key determinants in strategic realignment within a …
TRANSCRIPT
KEY DETERMINANTS IN STRATEGIC REALIGNMENT WITHIN A DIGITAL GLOBAL BUSINESS ENVIRONMENT
Thesis by
RICHARD VERNON WEEKS [87/3575/9]
[MCom (cum laude), DCom (Strategic Management) RAU]
submitted in fulfillment of the requirements for the degree of
DOCTOR OF PHILOSOPHY
in
BUSINESS MANAGEMENT
in the
Faculty of Economic and Management Sciences
at the
RAND AFRIKAANS UNIVERSITY
JOHANNESBURG Promoter: Professor N. Lessing MAY 2002
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −1
TABLE OF CONTENTS
CHAPTER 1: ORIENTATION 1.1 BACKGROUND 1-3
1.1.1 Traditional strategic management theory and practice: alternative perspectives 1-3
1.1.2 Emerging technologies and globalisation: a strategic perspective 1-4 1.2 STATEMENT OF PROBLEM 1-7
1.2.1 The relevance of the traditional strategic management process in dealing with the intricacies of strategically positioning modern day business institutions within a digital global business environment. 1-8
1.2.2 The strategic impact of emergent technologies on the business activities of institutions, with specific reference to the culture of the institutions concerned. 1-12
1.2.3 The need to obtain strategic synergy between emerging technologies and institutional business systems. 1-15
1.2.4 Change management implications in strategically positioning institutions within a digital global business environment. 1-18
1.3 OBJECTIVES OF THE STUDY 1-20
1.3.1 Gaining understanding of the concept “globalisation”, the characteristics of the business environment that has emerged as a result of the concept, and the strategic management implications thereof. 1-21
1.3.2 Acquiring insight and understanding as to the impact of technology in shaping the business environment of public and private sector business institutions, from a strategic management perspective. 1-22
1.3.3 Exploring the relationship and interdependencies that exist between business systems and information and communication technology, from a strategic management perspective. 1-23
1.3.4 Attaining greater clarity and understanding as regards the management of change in the strategic realignment of business institutions within a global business environment. 1-25
1.3.5 Attaining insight and understanding of contemporary strategic ma
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −2
nagement practice within a global business environment. 1-26
1.4 RESEARCH METHODOLOGY AND CONSTRAINTS 1-27
1.4.1 Literature study 1-28 1.4.2 Personal interviews 1-29 1.4.3 Constraints to the study 1-31
1.5 CLOSURE 1-32
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −3
CHAPTER 1: ORIENTATION
“The accelerating pace of emergent technologies is shrinking the window
in which any given strategy, however well thought out remains viable. For
this reason, any elaborate but mechanical attempt to plan a three-day
retreat in the woods may no longer qualify as strategy making”
Szulanski & Amin 2000:189
1.1 BACKGROUND
1.1.1 Traditional strategic management theory and practice: alternative
perspectives
The introductory statement challenges the traditional wisdom of the so called
“bosberaad” or strategic retreat that has almost become an annual tradition in many
South African institutions. At the core of the problem is the extreme volatility of the
business environment confronting most enterprises as they enter the information era of
the 21st century. Various researchers hold strong views as to the effectivity of strategy
within a turbulent business environment. Martin (1995:294) argues that the “key to
successful strategy is insight. Insight is creative and intuitive and challenges popular
wisdom”. Peters (1992:289) ostensibly contends that visions, a key element in the
formulation of strategy, become straitjackets that are even more constraining than
elaborate strategies. Pitt (2000:20) questions the effectivity of traditional strategic
planning models within a context where technology “breakthroughs” give rise to
discontinuous change. The emerging paradigm of strategic management is essentially
one where executives and managers not only need to question the wisdom of traditional
strategic management processes, but the very need for strategy formulation in a highly
competitive and swiftly changing global business environment. This reality is certainly
endorsed by Gould (1996:278) who argues that “markets are moving too fast, are too
unpredictable and too uncertain to rely on conventional management approaches”.
RV Weeks Key determinants in strategic realignment
2002 within a digital global business environment
Chapter 1: Orientation −4
A review of the management literature soon reveals that not all researchers and
management practitioners would be willing to agree that strategic management is an
outdated concept with little or no value within a turbulent business environment. While
acknowledging that there are researchers who believe that formal strategic planning
may be dysfunctional, Glaister & Falshaw (1999:107,115) provide empirical evidence
that strategic planning is “still going strong”. If immense volumes of current strategic
management literature are consigned to the dustbin, Liedtka (1998:120) questions,
“what have we got to take its place?”. Having posed the question Liedtka (1998:128)
goes on to argue that strategic management still has significant implications for modern
day business institutions. Notably, Wilson (1998:508) argues that “the convergent
forces of globalisation, technology, deregulation and economic restructuring combine to
make strategy and strategic thinking an essential weapon in the corporate armory”.
The image that emerges is one where traditional strategic management processes are
making way for a new strategic methodology that is more in line with contemporary
management practice. It is imperative that researchers, executives and managers not
only recognise the change taking place, but respond to it in a proactive manner. This
implies a need to gain clarity as to the nature of the shift that has taken place in
contemporary strategic management practice, as not only does theory inform practice,
but contemporary practice must in turn inform theory when significant shifts in traditional
thinking have taken place.
1.1.2 Emerging technologies and globalisation: a strategic perspective
It is deemed essential that the concept “emerging technologies” as applied within the
context of this study be defined from the start to avoid any confusion that may arise.
Seen within the context of the related concepts of “globalisation”, the “new economy”,
the “information era” and the “digital economy”, emerging technologies essentially relate
to information and communication technology (ICT) and technologies associated
therewith. While not restricted thereto the primary focus will be on two distinct fields of
RV Weeks Key determinants in strategic realignment
2002 within a digital global business environment
Chapter 1: Orientation −5
technology, namely information and communication technology.
