This IT Systems Strategy Assignment Help discusses about a Saudi Telecom Company. As the market is constantly evolving and so are the customer needs, therefore the company has to strategize and plan for the future.
Introduction: IT Systems Strategy Assignment Help
- Saudi Telecom Company, as an enterprise has evolved over the years and is also continuing the change. An information audit of the company would bring out the following issues faced by the company:
- Secrecy of Information: This Company was a government run company had seen the rule of bureaucracy and the involvement of bureaucracy in every decision-making. This has also resulted in a lot of secrecy of information maintained by the company’s higher officials (Susan Henzel, 2001).
- Access to Information: The first and foremost question that would come up is how to gain access to the information at the company. The company is a government run company and so there is quite a possibility that we may face serious problems in getting access to the company information (Chang N. Zhang, 2002)
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- Identification of Weak points: This process of Information Audit will help in identification of the weak points in the information-flow system of the company. Saudi Telecom Company, like any other will be having weak points in its system and the audit will highlight them, thereby providing a platform for the company to work upon.
- Identification of malpractices, if any: This process will enable the company to find out any malpractices if there had been in the past. Accordingly, it will help in building a information system model that will help in preventing all the malpractices.
- Information Gaps: This audit process will also help in identifying the possible information gaps, if any in the information system of the company. Although the company might be functioning, but there’s always a possibility of information gap in the system (Michael K. Buckland, 1991).
- Representation from all Stakeholders: It will be a difficult and a costly affair to get representation from all the stakeholders of the company. But it is very important and crucial to get information from all the parties having an interest in the company. Only a total representation will provide us with correct and reliable information.
- Like any other organization, the biggest problem or hindrance to any flow of information, acquisition of information or the availability of information is the organizational culture or structure. The following are the factors why they might act as the biggest problem:
- Support from Top Management: The support from top management towards any project is always the defining factor for its success. Likewise, in this case, the support from the top management will be the most critical success factor for the process of information audit. There should be visible support from the top management. The support of top management not only increases the participation of employees, but also ensures recommendations from them.
- Structure of Flow of Information: Every organizational structure has a pre-defined flow of information across the organization. The information has to flow through this strict structure only. This reduces the flexibility to the process. It makes the process handicapped as it has to follow the pattern (Jay Liebowitz et.al.).
The extent to which information can be disclosed at any level of the organization hierarchy is crucial for the success of any information audit process. But it is dependent upon the policies of the organization as to how much empowerment is given to the employees. The degree of empowerment can be a deciding factor in the level of success achieved in the information audit process (Neil F. Doherty, et.al. 2010).
- Human Element: Although the organization structure and policies are liberal of information dissemination by the employees, but the employee himself may not be interested to support the audit process. No matter how hard u tries, the human element is always there.
- However big a company might be, it has to face competition from the market. This brings us to the complex activity of continuously monitoring the competitors and their moves, so as to be able to devise strategies to combat the competition coming from them. Competitive intelligence can be defined as the process of identifying, collecting, interpreting, and providing valuable information about the market scenario, competitive scenario and the products (Jonathan L. Calof, 2010).
The competition for a telecom company is intense. They employ various marketing techniques to sell their products. The competitor’s differentiate from others by using technology as the main differentiator. Other points of differentiation are pricing of products, positioning of products, et.al.
The use of competitive intelligence will help Saudi Telecom Company in identifying the strengths and weaknesses of its competitor’s. This will help the company in focusing its strategies to take benefit of the weakness of the competitor and to leverage upon its strengths. It will also enable the company to identify the possible new opportunities in the market. A competitive analysis of the market will definitely help in identifying certain gaps in the marketplace, wherein the company can take benefit by capturing that market (D. L. Cartwright. et.al. 1995).
Saudi Telecom Company can use competitive intelligence to compare with the competitor, in identifying the possible opportunities which will be in congruence with the strengths of the organization. It will help in knowing what the strategies of the competitor are and likewise, the organization can frame its strategies to fight with the competitor. This will also help the company in framing the strategies for achieving the goals and objectives for the long term.
