How to act strategically in a turbulent e-business environment - an eclectic approach to strategic inter-organisational systems (IOS) management

ACTA UNIVERSITATIS LODZIENSIS FOLIA OECONOMICA 157. 2002

A r je n W assenaar

HOW TO ACT STRATEGICALLY IN A TURBULENT

E-BUSINESS ENVIRONMENT

- AN ECLECTIC APPROACH TO STRATEGIC INTER-

ORGANISATIONAL SYSTEMS (IOS) M ANAGEMENT

T h is p a p e r p r e s e n ts a n e c le c tic in te r-o r g a n isa tio n a l -o rie n te d a p p ro a c h to so c a lle d stra te g ic IO S m a n a g e m e n t a s an a lte rn a tiv e to th e m o re sin g le o rg a n isa tio n -o rie n te d , lin e a r a p p ro a c h o f stra te g ic in fo rm a tio n system p la n n in g (SISP ). This a p p r o a c h is te r m e d e c le c tic b e c a u se it is b a s e d on a to o lb o x o f m in i-th eo ries in te g ra tin g e x is tin g stra te g ic (IS) p la n n in g a n d m a n a g e m e n t th eo ries. T he c o re c o m p o n e n t o f th is a p p ro a c h is an IO S sc e n a r io a n d stra te g ic o p tio n g e n e r a to r " b a s e d on fo r c in g re la tio n sh ip s b e tw e e n in te ra c tiv e I T c a p a b ilitie s a n d so -c a lle d b u sin e ss im p a c t a r e a s in a n in s id e -o u t a n a ly s is on the in tra -o r g a n isa tio n a l c o m p a n y level, a n d a n o u tsid e -in a n a ly s is on in te r-o r g a n isa tio n a l c o m p a n y n e tw o rk level. T hese im p a c t a re a s em b ra ce, o n a c o m p a n y level, (i) th e in te rn a l I T se rv ic e ch a in stru c tu r e (I T chain. fo c u s ), (ii) the va lu e c h a in stru c tu re ( value c h a in fo c u s ), a n d (iii) th e c o m p e titiv e in d u s try stru ctu re (va lu e system fo c u s ). n c o m p a n y n e tw o rk le v e l th e y em brace, (iv) th e in te rm e d ia tin g su p p o r t c h a in stru c tu r e !s u p p o r t c ha in focus), (v) th e ml^ r' o r g a n is a tio n a l s u p p ly c h a in stru c tu re (su p p ly ch a in fo c u s ) a n a (vi) th e c u s to m e r c u m m u n ity stru c tu re (d e m a n d c h a in fo c us)'

In tro d u c tio n

Background

In the mid-1990s, the em erging global data highways, provided by the Internet and the W orld W ide Web, created new inter-organisational system (IOS) opportunities for integrating cross-functional systems between com panies,

' Department Business Information Systems Faculty o f Technology and Management University o f Twente, Enschede, The Netherlands; E-mail: d a. was sen aa t & s.m.s. u t we n te.. n_

enabling new custom ised and intelligent worldwide services and products. A new era o f electronic com m erce, or electronic business had started. The interactive IT capabilities enabled these IOS innovations by expanding the range and reach (Keen, 1991) and range and richness (Evans and W urstler,

1998) o f inform ation exchange between econom ic actors. Innovations in transaction patterns between com panies and their custom ers and partners in order to sustain com petitive advantage were em phasising and led to a shift tow ards a more dynam ic, inter-organisational setting for IS planning in the era of electronic business.

Aim and structure o f paper

In earlier research it has been argued that, especially in the inter- organisational, em ergent context of E-business and IOS innovation, a more integrated, eclectic approach to strategic IOS m anagem ent is needed (Finnegan et al„ 1999; Hackbarth and Kettinger, 2000; W assenaar and Gregor, 2001). Thus, a num ber of questions have m otivated this paper. How should one undertake strategic inform ation systems planning (SISP) in the field o f more inter-organisational -oriented turbulent E-business? W hat can one learn from past SISP and strategic m anagement research? How can we integrate existing strategic IS m anagem ent knowledge, and make it more appropriate for the m anagem ent o f e-business or IOS innovations?

