Value of Information Report: Business and IT Alignment Analysis

This report provides a comprehensive analysis of the value of information within a business context, specifically focusing on Gap Inc. The report begins by outlining a business problem related to the company's need to adapt to digital disruption and leverage data analytics for competitive advantage. It then explores the alignment between business strategy and IT, examining how Gap can utilize technology to understand customer needs and preferences. The study evaluates various alternatives for managing data and IT, including outsourcing and establishing an in-house IT department. Through a detailed analysis of these options, the report offers strategic recommendations for Gap to optimize its use of data analytics, manage its multiple brands effectively, and overcome challenges posed by digital disruption. The report emphasizes the importance of data-driven decision-making and strategic IT investments for sustained business success in the retail apparel industry. The report also delves into the impact of digital disruption on the retail apparel industry and provides insights into how Gap can assess opportunities and threats in this dynamic environment. The report provides a detailed overview of the business problem, business and IT alignments, identification of alternatives, analysis of alternatives, recommendations, and a plan for implementation.

Running head: VALUE OF INFORMATION
Value of Information
Name of the Student
Name of the University
Author’s Note

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Table of Contents
1. Business problem:........................................................................................................................2
2. Business and IT alignments:........................................................................................................3
3. Identify alternative:......................................................................................................................6
4. Analyze the alternatives:..............................................................................................................7
5. Recommendation:......................................................................................................................12
6. Plan for implementation:...........................................................................................................14
7. Conclusion:................................................................................................................................15
Reference List:...............................................................................................................................17

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1. Business problem:
With the dynamic progress of business industry organizations have to develop their
operational method for gaining competitive advantages. Founded in 1969 under the ownership of
Donald and Fisher Gap Inc has occupied a recognizable place in the realm of retail apparel
industry. With the emergence of new technology business exerts have implemented big data for
controlling the database of entire business process. With the gradual progress of business
expansion Gap has expanded their business wings beyond going the regional market of America.
Therefore, ordinary technological support is not capable enough in maintaining entire database.
As a result, organization had to divide the employees as per various departments. Gap had to
invest large amount of money for hiring employees for each divisions. Gap business experts
manage five brands and intend to develop policy that is equal for all the brands and this initiative
is successful through their products 3.0 strategy. However, this aspect cannot become a success
if they have to manage the analytics team in-house.
Led by its CEO, Gap invested in analytics technology and undertook radical changes to
eliminate traditional creative designers with a collective ecosystem fuelled by the input of big
data. However, this very specific study has focused to make an in-depth overview about the
impact of analytics technology. Mr. Peck opted for the dismissal of all the creative designers
from the organization. They have also taken the strategy of utilizing the result from the Google
analytics to identify upcoming trends of the market. The study evaluates on how GAP assess the
opportunities and threats of digital disruption in the retail apparel industry. The study has
provided critical analysis on how Gap should invest their analytics capability by implementing

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in-house IT sector for controlling the entire database. Based on the implemented plan on big data
study has focused to provide major recommendations as well.
2. Business and IT alignments:
Across the World the incident of digital disruption is no more hypothetical. Companies
have to face real issues both positive and negative with IT alignment. IT is incorporated with
the innovation of digital technologies like social media, smartphones and numerous internet
services (Wamba et al. 2015). In general terminology digital disruption signifies the negative
connotation that ultimately hampers the entire process of business. With the gradual progress of
technology customers can access their shopping portals from own smartphone. This particular
disruption enables the business organization like Gap in enhancing the communication with the
target customers more effectively (GalbRaith 2014). As a result, customers can easily get
detailed overview about the brands and products by sitting at their own workplace. By using
data analytics the business experts of Gap can gather entire data record about the current needs
and demands of the customers (Dubey et al. 2016). The demand of the target customers in the
international market can be easily evaluated by using data analytics and digital disruption. As a
result, Gap in order to know the current market demand does not have to involve research and
development team for making an in-depth market analysis.
In the case study, it has been mentioned that Gap primarily focuses to grab customers’
attention by meeting their needs and desires (Davenport 2014). Data is gathered from
technological analytics that Amazon in the current business scenario is the most effective
platform that customers tend to use for purchasing their products (Erevelles, Fukawa and Swayne

