Strategic Alliance Through the Use of ICT

Strategic Alliance Through the Use of ICT

S.C. Lenny Koh (University of Sheffield, UK) and Stuart Maguire (University of Sheffield, UK)
DOI: 10.4018/978-1-60566-424-8.ch004
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Abstract

It is important for today’s dynamic organizations to develop a strong and sustainable links with outside organizations and agencies. It may be necessary for your firm to have robust links with your customers and suppliers. It may also be necessary for your firm to set up links with other organizations in what have become known as strategic alliances.
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Reuters expects to save £150 million over the next 10 years through a £500 million outsourcing deal, led by Fujitsu Services to revamp and manage the media company’s internal I.T. infrastructure (Computer Weekly 2007).

In a move that has sparked intense debate, “The New York Stock Exchange (NYSE) is using off-the-shelf technology (Netezza) to cut the time taken to access Business Critical data on its network from up to 26 hours to just over 2 minutes (Computer Weekly 2008).

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Introduction

It is important for today’s dynamic organizations to develop a strong and sustainable links with outside organizations and agencies. It may be necessary for your firm to have robust links with your customers and suppliers. It may also be necessary for your firm to set up links with other organizations in what have become known as strategic alliances.

Strategic Alliances are joint developments or alliances. They may only be for the lifetime of a project. Some may be much formalized, inter-organizational arrangements. There can also be very loose arrangements of cooperation and informal networking between organizations, with no shareholding or ownership involved (Johnson & Scholes, 2003). More recently purchasers and suppliers have been able to develop more tightly coupled links through electronic integration. However, there is a requirement to undertake further research across a range of business sectors (Grover & Saeed, 2007).

Why should organizations even consider setting up a strategic alliance? The main benefit of a strategic alliance is a situation where ‘partners’ can achieve more jointly than they could independently.Explained in a different way a strategic alliance is:

An alliance of resources or programmes between two or more independent organizations designed to increase the marketing potential of each organization, i.e. symbiotic marketing (Varadarajan & Rajaratnam, 1986).

They can be viewed as:

  • Formal coalitions between 2 or more firms for short or long-term ventures emanating from opportunistic or permanent relationships that evolve into a form of partnership among players (Hax & Majluf 1991).

Developing information systems across organizational boundaries can lead to potential problems in the area of project and change management. By their very nature these system developments will be complex as political and cultural issues may be at the forefront of these projects. In many instances a myriad of different stakeholders may need to be accommodated before progress can be made. Those stakeholders with high interest in the new system may lack the power to implement it (Boonstra et al. 2008).

Figure 1.

Depending on the type of circumstances in which they are set up and the environment in which firms are working strategic alliances are Relationships where partners bring a particular skill or resource, usually one that is complementary, and by joining forces both are expected to profit from the others experience (Jeannet & Hennessey, 1992).

Figure 2.

Increasing numbers of organizations are straining to make their supply chain management more effective under the pressure of increased competition. Strategic alliances may be the answer if they are viewed as a stream of value-chain activities where alliances enable each stage to be accomplished with the help of a partner, i.e. the marketing of a product (Stafford, 2002).

Figure 3.

