanced that they act as a
deterrent to the potential new entrant. The technology's
ability to enable faster delivery to the customer or client
has long been recognised, although his has become increasingly difficult as a strategy in its own right due to the
proliferation of packaged software.
Current attention is focused on the potential of information for getting closer to, and anticipating customer needs
through data mining. Bessen (1993), for example, points to
IT's potential as a `micromarketing' tool that enables
companies to accurately pinpoint groups of like-minded
customers. In banking and retail, detailed information on
customers can assist in the accurate targeting of products
and service. For Brady and Targett (1995), the interpretation
of data gathered from standard EPOS systems has had a
significant competitive impact in three separate situations.
Similarly, the manipulation of accurate and up-to-the-minute
data has been the key to success for Mrs. Fields Cookies and
their retail operational intelligence (ROI) system (Haeckel
and Nolan, 1993). Jackson and Humble (1994, p. 36) argue
that `IT can be used to help an organisation achieve outrageous levels of customer satisfaction,' a factor which they
believe to be an increasingly important element of the search
for competitiveness. Such high levels of customer service
are the driving force behind many of the systems operated
by Otis Elevator (Jelassi, 1993), and increasingly, data
mining activities.
Similarly, IT also has the potential to play an active
facilitating role in the competence-driven route to competitiveness, where relationships, both internal and external, are
emphasised (Pralahad and Hamel, 1990; Kay, 1993; Farbey
et al., 1994). Experience within the sources and resources
role could lay some of the groundwork for innovation in this
area. The technology also has the capacity to enable more
flexible organisational structures, faster product design and
development, and process changes. These changes can, in
turn, create new standards of service and delivery to the
increasingly demanding and impatient customer (Edwards,
1997). Systems also open up opportunities for competition
on a more global scale. Pyburn (1991, p. 89) points to the
fact that the systems most likely to be strategic are those
which capitalise on idiosyncrasy and have `thousands of
small impacts throughout the firm rather than one colossal
and, often, easily duplicated success.'
Once advantage has been gained, it is likely that other
players within the industry will replicate the systems, thus
turning what may have been a unique service into a
standard offering. Venkatraman and Short (1992) and
Peters (1995) demonstrate how this can lead to a situation
where further innovations are necessary to stay ahead. In
these and other cases, the focus shifts to becoming a player
in a larger business network. Alternatively, the new strategic necessity could lead the company back to survival or
enable it to assume a curious position somewhere on a
continuum between the survival and strategic elements, but
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retaining the more advanced management stance of the
strategic role.
3.4. IS for SVA (BPR)
It has been suggested that much of the disillusionment
with IT may stem from the fact that it has traditionally been
used to merely speed up or automate existing ways of doing
business, using methods which are not taking full advantage
of the technology's potential, and which are unsuitable for
the demands of an increasingly dynamic and customeroriented marketplace (Davenport and Short, 1990). So,
while the survival role may be appropriate for some organisations (especially in the initial stages of their IT adoption), others find that something more than automation is
required. SVA refers to the identification of new ways of
doing business through the redesigning or complete rethinking of the way in which individual processes are performed.
BPR is often viewed as a way of improving competitiveness
and responsiveness, as well as the actual sustainability or
longevity of advantage. Hammer and Champy (1993, p. 32)
define reengineering as:
the fundamental rethinking and radical redesign of
business processes to achieve dramatic improvements
in critical contemporary measures of performance,
such as cost, quality, service and speed.
While early attitudes to reengineering may have went
too far and resulted in ruthless `slash and burn' exercises
(`business bulimia' according to Martinsons and Revenaugh, 1997), lessons can still be drawn from such
recommendations, specifically that advantages cannot be
sustained by plodding along in the same ways that have
traditionally been followed. The need for faster responses
and delivery may also make a more cross-functional
approach more appropriate.
IT is a key enabler in the move to more flexible and
cross-functional process arrangements. Ford (Hammer and
Champy, 1993; Mowshowitz, 1994) and Chrysler (Teng et
al., 1994) have both improved between department cooperation, taken several steps out of unwieldy process (in Ford's
case significantly reducing costs in terms of personnel), and
improved responsiveness to the customer. Similarly, American Express (Ballou, 1995) found that radical change was
necessary to improve cost, quality, and speed of service.