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2016). As a result, Gap has decided to make partnership with Amazon so that they can launch
their cloths in the platform of Amazon.
On the other hand, the organization has to face immense threats from digital disruption in
the retail apparel industry. Employees belonging to different age group are associated with the
business process of Gap. Large numbers of employees are there who are not very much
accustomed with the advancement of technology. As a result, operating big data for maintaining
organizational data record is a major challenge for those employees who are not well associated
with the advancement of technology (De Mauro, Greco and Grimaldi 2015). On the other hand,
customers from middle aged group are not used to operating social media or online portal
platforms. As a result, the target customers from remote areas have to face challenges in using
the services and products of Gap. On the other hand, entire process of digital disruption is
completely based on the advancement of technology. Due to any kind of technological error the
employees have to face challenges in getting in-depth overview about the financial data, data on
customer review, and data on business profitability (George, Haas and Pentland 2014).
In general point of view, business experts intend to make an in-depth market research in
order to place their brand in forefront. Based on customers’ current trends and upcoming desires
the organizations intends to design their products for fulfilling needs and demands of the
customers (GalbRaith 2014). However, Gap has used data analytics as their most effective
platform of gathering data on customers’ desires. Technology analytics helps the organization in
getting proper overview about the most searched keyword by the customers in online shopping
portals. It has been observed that “fashionable cloths” is the most effective keywords that young
target customers tend to use while searching their products from retail brands. As a result, while

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developing their online portal the business experts have used these key words in order to become
in the front list of customers’ views (Sharma, Mithas and Kankanhalli 2014).
After searching effective information by using big data technology it is observed that
Amazon is one of the most prestigious online shopping platforms from where consumers tend to
show their interest in purchasing products. In this kind of situation, the business experts of Gap
have diced to introduce their brand in the platform of Amazon. After making collaboration with
Amazon the customers can easily access the brands from the platform (Abbasi, Sarker and
Chiang 2016). Consequently, the existing customers of Amazon can view the products of Gap.
Introducing the brand in global market and grabbing the attention of international customers is
the primary target of business experts of Gap. Therefore, they have focused to place their brand
those online shopping portals where customers tend to show their interest in purchasing products.
After communicating with the customers by using new media platform it is observed that
the customers have young generation is the primary target group for Gap. Most of the people
belonging to the age group of 25 to 35 are in quest of fashionable cloths. In order to fulfill the
needs and demands of customers Gap has decided to render product variety with different
designable and colorful designs. “Fashionable cloths” being the most searched keywords of the
target customers of Gap, business experts have rendered a variety of on their products as well as
services (Chen, Preston and Swink 2015). As a result, the brand would be automatically in
forefront that can easily gain others’ competitive advantages.
By using big data Gap always likes to publish their financial record, rate of employee
attrition, rewards and recognition policy on their annual report. While getting an in-depth
overview about the brand customers intend to search on Google. Due to their frequent update the

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name of this company always becomes in the front list. It is beneficial for both the customers as
well as service providers (Davenport 2014). After going through the annual report of Gap
customers can get overview about the products, their necessary agenda, their current
organizational hierarchy and so on. This particular overview can help the organization in staying
in the forefront.
If the social media promotional activities of Gap can be very high and it can draw
customers’ attention, the organizational business experts would be able to receive immense
“likes and comments” from the target audience. In this kind of situation, the company website
page would automatically come in the forefront (Hazen et al. 2014). In order to grab the attention
of target customers Gap always focus to make an attractive visual presentation about the
products as well as services. As a result, customers before evaluating product and service quality
can focus on product design and its overall outlook that would make the brand in forefront.
It is however observed that GAP in recent time faces challenges in managing their all five
brands and they need to stabilize their business functions for attracting customers towards their
brands and to develop policies and approaches for operating these brands in the similar way. In
order to overcome challenging situations Gap would have to implement innovative business
strategies and policies based on which the organization can easily overcome the threats of its
competitors (Pijanowski et al. 2014).
3. Identify alternative:
In order to make the entire process of business IT centric, Gap can identify some of the
major alternatives for controlling database which are as follows:
1. Outsource

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2. In-house IT department
3. De-centralized organizational structure
4. Analyze the alternatives:
Outsource:
Feasibility:
According to the case study of the GAP, it is found that the organization utilizes the data
analytics for identifying the recent trends of the market so that they can enhance their business
performance. Mr. Peck opted for the dismissal of all the creative designers from the organization.
They have also taken the strategy of utilizing the result from the Google analytics to identify
upcoming trends of the market. Moreover, for the aspects where to direct its analytics capability
investment dollars, Schniederjans et al. (2015) stated that there are two effective ways to obtain
this objective- in-house and outsources. Tjader et al. (2014) depicted that investing in in-house
department refer to the situation where the organization formulates the report from the findings
of the analytics through the employees of the organization. Gurung and Prater (2017) on the
other hand stated that investing in outsourcing highlighted the scenario, where the company hires
a third party organization for obtaining the same function but through other organization. Han et
al. (2013) highlighted that the prime benefit of hiring the third party executives is that they are
specialized in the operation for which they have been hired.
Benefits:

