please check the attached files, most of the work is already done I just need it altered based on the teacher's feedback and it is missing the ERP initiative. I'd like it to be done tonight if possible and thank you
1. Apply the Strategic Alignment Model (SAM) to analyze the IT (i.e., ERP) initiative at Li & Fung. As the SAM is not a one-time event, please ensure that you specify which part of the case you are beginning your analysis from and where you are ending your analysis. For this part of the case that you select, ensure that you answer the following questions. Explain/justify your answers. (10 points) a. Which domain drives which domain in which order? By adopting the use of IT in the organization the different business operations get impacted and the alignment between the requirement of the market and business operation can be done by using IT business strategy. The administrative process of the organization gets impacted by implementing the new technology in the company. The cloud-based technologies are the perfect solution to compete in the market. IT infrastructure that is used in the organization affect the organizational infrastructure and processes. The top management decided what kind of business operation automation is required. Following is the model developed by (Chan & Reich, 2007) for IT alignment The timeliness and effectiveness can be fostered by aligning the IT infrastructure with the business operation of the company. a. Is there any domain that is neglected or not addressed well? With the adoption of technology in the business operation, the privacy and security issues related to using of technology can threaten its implementation because lots of care is required to manage the implications involved in the maintenance of IT infrastructure. There are numerous network attacks, data breaches, and other security attacks that can affect sensitive information. Security, training, and development cost that is required to absorb the change is also neglected. The use of technology is prone to risks related to cost and effort that are required to manage or adopt the change in the organization. Automating the different business operations time, effort, and cost are required is too hard to manage without the involvement of skillful leaders a. What should be the role of top management and IT management for the domain alignment perspectives you are analyzing? The top management plays a crucial role because the decision-making capabilities of a leader impact the overall growth and development of the business. The competitive advantage over the market can only be gained by defining the strategic objective and the achievement of strategic goals in defined constraints can only be done by the involvement of a skillful leader or top management. The guidelines to achieve the strategic objective can be defined by the higher authority to align the business operation to the new demands or requirements of the market. Business operation automation is a major factor that directly impacts the sales, demand, and revenue of the organization and it is the core responsibility of the higher authority to take the high-level decision to upgrade the legacy system to achieve the goals on time. a. Identify and briefly describe how you would assess IT for the domain alignment perspectives specified in your analysis. By building an effective plan or strategy the assessment of IT can be done effectively, under this purpose the different business operations that are getting affected by the adoption of technology or IT infrastructure will be evaluated. There is a different assessment model that integrates a number of steps like Vision, Plan, Build, and Run. But for aligning the domain portfolio management play a crucial role. It has a positive relationship with the alignment of IT assets in the organization. A portfolio defines the use of technology or its advantages also on the basis of the pros and cons the technology can be adopted in the organization (Araujo, Storopoli & Rabechini, 2021). It fosters the use of a proactive approach to deal with the consequences of IT alignment in the business operation. Teacher’s input: a. Which domain drives which domain in which order? This section is difficult to answer based on knowledge gleaned from a few PowerPoint slides. The following analysis covers "Bubble In" through "E-Commerce Execution.” Li & Fung were laser focused on its business strategy, leveraging technology to make even more responsive its proven "old economy" trading company strategy of supply-chain customization and low cost and flexible sourcing for its large network of customers (p. 3). Thus, their alignment perspective was "IT as an enabler of strategic opportunities" (Slide 64). They sought to get into the eCommerce game to protect their traditional markets from local online sourcing companies, but they also wanted to expand into new B2B markets (p. 13). Li & Fung's online strategy involved three stages, beginning with business strategy, and followed by a design-build-test phase, and then an execution phase (p. 9). Li & Fung were fully committed to their business strategy. Unlike many failed dot-coms, they were not just interested in funding an Internet startup. They wanted to know what the costs were to get all the way into the execution phase. Based