Willcocks and Smith (1995) present three cases, one in a
UK hospital, detailing how IT has been used in this way.
These three organisations' experiences show that it is by no
means an `easy' choice, but one fraught with difficulties and
risks, where many organisations fail to achieve the hopedfor benefits.
While the BPR or SVA role is likely to be temporary, it
marks a permanent departure in the organisational role
played by IT. Davenport and Short (1990) suggest that the
relationship between IT's capabilities and BPR is a cyclical
or `recursive' one, and that redesign should become an
institutional way of life. Such redesign efforts will be
likely to occur at intervals in the future as companies try
to produce ever more flexible structures, faster responses,
and more creative strategies. This represents a particular
challenge for those responsible for the technology and its
management. Martinsons and Revenaugh (1997) urge that
it is:
imperative to create an environment which encourages the shared learning and continual improvement that are imperative to maintain the competitive
edge and build on the foundation of a re-engineering success.
Venkatraman (1994) adds that, to be truly effective,
reengineering efforts must also be directed across organisational boundaries, as is the case in the final role
(S)Cyberspace.
3.5. IS and (S)Cyberspace
The virtual organisation (Davidow and Malone, 1992), is
one which depends on the powers of cyberspace for its
operation, existing in a network or computer-mediated
relationships with suppliers, customers and other organisations. This type of structure could be expected to offer
greater possibilities for flexibility; innovation; and customisation of service, as well as the ability to significantly
reduce product life cyclesÐall ways of coping with fast
changing marketplaces. Partnerships between different organisations may be highly temporal, only existing for as
long as is absolutely necessary (Chesbrough and Teece,
1996). Davidow and Malone (1992, p. 240) argue that such
a company is essentially characterised by `time, learning,
and adaptability.'
Mowshowitz (1994, p. 268) points to an organisation
which is characterised by `ever-shifting job responsibilities
and authority structures that permit extraordinary flexibility
in modes of functioning and responsiveness to the environment.' Responsiveness and speed are key elements in
satisfying the customer who expects a more tailored and
personalised service. Chesbrough and Teece (1996, p. 65)
also point to the increased flexibility and choices offered by
such a structure, arguing that:
. . . virtual companies co-ordinate much of their
business through the marketplace, where free agents
come together to buy and sell one anothers' goods and
services: thus virtual companies can harness the
power of market forces to develop manufacturing,
marketing, distribution and support their offerings in
ways that fully integrated companies can't duplicate.
The development of global networks such as the Internet,
coupled with redefined processes and relationships, have
G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
hastened the emergence of the virtual company (Clemons,
1991; Davidow and Malone, 1992), or the `Martini' organisation (due to the emphasis on producing products/services available at any time, and in any place). In such a
company, products often do not exist until absolutely
necessary, and are generally information-based. The emphasis here is on providing a flexible, tailored (customised) and
fast response for the all-important customer, who may
actually help in the product's design, while suppliers and
customers are viewed as part of the business itself (Davidow
and Malone, 1992). This can be seen as a move towards the
`boundaryless' company promoted by General Electric
among others (Kay, 1993; Syrett and Kingston, 1995).
The experiences of Rosenbluth Travel (Clemons, 1991;
Benjamin and Wigand, 1995) show how the creation of
virtual alliances improves not only speed and responsiveness, but also enables the company to trade in geographically remote areas.
The spread of this type of company has been most
apparent in the financial services sector (for example, Holland and Lockett, 1995; Loebbecke and Jelassi, 1997),
where the success of First Direct and Direct Line (CSFI,
1995) shows that customers do want to use the new
electronic distribution channels with their attendant convenience. Jensen (1995), chairman and CEO of Visa International, highlights the folly of ignoring such developments,
and suggests that those involved in the field of financial
services will have to embrace those new modes of delivery
if they are to maintain their customer base. Tailoring
responses to individual customer requirements is also rising
up the agenda, as Jensen looks forward to the creation of a
`structure that will enable each customer to be treated as a
segment of one.' Bauer (1995) points to another advantage
of the use of virtual delivery channels, suggesting that they
are up to 20 times cheaper than the equivalent transactions
performed manually.