- Saudi Telecom Company, being a well established company is reaping the benefits of its hard work done. But as the market is constantly evolving and so are the customer needs, therefore the company has to change its Business Strategy and plan for the future. Saudi Telecom can use any of the following strategies or a combination of it:
- 4G Technology: The biggest challenge for any telecom company is to keep pace with the technological developments happening in the industry and to be the first one to launch that new technology in the market. In the telecom industry, the future lies in 4G technology. Saudi Telecom has already launched the 3G services across Saudi Arabia and it has seen a good response from the public. And it should try to be the first company in the country to be able to launch the 4G services.
- Focus on Corporate Clients: Till now, the focus of the company has been towards individual clients and so far, they have been successfully able to build up a good customer base. But, like any other market, there is a saturation point in this market also. Now, Saudi Telecom should look for Corporate Clients, wherein they will be able to lock in a good number of connections and a steady revenue stream from the client. It has to enter into strategic tie-ups with the corporate houses to provide them telecom services.
- Look for a bigger share in Value Added Services (VAS): If we go by activity based costing, the profit margin from the Value Added Services is the highest among the telecom services. This shows a potential profit center for the company. Saudi Telecom should increase its marketing efforts in promoting the value added services. This will help in increasing the profitability of the company (Peilei Fan, 2010).
- Strategic Alliances: The Company should look for strategic tie-ups with other companies and channel partners for increasing its sales. The alliances can range from bundling of products to strategic business partnerships. The company should look for long-term business partnerships and this will prove beneficial for the company in the long-run (Daniel Van Den Bulcke, 2000).
- Related Diversification: The Company should look for diversifying into related activities. Since Saudi Telecom is into telecom and technology domain, it can always diversify into other wireless technologies where it would get synergistic benefits. They can diversify into Direct-to Home Satellite TV transmission or any other services related to wireless technologies.
- Streamlining the business processes: The company can increase its bottom-line by only two activities; either by increasing the revenues or by decreasing the costs. Saudi Telecom Company should look for decreasing its costs of operation by streamlining its business activities. This will add to the profitability of the company.
- Inorganic growth: The Company is in a sound financial position, and it can now look for consolidation in the existing markets by acquiring the competitor firms present in the existing markets. Going in for acquisition will not only give them a bigger market share, but also the company will attain higher operational efficiencies.
All the above strategies are those which are best suited to mature companies, and Saudi Telecom Company being a mature company can use any of them in the future course of business.
- Henzel, Susan. The Information Audit: a Practical Guide. Information management series, ed. G. St Clair. Munich: Saur, 2001.
- Liebowitz, Jay, Rubenstein-Montano, Bonnie, McCaw, Doug, Buchwalter, Judah, and Browning, Chuck. 2000 The Knowledge Audit. Knowledge and Process Management, 7(1), 3-10
- Buckland, Michael K. Information and Information Systems. Westport CT : Greenwood Press, 1991.
- Zhang, Chang N. et.al. 2002. Information Flow Analysis on role-based access control model. MCB UP Limited [ISSN 0968-5227]
- Neil F. Doherty, Donna Champion, Leitao Wan. 2010. An holistic approach to understanding the changing nature of organisational structure.
- Calof, Jonathan L. et.al.2008. Competitive Intelligence: A practitioner, academic and inter-disciplinary perspective. Emerald Group Publishing Limited 0309-0566.
- Cartwright, D.L., Boughton, P.D. and Miller, S.W. (1995), “Competitive intelligence systems: relationships to strategic orientation and perceived usefulness”, Journal of Managerial Issues, Vol. 7 No. 4, pp. 420-34.
- Peilei Fan, 2010. Catching-up through staged development and innovation: The case of Chinese telecom companies. Journal of Science and Technology Policy in China Volume: 1 Issue: 1 2010
- Daniel Van Den Bulcke, Haiyan Zhang. The development of local marketing knowledge within joint ventures: An analysis of the performance of Belgian multinationals in China. Advances in International Marketing, Volume: 10, 2000