O ur research objective is to develop an eclectic strategic IOS m anagem ent approach, based on the existing strategic IS planning and strategic m anagem ent knowledge. The paper proceeds as follows. Section 1 has introduced the subject, the aim and the structure of the paper. Section 2 presents the “eclectic and em ergent m anagem ent of in ter^rgan isation al system s” (EM IO S) fram ework. Section 3 describes the scenario and strategic option generator as a core com ponent o f strategic IOS m anagem ent. This generator is a toolbox o f m ini­ theories and is fram ing in a system atic way the existing know ledge in the field of SISP and strategic m anagem ent. Section 4 presents conclusions and final remarks.

EMIOS: eclectic and emergent strategic management of IOS

From strategic IS planning (SISP) to strategic IO S m anagem ent

SISP is defined as a process for identifying a portfolio o f inform ation system s that will assist an organization in executing its business plans and realising its business goals (Lederer and Sethi, 1988). This concept is based on

a distinction between the business dom ain and the IS dom ain and the alignm ent of a business strategy with an IS strategy (Parker and Benson, 1988, Henderson and V enkatram an, 1993). However, with the em ergence of interactive IT capabilities such as the Internet and the W W W , business strategy planning and strategic IS planning are very strongly interrelated. Therefore they have to be integrated in what we can call strategic IOS m anagem ent. In this respect, Aldrich (1999) argues that in the digital network econom y the exchange of resources (transactions) between econom ic actors is becom ing increasingly inform ation intensive: the tangible container elem ent (the physical product) in the exchange is enhanced by the intangible content elem ents (the accom panying inform ation and knowledge). Thus, in many industries such as pu is i n g a n banking, the exchange of resources is becoming fully digitalised. Г he products and services can now be tailored to address the individual needs of each custom er. As a consequence, the strategic m anagem ent an >. ^ о interdependent organisations and their stakeholders, in the era o f E-business are interacting processes and may need further integration in, w at is ca e , strategic IOS m anagem ent. In an earlier review o f the existing literature in both the field o f SISP and strategic m anagement was concluded, that strategic . m anagem ent in the future has to change (W assenaar and regor , in e follow ing issues:

- planning scope: from a hierarchical, stable, single-organisation-oriented setting tow ards a more dynamic, inter-organisational setting.

- planning agenda: from a com prehensive focus o n internal stable inform ation system s to an issue-driven focus on dynamic IOS innovations.

- planning process: from a single organisational, top-down, linear orientation, driven by top m anagem ent towards a more inter-orgam sa ióna , mi p and-dow n. iterative orientation, driven by interacting sta e о ers rom different organisations.

- planning constellation of involved stakeholders, from actors belonging to the ľanu- hierarchy ,o s,akeholder.s belonging to d.fferen. organ,satlon„ w „h different mindsets, interests and objectives.

Beyond that, it was concluded that, in unpred ictable em ergent environm ents with an intense com petition, the concept o scenári с stakeholders in m apping out and sharing a wide range o possi e ui s forcing them to think ‘‘outside the box” and especially outside the boundaries 0f their single organisational system (see also De Geus, 1 , с oem a er,

The EM IO S fram ew ork

Starting from transaction econom ics (W illiam son, 1981), strategic IOS m anagem ent is defined as a process of contracting betw een involved stakeholders regarding IOS strategies and architectures, to achieve their com m on objectives and their actions to realise these strategies and architectures. I his process can be described as a pattern o f interrelated irreversible com m itm ents over time by the involved stakeholders about what their com m on business is, what is should be, and how to change it. An IOS (innovation) strategy plan is defined as a com m on portfolio of IOS applications, data architectures, inter- organisational arrangem ents and the technical IT infrastructures o f the involved stakeholders, to tie together their business transactions in a new and innovative way. An IOS strategy plan often assum es a business model or w hat we call a scenario, that is considered to be an overall vision and a basic architecture describing the core business of an interdependent com pany netw ork, by specifying strategic them es such as the strategic positioning, the com petitive strategy and value proposition, their com m on related value activities, their inter- organisational structure and basic technical IT infrastructure (W assenaar, 2001). A cornerstone o f this fram ew ork is “em ergence”, referring to a concept of organisations that does not assum e underpinning stable structures (Truex et al.,