4. The sixth `S' of the framework: sustainability
The common denominator in all the five roles described so far is the Sustainability framework. That is,
whatever role IS plays in organisations, the process of IS
management will determine the continued success or failure of that particular role. As competence in IS management increases, organisations can move into, and benefit
from, more innovative use of IS such as strategic, SVA,
and (S)Cyberspace.
The nature of IS management efforts necessary for each
role is, however, different. This issue will now be discussed,
taking each role in turn, and relating it to the IS management
process. While it is difficult to come up with a precise
definition, many researchers have identified a range of
issues for good IS management practice. Since these issues
are well documented, only a brief reference to them will be
made here. Galliers (1991), for example, makes the point
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that the approach to IS management should not be confined
solely to IT-related or technical issues, but:
also such organisational issues as change management
and a human resources strategy associated with ISÐin
other words a strategy that takes into account the
manner in which one might move from A to B, and
the necessary organisation, people and skills associated with this movement. (Galliers, 1991, p. 60)
For the purpose of this discussion, the IS management
process is taken to include: The IS planning efforts,
management attitudes and commitment, alignment efforts,
overall responsibility for IT issues, and skill in technology forecasting.
Management attitudes are the focus of attention for a
wide range of authors who argue that commitment and
support are central to a successful planning effort (Galliers,
1991; Earl, 1993; Norton, 1995), and also if the technology
is to be deployed in an innovative fashion. Commitment is
also seen as a valuable resource in its own right, and a prerequisite for successful IT usage (Powell and Dent-Micallef,
1997). The planning approach is also considered by Galliers
and Sutherland (1991), who see a gradual progression from
decisions concerning IS made on an ad hoc basis, to a much
more integrated situation. The importance of achieving
alignment in that planning effort is included too, given the
priority attached to this within the literature as a whole.
Commitment itself may be displayed in a range of
different ways, from encouragement from the sidelines to
more tangible measures as active involvement in the ITrelated planning process. Indeed, the very establishment of a
planning process is a sign of support, as is the creation of an
IT position at board level.
Thus, in the survival role, where systems focus on
efficiency, one might expect the least structured approach
to IS management. The systems needed for this purpose are
usually designed or bought by the IT manager or his
department without much direct involvement of top level
managers. Most of the applications automated at this level
are largely routine tasks and a software might be readily
available to do this. However, this should not mean that
planning efforts, or the link with the business strategy and
objectives, should be ignored. In line with Galliers and
Sutherland's (1991) model, the approach at this basic level
is rather disorganised and characterised by an emphasis on
technical aspects.
Once an organisation seeks connection with other organisations for inner organisational communication under the
sources and resources role, top managerial involvement
becomes increasingly important. Top managers will have
to set the ground rules and carry out the delicate negotiations in order to establish rapport with other affected parties
in the relationship. As Clemons and Row (1993) says,
different parties in the supply chain may have different
objectives. This might inhibit information sharing and
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consequently, impose severe restrictions on establishing
IOS relationship (Fearon and Philip, 1998). It is the
responsibility of senior managers to address those problems. Also increasing cooperation between the IS staff
and business managers is needed to deal with both the
internal and external concerns of participating organisations
for IOS. A more structured planning approach might be
expected given the connections with other companies. The
needs of those using the inter-organisational systems may
call for more business understanding on behalf of the IT
staff, a fact reflected in the character of their department,
and by closer relations between the IT staff and their
business colleagues.
Active support from the management will probably have
occurred before the customer or supplier connection has been
established. That support may extend to an active role in ITrelated decision-making, but the IT department retains overall responsibility, as highlighted by Venkatraman (1994).
At the strategic level, IT is used to directly support the
business, and closer integration between the business and IT
domains is widely recognised as the key to success in such
an endeavour. Ideally, the management and IT department
would work closely to generate IT-based initiatives. Obviously, this calls for a high degree of mutual understanding,
which is likely to be channelled through formal contacts in
the planning process, and an increase in overall alignment
efforts. More displays of active commitment might also be
expected. The technology itself is likely to be more widely
used right through the company, and its potential understood
by the staff throughout the organisation.
SVA, or BPR calls for a very different approach than for
any of the previous roles. Willcocks and Smith (1995, p.
472) contend that `Central to BPR practice is a holistic
approach to strategy, structure, process, people and technology.' Managing the introduction of change is the key to
success; so, while changes may be radical in nature, they
should be phased in, and people kept informed. Both the IT
department and corporate managers must have a clear and
shared vision of business strategy.