Emerging information and communication technologies have given rise to a context
where time and distance no longer serve as constraints in conducting business
transactions. Parker (1998:6) describes globalisation as “the absence of borders and
barriers to trade between nations”. Competition assumes new meaning within such a
global business environment, where discontinuous, innovative change becomes the
order of the day. Within such a context it is the creative potential of the institution’s
employees that makes the difference in meeting the challenges presented by the limited
time frames of windows of opportunity. “Internet time, like dog years, passes far more
rapidly than standard time” (Day & Schoemaker 2000:6) and gives true meaning to the
adage that time waits for no man. As enterprises cross the traditional boundaries of
business activities and become global in scope, the problem of capitalising on restricted
time frames of windows of opportunity become all that more complex and difficult to
achieve from a strategic management perspective. The following comment by Parker
(1998:31) assumes relevance in this regard, “as businesses increasingly go global,
managers of all kinds of businesses similarly are forced to rethink theory previously
applied to a world where business was more international and between nations rather
than global and across nations”.
Emerging technologies are transforming the national business context and have given
birth to the digital e-economy (electronic economy). E-commerce (electronic commerce)
appears set to drive economic growth in the years ahead. The strategies and rules of the
game to gain a competitive advantage within the digital economy are in many respects
different from that of the past. There for instance, appears to be a shift in strategic
thinking from products or service centricity to customer centricity. In the digital economy
the client and the changing needs of the client will increasingly be at the center of the
strategy formulation paradigm. Of equal significance with the birth of the digital economy,
is the recognition that intellectual capital will in future gain in prominence as a strategic
determinant, and this in turn places renewed emphasis on the human dimension as a
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −6
factor of consideration in formulating and implementing strategy. A further strategic
consideration linking emerging technologies and human resources, within the context of
the global economy, is the need for a change in the traditional skills base required for
managing both private and public sector institutions. Trilling & Hood (1999:8) support this
contention by suggesting that “everyone in the Knowledge Age will have to be able to go
beyond basic computer literacy to a higher level of digital fluency”. In a similar sense Klor
de Alva (2000:34) in reviewing the challenges to higher education in the information age,
maintains that employees will need to be reskilled numerous times if they wish to remain
employed.
The link between innovative technology changes and the impact thereof on business
institutions and the employees of these enterprises is receiving increasing prominence
within the literature. Martin (1995:29) identified six key themes in the redesign of
corporate institutions to align people, technology and strategy. These are:
fundamental uncertainty
radical changes in how people work
explosive changes in technology
a renewed focus on humanity
extreme rate of change and
constant learning.
The human element is clearly visible in these themes and encapsulated within the
researcher’s contention that “the learning-laboratory corporation is the culmination of the
twentieth century journey from treating employees as dumb slaves who must obey to
encouraging employees to use their intelligence to increase their value” (Martin 1995:29-
30). Evidently, indicated by inference, is the importance of employee intellectual capital
in strategically positioning modern day businesses to survive within a highly competitive
global business environment.
The tendency to search for instant solutions for complex business problems remains a
rather common phenomenon. Many an attempt has been made to implement state of the
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −7
art computer systems to address complex business problems impacting on the day-to-
day business operations of an institution. The implementation of these systems in many
cases turned out to be a nightmare as the business systems were not designed to
ensure compatibility with the computer systems. Of even greater concern is that in some
instances the business requirements were not even correlated with the underlying
business rationale on which the selected computer system was based, with the result
that the client’s expectations could not be realised to the full extent envisioned by the
client. The gulf that exists between business management and the information
technology organisation is vividly described by Martin (1995:54-55) as follows:
“In many corporations the business executives regard the IT organization
as an alien culture. The professionals tend to live in their own world,
preoccupied with technology issues and largely uninterested in the
business matters. Business executives refer to IT people using words
such as propellerheads.”
In reality, business imperatives need to inform the information technology (IT) solution.
This translates into a need for both business and IT executives to be working from the
same agenda with clearly defined understandings of what is required and what will be
delivered by the selected IT systems.
From the preceding introductory discussion it may be concluded that emergent
technologies, business systems and human resources are key determinants in the
strategic realignment of any institution. South African organisations are no exception to
the rule in this regard and these determinants need to be taken into consideration in
formulating and implementing an appropriate strategy to ensure the future viability of
these institutions within an extremely competitive global business environment.
1.2 STATEMENT OF PROBLEM
The primary problem addressed in this study is the relevance of traditional
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −8
strategic management theory and practice within a context of instability,
uncertainty and discontinuous change emanating from globalisation and
emerging technology as key strategic determinants.
In researching key strategic determinants impacting on the strategic realignment of
contemporary South African business institutions the following problem areas are
identified:
South African business institutions are increasingly confronted with the realities of
having to compete in global markets, where traditional barriers to trade have largely
become insignificant and these institutions as a consequence are in many instances
subjected to “future shock”. It needs to be questioned why traditional strategic
management processes in many instances are no longer effective in positioning
these institutions within a changing global business environment. Of equal relevance
are the characteristics of this environment and how it differs from the traditional
context in which the concept “strategic management” evolved
Emergent technologies are not only impacting on the business environment of
modern day public and private sector business institutions, but are in effect
changing the very way that things are done within the organisation, and therefore it
has a significant effect on the strategy and culture of the institution concerned
The dynamic relationship that exists between emergent technology and business
systems is both complex and difficult to manage in practice. Clarity as to the
dynamics of strategically integrating the two into a synergistic entity is required in
view of the strategic importance thereof in meeting the challenges presented by a
highly competitive global business environment
The human resources implications of strategically positioning institutions within a
digital global business environment are multifaceted and clarity as to the importance
thereof from an organisational and strategic management perspective is required.
Each of the above identified problem areas are addressed in the ensuing sections.
1.2.1 The relevance of the traditional strategic management process in dealing
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −9
with the intricacies of strategically positioning modern day business
institutions within a digital global business environment
Significant characteristics of the digital global business environment are their highly
competitive nature, unprecedented brisk information transfer, ability to conduct business
transactions of all kinds across traditional boundaries with relative ease, and their
inherent trait of discontinuous rapid change. It is a context over which the majority of
South African business institutions have little or no real influence in radically influencing,
reshaping or transforming the global political, business, technological, or social
environment in which they function. Of particular significance is the reality that within this
context, windows of opportunities are continually opening and closing. Similarly, new
risks and threats to the business and its operations are constantly emerging. In support
of this contention Ireland & Hitt (1999: Internet) argue that the global economy has given
birth to a new competitive landscape, one where change essentially takes place on a
revolutionary (as opposed to an evolutionary) basis. They further stress that it is a
context where knowledge workers are the primary source of economic growth (Ireland &
Hitt 1999: Internet). In similar vein, Bryan et al. (1998:Internet) warn that many
strategies are still built on closed national economies, which represent a rapidly fading
business reality.
