5c - Ross & Weill 3 Flashcards
What is dynamic capability?
The firm’s ability to integrate, build, and reconfigure internal and external competences to address rapidly changing environments.
What are the 3 dynamic capabilities necessary in order to meet new challenges, according to Teece?
- Sense and shape opportunities and threats
- Seize opportunities
- Maintain competitiveness through enhancing, combining, protecting, and (optionally) reconfiguring the enterprise’s assets.
In short: sensing, seizing & reconfiguring.
What are the 5 maturity stages in EA?
- Business silos
- Standardized technology (best practice 1995)
- Optimized core (best practice 2005)
- Business modularity
- Dynamic enterprise
Business silos: divisions/departments are …
- responsible for their own ways of working
- and accountable for own results
Business silos: what is the role of IT?
- to automate specific business processes
- business managers decide process design
Business silos: what is the focus of IT investments?
- delivering solutions for local business problems and opportunities
- justification is local business case, usually cost reduction
How many large firms (%) are still in stage 1?
12%, according to the R&W research
What is the result of a business silo?
BU silos and spaghetti architecture, design debt
What is the value of EA in stage 1 of EA maturity?
Focus on creating insight & oversight in:
- Portfolio of applications
- Portfolio of IT competences
Support the learning, reuse, and co-development of systems
Behavioural guidelines
Standardized technology: what is the objective of this stage?
Decrease the number of platforms to be managed
-> stage 2 companies have 15% lower IT costs vs. stage 1
Result: fewer choices for IT solutions
Standardized technology: what is the key management issue?
Management of technology standards
How many firms are in stage 2 (%)?
48%, from a research conducted in 2005.
Standardized technology: what does the IT-organization look like?
- Creation of the corporate CIO-role
- Centralized selection & knowledge of technology platforms
- Local focus remains on automating local business processes; but shifting from functionality to cost-effectiveness and reliability.
What is the value of EA in stage 2 of EA maturity?
Gaining efficiency, cost-reduction
Optimized core: what is the goal of this stage?
Going from local data & applications to enterprise-wide systems and enterprise-wide data.