on that knowledge, they sought $200 million in financing and they got $250 million (p. 12). a. Is there any domain that is neglected or not addressed well? No, Li & Fung seemed to address all domains of the SAM, in addition to the Business Strategy. IT Strategy. The Fungs felt strongly that their e-commerce strategy should not be outsourced and that "the technology would pervade the entire Li & Fung organization." They were not interested in creating a "dot-com division" and then selling it off. According to Victor Fung, “To start a pure Internet division is as equally absurd as starting a fax division, a division that exclusively uses faxes” (p. 8). To enhance governance, Li & Fun added a technology company CEO and an academic to its board of directors (p. 8). Additionally, Li & Fung's IT strategy initially targeted the small and medium-sized enterprise (SME) market to foster initial confidence in the lifung.com model business (p. 10). This is similar to how Microsoft initially targeted technology startups for its cloud services (class discussion). IT Infrastructure. Leveraging a diverse set of vendors, Li & Fung developed a fully integrated IT infrastructure that allowed customers to configure products, conduct transactions online 24/7, have their credit risk evaluated, and track their shipments from door-to-door. These services were provided by Sun Microsystems, Selectica, Oracle, Broadvision, and Danzas AEI. Andersen Consulting "wrapped" the entire package for a seamless customer experience (p. 12). Business Infrastructure. To build on the competencies and processes of its Hong Kong-based IT division (p. 6), Li & Fung partnered with professionals from Castling Group to set up lifung.com's management team (p. 9). By 2000, lifung.com had 40 full-time professionals and 25 consultants, plus 80 full-time staff (p. 9). Although lifung.com operated independently from the IT department, they worked together to ensure seamless order placement and fulfillment processes. Li & Fung insisted that the online venture was fully integrated into its 96-year-old company culture (p. 13). By doing so, lifung.com distinguished itself from the competition through a superior back-end logistics infrastructure, reliable procurement, market knowledge, brand reputation, and product differentiation (p. 13). a. What should be the role of top management and IT management for the domain alignment perspectives you are analyzing? Top management and IT management should drive the business and IT strategies to use IT as an enabler of strategic opportunities. As we discussed with ERP, businesses must often adapt their structure and processes to utilize ERP systems. However, if existing structures and processes give the company a competitive advantage, as Li & Fung’s did, the IT infrastructure should be designed or modified to fit the business. Li & Fung (A): Internet Issues 9-301-009 R E V : N O V E M B E R 9 , 2 0 0 5 ________________________________________________________________________________________________________________ Professor F. Warren McFarlan and Senior Researcher Fred Young, Asia-Pacific Research Center, prepared this case. The authors thank the Global Research Group and Camille Tang Yeh, Executive Director, Asia-Pacific Research Center, for their support. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright © 2000 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-545-7685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Harvard Business School. F . W A R R E N M C F A R L A N F R E D Y O U N G Li & Fung (A): Internet Issues “I’m not an Internet guy, I’m a business guy,” quipped William Fung, managing director of Li & Fung Trading Co. Clad in chinos and a black American Eagle T-shirt, Fung looked much more like a new-economy entrepreneur than the self-described offline, old-economy relic: “I'm 51; I'm more than a grey hair in Internet terms—I'm a fossil.”1 Nor did lifung.com, his elder brother Victor’s new online company, resemble a typical Internet start-up, particularly with the founders having a 96-year parent born at the end of the Qing Dynasty. In August 2000, the day before beta launch of the new business-to-business (B2B) e-commerce portal, William described the challenges facing Li & Fung: About three or four years ago, Victor and I discussed the Internet and how it impacts us. Our starting point was a defensive posture: Would the Internet disintermediate us? Would we get “Amazoned”2 by someone who will put together all of the information about buyers and factories online? After a lot of research we realized that the Internet facilitates supply- chain management and we weren’t going to be disintermediated. The key is to have the old- economy know-how and yet be open to new-economy ideas. With a press conference the following day, William was confident of the Group’s3 performance and lifung.com’s prospects. But he knew that important issues remained unresolved: Was there any chance of channel conflict or cannibalization between the offline business and the startup? How would the market react to the start-up once it was launched the following year? And how specifically would e-commerce ultimately transform his family’s century-old company? Company Background4 Li & Fung was founded in 1906 by William’s grandfather, Fung Pak-Liu and his partner, Li