Davenport and Short (1990, p. 178) also point to the
disruption caused by the BPR effort, and suggest that `both
high-level and broad support for change are necessary.'
Support for IT also calls for closer alignment between
business and IT goals, and more concerted efforts to
improve that alignment. As Fiedler et al. (1995, p. 17)
state: `As IT is used to enable more radical and strategic
change to be achieved, it becomes increasingly important
that it is planned and co-ordinated to support the overall
organisation's business plan and goals.' Indeed, Teng et al.
(1994, p. 105) see the `integration of corporate and IS
strategic planning' as a central success factor in the whole
effort. So, there is more emphasis on planning and alignment; IT and the business staff are likely to work closely
together for at least the duration of the change project.
Thus, users at various levels within the organisation are
likely to be involved.
In the final role, IT is the business in the sense that it
underlies the organisation's whole existence. Commitment
at all levels is essential, and especially that of senior
management. This is highlighted by Loebbecke and Jelassi
(1997, p. 144)Ð`top management awareness and commitment to technological innovation is a necessary ingredient
for successfully implementing IT-based solutions that cut
across business units, processes, and ultimately alter the
organisational structure.' That awareness and commitment
are likely to be a necessary prerequisite for the formation of
strategic alliances. Management are also likely to have a real
understanding of IT, and perhaps, a `vision' of how they
wish the organisation to progress. Their interest will probably be matched right throughout the organisation, creating
a situation where IS and business staff work easily together
towards the identification of new opportunities.
As alignment, and efforts to achieve it, are high on the
agenda within the organisation, there is a corresponding need
to take account of the needs and goals of virtual partners.
Holland and Lockett (1995, p. 1119) put the success of one
such partnership arrangement down to `the vision which has
enabled all parties in the agreement to evolve strategies
which are mutually beneficial.' They continue: `It is important for organisations to have personnel who can adapt
quickly to the new form of business partnership that are
being created.' Thus, the flexibility of the organisation as a
whole is matched by the versatility of its workforce.
Movement to, and beyond, the strategic level also requires excellent skills in technology forecasting. This is
particularly so, if organisations are seeking to achieve
sustainable advantage. Technology forecasting refers to the
ability of the organisation to anticipate and respond effectively to technological advances in the outside world both in
the short- and long-term, and being able to understand the
consequences and impact of these developments on one's
business. Forecasting skills also include the ability to anticipate the intentions of one's competitors regarding IT use. The
lack of forecasting skills can have devastating impact on
organisations which was clearly demonstrated in the case of
IBM. IBM failed to see the potential impact of PC development in the late 1970s and early 1980s on their business.
IBM certainly had the know how to produce PC but was
complacent and focused on mainframes with the disastrous
consequence that Apple computers became the dominant
player in the PC market until the late 1980s. Another
example is the emergence of the Internet, and companies,
which have the ability to anticipate and respond to the
business potential of this global data network can achieve
considerable advantage over their rivals in the medium- to
long-term. A specific case in point is the Browser development for the WWW. Fearing that the dominance of the
Netscape browser would be used as a cover to undermine
the Windows95 operating system, Microsoft made a preemptive strike by developing its own browser software
(Explorer) and made it available free of charge as an integral
part of its operating system. As a result Netscape's share of
G. Philip, M.E. Booth / Journal of Business Research 51 (2001) 233±247
the market plummeted from over 80% in 1995 to about 50%
in 1997, while Microsoft's share went up from less than 3%
to over 40% during the same period. It is now widely
accepted that having the best high technology product in
itself does not guarantee success in the market place. For
example, the software graveyard is littered with the remains
of such great products as Lotus 1-2-3, WordPerfect, dBase,
etc. Similarly, Betamax videos are superseded by its `inferior' cousin, VHS, and Apple operating systems overtaken by
DOS/Windows. The moral of the story is that the evolutionary nature of technology makes forecasting skills, and by
implication competence in IS management, an invaluable
asset in a modern competitive environment.
Table 2
Comparison of case alignment efforts
Cases
Action
Survival
(Company A)
Sources and resources
(Company B)
No formal mechanisms
Strategic
(Company C)
5. Case studies
The purpose of this paper largely has been to discuss the
new six `S' framework. However, having developed the
new model, we