Itled 4021 IT Governance Organisering av IT-funksjonen. Oktober 2018 Bendik Bygstad

Transcription

1 Itled 4021 IT Governance Organisering av IT-funksjonen Oktober 2018 Bendik Bygstad

2 Temaer Del 1 1. Tre modeller for IT-funksjonen. Aggarwal and Sambamurti, IT-sjefens nye rolle i en digital økonomi Weill and Woerner, Cloud computing 4. Gruppeoppgave Del 2 1. CDO Chief Digital Officer 1. Case Nordic Choice

3 Tre modeller for IT-funksjonen Agarwal and Sambamurty Principles of the IT Function MISQ Executive 2002

4 IT-sjefens nye rolle i en digital økonomi The digital economy changes everything Alle forretningsprosesser blir digitale, 24/7 All interaksjon blir digital Med kunder Med leverandører Internt Stiller helt nye krav til IT-sjefen Weill and Woerner, MISQE 2013

5 Fire roller for IT-sjefen Weill and Woerner, MISQ Executive 2013

6 Funn fra 1508 CIOs i 60 land

7 Governance og ytelse

8 Cloud Computing: Forretningsperspektiv It is an information technology service model where computing services (both hardware and software) are delivered on-demand to customers over a network in a self-service fashion, independent of device and location. The resources required to provide the requisite quality-ofservice levels are shared, dynamically scalable, rapidly provisioned, virtualized and released with minimal service provider interaction. Users pay for the service as an operating expense without incurring any significant initial capital expenditure, with the cloud services employing a metering system that divides the computing resource in appropriate blocks. Cloud computing The business perspective.2011 Sean Marston a, Zhi Li a, Subhajyoti Bandyopadhyay a,, Juheng Zhang a, Anand Ghalsasi

9 Cloud Computing Cloud computing represents a convergence of two major trends in information technology (a) IT efficiency, whereby the power of modern computers is utilized more efficiently through highly scalable hardware and software resources and (b) business agility, whereby IT can be used as a competitive tool through rapid deployment

10 Gruppeoppgave 1. Hvilken type IT-avdeling har dere i dag (partner, plattform eller skalerbar), og hvilken ønsker dere å være? 2. Hvilke konsekvenser vil Cloud Computing få for IT-avdelingene? 3. Hvilken governance-modell passer for den digitale forrretningsstategien? (Bharadway et al., 2013)

11 CDO: Chief Digital Officer Goal: Proactively drive the company s cross- functional digital transformation. (1) the strategic aspects of the digital transformation, devising and implementing digital strategies as entrepreneurs (2) the communicational aspects, countering cultural resistance in their companies as spokespersons and leaders. The CIOs, in turn, focus on the technical aspects of the transformation. Horlacher, A., and Hess, T What Does a Chief Digital Officer Do? Managerial Tasks and Roles of a New C-level Position in the Context of Digital Transformation, Proceedings of the 49th Hawaii International Conference on System Sciences (HICSS), Kauai, Hawaii, pp Bygstad, B. and Iden, J. (2017). Competing in digital infrastructures. How a Nordic hotel chain competes with the online travel agencies. NOKOBIT 2017, Oslo.

12 Case: Nordic Choice Competing in digital infrastructures. How a Nordic hotel chain competes with the online travel agencies

13 Background Local and regional travel businesses are challenged by global Internet mediators, such as hotels.com, booking.com and Tripadvisor. The businesses are challenged in two ways; the Online Travel Agents take a substantial cut of the gross income, and the local company also loses the initial direct relationship with the individual customer. RQ: How can local and regional actors fight back?

14 The Challenge Meta&& sites& OTAs& Hotel&& customer& (iii)& (iv)& Search& Direct&booking&(i)& (ii)& Hotel&& web&site& Figure 1. The digital hotel-booking infrastructure

15 The Online Travel Agencies Two groups: Expedia hotels.com 8.7 bn dollars revenues Priceline Booking.com 10.7 bn dollars revenues

16 Controversies 2007: OTAs increasing their cut, and demanding rate parity 2009: A feud between Choice Hotels (an American global hotel chain) and Expedia Inc. 2017, The Expedia and Priceline duopoly hurts consumer choice and the small businesses in our industry (..) who are struggling to compete as a result of the gouging commission rates charged by the online travel agencies 2017: We run the risk of becoming a commodity provider of hotel rooms, auctioning out our free rooms to the hotels.com and the other OTAs, who will make all the profits, while we will be left to compete on price only. Rosetta Maietta, senior vice president of the American Hotel and Lodging Association Nordic Choice manager

17 Method In-depth case study (George & Bennett, 2005) was chosen. A large hotel chain was selected, Nordic Choice, offered the opportunity to investigate a counterstrategy in detail. Data collection over a period of 16 months Data analysis building on Sia et al. s framework. Nordic Choice hotels 193 hotels, with rooms, and a turnover of 10.3 bn. NOK in There are employees.

18 The eberry initiative CDO Lisa Farrar Competing in digital infrastructures January The stated aim was to create the best ecosystem in the world for digital booking and guest travel experience. A digital strategy The establishment of the eberry company A loyalty program Aim: maintain the main share of the bookings of Nordic Choice in the distribution chain.

19 Findings Factor The OTAs Nordic Choice 1. A Digital Business Strategy Demands Strong Leadership 2. An Agile and Scalable Core Is Critical 3. A Digital Business Strategy Exploits Information Abundance to Create New Value for Customers 4. A Digital Business Strategy Requires the Continuous Navigation of the Dynamic and Emerging Digital Landscape Platform companies, grown rapidly since the 1990s, and systematically acquired competitors State-of-the art technologies, developed in a Devops environment Exploits large vendor base with customer preferences, reviews and actions, to find and compare hotel offers, and to decide and book a room. Continuous repositioning towards partners and competitors Traditional hotel chain, aiming to establishing a digital strategy through separate company eberry. Connecting existing and new systems to the digital travel infrastructure Using customer information to fine-tune dialogue and room offers, leveraging the second visit approach The eberry company is allowed autonomy to compete in the digital infrastructure

20 Diigital business strategy: eberry Strategy: the top management group and the Board assess the positioning toward the OTAs (and Google) frequently. Managers frequently follow the SKIFT (industry) web site, and participate in international forums. Tactics: Much of the tactics is about communicating directly with the customers. One important aspect is educating the customers. For instance, if a customer wishes to register bonus points, staff will tell him/her that there are no bonus points earned if the booking was done through the OTAs. Operations: Surveilling the web and booking traffic 24/7 is routine, and the information is analysed daily.

21 Results of eberry Nordic Choice plans to invest around 250 mill. NOK in digitalisation the next 4-5 years. eberry has the full responsibility for the Choice distribution: The share of free bookings on own web site has stabilised around 50% * The on-going competition in the digital infrastructure is handled by Choice s own expertise *This excludes group and conference booking, and bookings from travel agencies

22 Does it matter? Thing to reflects on: Jobs in Scandinavia Technology companies in Norway Taxes Internet monolpolies/duopolies Information privacy

23 Conclusion It is possible to compete in the digital infrastructure of the travel industry: 1. Establish digital competence 2. Take a position in the digital landscape 3. Leverage the interplay of non-digital and digital resources.