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In the case of GAP, it is better for the organization to outsource the functionality of
evaluating the result of the Google map to find the recent trend of the buying behavior of the
customers along with the evaluation of preference of the shopping site digitally. Lacity and
Willcocks (2013) stated that one of the mist advantageous reasons for opting outsourcing the
business operation is the operation cost can be controlled. GAP can also invest in hiring third
party provider so that they can use their knowledge base for preparing the report based on the
Goggle analytics findings and implement in their business manufacturing process. Lacity and
Willcocks (2012) also stated that the outsousing the business operation also allow the
organization to avoid any investments for developing internal team, especially when the
organization are in unstable stage for maintaining all their brands.
The case study also shows that GAP Inc. manages five different brands- GAP, Banana
Republic, Intermix, Athleta and Old Navy. These five brands operate with different business
operational strategies; however, GAP intends to develop a single business approach that is
followed by all these brands. Thus, the research that is made by the GAP for identifying the
trends that can satisfy the need of all the five brands does not only need more financial resources
but also require high capability of the knowledge in the employees. Tjader et al. (2014) also
stated that hiring an outsourcing company also lowers the infrastructure investments. GAP in
order to implement a new department for utilizing and evaluating the result of the Google
Analytics for developing strategies for all the brands, it needs huge infrastructure that can be
avoided through outsourcing the business functions.
Sparrow (2012) stated that one of the major reasons for which an organization opting for
outsourcing their operations is to focus more on the core business functions. GAP is associated
with providing trendy fashion apparel for the people and especially target the younger

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generation. They also manage five brands and intend to develop policy that is equal for all the
brands and this initiative is successful through their products 3.0 strategy. However, this aspect
cannot become a success if they have to manage the analytics team in-house. Qi and Chau (2012)
stated that an organization must have to select the outsourcing company effectively that can align
their business objectives with the objectives of the company given them the contract. GAP can
utilize the outsourcing company not only for formulating the report from the Google analytics
result but also develop a suitable suggestions that can comply with the product 3.0 strategy of the
GAP.
Lacity and Willcocks (2012) on the other hand highlighted that the outsourcing
companies continuously improves their performance by incorporating recent trends in
technology and performing the operation in which they have expertise. GAP can also increase
productivity and quality with minimum downtime by hiring third party provider. The
outsourcing company themselves uses recent technology like cloud technology, big data lakes
and utilization of more than one technologies together to highlight the obtain better
organizational objectives. Moreover, Chang et al. (2012) depict that hiring outsourcing
companies helps the organization to overcome seasonal workflows.
Cost:
Avoidance of talent shortages and enhancement in the risk management process are also
the reason due to which some companies opted for hiring or investing in outsourcing the
business operations (Schniederjans et al. 2015). Lacity and Willcocks (2013) also depicted that
when an organization newly plans to develop an in-house team for handling specific business
operations, they need to invest more time in finding specific people and that also in sufficient

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number for performing the business operations. Moreover, Wang (2013) stated that the third
party providers are more knowledge regarding the risk of the operations that they are providing.
Thus, GAP can obtain these two advantages that is avoiding the talent shortages and
enhancement in the risk management process in lesser cost than implementing the entire
system in-house.
Risk:
The outsourcing party does not have expert shortfalls and always deliver the report on
time and they also develop risk mitigation strategies by themselves if they found any risk in their
business operations. Thus, in can be said that the GAP in recent time faces challenges in
managing their all five brands and they need to stabilize their business functions for attracting
customers towards their brands and to develop policies and approaches for operating these
brands in the similar way. So, it is beneficial to hire an outsourcing company and invest their
dollar for getting efficient business outcomes.
In-house IT department:
 Feasibility
The organization would not have to be dependent on third party if Gap can launch an in-
house department.
 Benefits
By implementing in-house IT department, the organization would be able to control
entire process of business by their own. On the other hand, company would be able to flourish in
terms of their infrastructure by adding technological analytic department within the organization.

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 Costs
This particular plan would be one time investment. If the organization can open a store
for once the business experts would not have to invest certain amount of money for technological
devices. Therefore, it is not very cost effective in comparison to outsourcing.
 Risks
Wang (2013) also portrays that some employees of the organization takes leaves and on
vacations, the result from this situation arises delay in the completion of the work, loss of work
flow of the assigned projects within the department. Thus, GAP can get the benefit of getting the
work done that is developing report based on the findings of the Google analytics at regular
interval of time. Moreover, the problem of lesser staffs will not affect the process progress for
the organization.
Decentralized:
 Feasibility
In decentralized organizational structure, managers do not like to set autocratic decision.
If the organization considers the necessity of IT department within workplace for the
enhancement of business process, the managers like to involve employees as well to know their
decision.
 Benefits
The benefits of this structure is that both employers and employee can equally participate
within the decision making process. Employees do not have to hesitate in sharing their own
decision regarding the business goal.