At its very core the strategic management process is based on contextual analytical
thinking and the recognition that in many instances organisational activities are to a
lesser or greater degree impacted on by the changing nature of its external or macro
environment. Within a highly volatile electronically networked global business
environment, where any form of long term stability is the exception to the rule, it needs to
be questioned whether traditional strategic management processes are still of relevance
in engendering a sustainable competitive advantage. There are researchers who
question traditional strategic management practice, concepts and processes, in relation
to a highly unstable environmental context, many of whom accentuate the failures
encountered in practice (Coyne & Subramaniam 1996:61-62; Gould 1996:278;
Heracleous 1998:481-482; Mintzberg 1994:4,25; Pitt 2000:20; Robert 1998:14; Simpson
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −10
1998:476-477).
In formulating strategy, executives and managers do not necessarily respond to actual
environmental realities, but their interpretation or perception of these realities. Schwartz
(1991:53) acknowledges that people as a rule do not realise that their decision agendas
are usually unconscious by stating that “each of us responds not to the world, but our
image of the world”. The business realities of a global business environment may well in
many respects no longer reflect the underlying rationale on which traditional approaches
to strategy development and implementation were based. Coyne & Subramaniam
(1996:61-62) for instance, in support of their contention that managers are reaching out
to find new theories because the traditional model of strategy is inadequate, cite the
following examples of this new business environment:
“A telco executive must make a $1 billion “yes” or “no” decision on whether to invest
in a new network technology to provide new services to customers. One best-
practice market research survey predicts a return on investment of 25 percent; a
second, equally valid, forecasts minus 25 percent. What should the executive do?
How should executives at a software firm deal with a large customer that is also the
firm’s chief competitor - and one of its biggest suppliers?
How should the chief executive officer of a credit card company think strategically
about positioning when segments and value propositions come and go every six
months?
A large regional bank recognises that to succeed on the retail level, the bank must
take the lead by discovering huge but as yet unrecognised customer needs. How
can it embark on such a strategy?”
It may be inferred from the strategic questions posed that the contemporary business
environment is complex, extremely volatile and difficult to predict with any degree of
certainty. Add to this the subjective nature of management’s interpretation of this
environment and it will not be difficult to see why both researchers and managers
question the validity of the assumptions on which many strategic management processes
are based.
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −11
Conventional strategic management practice is based on the fundamental assumption
that the organisation’s executive management remains ultimately responsible for the
formulation of strategy and ensuring its successful implementation. This by implication
denotes a centralisation of strategic decision making within the executive structures of
the institution concerned. The conventional strategic management paradigm essentially
stems from its military origins of centralised control and command structures. It is a
paradigm further shaped by scientific management thinking. Taptiklis (1994:Internet)
argues that current reality may well be quite different and that the scientific ethos
underlying management theory may no longer be appropriate within the volatile context
of a global business environment. He goes on to argue that a new paradigm may be
required, one that “brings others into the process in a way that energises it” Taptiklis
(1994:Internet). In questioning the role of strategists in today’s real world Taptiklis
(1994:Internet) concludes that “management as an art form: the art of observing and
understanding people, and drawing them in to a common cause” is central to the
successful implementation of strategy. The underlying logic of this argument may be an
emphasis on having to draw on the total expertise that exists within an organisation to
meet the challenges presented within a business environment of unprecedented
alternative possibilities. Wood (2000:Internet) refers to this as the end of the age of
reason and the birth of the age of possibility, which engenders a crisis in what he terms
the “old strategy”. At the heart of the “new strategy” is the “blur” in which the global
economy and technology co-evolves (Wood 2000:Internet).
Seen within the context of the preceding discussion the organisation’s external context is
one of possibilities or windows of opportunities over which it has little control, while its
internal environment provides the capabilities to meet the challenges presented by the
external context. It is argued that this translates into a need to nurture a culture within the
organisation that values the collective expertise of all its employees in turning the
possibilities into profitable strategic realities. Strategic centralism, a core assumption of
traditional strategic management thinking would as a consequence need to make way for
a more inclusive synergistic strategic process.
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −12
As may be seen from the preceding discussion, conventional strategic management
theory needs to be validated in terms of contemporary management practice. While
theory informs practice it also needs to be acknowledged that in times of significant
discontinuous change it is necessary to revisit practice and if the theoretical
assumptions that have been made are found to no longer reflect business reality,
practice needs to inform theory. It is argued that the complex realities of a volatile global
business environment place in question traditional strategic management theory and a
critical evaluation of theory and contemporary practice are thus required.
1.2.2 The strategic impact of emergent technologies on the business activities of
institutions, with specific reference to the culture of the institutions
concerned
Inherently inferred within the concept of “emergent technologies” is a sense of
exploration of new possibilities, which in turn implies an element of learning. Yet, Senge
(1990:18) asserts that “it is no accident that most organisations learn poorly. The way
they are designed and managed, the way people’s jobs are defined, and most important,
the way we have been taught to think and interact ... create fundamental learning
disabilities”. At the very core of the dichotomy that exists is the notion of the need for a
“culture of learning”. The creative capacity associated with the convergence of emergent
technologies and business process redesign in effect necessitates a need to learn new
ways of doing things within the organisation and thus by implication a change in the
culture of the organisation. It is a sentiment captured in the contention of Dvork et al.
(1997:164) that it is not the technological wizardry, but the way they do things that
distinguishes modern day business institutions. In question therefore is the culture
required for surfing the waves of change associated with the strategic integration of
emergent technologies and redefined business systems.
