Information Technology Importance in Strategic Planning Assignment

This assignment explores the significance of Information Technology (IT) in strategic planning across various business contexts. The analysis begins with an examination of social networking as a key information resource, discussing how companies can leverage social media to engage customers and the necessary organizational and IT strategy adjustments to enhance the effectiveness of social business strategies. The assignment then delves into Mary Kay, Inc.'s business model, focusing on the e-commerce system supporting Independent Beauty Consultants (IBCs) and the strategic importance of delivering products on time and employee training. Finally, the assignment considers the advantages and disadvantages of outsourcing, using Continental Airlines as a case study to illustrate the benefits and risks associated with outsourcing IT activities and the importance of IT innovation. The analysis incorporates references to relevant academic literature to support the arguments presented.

Information technology importance in strategic planning

Information technology
Topic 1
Social networking is considered as the source of gathering the information. It can be seen that
companies motivate the customers to interact with them by posting attractive pictures of the
products and services on the social network sites. Also, many times various discounts are given
to the customers to grab their attention towards the products and services offered to the
customers in the competitive market.
The companies should focus on considering the organizational and IS strategies so that it can be
easy to gather the accurate data of the customers. It can be seen that to enhance the effectiveness
of the social business strategy the company should focus on considering the data by interacting
with the customers so that mindset of the customers can also be analyzed and also it will help the
companies to create the products and services according to the demand of the customers. The
organizational strategy should be changed by the top management in which the employees
should also be given training so that they can post proper information of the social media sites. If
proper information is given to the customers then only it can be possible to attain goals and
objectives in an effective manner (Perrin, 2015).
So, it can be stated that companies should focus on social business strategy so that it can be
simple to maintain the image in the market and also it will help to overall profitability of the
company.
Topic 2
In this case it is important to focus on changing the organizational strategy in relation to the
Mary Kay’s new business strategy. It can be seen that organizational strategy should focus on
delivering the products to the customers on time so that it can be easy for the company to
maintain its brand image in the market and also it will help the employees to sell their products
in the competitive market. The strategy of the organization should focus on delivering the
products to the customers on time and also the organizational strategy should focus on giving
training to the employees. By giving training to the employees it can be simple for them to give
their best towards the activities of the company. It will also help in maintaining the large
customer base in the competitive market. Organizational strategy is also related with interaction
of the employees with the customers. It is important for the employees to interact with the
1

Information technology
customers so that it can be easy to explain about the products and services which are offered in
the market. By interacting with the customers it can be stated that long time of relations can be
maintained and also their image can be improved. Discounts should be offered in a good way as
compared to the competitors so that preference can be given to the products and services of the
company. To reduce the level of competition in the market it is necessary to emphasize on
considering the option of chat system so that communication can be done effectively (Pearlson,
Saunders & Galletta, 2016).
Topic 3
There are various advantages that can be considered for the company like continental airlines in
relation to outsourcing. Outsourcing is considered as the function through which activities can be
transferred to the other parties. The advantage of outsourcing the activities to EDS is that it can
be easy for the company to manage the activities of the company. Also, through this the core
competency can be maintained easily by the company which has given positive impact on the
overall growth of the company in the competitive market. Through this the entire activities can
be now managed with efficiency and also with proper skills. The disadvantage is related to risk.
When the activities are outsourced the company has to consider the high risk which can also
close the business in the high competitive market (Oshri, Kotlarsky & Willcocks, 2015). So, this
can be considered as one of the disadvantage related with Continental airlines.
Also, it is important for the higher authorities to focus on giving support in implementations of
IT innovations so that innovative services can be given to the customers. If innovative services
are given to the customers then it can be simple to boost the overall profitability of the company.
Technological innovation can also help the employees to give their best towards the activities
which are assigned by the top management (Alkhuraiji, Liu, Oderanti & Megicks, 2016). So, it is
important for the top management to focus on implementation of IT innovations so that growth
can be attained.
2

Information technology
References
Alkhuraiji, A., Liu, S., Oderanti, F. O., & Megicks, P. (2016). New structured knowledge
network for strategic decision-making in IT innovative and implementable projects. Journal
of Business Research, 69(5), 1534-1538.
Oshri, I., Kotlarsky, J., & Willcocks, L. P. (2015). The Handbook of Global Outsourcing and
Offshoring 3rd Edition. Springer.
Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2016). Managing and Using Information
Systems, Binder Ready Version: A Strategic Approach. John Wiley & Sons.
Perrin, A. (2015). Social media usage. Pew research center, 52-68.
3