1999). If em ergence and turbulence, rather than stability, are taken as the dom inant characteristics of the inter-organisational setting, then strategic IOS m anagem ent can no longer be considered as a linear cycle o f strategic analysis, choice, im plementation, and evaluation, with a clear beginning and end. On the contrary, em ergence calls for continuous, iterative, evolutionary strategic behaviour, often triggered by external events. The basic structure o f the RMIOS fram ew ork is depicted in Figure 1. It encom passes a constellation o f involved stakeholders, interacting in both reflection (planning and evaluating) and intervention (realisation) modes. In this fram ework, strategic IOS m anagem ent is considered to be a continuous interaction between what we call a reflection mode and an intervention mode. It is exposed (form ed) in the realisation system , and reasoned (form ulated) in the planning and evaluation system. In the reflection mode of strategic IOS m anagem ent, the stakeholders plan and evaluate their com m on IOS strategy plan through a m odelling and a sense m aking/contracting process. In the intervention mode, the stakeholders realise their com m on IOS strategy plan through an, often increm ental, im plem entation and institutionalisation process. This assum es a continuous, iterative, interaction betw een “reflecting about” and “intervening in” reality. In the reflection mode, the involved stakeholders are creating shared future w orlds by continuous interactions and constant negotiations over facts, opinions and m eanings. In this respect, scenarios can be helpful because their basic function is to identify future

trends and key uncertainties, and com bine these into possible future worlds that are internally consistent and within the realm o f possibility (Van der Heyden, 1996). The purpose o f scenarios is not to cover all eventualities but to ensure that involved stakeholders are becom ing aw are o f their shared future worlds and realities, and their underlying belief systems. They broaden the stakeholders often myopic and short-term m indsets, and make them aw are o f em ergent future worlds and inherent com m on strategic options.

M ulti-view -based planning and evaluation

In a previous review of the literature it was found that strategic IOS m anagem ent, and especially planning and evaluation of IOS strategies in the era o f E-business, has to recognise the im portance of the inter-organisational setting. Therefore we suggest a m ultilevel, or what we call a m ulti-view, analysis based on scenario consideration (W assenaar and G regor, 2(X)1). First, we will consider the different positions, which the IOS innovations in an inter-organisational setting can be viewed. This inter-organisational setting em braces, based on H oogew eegen (1997) and K lueber et al. (1999), an interrelated business network, a custom er com m unity network, and an institutional netw ork (tigure 2). The institutional network shapes the supply conditions (the business network) and the dem and conditions (the custom er com m unity netw ork) in an econom y.

Figure 2 Inter-organisational setting for strategic IOS management

A business network is defined as a structure o f interdependent relationships betw een activities of firms in their com petitive and supportive environm ent that

influences their strategies. The resource exchange in one relationship is contingent upon exchange (or non-exchange) in the other relationship. W e distinguish in business network a primary business network and a supporting business netw ork. The core of the primary business network is a supply chain oi goods and services (lor exam ple A l, В 1, C l and D1 in figure 2) flow ing Irom upstream basic suppliers, through suppliers, integrators, and distributors, to dow nstream end consum ers. M oney flows in the opposite direction: from en - consum ers to the supply chain members. To coordinate the flow o f goods an services, inform ation is exchanged between the supply chain m em bers (both upstream and dow nstream ). In this respect, an industry (for exam ple D l, D_ and D3 in figure 2) can be defined as a group o f firms that offer products, or a class o f products that are close substitutes for each other (Kotier, 988).

The resource (goods, services and money) exchange within a supply chain is facilitated by supporting business network activities. ese, о ten cross industrial support activities, connect buyers and sellers an crea e У m aking trade (resource exchange) between firms in t e prim ary ^ netw ork m ore efficient. They deliver, in the transaction cycle, m arketing and advertising logistic services (during the inform ation and search phase), com m ercial logistic services (during the negotiation an‘ con £ J L m en| financial logistic services and physical logistic services ( unng

phase) (Schm id and Lindem ann, 1998). These cross-industrial services-, ir i the transaction cycle, delivered by sectors such as publising and ^ * g ’ electronic markets, financial service and transport industries are facilitated у genera. ICT platform services

