Impact of Strategic Alignment on IT Outsourcing Success in a Complex Service Setting

Improved conceptual and methodological understanding of strategic alignment is essential for better IT outsourcing decisions. This research will investigate how strategically well aligned ITO investments can lead to improved performance and greater competitive advantage. The strategic alignment literature is dominated by a focus on strategy formulation at a single point in time. In contrast, little is known about how strategic alignment is enacted in the choices managers make over time, and in particular, as it applies to IT outsourcing decisions in complex service settings. To address this situation we: (1) develop a novel dynamic alignment model that links espoused and enacted strategies, (2) operationalize strategy as a set of strategic decisions around capabilities, and (3) apply a range of novel methods to measure the decisions managers make

Commodities and Linkages: Meeting the Policy Challenge

The results of detailed empirical enquiry into the nature and determinants of the breadth and depth of linkages in and out of the commodities sector in eight SSA countries (Angola, Botswana, Gabon, Ghana, Nigeria, South Africa Tanzania, and Zambia) and six sectors (copper, diamonds, gold, oil and gas, mining services and timber) has shown extensive scope for industrial development (MMCP DP 13, 2011). A primary conclusion of this research was that policy in both the private and public realm was a prime factor holding back the development of linkages. Addressing this problem requires the closing of three sets of misalignments between policy and practice – within the corporate sector, within the public sector, and between the public sector and other stakeholders involved in linkage development. In addition, specific policies need to be developed, monitored and implemented in relation to the three contextual drivers of linkages from the commodity sector – skills and capabilities, infrastructure and policies towards ownership

Environmental modelling of the Chief Information Officer

Since the introduction of the term in the 1980’s, the role of the Chief Information Officer (CIO) has been widely researched. Various perceptions and dimensions of the role have been explored and debated. However, the explosion in data proliferation (and the inevitable resulting information fuelled change) further complicates organisational expectations of the CIOs role. If organisations are to competitively exploit the digital trend, then those charged with recruiting and developing CIOs now need to be more effective in determining (and shaping) CIO traits and attributes, within the context of their own organisational circumstances and in line with stakeholder expectations. CIOs also need to determine their own suitability and progression within their chosen organisation if they are to remain motivated and effective. Before modelling the role of the future CIO, it is necessary to synthesise our current knowledge (and the lessons learnt) about the CIO. This paper, therefore, aims to identify and summate the spectrum of key researched ‘themes’ pertaining to the role of the CIO. Summating previous research, themes are modelled around four key CIO ‘dimensions’, namely (1) Impacting factors, (2) Controlling factors (3) Responses and (4) CIO ‘attributes’. Having modelled the CIOs current environment, and recognising the evolving IT enabled information landscape, the authors call for further research to inform the recruitment and development of the future CIO in terms of personal attributes and the measurable impact such attributes will have on their respective organisation

Critical processes for managing supplier involvement in new product development: an in-depth multiple-case study�

supplier, new product development

Managing Supplier Involvement in New Product Development: A Multiple-Case Study

Existing studies of supplier involvement in new product development have mainly focused on project-related short-term processes and success-factors. This study validates and extends an existing exploratory framework, which comprises both long-term strategic processes and short-term operational processes that are related to supplier involvement. The empirical validation is based on a multiple-case study of supplier collaborations at a manufacturer in the copier and printer industry. The analysis of eight cases of supplier involvement reveals that the results of supplier-manufacturer collaborations and the associated issues and problems can best be explained by the patterns in the extent to which the manufacturer manages supplier involvement in the short-term ànd the long-term. We find that our initial framework is helpful in understanding why certain collaborations are not effectively managed, yet conclude that the existing analytical distinction between four different management areas does not sufficiently reflect empirical reality. This leads us to reconceptualize and further detail the framework. Instead of four managerial areas, we propose to distinguish between the Strategic Management arena and the Operational Management arena. The Strategic Management arena contains processes that together provide long-term, strategic direction and operational support for project teams adopting supplier involvement. These processes also contribute to building up a supplier base that can meet current and future technology and capability needs. The Operational Management arena contains processes that are aimed at planning, managing and evaluating the actual collaborations in a specific development project. The results of this study suggest that success of involving suppliers in product development is reflected by the firm’s ability to capture both short-term and long-term benefits. If companies spend most of their time on operational management in development projects, they will fail to use the ‘leverage’ effect of planning and preparing such involvement through strategic management activities. Also, they will not be sufficiently able to capture possible long-term technology and learning benefits that may spin off from individual projects. Long-term collaboration benefits can only be captured if a company can build long-term relationships with key suppliers, where it builds learning routines and ensures that the capability sets of both parties are aligned and remain useful for future joint projects.Purchasing;Innovation;New Product Development;R&D Management;Supplier Relations

