IT Strategy Management and Acquisition: Sony

This report discusses the management and acquisition of IT strategy in Sony, including challenges faced and the role of IT in the contemporary environment.

Running head: IT STRATEGY MANAGEMENT AND ACQUISITION
IT Strategy Management and Acquisition: Sony
Name of the Student
Name of the University
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Table of Contents
1. Introduction............................................................................................................................2
2. Discussion..............................................................................................................................2
2.1 Brief Background of Company and Product....................................................................2
2.2 Evolution of IS/ IT Strategy.............................................................................................3
2.3 Major Challenges faced by Sony during IS/ IT Strategy.................................................4
2.4 Recent Scenario of IS/ IT for Sony..................................................................................7
2.5 Role of IS/ IT in Contemporary Environment.................................................................8
2.6 Management of Information System for Managing and Controlling Organizational
Systems..................................................................................................................................9
2.7 Execution of IS/ IT Strategy to be presented in Sony....................................................10
3. Conclusion............................................................................................................................11
References................................................................................................................................12

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1. Introduction
Information technology strategy or IT strategy can be referred to as a plan of action
that is used for creation of the capability of information technology for obtaining sustainable
and maximum value for the company. One of the major reasons for implementation of IT
strategy in an organization would be the rapid spread of information technology as well as
increasing connectivity and interconnection with the contemporary world (Laudon and
Laudon 2016). The following report outlines a brief discussion on management and
acquisition of information technology strategy in one of the most popular and significant
businesses in Australia, Sony. Several challenges that are being faced by the organization of
Sony would be clearly demonstrated in this report with relevant details.
2. Discussion
2.1 Brief Background of Company and Product
Sony Australia is a multi national conglomerate corporation that has diversified
businesses. The major businesses involve professional and consumer electronics, financial
and entertainment services. This particular organization even owns the largest business for
music entertainment in the entire world (Sony.com.au. 2019). Moreover, they also own the
largest video game console business as well as one of the largest video game publishing
business. Sony Australia is referred to as one of the leading and the most significant
manufacturers of electronic products for both professional and consumer markets. Recently,
they are even leading the subsequent industry of film and television entertainment. The main
reason for their success can be termed as their unique information technology strategy that
they have been using for several years.
One of the major products or services of this particular organization that they are
producing to their customers is electronic commerce or e commerce. This is their core

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strategy of information system to expand their respective business to electronic business for
the core purpose of meeting each and every customer’s demand (Sony.com.au. 2019). Since,
they are a multi national conglomerate, it is highly required for them to expand their business
so that all the customers in all over the world would easily and promptly obtain their products
without much complexity.
2.2 Evolution of IS/ IT Strategy
The evolution of strategy is completely based on the strategic processes. In Sony, the
starting point eventually derives from the organizational requirement for adapting, competing
and finally evolving within the competitive market (Goni et al. 2013). This entire evolution
of IS/ IT strategy provides a distinctive pattern for decision making and even for shaping the
future. However, development of a pattern or shaping of their future required laying a
foundation for success. Being a successful business, Sony has pinpointed on an overall
vision, breaking down of that particular vision to few individual plans of action, before
changing or revaluating these plans on the basis of key performance indicators. The
management of Sony has understand strategic planning is a top down procedure, in which
each and every level of the company is a major part of strategic planning procedure (Ahmad,
Maynard and Park 2014). This type of strategy is mainly dependent on the evolution of
technology. Sony has started its journey in the year of 1946 and since then technology has
been a part of evolution so that they are able to serve their customers with updated
technologies and techniques.
The modernized systems have provided them the core capability to develop the major
models of strategic planning and even to develop the respective strategy software, which
enables all organizational levels for viewing as well as executing a plan (Dinter 2013). The
key performance indicators, a vision statement, strategic planning software, intervention of
modernized computer software and a dashboard have allowed Sony to effectively align their