1985; Rayport and Sviokla,

The custom er com m unity network is defined by Hagel III e t 1 those drawn together by com m on interests Mid ending up ^

critical m ass o f purchasing power, to an exten eleetronks m edia)

com m unities allow m em bers to exchange t л nn

inform ation on such things as a product’s price. « ^

how to use it. This phenom enon represenis a fundamenta! shift Í * * which can be characterised as a "replacem ent of the concept o f the supply cham by the dem and chain". The critical difference >s that de,™ nd ch m thinking starts with the custom ers, their com m unity and v a t e md then works backw ards. Jarvenpaa and Ives (1993) introduce, m this respecL h e c o n cep , thinking in reverse; Hagel 111 el al. (1999) presen, the p me pie_o reversed m arketing and custom er driven networks, while ow s 0 treating Ihe sw itching principle by stating lhal if a cham activity is m anaged by treating

need and need fulfilm ent (satisfiers) independently, it is possible to think system atically about sw itching between need and fulfillm ent. Aldrich (1999) discusses in this respect the role o f a brand, w orking as a short hand to com m unicate a m essage about the attributes of a product, to the m arket at large. In his view, a brand offers value to a potential consum er in four ways: functional benefit, or the features o f a product determ ining its use to consum ers relative price benefit, or perceived value o f the product to the consum er; the sell expressive benefits, or the way in which product help consum ers to express himself; and perhaps most im portantly, the em otional satisfaction benefits that the consum er of the product will receive. T he self- expressive benefits com m unicated by brands tend to be images that consum ers wish to project outw ardly, while em otional benefits are feelings savoured by the consum er inwardly.

The institutional network refers to those properties ot the institutional system that facilitate and constrain the econom ic system. Based on North (1990), we define the institutional system as the rules o f the game in a society, or more form ally the constraints that shape hum an econom ic interaction and provide a structure for everyday life. These can be formal constraints (such as laws), or informal constraints (such as culture and custom s). These rules, regarding the dem and conditions, the technology factor (supply) conditions, the m arket com petition conditions, and the general econom ic-institutional conditions are form ulated and executed by governance agencies (P o rte r, 1990)

To conclude, in our model of the inter-organisational setting we have identified six im pact areas o f IT, which have to be considered in the reflection mode o f strategic IOS m anagem ent. These areas em brace, on the m icro com pany level (i) the internal IT service chain structure (IT chain focu s), (ii) the value chain structure ( value chain focus), and (iii) the com petitive industry structure (value system focus). On a m eso com pany network level they em brace (iv) the interm ediating support chain structure (support chain focus), (v) the inter- organisational supply chain structure (supply chain focus) and (vi) the custom er com m unity structure chain structure (dem and chain focus).

The IO S scenario and strategic option generator

A toolbox o f m ini-theories f o r exploring the fu tu re

The core of the EM IOS fram ew ork is a generator which could be considered as a “tim e travelling m achine”, that supports stakeholders in generating scenarios and options for the future by forcing relationships between

the interactive IT capabilities and the above m entioned six impact areas. This generator, depicted in Table 2, consists of six appraisal procedures, or “focusing devices”, based on an integrated toolbox of “m ini-theories ” to support the involved stakeholders in exploring their future. This toolbox o f m ini-theories for exploring the future consists o f (Table 1):

- three m icro level appraisal procedures with an inside-out character, that force a relationship between the interactive IT capabilities and their impact on the IT service chain structure, the value chain structure, and the com petitive industry structure; and

- three m eso level appraisal procedures with an outside-in character, that force relationships between the interactive IT capabilities and their impact on the interm ediating support chain structure, the inter-organisational supply chain structure, and the custom er com m unity structure.

Based on the m ini-theories, presented in table 1, the em ergent interactive IT capabilities in processing, storing and transporting data are “translated’ by the involved stakeholders into strategic options for IOS applications in the distinguished im pact areas. In particular, these interactive capabilities are enlarging the range and richness of inform ation exchange between the value activities, owned by the involved stakeholders. They are enabling new patterns o f intra-organisational and inter-organisational value activities.

Table I The IOS scenario and the strategic option generator

Inside-out

Impact IT Service Value Chain Competitive

Area Chain Structure Structure Industry

Structure Appraisal

Procedure

Toolbox o f mini- Stage-based Information Competitive theories assimilation of processing capacity positioning by

technology view (Galbraith, influencing: (Nolan et al., 1994; 1973) _{com petitive forces} Delen et al„ 2000; _{Value chain (Porter et al.,} Angehrn et al., 1997) _{virtualisation/restruc­ 1985, 1996;} Selective (out) turing (Porter, 1980; W iseman, 1985) sourcing Rayport & Sviokla, _{Core competences} (Lacily et al., 1996) 1998; Venkatraman et _knowledge Infrastructural IT al., 1998) m anagement service delivery Organisation learning, (Prahalad & platforms (Saaksjarvi, knowledge sharing Hamel, 1990; 1998) (Boisot 1995) Zack, 1999)