In discussing the crafting of solutions for dealing with the pitfalls associated with
emerging technologies Day & Schoemaker (2000:37) identify four management related
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −13
factors, namely “widening peripheral vision, creating a culture of learning, staying flexible
in strategic ways, and providing organisational autonomy”. Organisational culture is
therefore seen as an important management consideration, in a range of interrelated
management interventions, that are of relevance in dealing with the strategic impact of
emerging technologies. Martin (1995:4,455) supports the notion of having to attribute
careful attention to the corporate culture in strategically realigning the organisation within
a knowledge-based management era. The linkage that exists between knowledge and
organisational learning is also accentuated by Martin (1995:5) in his contention that
learning, which creates new knowledge, provides organisations with a primary strategic
competitive advantage within a tidal wave of technologically driven change. It could well
be argued that a mental connotation exists between the concepts “emergent
technologies” and “organisational learning”, which largely emanates from the notion or a
sense of change and having to do things differently, implying a need for a change in
culture.
The sense of change previously referred to, in reality is multifaceted and not restricted to
the culture of the organisation. In formulating strategy, attention needs to be attributed to
the potential application domains of the technology concerned. The business impact
thereof could, from a strategic management perspective, provide an institution with a
competitive advantage, emanating from economies engendered, enhanced service
delivery to clients, the development of new innovative products, and the opening up of
new market segments. On the other hand, applying the technologies to realise the
strategic advantage will have an impact on the emerging technologies identified, namely
in terms of potential business opportunities, and the impact thereof on the business
operations of the institution concerned. The former relates to the external and the latter
the internal context of the situation.
From an external perspective, emerging technologies give rise to windows of opportunity
that in many instances challenge conventional thinking as to what is possible. It in a
sense entails an element of vision and moving beyond current reality to embrace
alternative future potential realities that will necessitate a strategic realignment of the
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −14
organisation and its activities. A case in point being the birth of the Internet and the
associated network technologies that have unleashed a new order in business thinking
that is largely visionary in nature. Nonotechnology similarly stands on the edge of
extending traditional thinking as to what is possible with an ability to design and construct
devices atom by atom. The ability to manipulate molecular structures will have profound
implications for most traditional industries of human endeavour. Within the sphere of
medicine it holds the promise of “monitoring, repair, construction and control of human
biological systems at the molecular level, using engineered nonodevices and
nonostructures” (Freitas 1998:Internet).
In order to deal with the complexity of emerging technologies, Wood (2000:Internet)
argues that new strategic building blocks are required, namely:
a strategic conversation between a community of stakeholders about the future
a future navigation process within the enterprise which ensures that it has a robust
strategic direction capable of learning from uncertainty
an approach to business design enabling the enterprise and its management to
explore and find profit zones in its value network and
a way of developing the coherence between business design and an organisation’s
capability to deliver, together with the capacity for self-renewal.
The first mentioned strategic building block is of specific relevance in terms of public
sector institutions. The traditional model of governance within the South African context
is rapidly making way for greater community involvement and information and
communication technology will without doubt play a significant role in supporting the
processes involved. Emergent technologies have in effect made electronic governance a
distinct possibility with extensive possibilities that may be explored to ensure the
participation of communities in key governance issues that will impact on their lives. The
transformation process that has been embarked on in most South African public sector
institutions is specifically directed at ensuring improved service delivery to all sectors of
the community, and without doubt the role of technology in support of the business
processes concerned will be quite significant. The issue of technology, in support of
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −15
public sector governance, has raised the question of the digital divide that exists between
technology literate and illiterate sectors of the population. Access to the appropriate
technology concerned has also become an issue of concern in this regard, that will need
to be taken into consideration from a strategic perspective.
The picture that emerges is one where emergent technologies are engendering a context
of significant opportunities within a global business environment. Within public sector
institutions emergent technologies also have a significant potential for improving service
delivery and enhancing community involvement in governance issues. It appears that
electronic governance will in future become an issue of strategic significance that will
impact not only on the lives of members of the community, but also on activities of
business institutions.
Clearly, both public and private sector business institutions are confronted with emergent
technologies that are impacting on their day-to-day business activities and operations. It
is questioned whether the traditional concept of strategic management is still of
relevance within a business environment shaped by immense technological driven
changes within relatively short time frames. It is contended that the impact and nature of
the influence of emergent technologies on modern day business institutions’ operations,
and consequently their strategy, needs to be researched in order to gain greater clarity
as to how businesses are currently dealing therewith from a strategic change
management perspective.
1.2.3 The need to obtain strategic synergy between emerging technologies and
institutional business systems
The divide that separates business and technical management in most business
institutions is largely one of mental constructs that have evolved within a specific sphere
or discipline of management. Ideally information and related technologies need to
support the day-to-day business processes and activities of the enterprise in order to
improve service delivery and meet the challenges presented by changing client needs
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −16
and expectations. Emergent technology has provided management with new highly
sophisticated means to not only manage the enterprise, but also to improve customer
satisfaction. A key strategic consideration within a global business environment is that of
attracting and retaining the organisation’s most profitable client base. It may therefore be
argued that technology is playing a vital role in improving the competitive position of the
enterprise. The problem that essentially exists is one of integrating technology and
business processes to achieve enhanced synergies in managing the day-to-day
operations of the organisation. Many business institutions are as a consequence
spending a significant share of the organisation’s capital resources on state of the art
technology to respond to the business challenges of the information age, yet the return
on the investment in many cases is nowhere near in realising the potential financial
returns envisaged (Battles et al. 1996:116; Dempsey et al. 1997:80).
Technocrats are in essence accused of wanting to unroll state of the art technologies
without consideration of the business and financial consequences involved. In contrast
business executives stand accused of not understanding the significant opportunities
presented by technology in managing the institution’s business operations. Technology
and business systems appear to be two sides of the same coin and the divide that exists
seems to largely relate to the understanding and insight of executives, as to how
technology and business systems interrelate. A fundamental question that if answered
will go a long way in bringing a sense of logic back to the situation that exists, is namely
how will the technology proposal assist the organisation in cost effectively achieving its
business objective?