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strategies at all levels and even for moving beyond their previously planned strategies. In the
first phase of 1950 to 1960, the first evolution of IT or IS strategy is data processing. They
collected, stored, modified and retrieved regular transactions with data processing. During the
next 10 years, the evolution involved management reporting and decision support system
(Laudon and Laudon 2015). Finally, in next 20 years, the management of Sony included ESS
or executive support system and knowledge management system. Finally, after the year of
2000, they have included e business or electronic business in their business.
2.3 Major Challenges faced by Sony during IS/ IT Strategy
During the entire evolution of information system and information technology
strategy, Sony Australia have faced some of the major challenges in their business (Enck et
al. 2014). The information system strategies are playing subsequent roles in each and every
level of business environment. The functionalities of information system strategy are
eventually responding to significant business requirements after offering proper and accurate
information systems for every activity or action within the business for ensuring the
efficiency as well as effectiveness of plan, control and management of project (Bajdor and
Grabara 2014). Successful deployment of information system strategy gives competitive
advantages that could lead Sony Australia towards improvement of outcomes, reduction of
business complexities, incrementing efficiency as well as decreasing unnecessary expenses.
In present days, the business environment with an increasing external and internal
changing, is substantially facing major challenges and difficulties like technical and human
barriers that can lead to major differences and misalignment within performances between
information system strategy and business (Fountas et al. 2015). Thus, a negative impact on
the business is being observed by the respective management of Sony Australia. The major
challenges that they have faced during implementation of IS/ IT strategy in business are as
follows:

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i) Management Challenges: This is the first and the foremost challenge that Sony
Australia has faced in their business. This refers to the fact that when the plan of information
system strategy of involvement of electronic commerce was being developed, they required
to persuade a top management for getting approval about development of every suggested
system (Döring et al. 2014). During this period, the senior authority did not agree on the
point since they were lacking to understand the core purpose of e commerce and hence they
did not trust on the information system strategic capability for carrying them out. The
respective organizational executives should have examined the responsibility of this service
for implementation of the plan before confirming about budget and time needed for this
purpose. Few significant challenges that they have faced here include requirement of aligning
their existing business strategy with the information system strategy. Due to the difficulties in
management issues like organizational operations such as general management, personnel
and budgeting (Sepulveda and Young 2013). They also identified that they would require an
improvement in their existing information system. Thus, it was needed to maintain an
effective and efficient relation to both senior management and customers for bringing success
in the new IS/ IT strategy of e commerce implementation.
ii) Human Challenges: The second type of issue that Sony Australia has faced in
their business is related to human beings or every member associated to the organization. The
main challenges in this category included lack of resources for engaging user education and
training, inability in employing experts, who could suitably fulfil the activities of information
technology and even inability to recruit accurate and appropriate personnel (Schwalbe 2015).
Since, electronic commerce was to be introduced in the business, lack of computer skills was
one of the major reasons that initiated human challenges within the business. There was a
lack of general computer based skills amongst the organizational employees (Holtshouse

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2013). Most of the older employees even displayed and showed their lack of interest or
willingness to work with this particular IS strategy of Sony Australia.
iii) Technical Challenges: The next significant and important type of challenges that
are being faced within Sony Australia organization while implementing their newest IS
strategy of involving electronic commerce in business (Marchewka 2014). The technical
system challenges can be referred to as the issues or problems that are solely related to the
respective aspects of software and hardware of information technologies. Moreover,
telecommunication issues are extremely common in this scenario. Another important and
noteworthy factor that was being identified by the management of Sony Australia was the
subsequent challenge towards infrastructures of hardware and software. The main reason
behind this type of issue was the disagreement of employees as they evaluated that migration
from old system to new system or even up gradation of previous systems would be extremely
challenging for the business and they would lose few of their premium clients (Willcocks
2013). The lack of hardware and software budget was also affected for this involvement of
new electronic commerce strategy.
iv) Time Challenges: Since, Sony Australia is dealing with customers and they are
directly selling products to their customers, it is extremely important and significant to
maintain time and complete work within given deadline. However, while starting this project
of e commerce, they faced issues of lack of proper time analysis (Schnoll 2015). Due to the
extension of time for implementing this strategy, once a time, they even decided to cancel the
project as the strategy might not fulfil customers’ demands completely. They even took time
while selection of technology solutions as well as implementation of shared data.

