METROPOLITAN INTERNATIONAL UNIVERSITY

MBARARA CAMPUS

Faculty of Science and Technology

Name: Abdallah Abas
Reg No: 21B/BIT/001/UMR
Course: BIT
Year: III Sem II 2024
Course unit: Business strategy and IT process
Course work: Research and read more about
some given work.
Submission date: Not later than 30th March
2024 .

Approach
 Number One

The productivity paradox is a fascinating phenomenon observed in business process analysis. As

organizations invest more in information technology (IT), worker productivity may not necessarily
increase—in fact, it might even decline. This observation has been supported by empirical evidence
from the 1970s to the early 1990s.

At first glance, it seems counterintuitive. After all, over the past 25 years, microelectronics has
revolutionized services, products, and consumer lifestyles. Advances in medicine, the availability of
automatic teller machines (ATMs), and the ability to send facsimiles across vast distances all
demonstrate the impact of microelectronics. Yet, despite these accomplishments, a growing body of
scholarly research indicates that the information revolution has not significantly improved the
productivity of the U.S. economy or U.S. firms.

The term “productivity” refers to the ratio of output (such as goods produced or total sales) to inputs
(including labor, capital, and raw materials) for a firm or an entire economic sector. This ratio,
sometimes called throughput productivity, is measured in physical or monetary terms. The expectation
was that microelectronics would enable factories and offices to produce more efficiently, leading to an
increase in the output-to-input ratio. However, several scholars who systematically measured the
benefits of computer technology found little overall productivity improvement due to IT. This held true
whether they examined the entire economy, specific industrial sectors, or representative samples of
firms

The paradox lies in the discrepancy between substantial IT investments and the lack of commensurate
improvements in production levels. Despite the power of IT, organizations often fail to fully capitalize on
its potential, and any financial returns tend to materialize later rather than sooner. The relationship
between IT investment and productivity remains complex and multifaceted, challenging organizations to
navigate this paradox effectively.

The paradox of IT investment in an organization often revolves around the tension between the
potential benefits of technology and the challenges in realizing those benefits. On one hand, IT
investments promise increased efficiency, productivity, and competitive advantage. However, the
paradox lies in the fact that despite significant financial investments, many organizations struggle to fully
leverage IT to achieve their desired outcomes.

Several factors contribute to this paradox among which some are discussed below;

1.Complexity: IT systems can be complex, requiring extensive integration and customization to align
with organizational processes and goals. Managing this complexity effectively can be challenging,
leading to inefficiencies and delays.
2. Rapid Technological Change:Technology evolves at a rapid pace, rendering investments in certain
systems or solutions obsolete relatively quickly. Organizations may find themselves continually playing
catch-up or facing the dilemma of when to invest in new technologies.

3. Implementation Challenges: Successfully implementing IT projects requires not only financial

investment but also skilled personnel, effective change management, and clear communication. Failure
to address these aspects can lead to project delays, cost overruns, and ultimately, underutilization of IT
resources.

4. Risk Management: IT investments come with inherent risks, including cybersecurity threats, data
breaches, and system failures. Organizations must invest in risk mitigation strategies and cybersecurity
measures to protect their investments and safeguard sensitive information.

5. Alignment with Business Objectives: IT investments must align closely with the organization's strategic
objectives to deliver meaningful value. Without proper alignment, investments may fail to address
critical business needs or deliver the expected ROI.

6. Measurement and Evaluation: Measuring the effectiveness of IT investments can be challenging,

especially when outcomes are intangible or difficult to quantify. Without robust metrics and evaluation
processes, it becomes difficult for organizations to assess the true impact of their IT investments.

In summary, to navigate this paradox effectively, organizations must adopt a strategic approach to IT
investment, focusing on alignment with business objectives, risk management, effective
implementation, and ongoing evaluation. Additionally, fostering a culture of innovation and adaptability
can help organizations stay agile in the face of technological change and maximize the value derived
from their IT investments
 Number Two

Strategic Information Systems Planning (SISP) is a process that organizations undertake to align their
information technology (IT) strategy with their overall business goals and objectives.

In simple terms, Strategic Information Systems Planning (SISP) is a critical process for organizations that
aim to align their information system applications with their business objectives.

Below is an overview of what SISP involves:

Alignment with Strategy: It’s essential that the information system aligns closely with the organization’s
business strategy to support long-term goals and objectives.

Support for Decision Making: SISP systems are designed to aid executives and managers in making
strategic decisions by providing relevant information.

High-level Management: SISP is typically utilized by top management for strategic planning and decision-
making.

Competitive Advantage: By offering unique insights, SISP can help organizations identify market
opportunities and threats, giving them an edge over competitors.

Integration of Data: These systems can integrate internal and external data sources to provide a
comprehensive view of the organization’s performance and market conditions.

The process of SISP includes several key steps:

1. Alignment with Business Goals: SISP starts by understanding the organization's mission, vision, and
strategic objectives. IT strategies are then formulated to support these goals, ensuring that technology
initiatives contribute directly to the organization's success.

