Prior to beginning work on this assignment read Chapter 2 from the text, the articles from Powell (1992), Powell & Dent-Micallef (1997), review the relevant information from this week’s lecture, and carefully review the attached ISM645 Acme Company Strategic Summary Plan. Review the instructions below and research at least five additional scholarly sources to support your statements. You may wish to review the recommended resources for this week for assistance with finding appropriate resources.
Understanding IT planning for the business as a Competitive Advantage is not new. However, many CIOs fail to understand the strategic initiatives of their business in order to leverage IT Strategic Planning for a competitive advantage. The ability to determine the Corporate Strategy and identify business initiatives is essential for the IT Department in order to make it relevant and vital to the company. Understanding these initiatives and the ability to identify key business initiatives within a corporate strategy is basic to any IT Strategic Plan.
Note: As you begin to draft your paper be careful not to fall into the trap of coming up with specific solutions. Rather, think strategically in terms of directions and areas of technology and/or innovation.
Review the Acme Corporate Strategic Summary Plan and analyze the key business initiatives that support the Corporate Strategy. For each business initiative, explain why it is key to Acme’s corporate strategy. Discuss whether or not any of the authors in your readings support this type of initiative or are critical of it. For each identified initiative, explain the possible IT Strategic (planned) actions that might be relevant. In addition, assess why this could be a competitive advantage for the company.
Your Identifying Business Initiatives from the Corporate Strategy paper
- Must be five to seven double-spaced pages (1500-2100 words)
3 Professional Services: To be the professional partner of choice.
4 Maintenance Contracts: To be viewed as the top technology resource in the western region.
3.1 Professional Service: Acquire 2 new consulting clients $10,000+ per month.
4.1 Maintenance Contracts: Acquire an average of 5 new maintenance contracts per month
4.2 Licensing: Acquire 1,500 total licenses by the end of the year. 4.3 Maintain 85% of our current customers.
Acme Corporation Strategic Summary Plan Executive Summary – Strategic Plan 2014-2016
IMS645 Acme Company Strategic Summary Plan Foundation Strategic Objectives and Organization Goals Key Performance Indicators
Our Mission Financial How we measure success
The mission of Acme Corporation Technology is to create technology solutions for forward-thinking organizations
Our Core Values
1 Revenue Growth: Grow our revenue by 30% each year 1.1 KPI – Generate sales of $1.5 million by the end of the year.
2 Productivity Improvement: Maintain a 20% Net Profit Margin each year 2.1 Maintain profitability with a budget allocation of 50% for business re- investment for product development.
Measure Target $ in sales $1,500,000 $ per billable hour. $220 # of new consulting clients 0
1. Purpose & Growth – our foundation is built on our
2.2 Increase average billable hour factor. (Source: Time-tracking Program) avg monthly # of new maintenance 0 contracts
purpose and provides a place for our team’s passion 2. Client Focus – a razor-sharp focus on our customer’s
growth is essential and the only way to succeed. 3. Integrity – to have honesty and respect for all
individuals. 4. Leadership – to empower and inspire entrepreneurial
leaders. 5. Professionalism – to be professional in our actions to
our clients, partners and each other. 6. Excellence – to continually pursue knowledge and
learn. 7. Community Service – to effectively help organizations
to make an impact. 8. Fun – to have enjoyment and fulfillment in our work
% increase in customer base annually 85%
What our Organization will look like
To be known as the technology experts and resource center for small to medium-sized organizations.
This is where you type your description.
What we do best
1. Reoccurring revenue that is scalable 2. Assets and software products in place outside our
services 3. Innovative in marrying business process with
technology 4. Business Network – domestic and international 5. Patented Intellectual Property – interactive, integrated
5 Innovation/Product Development: Continue to develop technology innovation. 5.1 Launch integration with 2 other applications.
6 Overall Operations: Develop and maintain an infrastructure that allows for a virtual office and efficient overhead. 6.1 Set up computers to be accessed from any destination. 6.2 Define all procedures and process in writing in order to support projected growth. 6.3 Blogs & Newsletters: Consistently timely relevant thought leadership that is developed, published and preserved.
How we make strategy a habit
Appoint a strategic plan manager Hold people accountable (now that they are able)
How we will get there
Organization-Wide Focus: 2013 – Lay the foundation for the organization. 2014 – Execute a market penetration strategy to increase top line. 2015 – Standardization of all processes. 2016 – Develop the infrastructure to prepare for growth.
7 Training: Actively help our team to develop and grow professional and personally by supporting a flexible work life, providing intellectually engaging work, and fair compensation. 7.1 Train sales people in best practices 7.2 Develop better communication and presentation skills to increase ability to work with and assist clients.
People and Learning 8 Community Involvement: Develop and implement a corporate giving strategy that is in line with our competitive advantages. 8.1 Manage the selection, contribution and customer communication of nonprofit donations. Target is 15% of revenue.
9 Long Term Strategic Objective (No assignment, far reaching and broad based, 3-5 years out) [**Sample Goal Cascading**] 9.1 Organizational Goal (Corporate-wide,
generally not assigned, 18-24 months) [**Sample Goal Cascading**]
9.2 Put in place an incentive compensation plan Coach for achievement
9.3 Empower managers 9.4 Hold effective strategy meetings – first Mondays 9.5 Hold annual retreat – second week in December
- Foundation Strategic Objectives and Organization Goals Key Performance Indicators
- Our Mission
- Our Core Values
- 1 Revenue Growth: Grow our revenue by 30% each year
- 2 Productivity Improvement: Maintain a 20% Net Profit Margin each year
- Measure Target
- What our Organization will look like
- 5 Innovation/Product Development: Continue to develop technology innovation.
- 6 Overall Operations: Develop and maintain an infrastructure that allows for a virtual office and efficient overhead.
- How we make strategy a habit
- Organization-Wide Strategies
- How we will get there
- 7 Training: Actively help our team to develop and grow professional and personally by supporting a flexible work life, providing intellectually engaging work, and fair compensation.
- People and Learning
- 8 Community Involvement: Develop and implement a corporate giving strategy that is in line with our competitive advantages.
- 9 Long Term Strategic Objective (No assignment, far reaching and broad based, 3-5 years out) [**Sample Goal Cascading**]
- How we will get there