Designing whole-systems commissioning: lessons from the English experience

The paucity of formal evidence, allied to the requirement for strategies that are sensitive to local history and context, means that a ‘blueprint’ for successful strategic commissioning is not currently available for adoption. We are therefore confined to proposing ‘design principles’ for those seeking to embark upon a transition towards a whole systems approach to strategic commissioning. People and relationships are of critical importance all the way through the chain from strategic commissioning to micro-commissioning. Most crucially, experience suggests that structural solutions alone cannot deliver effective relationships and will not be effective when relationships are neglected. The need to ensure staff, partner and political buy-in suggests that relationship management and consensus-building are an integral component of the leadership role in moving toward strategic commissioning. As with any major re-organisation, the move to strategic commissioning is essentially a change management initiative and therefore will stand or fall according to whether it adheres to good practice in the change management process. Central to this, and to achieving commissioning outcomes, is the requirement for meaningful service user and public engagement. Effective commissioning emphasizes individual capabilities as well as needs, and community assets as well as deficits and problems. Adoption of strategic commissioning approaches is still at the developmental and learning stage and arguably all structural arrangements should be regarded as transitional

What drives contract design in strategic alliances? Taking stock and how to proceed

We collect and assess prior empirical evidence on contract design in alliances that has been published since Parkhe’s (1993) seminal study on inter-firm contracts. We elaborate on the effects of transaction-related factors, experience gained from prior relationships, and deliberate learning efforts on contracts. Our paper offers three contributions. First, we systematically review the existing literature on alliance contracts and summarize our findings. Second, while prior research has traditionally focused on contractual complexity, we place the content of contracts center stage and identify three contractual functions. While existing studies on contractual functions predominantly refer to safeguarding as a response to appropriation concerns, we also consider coordination and contingency adaptability as outcomes of adaptation concerns. Third, we disentangle the differential influences of previous experiences on distinct contractual functions and show that experience gained from prior relationships has different effects on safeguarding and contingency adaptability than on coordination. Overall, we add to the systematization of the current debate on alliance contract design and trace promising avenues for future research on the impact of transaction- and experience-related factors on the complexity and content of alliance contracts

The Role of Alignment Capability in Strategic IS Outsourcing Success

Strategic Information Systems outsourcing refers to the long term outsourcing of systems with a major transformational impact on the client’s business strategy. Such outsourcing arrangements mitigate risks through closely aligned client and vendor business/IT operational processes and shared strategic vision. Strategic outsourcing arrangements rely on both contractual and relational governance to build inter-firm alignment capability. This research paper defines a multi-item measure of clientvendor alignment capability, and uses that instrument to survey a number of North America based oil and gas exploration and energy producing firms, who have undertaken the outsourcing of strategic information systems to an Indian information systems vendor. The results indicate which elements of contractual and relational outsourcing governance support the building of client-vendor alignment and whether alignment capability improves outsourcing success factors

Governance of Offshore IT Outsourcing at Shell Global Functions IT-BAM Development and Application of a Governance Framework to Improve Outsourcing Relationships

The lack of effective IT governance is widely recognized as a key inhibitor to successful global IT outsourcing relationships. In this study we present the development and application of a governance framework to improve outsourcing relationships. The approach used to developing an IT governance framework includes a meta model and a customization process to fit the framework to the target organization. The IT governance framework consists of four different elements (1) organisational structures, (2) joint processes between in- and outsourcer, (3) responsibilities that link roles to processes and (4) a diverse set of control indicators to measure the success of the relationship. The IT governance framework is put in practice in Shell GFIT BAM, a part of Shell that concluded to have a lack of management control over at least one of their outsourcing relationships. In a workshop the governance framework was used to perform a gap analysis between the current and desired governance. Several gaps were identified in the way roles and responsibilities are assigned and joint processes are set-up. Moreover, this workshop also showed the usefulness and usability of the IT governance framework in structuring, providing input and managing stakeholders in the discussions around IT governance