It needs to be questioned whether many business executives in practice do have the
technical insight and understanding, as to the potential role that information and
communication technology can play in supporting the business operations of their
institutions. Of equal concern is their understanding of how emergent technologies are
reshaping the future business context within which their institutions will function. Martin
(1995:54) contends that in many corporations business executives regard the information
technology organisation as an “alien culture”. In contrast it is argued that information
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −17
technology executives are frequently unable to interpret the business imperatives that
seem to motivate the business case for the use of technology in support of business
operations. They also often fail to understand the business process implications involved
in implementing a new information technology system and in particular the associated
human resources issues. In reality it is deemed essential that synergies be attained in
integrating information and communication technology, business systems and the
inherent human aspects involved. Metaphorically they may be seen as three strands of a
rope that are intertwined, their integrated strength being far greater than that of the
individual strands.
Gould (1996:278), in researching contemporary strategic management processes for
change, concludes that previous paradigms of management are too sluggish to respond
to the present day competitive environment of speed, ceaseless innovation and
uncertainty. The global economy has in effect created a competitive landscape of
unpredictability (Ireland & Hitt 1999:Internet). And technology driven business
intelligence systems are increasingly assuming increasing importance in strategic and
operational decision making processes. The underlying rationale of electronic intelligence
systems is one of supporting business analysis in order to more effectively understand
the institution’s operations within a rapidly changing business environment.
Organisational flexibility and adaptability are deemed to be key attributes within such a
business environment and by implication the business systems and processes, including
that of strategic change management, need to facilitate and not inhibit change. Gould
(1996:278), however, argues that most management paradigms have essentially evolved
within a context of reasonable stability. It therefore needs to be questioned whether
information technology and business systems are appropriately aligned, so as to
navigate contemporary business institutions through the storms of unpredictable
contextual change.
Emergent information and communication technology is changing many of the traditional
rules of management and as a consequence the underlying business processes
involved. Hale et al. (1999:16) contend that while functional personnel express business
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −18
rules in terms of business processes, information systems professionals view business
rules in terms of constraints that the rules place on manipulating the organisation’s data
resources. Independent of each other these two perspectives fail to acknowledge the
interreliance of business processes and the information systems that support them (Hale
et al. 1999:16). Without doubt a basis for common understanding is thus required, in
order to facilitate communication between the two in problem solving. The accent should
be on finding an appropriate technology-based solution for the business problem
presented, taking both technology and business implications into consideration.
Venkatraman (1991:126) leaves little doubt as to the importance of the linkage that exists
between business strategy and information technology by asserting that “our
fundamental premise is that it is no longer a question of whether IT has a strategic role
but how to exploit IT in strategic management or, more precisely, how to develop
strategy-IT alignment”. From a strategic management perspective it is generally
contended that the information technology strategy must support the business strategy. It
is a contention supported by Boar’s (1994:xi) logical argument that “the I/T organisation
must take actions to align itself perfectly with the needs of the business” and his further
assertion that “the I/T organisation just adapts to accommodate and serve the business,
not the converse, which is the traditional perspective of the I/T technologist” (Boar
1994:2). The latter quotation clearly brings into question the controversy that often exists
between the perspectives held by business and information technology executives. Earl
& Feeny (1995:145-146) believe that it is a controversy giving rise to a crisis of
confidence in the information technology function and the executives thereof. The former
brings into question the nature of the strategic alignment and the means used to bring
the IT function into alignment with the corporate strategy adopted by the institution
concerned.
In practice any business process redesign will in effect flow from the corporate strategy
while the information technology alignment process will be dictated by the information
technology strategy which in turn is aligned to the corporate strategy. The business and
information technology systems are therefore clearly linked in terms of the corporate and
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −19
information technology strategy linkages that exist. The question that arises relates to the
complex nature of these linkages and the practical significance thereof within a global
business environment, that is extensively influenced by emerging technological
innovations.
1.2.4 Change management implications in strategically positioning institutions
within a digital global business environment
The introduction of technology-based business solutions for dealing with the
complexities of evolving business realities within a global economy does not come
without unintended consequences. These consequences are often reflected in
resistance to change as people need to move from well-entrenched methods to adopted
new procedures, processes and practices. Business process redesign may well embody
drastic changes in a work flow process, an automation of activities, or even a redesign
of established organisational structures, all of which spells change and more often than
not people feel uncomfortable with change. The only truth that does not change, as the
future unfolds, is that change is rapidly becoming a way of life. This truth is often
encountered within the literature, yet in reality the human complexities involved in
managing change remain as valid today, as ever before. From a strategic management
perspective it needs to be questioned how the human aspects of strategic change
management ought to be dealt with as strategy and the management of change have
become synonymous with the volatile business environment confronting most business
entities.
The relevance of the preceding statement is endorsed by Davenport’s (1999b:1)
contentions that information technologists often assume that “technology will serve as a
catalyst for change”, yet it is a “promise that goes unfulfilled” as “IT managers put too
much emphasis on hardware, and not enough emphasis on the soft science” of how
people deal with change.
It is argued that globalisation, emergent technologies, the new economy and various
RV Weeks Key determinants in strategic realignment
2002 within a digital global business environment
Chapter 1: Orientation −20
related concepts are having a profound effect on the work environment. Boyett & Snyder
(1998:Internet) for instance suggest that “thanks to new technology and the changing
nature of work itself, fully 60 % of the workforce today perform jobs for which physical
location is no longer critical” and the “social contract that promised job security in
exchange for employment loyalty has been broken”. They further accentuate the
emergence of “cross functional, multidisciplinary teams with globally and ethnically
diverse memberships” (Boyett & Snyder 1998:Internet) as constituting a new reality
within a global business environment. The importance attributed to teamwork is
accentuated by various researchers (Block 1991:75; McLagan & Nel 1995:76; Parker
1998:219). Senge (1990:24), however, observes that “all too often, teams in business
tend to spend their time fighting for turf, avoiding anything that will make them look bad
personally and pretending that everyone is behind the team’s collective strategy”. In a
similar vein Martin (1995:26) concludes that “many corporations still have fiefdoms and
compartmentalisation of the past. The corporate barons enjoy their power and try to
preserve it”. The strategic implications of these contentions need to be considered in
reviewing the relevance of the traditional concept of strategic management within a
global business environmental context.
It may be concluded from this brief analysis that in managing the strategic realignment of
business institutions, the people related aspects thereof can no longer be ignored in
managing the associated changes in business processes and technological
infrastructure.