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2.4 Recent Scenario of IS/ IT for Sony
The current scenario or position of Sony Australia is much stable in comparison to
their rough start of information system strategy of electronic commerce. Sony values
employee communication on top priority (Borja and Castells 2013). Under the corporate
culture, which eventually promotes about condition of better business process, Sony had been
fostering effective and diversified communication both within their work places as well as
across the business boundaries for subsequent creation of value. Sony Australia is treating
communication within top management after inclusion of employees and CEO as the top
most priority (Taipaleenmäki and Ikäheimo 2013). By involvement of corporate intranet, the
IS/ IT strategy is being successfully fulfilled and information is being provided on the
progress made within business. Such communications are even exchanged trough electronic
mails as well as any other media. As per the current scenario of information system and
information technology of Sony Australia, they have been working for creating several other
distinctive opportunities for direct dialogue within employees and top management (Mao et
al. 2016). After sharing the views and ideas with the respective employees, it is required for
them to understand the entire scenario with effectiveness and efficiency.
Sony management holds regular informal meetings with their employees for covering
a broader variety of themes from management to technology. The opportunities of the
employees are also kept on top priority after consideration of several perspectives so that the
employees could eventually gain a close affinity with the management and understand the
technological benefits and advancements within the business (Abdekhoda et al. 2014). The
current scenario of IS/ IT strategy of this particular organization is in excellent position and
the employees are using their unique ideas and views for the core purpose of enhancing the
overall quality of organizational management. Presently, they are focusing on their products
and services to make them more innovative and creative in comparison to the others. They

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are focusing on cameras after having a tough competition with the other organizations. The
lenses of their latest innovative camera is extremely high and is nearly 400 mm length
(Bloom et al. 2014). With the help of their unique information system and information
technology strategy, they are able to reduce the complexities of information management and
gain a better position in the Australian market.
2.5 Role of IS/ IT in Contemporary Environment
The information technology system involves all types of software, hardware as well
as peripheral equipment that are operated by a limited number of users (Piotrowicz and
Cuthbertson 2014). There are three distinctive categories of information technology, which
include processing for techniques, simulation of high order thinking by computerized
programs and proper application of both mathematical and statistical methodologies towards
decision making. It even encompasses other information distribution technologies for
maintenance of better business process and fulfilment of every business requirement. The
most significant products and services that enhance information technology in any specific
organization include hardware, telecom equipment, internet, software, electronic commerce
and electronics (Tafti, Mithas and Krishnan 2013).IS and IT have eventually become a vital
and important part of every business plan. From the multi national organizations, who are
responsible for maintaining a mainframe system as well as database to small organizations,
who own any single system, information technology plays a significant role.
The major and most important reasons for this type of omni presence of IT/ IS uses in
the businesses could be termed as or determined by simply looking at how this could be
utilized in any particular business. In contemporary environment, IT/ IS enhances
communication within customers, suppliers and employees (Pérez-Aróstegui et al. 2015).
Electronic mails is the major means for communication within these organizational members,
hence providing a simple as well as inexpensive means for communication. Sony, being an