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 Costs
Decentralized business structure is not very cost effective.
 Risks
As the managers and the employees both participate in providing an effective decision,
the possibility of risk factors is low in comparison to other business structure.
5. Recommendation:
After evaluating the study it can be analyzed that big data implementation of technology
analytics is highly successful to make the entire process of business systematic, chronological
and effective. Business experts by maintaining effective data and information can easily
overcome the obstacles (Opresnik and Taisch 2015). Moreover, big data is highly efficient in
reducing the labor cost. Service providers are able to communicate with the customers directly
by sitting their own workplace. However, in order to implement big data organizations tend to
follow three major alternative strategies including outsourcing, in-house IT store and
decentralization. Business experts need to restore organizational data in other drives. Due to
sudden occurrences of technological barriers the organization may have to face challenges in
finding out those data and information (Gerrish 2016). Therefore, the business experts are
suggested to save entire organizational data record to another drive with the help of which lost
data can be rescued
As Gap is on the experimental stage it is better for the organization to evaluate which of
the following alternative would be more effective for Gap. The organization has primarily
identified major gaps in outsourcing and decentralization. Therefore, the organization has

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focused to implement in-house IT store at the workplace. Wang (2013) also stated that some
employees of the organization takes leaves and on vacations, the result from this situation arises
delay in the completion of the work, loss of work flow of the assigned projects within the
department. It can be however recommended that the organization can open an in-house data
analytics store by hiring IT experts (Debortoli, Müller and vom Brocke 2014). As a result, the
organization would be able to control entire process of business by their own. On the other hand,
company would be able to flourish in terms of their infrastructure by adding technological
analytic department within the organization. As a result, the business experts would not have to
be dependent on any third party.
In order to initiate in-house IT store the organization would have to follow some of the
most effective initiatives. The employees associated with the business process of gap would be
provided effective training and development session in order to enhance their technological skill
and competency (Spiess et al. 2014). An effective training is helpful in operating different
aspects of big data so that employees do not have to face challenges in evaluating necessary data
and information properly regarding the current trend of market. In addition, with the help of an
effective technological training and development session employees would be able to overcome
sudden technical barrier.
Based on those recommendations provided above Gap can enhance their entire process of
business in the international market. With the help of big data the business managers would be
able to fulfill customers’ needs and demands easily.

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6. Plan for implementation:
In order to establish an in-house store of IT department for controlling the entire process
of business with the advancement of technology the organization would have to follow some of
an effective implementation plan which is as follows:
Required resources Activity Budget Time
IT hall with
accessibility of internet
and electricity
The concerned human
resources associated
with this department
would sit in this hall for
controlling data
$60,000 6months
IT devices Adequate number of
devices are required to
support the business
data
$50,000 6months
IT experts Sufficient number of
workforces from the IT
background should be
hired who would deal
with organizational
database
$80,000 6 months
Trainers Trainers would guide
the experts on how to
overcome sudden
technological barriers
$70,000 6months

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7. Conclusion:
The entire study has provided detailed overview on how data analytics has rendered an
overall positive impact on the development of business organization like Gap. Behind taking the
decision of implementing big data the business experts of Gap primarily intended to reduce the
operation cost as well as labor cost. With the gradual progress of technology customers can
access their shopping portals from own smart-phone. This particular disruption enables the
business organization like Gap in enhancing the communication with the target customers more
effectively. With the emergence of new technology business exerts have implemented big data
for controlling the database of entire business process (Gerrish 2016). With the gradual progress
of business expansion Gap has expanded their business wings beyond going the regional market
of America. By removing the traditional creative designers Gap has focused on market analysis
of data analytics. As a result, the business experts have gathered in-depth overview about the
customers’ current market demand. Implementation of technological data analytics can reduce
operation cost, labor cost. With the help of new media tools Gap can improve their customer
service. By using data analytics the business experts of Gap can gather entire data record about
the current needs and demands of the customers. The demand of the target customers in the
international market can be easily evaluated by using data analytics and digital disruption.
The decision making process of the business experts is highly influential based on
marketing analysis and customers trends and desires. This very specific study has highlighted on
how GAP stay at the forefront of the fashion apparel industry innovation by meeting customers’
demands and needs. In order to make the entire business process more specialized Gap has
outsourced their analytics capabilities in order to deliver effective services within proper time.
Large numbers of employees are there who are not very much accustomed with the advancement

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of technology. As a result, operating big data for maintaining organizational data record is a
major challenge for those employees who are not well associated with the advancement of
technology (Opresnik and Taisch 2015). The study has provided some of the most effective
recommendations. While providing recommendations the study has highlighted the fact that
organization like Gap after implementing digital disruption effectively within business process
should focus on hiring internal analysts for maintaining their database. Gap can establish an in-
house department for controlling the entire business process with the help of big data technology.

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