1.3 OBJECTIVES OF THE STUDY
This study has been undertaken with the express purpose of researching and
gaining clarity as to the practice of strategic management within a highly
competitive and volatile global business environment. Specific attention is
attributed to the influence of emerging technologies, business systems and
change management as key aspects of consideration in formulating and
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −21
implementing strategy.
To achieve the primary objective, as stated above, the following objectives are
formulated for this study:
Objective 1: To gain conceptual clarity as to the concept “globalisation”, the
characteristic of the business environment that has emerged as a result of the concept,
and the strategic management implications thereof.
Objective 2: To acquire a business directed understanding, as to the scope and nature
of emerging technologies and the influence thereof, as an environmental determinant
impacting on the formulation and implementation of strategy within both public and
private sector institutions.
Objective 3: To explore the linkage that exists between business systems and
information and communication technology from a strategic management perspective.
Objective 4: To achieve greater clarity and understanding as to the change
management implications involved in the strategic realignment of business institutions
within a global business environment.
Objective 5: With reference to the insights gained in realising the preceding objectives,
to acquire an insight and understanding of contemporary strategic management practice
within a global business environment.
The defined objectives are discussed in the ensuing sections.
1.3.1 Objective 1: Gaining understanding of the concept “globalisation”, the
characteristics of the business environment that has emerged
as a result of the concept, and the strategic management
implications thereof (chapter 2)
A tidal wave of innovative information and communication technology developments
have engulfed most business enterprises. One of the most significant developments in
this regard has been the emergence of the world wide web (WWW), or as it has also
become known, the Internet. The world has suddenly become just that much smaller as
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −22
a result thereof and distance is no longer a barrier in conducting business transactions or
in transferring information across international boundaries. This has given rise to what
Parker (1998:x) refers to as the global marketplace within the global village. It is a reality
that increasingly will have a significant impact on most business enterprises operating
within a free economy and a democratic business dispensation. Various associated
concepts, such as "e-commerce", the "new economy", the "information age", the "digital
economy", and similar terminology have found their way into management literature and
it is deemed essential that as a point of departure conceptual clarity be attained as to
what is meant by globalisation and the nature of the business environment that it has
engendered. The latter will serve as a frame of reference in analysing the validity of
conventional strategic management practice within a global context.
In order to realise the above stated objective the following issues are addressed in
chapter 2:
Globalisation and the impact thereof on contemporary strategic and business
management practice
A critical analysis of the concept "globalisation" and the perspectives that are held in
relation to the impact thereof on international and South African business institutions
The relationship that exists between globalisation and emergent technologies in
shaping the business or external environment in which organisations function
The characteristics of this environment, from a strategic management perspective.
1.3.2 Objective 2: Acquiring insight and understanding as to the impact of
technology in shaping the business environment of public
and private sector business institutions, from a strategic
management perspective (Chapter 3)
As stated in the introduction to this chapter the accent of the study will be on information
and communication related technologies and the impact thereof on the operations and
activities of public and private sector institutions. These technologies not only support
the business operations of institutions, but are rapidly transforming the business
environment in which the organisations function. It is generally acknowledged that from a
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −23
strategic management perspective, both the internal and external environments of any
institution, are key aspects of consideration. With this in mind a fundamental objective of
this study will be to gain clarity as to the influence, scope and nature of the impact of
information and communication technologies on the institutions concerned. In gaining
such an understanding, a strategic business perspective is adopted. An in-depth highly
technological evaluation is, however, deemed to be outside the scope of this study.
South Africa embodies both a first and third world business environment and in
researching the influence of emergent technologies both will need to be taken into
consideration.
An attempt will also be made to gain insight into the strategic, social and financial
implications of emergent technologies. These can indirectly have a significant strategic
impact on South African public and private sector institutions. A case in point being the
future skills that will be required by members of the community in order to be able to be
employed and the influence of technology on the means used for acquiring these skills.
The very nature of the work environment could in future change and this would without
doubt have significant social implications. The social and financial environment has long
been recognised as constituting an important consideration in formulating and
implementing strategy. The indirect social and financial linkages or spin offs of
technology changes need to be taken into consideration in gaining an understanding of
the strategic implications thereof on business institutions.
With the stated objective in mind the following issues are addressed in chapter 3:
The role played by emerging technologies in shaping the external and internal
business environments of contemporary business institutions, from a strategic
management perspective
The impact that emergent information and communication technologies have had
in reshaping the global or external business environment in which organisations
function. While the focus essentially will be on information and communication
technologies, this will not act as a constraint on analysing related or significantly
important other technologies that may arise in the course of the study
The impact of technology on the way business is conducted, from a strategic
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −24
management perspective.
The ultimate objective in this chapter may therefore be summarised as one of acquiring a
business directed understanding, as to the scope and nature of emerging technologies
and the influence thereof as an environmental determinant in the formulation and
implementation of strategy within both public and private sector institutions.
1.3.3 Objective 3: Exploring the relationship and interdependencies that exist
between business systems and information and
communication technology, from a strategic management
perspective (Chapter 4)
It is argued that one of the major challenges confronting South Africa executives is that of
strategically integrating business and technology systems into a synergistic entity. In this
regard it is significant to note that Henderson & Venkatraman (1999:472) argue that the
inability to realise value from information technology investments can be directly
attributed to a lack of alignment between business and IT strategy. Boar (1993:xiv)
believes that most information technology professionals are ill-equipped for this
challenge, as they lack the business related skills required. According to Martin
(1995:54) many business executives have equally failed to gain an understanding of the
strategic role of information technology. Findings emanating from research undertaken
by Hill (2000:12) also seems to suggest that in many institutions functional strategies are
compiled without consideration to the essential quality of integration. MacDonald
(1991:310) in similar vein acknowledges that while considerable efforts have been
directed at linking business and information technology strategies, in practice the realities
involved have proved to be rather complex in nature. The importance of exploring the
relationship and interdependencies that exist between business systems and information
and communication technology is underscored by these realities and in this study an
objective will be to gain greater clarity and understanding of the issues involved. An
endeavour is therefore made to find an appropriate model or framework that may be
used for understanding the relationship that exists between corporate and information
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −25
and communication technology strategy.