Outside-in

Impact Intermediating Inter-organisational Custom er

Area support chain supply chain com m unity

structure structure structure

Appraisal Procedure

Toolbox o f mini­ Transaction Redesign o f supply Custom er theories governance (des- chain (Christiaanse et com m unities and

intermediation) al., 1999; Kumar et their value (Hagel (M alone et al., 1997; al.. 1996) lllet al., 1999; Benjamin et al., 1995; _{Knowledge sharing in} Aldrich. 1999) Reference model for networks (trust) Dynamic electronic markets (Hakansson, 1987; networking (Schmid & Jarvenpaa et a!., (Hoogeweegen, Lindemann, 1998) 1998) 1997)

Inside-out appraised procedure

The starting point of these appraisals is the internal situation o f a firm and is based on forcing relationships between interactive IT capabilities and internal im pact areas.

In the first appraisal the impact of increasing range and richness of IT on the IT service chain structure is explored. Based on m ini-theories such as service m anagem ent (N orm ann, 1984), the IS stage hypothesis of Nolan et al. (1994). the Balanced Score Card (BSC) concept (Van Grem bergen et al.,2002) in com bination of the capability maturity model (Delen et al., 2000) the IT service chain can be described in term s o f a portfolio o f application services and the., user interactions (perform ance m easured by custom er satisfaction), a tec no ogy based delivery system structured after a developm ent, exploitation, user suppo and m aintenance process (perform ance measured by operational qua ity an excellence), human resources, their culture and com petences (perform ance m easured by hum an satisfaction and organisational learning), inancia resources and their profitability (perform ance measured by stakehol ers satis ac ion an IT governance (perform ance measured by transparency an manag integrity).For exam ple, the supply o f new standardised telecom m um ca on facilities (such as Internet and W W W ) at lower cost of ownership are c g new IT service chain structures by selective outsouicing о in с

processing and storing functions, user support, and m aintenance о tow ards external IT service providers (Lacity et al., 1996).

In the second appraisal the impact of increasing range and richness о the value chain structure is explored. Based on ^ - theo; ,e^ SUrCnhnc^ t ' inform ation processing capacity view (Galbraith, 1 )' a" Sviokla virtualising the value chain (Porter, 1980; Parker et al. . ayp ^

1998) can be reduced the costly and quality affectm g u n c e r ta in ^ . . n t h e ^ u e

value chain structures by s u b s t r i n g physical into vtrtual value acltvme» (from place lo virtual space). O ther exam ples o( differe„t isolated stock by the integration of inform ation system ., g sneed ud the

warehouse f u n c t i o n s w ith in the value chain (value linking). I service to feedback regard,„g new product

im proving com panies responsiveness on market

In the third appraisal the im pact of ^ h e ľ r i e ľ s u c h as the com petitive industry structure is explored. Prahalad & resource based strategy theories (Porter eЫ ^ Porter ^ by Hamel, 1990) the com petitive position is m fluenc.ng ^ ťcom petences by strategic inform ation systems, and ir!fl“®n ^ can have a strong impact know ledge m anagem ent systems. E spec.a у cornpetitive forces in an on the business transaction pattern and their un y g c„ ctpm. fnr i0ckine in industry. T he classical exam ples are strategic information

other side, Internet can be a powerful weapon for com panies to penetrate new markets.

O utside-in appraised procedure

T he starting point of these appraisals are the external situation of a firm and are based on forcing relationships betw een the em ergent interactive IT capabilities and external im pact areas.

In the fourth appraisal the impact of increasing range and richness o f IT on the interm ediating support chain structure is explored. Based on m ini-theories such transaction governance theory (M alone et al., 1997) and the reference model of electronic markets (Schmid & Lindem ann, 1998) transaction costs between com panies and their business partners can be lowered by outsourcing their inter-organisational value activities (transaction governance) to specialised, often cross-industrial service providers such as advertisers, electronic interm ediaries and banks. The level of outsourcing o f these transaction governance activities depends on the transaction attributes such as their asset specificity, their frequency, and of the institutional system . C onsequently, the supply o f Internet facilities, increasing the range and richness o f interactive IT capabilities, are enabling new interm ediate support chain structures: for exam ple by outsourcing financial logistic activities tow ards a m anagem ent accounting service provider and by outsourcing com m ercial logistic activities tow ards an electronic m arket service provider. On the other side, the increasing, interactive IT capabilities o f internet makes it possible for com panies to insource inter- organisational activities from interm ediaries (dis-interm ediation). A special category of support service providers is the providers o f IT platform services such as Internet providers and application service providers (ASPs). They are strongly involved in supporting the firms IT service chain activities (see the first appraisal)