2. Environmental Analysis: This involves analyzing the internal and external environment to identify
opportunities and threats that may affect the organization's IT capabilities. It includes assessing
technological trends, market dynamics, regulatory changes, and competitive forces.

3. IT Assessment: Evaluating the organization's existing IT infrastructure, systems, and processes is

crucial to understanding its strengths, weaknesses, opportunities, and threats. This assessment helps
identify areas for improvement and investment.

4. Strategic Planning: Based on the environmental analysis and IT assessment, strategic plans are
developed to outline the direction of IT initiatives. This includes defining priorities, setting goals and
objectives, allocating resources, and establishing timelines for implementation.

5. Resource Allocation: SISP involves determining the resources required to execute the strategic IT
initiatives effectively. This includes budgeting for hardware, software, personnel, training, and other
necessary investments.
6. Implementation and Monitoring: Once the strategic IT plan is developed, it needs to be implemented
effectively. This involves coordinating various IT projects, managing stakeholders, and monitoring
progress to ensure that objectives are met within the defined timelines and budget.

7. Evaluation and Feedback: Continuous evaluation and feedback are essential to the SISP process.
Organizations need to assess the impact of IT initiatives on business performance, identify any
deviations from the plan, and make adjustments as necessary to stay aligned with changing business
needs and market conditions.

Overall, SISP is a dynamic and iterative process that requires collaboration between IT and business
stakeholders to ensure that technology investments contribute to the organization's long-term
success.The goal of SISP is to ensure that technology and information systems are fully aligned with the
strategic objectives and priorities of the organization. It’s a proactive approach that contrasts with
reactive strategies where the IS group only responds to needs as they arise.

Number Three
Summary generated from the Book " Information Technology Strategy and Management : Best Practices
by Eng K. Chew

The book “Information Technology Strategy and Management: Best Practices” by Eng K. Chew and
Petter Gottschalk provides a comprehensive guide on creating and executing a business-aligned IT
strategy. It emphasizes the importance of aligning IT strategies with business objectives to deliver value
and gain competitive advantage. The authors discuss principles and methodologies for managing
businesses, people, and systems within an IT strategy framework. They also cover topics such as
strategic alignment, enterprise and technology architectures, and strategic planning and execution. The
book is aimed at researchers, educators, students, and IT professionals interested in IT strategy best
practices

"Information Technology Strategy and Management" by Chaw provides comprehensive insights into IT
strategy formulation and management practices. It covers topics such as aligning IT with business
objectives, IT governance, decision-making frameworks, and emerging technologies. The book offers
practical guidance and case studies to help organizations leverage IT effectively for competitive
advantage and business success.

Summary of the book "Strategic Management: An Integrated Approach by Charles W.L Hill and Gareth
Jones.

“Strategic Management: An Integrated Approach” by Charles W.L. Hill and Gareth Jones is a
comprehensive text that delves into the complexities of strategic management. The book integrates up-
to-date scholarship with practical applications, covering topics such as corporate performance,
governance, strategic leadership, technology, and business ethics. It emphasizes the importance of
aligning corporate strategy with competitive advantage and includes a variety of case studies to
illustrate real-world practices. The authors aim to provide readers with a deep understanding of how
strategic decisions are made within the context of the global economy12.

The key takeaways from “Strategic Management: An Integrated Approach” by Charles W.L. Hill and
Gareth Jones are:

Strategic Leadership: The book emphasizes the importance of strategic leadership in managing the
strategy-making process for competitive advantage.

External and Internal Analysis: It discusses the identification of opportunities and threats through
external analysis, and the assessment of distinctive competencies and competitive advantage through
internal analysis.

Competitive Advantage: The text explores how to build competitive advantage through functional-level,
business-level, and corporate-level strategies.
Global Environment: There’s a focus on formulating strategy in the global environment and the impact
of the changing global economy on strategic management.

Corporate Performance and Governance: The authors highlight the link between corporate
performance, governance, strategic leadership, technology, and business ethics.

Practical Applications: The book integrates theory with case studies to illustrate real-world applications
of strategic management principles.

These takeaways reflect the book’s comprehensive approach to strategic management, integrating
theory with practical insights to help readers understand and apply strategic management concepts in
various business contexts

Key points from the book "Strategic Management Cases by Charles W.L Hill

The key takeaways from the book “Strategic Management Cases” by Charles W.L. Hill include:

Strategic Leadership: The importance of leadership in shaping and guiding the strategic direction of an
organization.

External and Internal Analysis: The necessity of analyzing both the external environment for
opportunities and threats, and the internal resources for strengths and weaknesses.

Competitive Advantage: How organizations can develop and sustain a competitive advantage in their
industry.

Global Strategy: The challenges and strategies for operating in the global business environment.

Corporate Governance: The role of governance in strategic management and its impact on corporate
performance.

Case Studies: Practical insights from real-world cases that illustrate the application of strategic
management concepts.

These takeaways are based on common themes found in strategic management literature and the
specific focus on case studies in the book’s title suggests a practical approach to understanding strategic
management concepts.