With the above stated objective serving as a frame of reference the following aspects are
addressed in chapter 4:
The strategic alignment of information and communication technology strategy with
the corporate strategy of an enterprise
The need to ensure that synergy is attained in aligning business systems with an
appropriate information and communication technology infrastructure
Business system redesign with reference to underpinning technology determinants
is researched and the human issues relating thereto are analysed from a change
management perspective
Research and either develop or find an appropriate model or framework for
understanding the relationship that exists between corporate and information and
communication technology strategy, with specific reference to the need to gain a
competitive advantage within a highly competitive global business environment.
Clarity is attained as to concept of “value chain management”
Innovation in a technological sense and its influence on business is explored.
1.3.4 Objective 4: Attaining greater clarity and understanding as regards the
management of change in the strategic realignment of
business institutions within a global business environment
(Chapter 5)
A frequent refrain within management literature and at conferences and seminars is the
importance attributed to people as a key strategic resource in the implementation of
strategy. Within a global context, issues of tradition, customs, political, religious,
language and cultural diversity assume increasing importance and need to be taken into
consideration in strategy formulation and implementation. The culture that exists within
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −26
the institution itself will also have an impact on strategy and will need to be managed.
The skills required by managers and staff in dealing with the complexities associated with
a global business environment need to be identified and considered from a strategic
management perspective. In dealing with strategic change the question of leadership
assumes particular significance and clarity with regard to the role of leadership in dealing
with contextual uncertainty, from a strategic management perspective, needs to be
revisited.
The human related issues associated with the strategic deployment of new technologies
and business system redesign are quite extensive. A fundamental issue being the need
to manage change, which embodies many human issues that need to be taken into
consideration. Teamwork, knowledge management, and organisational learning have
become synonymous with technology driven business transformation and all require an
understanding of how people interact in adding value to the business operations.
Organisations are in effect webs of human interaction and organisational politics plays a
significant role in such a situation. These are all key issues that will need to be
researched in order to gain an understanding of the human issues involved in the
strategic realignment of an institution within a global business environment. A thorough
analysis of the relevant human resources related issues therefore form a fundamental
objective of this study.
The following issues are addressed in chapter 5 in order to realise the above objective:
Change management implications in the strategic realignment of South African
organisations in response to globalisation
Human resources implications in managing strategic change within a global
business environment
Teamwork across international boundaries, involving people with diverse cultures,
languages and traditions
Knowledge management and the human resources implications thereof
Human resources implications and their interdependencies in meeting the
challenges presented by technology driven globalisation.
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −27
1.3.5 Objective 5: Attaining insight and understanding of contemporary strategic
management practice within a global business environment
(Chapter 6)
From the background discussion in this chapter it will have become clear that the
relevance of traditional strategic management practice is questioned within a global
business environment, characterised by extensive competition and contextual
uncertainty. Information and communication technology have played a significant role in
shaping the global business environment and the impact thereof on the strategic
management process is also questioned. The need to align business and information
technology strategies to achieve a synergy that will provide the institution with a
competitive advantage has raised the question of how this is to be achieved in practice, if
business and technology executives live in different worlds of their own. South African
business institutions are increasingly being drawn into the global business environment
and it is deemed essential that a clear understanding be attained as to strategic
management practice within the context of the digital global economy. An important
outcome of the study would therefore be to determine how contemporary strategic
management practice relates to the theory as presented within the literature. Should any
inconsistency between theory and practice be identified an endeavour will be made to
inform theory by means of insight slides.
In realising the referenced objective the following issues are addressed in chapter 6:
Contemporary strategic management practice within a global business
environment
Strategic management theory and practice, as it relates to a global business
environment. The insights and understandings gained during the preceding
chapters are taken into consideration in conducting this analysis
The implication of increasing environmental uncertainty, as a result of
globalisation and the impact thereof on strategy formulation and implementation.
Use is made of insight slides in presenting the findings emanating from the study, with
specific reference to strategic management.
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −28
1.4 RESEARCH METHODOLOGY AND CONSTRAINTS
The primary focus of the study is centred on the strategic alignment of technology,
business systems and change management in meeting the challenges of a global
business environment from a contemporary strategic management perspective. The
study being an insight study is essentially analytic-descriptive in nature, the accent being
on acquiring an insight into contemporary strategic management practice within South
African public and private sector institutions confronted with the business realities
associated with globalisation. A key aspect of the study is that it links strategic, business,
change, and information technology management as key domains of analysis.
In the first instance a multi-disciplinary literature study is undertaken to gain a sound
theoretical understanding of the concepts, issues and management practices involved.
Theory formation is followed by a critical analysis of contemporary strategic management
practice. The theoretical foundation established during the literature research forms a
frame of reference for the empirical study. A down-to-earth pragmatic strategic
management perspective is achieved by means of open-ended interviews with senior
South African executives and managers, the objective being to learn from the personal
insights they have acquired, from hands-on experience, in dealing with the strategic
issues on a day-to-day basis. Where possible appropriate case studies are used to gain
an insight into management practice. It is intended that the information gained from the
case studies will complement the insights gained from practitioners.
1.4.1 Literature study
The literature study is based on the most recent literature available in the fields of study.
It includes inter alia books, journals, academic dissertations, and literature available in an
electronic format, obtained via the Internet from reputable academic, government,
business and various research institutions. The literature relating to the impact of
information and communication technology on globalisation is restricted to the 1990's
and period subsequent thereto and the associated literature in this regard is therefore
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −29
essentially limited from a time period perspective. The strategic management literature
is far more extensive in nature, as it evolved in response to a changing business
environment over a number of decades and due cognition therefore needs to be
attributed to the context in which the literature evolved.
The scope of the literature study cannot be restricted or contained within a specific
discipline, in view of the nature of the research problem which extends across diverse
disciplines ranging from strategic management, to information and communication
technology, organisational culture, futures research, business process redesign, total
quality management, organisation development and human resources management. The
literature study is therefore multi-disciplinary in nature in order to gain an in-depth
understanding of the research issues, as defined within the problem statement.