Complete Chapter List

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Table of Contents
Foreword
Elias G. Carayannis
Acknowledgment
Chapter 1
S.C. Lenny Koh, Stuart Maguire
The issues that are currently affecting all managers are similar to those facing managers of ICT. The following is a list, though not exhaustive, of... Sample PDF
Review of Current ICT Developments
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Chapter 2
S.C. Lenny Koh, Stuart Maguire
The ultimate reason why organizations develop information systems is so that their employees can make good decisions. If firms did not make... Sample PDF
Linking Information to Business Strategies and Decision-Making
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Chapter 3
S.C. Lenny Koh, Stuart Maguire
The introduction of new IS can often have a significant effect on the business practices within an organization. It is important that a lack of... Sample PDF
Developing and Implementing an ICT Strategy
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Chapter 4
S.C. Lenny Koh, Stuart Maguire
It is important for today’s dynamic organizations to develop a strong and sustainable links with outside organizations and agencies. It may be... Sample PDF
Strategic Alliance Through the Use of ICT
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Chapter 5
S.C. Lenny Koh, Stuart Maguire
Information Systems (IS) has borrowed many techniques from other disciplines. However, many of these have been borrowed from areas where the outcome... Sample PDF
Planning and Managing ICT Change
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Chapter 6
S.C. Lenny Koh, Stuart Maguire
The reason for going ahead with a new information system (IS) development can come from many sources. A new business requirement may force an... Sample PDF
Identifying Opportunities for Using ICT
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Chapter 7
S.C. Lenny Koh, Stuart Maguire
The development of information systems (IS) has for many years been regarded as the domain of the technical expert. In what appears to be a growing... Sample PDF
Introduction to Current Techniques for Effective ICT Development
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Chapter 8
S.C. Lenny Koh, Stuart Maguire
Nearly all information systems developments follow a structured approach. This is true of all projects. This chapter takes a critical look at both... Sample PDF
System Development and Project Management
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Chapter 9
S.C. Lenny Koh, Stuart Maguire
If organizations were good at ICT planning there would not be as many information systems failures. There is a definite need for improved... Sample PDF
Critical Success Factors for ICT Development
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Chapter 10
S.C. Lenny Koh, Stuart Maguire
For many organizations, the implementation of a new information system (IS) may be the biggest capital expenditure they undertake. If substantial... Sample PDF
Impediments to the Successful Implementation of ICT
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Chapter 11
Learning From Failures  (pages 176-206)
S.C. Lenny Koh, Stuart Maguire
Strategic.failures can be defined as failures of achieving the expected benefits from the organizational, size and industrial sectors or countries’... Sample PDF
Learning From Failures
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Chapter 12
S.C. Lenny Koh, Stuart Maguire
The Internet Cultural Era (ICE) has driven many Small and Medium sized Enterprises (SMEs) in the UK and Ghana to adopt ICT technology. This... Sample PDF
Drivers and Barriers for ICT Development
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Chapter 13
S.C. Lenny Koh, Stuart Maguire
Although Boeing and Rolls-Royce are operating in the same aerospace industry sector and use ERP, but the ways that they implemented their systems... Sample PDF
Current Developments and Diffusions in ICT: ERP, SCM, CRM
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Chapter 14
S.C. Lenny Koh, Stuart Maguire
Globalisation, modernisation and streamlining paradigms have driven many enterprises to use various e-Technologies in order to improve the... Sample PDF
E-Technology: E-Business, Intranet, Extranet, Internet
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Chapter 15
Knowledge Management  (pages 285-296)
S.C. Lenny Koh, Stuart Maguire
Knowledge.Management can be defined as the critical issues of organisational adaptation, survival and competence against discontinuous environmental... Sample PDF
Knowledge Management
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Chapter 16
S.C. Lenny Koh, Stuart Maguire
In information terms, security can be defined as the processes of ensuring that private information remains private and uncompromised in an... Sample PDF
Security and Risk Management
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Chapter 17
S.C. Lenny Koh, Stuart Maguire
Commercial airlines face an extremely challenging operating and competitive environment. To remain in business they must comply with ever-changing... Sample PDF
Improving IT-Enabled Sense and Respond Capabilities: An Application of Business Activity Monitoring at Southern International Airlines
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Chapter 18
S.C. Lenny Koh, Stuart Maguire
This case describes how banking in India has changed after developments in information technology in the last decade. The new private and foreign... Sample PDF
Competing in the Age of Information Technology in a Developing Economy: Experiences of an Indian Bank
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Chapter 19
S.C. Lenny Koh, Stuart Maguire
The Telecommunications Act of 1996 opened competition in the telecommunications market in the U.S. and forced the incumbent telecommunications... Sample PDF
Developing a Telecommunication Operation Support Systems (OSS): The Impact of a Change in Network Technology
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Chapter 20
S.C. Lenny Koh, Stuart Maguire
Nazar Group of Companies has been a leading producer and distributor of cookies, crackers, cakes, chocolate, and other products in Turkey for more... Sample PDF
Nazar Foods Company: Business Process Redesign Under Supply Chain Management Context
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Chapter 21
S.C. Lenny Koh, Stuart Maguire
The TeleDoc project of Jivan Institute has combined mobile commerce and the ancient concepts of Ayurveda for treatment of rural residents of India... Sample PDF
The Expansion Plan of TeleDoc: What and How Much of the Technology Employed is to Change?
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Chapter 22
S.C. Lenny Koh, Stuart Maguire
E-government is becoming a reality rather than a theoretical ambition; however, achieving the e-government anticipated benefits is still illusive... Sample PDF
Process-Aware E-Government Services Management: Reconciling Citizen Business, and Technology Dynamics
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About the Authors