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international organization has to use emails for their principle communication mode as they
have to connect to the world by help of live chat system, online meeting tool as well as video
conferencing system. The management of information systems is yet another important and
significant role that is played by IT/ IS in contemporary environment (Holtshouse 2013).
Customer relationship management and data management systems are also maintained
efficiently with this type of strategy.
2.6 Management of Information System for Managing and Controlling Organizational
Systems
Shareholder’s value is being created by this information technology strategy.
Moreover, it is even helpful for maximizing the return on IT investments. This type of
strategy should be managed effectively for gaining competitive advantages and increasing
business value (Sepulveda and Young 2013). The respective business requirements and IT
capability are aligned with information technology strategy and hence it ensures that
maximum business value is obtained. An organization should have an IT strategy for setting
direction for their information technology functionalities and for fulfilling business needs.
Corporate strategies are maintained with the presence of information technology strategy.
Management of information system is extremely important and significant for managing and
controlling the organizational systems (Bajdor and Grabara 2014). The variety of tasks
related to information systems like directing and coordinating research to overseeing internet
operations and network security.
The computer related and computerized activities of that particular organization are
being coordinated in an effective manner and hence enhancing the chances of IT and IS
innovation to a high level (Laudon and Laudon 2015). Moreover, management of information
system is also responsible for reducing the complexities of organization systems for the
purpose of increasing inventory control and profits within the business. This particular

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advantage is extremely important for Sony as they have to deal with technological innovation
and creativity on top most priority. Since, it improves the quality of decisions, management
of information system is also being used for improving decision making system in Sony
Australia by increasing the availability of information and making more rational decisions on
the basis of reliable data (Ahmad, Maynard and Park 2014). The organization even obtains a
platform for exploring several scenarios to numerous alternatives as well as economic
environments. The organizational competitive advantages are strengthened and thus
weaknesses are eliminated and customer services are improved.
2.7 Execution of IS/ IT Strategy to be presented in Sony
The information system or information technology strategy is required for eradicating
all types of issues and complexities that are being faced during involvement or
implementation of new products and services within any specific business (Laudon and
Laudon 2016). In Sony Australia, there had been several new products and services and all of
them are well accepted by the customers. Information system strategy had played one of the
most significant roles in this type of achievement. An information system is a proper
amalgamation of software, standards, infrastructure, hardware, trained personnel and
processes, which are being designed for the successfully creation, modifying, storage,
management as well as distribution of information so that suggestion of new business
strategies and new products is provided in an effective manner (Enck et al. 2014). A better
formation as well as implementation of strategy in respect to the computer based IS or
information system is one of the major and the most significant issue within Sony Australia.
Few of the general implications on information system strategy and implementation are
required to be considered for understanding the current scenario of IS/ IT position.
Sony Australia has implemented information system and information technology
strategy for gaining competitive advantages within their business and also adding subsequent

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value to the business. They have executed their IT/ IS strategy of implementation of
electronic commerce after eradicating the various issues and complexities and by including
several effectiveness and efficiency within the business (Fountas et al. 2015). Moreover, they
have considered their short term and long term goals and objectives so that they are being
fulfilled in an effective manner. The decision making is the most significant task that is to be
performed by different level management in Sony Australia. They have planned, controlled,
organized and directed the activities for enhancement of business procedures and handling of
changing requirements for the respective users. The management of Sony Australia have
even focused on information system for close alignment of business strategy with respective
business needs as well as technological possibilities (Sepulveda and Young 2013). Hence,
they have been able to attain the strategic goals and objectives and have delivered their
products and services in an effective and efficient manner after successful execution of IT/ IS
strategy.
3. Conclusion
Therefore, from the above discussion, it can be concluded that information technology
is the proper utilization of systems and computers for storing, retrieving, transmitting and
finally manipulating confidential and sensitive information and data within the context of
enterprise and business. It is subsequently considered as the major subset of ICT or
information and communication technology. The technology and business strategies should
be aligned for management of information technology. It is quite different from management
information systems and it helps in automation or support of human decision making. There
are some of the core IT related management actions and activities within companies. An IT
strategy is much effective for dealing with any type of issues faced within information
technology. The above provided report has clearly described about a detailed analysis of IT
strategy management and acquisition in Sony.

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