In the fifth appraisal the im pact of increasing range and richness o f IT on the inter-organisational supply chain structure is explored. Based on the mini- theories such as supply chain redesign theory (C hristiaanse et al., 1999) and network theory (H akansson, 1987). The interaction (and the resulting cooperative advantages) of an inter-organisational supply chain activities depend on the follow ing attributes (which are considered by C hristiaanse et al. as design variables): dynam ism in the social pow er constellation (stable versus dynam ic constellation);the functional interdependence of the chain activities (sequential, pooled and reciprocal); transaction governance m echanism s (vertical integration, market, mutual adjustm ent) and coordinating inform ation and know ledge transfer structures (centralised versus all to all connected interaction). The

increasing range en richness of interactive IT capabilities such as Internet and W W W are enabling new structures for a supply chain. For exam ple, new coordination and knowledge transfer forms has their im pact on the social pow er constellation by more sw itching opportunities, they are enabling more market oriented transaction governance m echanisms, and they facilitate new functional structures betw een supply chain activities.

In the sixth and last appraisal the impact o f the increasing range and richness o f IT on the custom er com m unity structure is explored. Based on the m ini-theories such as custom er com m unity theory (Hagel III et al. 1999) and dynam ic netw orking theory (H oogenw eegen, 1997). These custom er com m unity driven, dynam ic netw orks are based on the principle o f reverse m arketing. There are formed tem porary dem and chain structures responding on the needs one single, specific custom er order. They are often organised by a tem porary ei™ £ chain coordinator as an agent representing the custom er com m unity. e creation o f the tem porary dem and chain structure is enabled by the increasing range and richness o f interactive IT capabilities. These capabilities are facilitating more interaction within the custom er com m unity, resu ting in more countervailing pow er o f the custom er against their suppliers than in t le past.

How to organise the generation o f scenarios a nd strategic options

In the first place, a central project team has to be established for the overal| coordination o f the efforts the six study teams, one for each impact area. e central project team has to include a representative o f general m anagem ent, six middle m anagers as study team leaders, and one or two E experts. e central project team is coordinating the efforts o f six study teams one or eac impact area. Each study team consists of three or four experts on t e impac area and an EM IOS expert. The study team s have to start with a two-day strategic IOS m anagem ent course. They are trained in the use o f mini-t eories, presente in the toolbox for generating IOS scenarios and strategic options, uiin^, is course the EM IOS fram ew ork and all the m ini-theories are n e у intro uce F ollow ing this course, study team s are finally established or eac im pac area. In brainstorm ing sessions, each study team has to generate strategic op tons le overall team, coordinating the efforts of the study teams, as to conso i a e a the generated options into generic scenarios.

C onclusions and final rem arks

Conclusions

The existing knowledge in the field o f SISP and strategic m anagem ent has been integrated in an eclectic approach of strategic IOS management. By fram ing the existing knowledge after six appraisal procedures, this approach aims to make the involved stakeholders in their reflection mode aware o f possible future worlds and inherent strategic options. All the generated strategic options are basic ingredients for an IOS strategy plan and can be consolidated in alternative business models or what we call scenarios. These are considered to be an overall vision and a basic architecture describing the core business of an interdependent company network, by specifying strategic themes such as the strategic positioning, the com petitive strategy and value proposition, all their com m on related value activities, their inter-organisational structure and their basic technical ГГ infrastructure. The developed eclectic approach of strategic IOS m anagem ent has to be evaluated in practice, and especially on the appropriateness to think outside the box, to improve stakeholders capacity in understanding their situation and, recognition of interactive IT opportunities in different impact areas (such as strategic options and new business models), to improve the interaction between IOS strategy and corporate strategy and, finally to integrate different interests of involved stakeholders into a com m on plan for action.

Final remarks

The developed eclectic approach of strategic IOS m anagem ent will be explored in practice based on defined criteria for appropriateness. Perhaps the presented m ini-theories can be evaluated on their ability for analysing the existing situation, and for designing solutions for the future.

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