Internet based electronic information sources needed to be restricted to acknowledged
academic, professional, government and business institutions of repute. Typical
institutions being the World Bank, International Monetary Fund, International Labour
Organisation, university research facilities, and business and information technology
consultancy firms such as Forester, Gartner and IBM.
The literature search was conducted with the aid of information obtained from the
following sources:
Internet search engines such as ananzi.co.za, goto.com, google.com,
webcrawler.com, and yahoo.com
The "Akbar" periodical index
Literature lists compiled by the subject librarian at the Rand Afrikaans University
Literature lists included in the various publications consulted
Internet links and references provided for accessing related information at websites
accessed in conducting the literature study
The computer-based library subjects catalogue of the Rand Afrikaans University,
Pretoria University, and the University of South Africa.
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −30
1.4.2 Personnel interviews
Information and communication technology has without doubt played a significant role in
shaping the business environment of both public and private sector institutions. A key
characteristic of this environment is the difficulty experienced in predicting the future with
any degree of certainty. Globalisation has further increased the competitive forces to
which many of these institutions have been subjected. Strategic management practice
tends to have evolved within a context of reasonable stability and it is questioned if
traditional theoretical strategic management models are still of relevance in dealing with
the complexities of the modern day business environment. The study being an insight
study is directed at gaining a practical understanding of contemporary strategic
management practice by learning from first hand experiences of South African
executives and managers. Personal interviews are therefore conducted with senior
executives and managers from public and private sector institutions within South Africa.
It is maintained that these managers are increasingly being confronted with the realities of
globalisation and the associated increase in competitive forces. The challenges they face
in a volatile business context requires a new strategic approach. The information obtained
provides an ideal basis for conducting a comparative analysis between theory and
contemporary management practice.
The interviews with the executives and senior management of the selected institutions
were conducted on a semi-structured basis, utilising the insights gained from the literature
study as a frame of reference for conducting the interview. It needs to be stressed,
however, that the insights acquired from the literature study merely serve as a source of
reference and it cannot be allowed to act as a constraint in learning from the personal
experiences of the people concerned. The respondents were therefore free to
concentrate on the aspects they deem to be critical in dealing with the relevant strategic
issues they are confronted with in reality. With this in mind the interviews were essentially
conducted on an informal, but semi-structured basis with an accent on flexibility. The
interviews were therefore for all practical purposes open ended and not rigidly structured
in accordance with a predetermined questionnaire that could act as a constraint in
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −31
learning from the personal experience of the respondents.
The respondents interviewed were essentially selected on the basis of the institutions
where they were employed. The private sector institutions were functioning on a global
basis or their business operations were subjected to the competitive realities associated
with globalisation. The public sector institutions were similarly selected on the basis of
the impact that emerging information technology and the global business environment
had on their operations.
Strategy is deemed to be a sensitive issue in many organisations and the respondents in
effect receive little benefit from granting an interview. The researcher is therefore
dependent on their goodwill. In instances where respondents for personal or business
reasons indicate that they would prefer to remain anonymous, they are referred to as
respondent A or B so as to identify the respondents without divulging their names or the
identity of their institutions. To ensure that their anonymity does not influence the
academic integrity of the study the respondents names will be divulged to the promoter
and will be available on request to the examiners of the study on a confidential basis. In
addition, the information obtained from these respondents will be cross referenced and
cross verified with information obtained from the other respondents interviewed and the
literature study. The accent in analysing the information obtained during the interviews
will be on identifying commonalities and trends that either confirm or contradict the
conclusions derived from the literature study.
So as to gain maximum benefit from the practical day-to-day experiences of people
dealing with real life issues of strategy implementation, use will also be made of case
studies, as recorded within the literature to further enhance the practical relevance of this
study.
1.4.3 Constraints to the study
The concept globalisation is a relatively new phenomenon and the research literature
relating thereto is therefore still in the process of coming into being, this study being an
example thereof. The available literature also covers a wide spectrum of disciplines
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −32
typically ranging from global economics, to international politics, strategic management
and the social sciences. In order to conduct the study it is therefore necessary to view the
strategic issues from alternative perspectives within various disciplines. While enriching
the understanding attained of the concept it, however, adds to the complexity and
confusion that exist in relation thereto. It needs to be noted that this study in adopting a
multi-disciplinary approach that embodies globalisation and information technology as a
key aspects of research, is venturing into a sphere of exploration that is relatively unique
from a strategic management perspective.
Information and communication technology is essentially analysed within the literature
from a technical and not from a business perspective. Literature integrating the two
appears to be restricted in scope and extent. The latter in particular acts as a constraint
to this study. Business and information technology executives also tend to focus on their
discipline related perspective of information and communication technology, thereby
adding to the complexity of gaining an insight and understanding of the strategic business
and technology alignment. This will need to be taken into consideration in conducting the
interviews and selecting the appropriate respondents able to shed light on the true
situation that exists in practice.
While noting the restriction that the above places on this study, both the issues
concerned are not deemed to be so pervasive as to significantly influence the findings of
this study. Being aware of the difficulties that may arise, will allow the researcher to place
greater emphasis on overcoming and addressing the difficulties concerned. Of particular
note in this regard, is the use made of interviews with South African executives to gain an
understanding of contemporary strategic management issues within the context of
information and communication technology.
The value of this research study to a large extent emanates from addressing globalisation
and emergent technology, within a strategic management context where the concepts
are relatively new. The very factors that act as a constraint on the study therefore add to
the contribution it makes within the field of strategic management. The objectives
formulated for this study all culminate in providing insights into how strategic
RV Weeks Key determinants in strategic realignment 2002 within a digital global business environment
Chapter 1: Orientation −33
management practice has been impacted on by globalisation, emerging information and
communication technology, change management issues and business process redesign.
1.6 CLOSURE
The volatility of the global context in which South African business institutions function is
clearly articulated in the socio-political and economic developments that were evolving as
this study was being undertaken. The September the 11th 2001 terrorist attack on the
twin towers building in New York and the ramifications thereof on the world economy
being a clear example of the volatile nature of the global context, in which business
enterprises function. At the time of concluding this study these ramifications and the
effects thereof on the world economy are still being experienced. The following chapter
therefore needs to be seen in the context of the time that the research study was
undertaken, namely from the year 2000 to the early part of 2002.