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ABSTRACT
In sustaining long-term profitability, organizations must be lean and agile and must effectively be responsive to the opportunities and threats in the environment. This article introduces a strategic framework for crafting value proposition creation with the underlying integrated components of human capital, information capital and change management, resulting in long term profitability for the organization.
Keywords: Alignment of I.T., strategic management, value proposition, enterprise strategy
THE GLOBAL NETWORK ECONOMY
Inarguably, we are now in the global network economy. This paradigm shift and transformation from the data, information, and knowledge economy has gradually taken place since the 20th century. The global network economy is made possible by the advances of telecommunications and information technology infrastructure and the decreasing cost of computer hardware production and software development. Equally important is the advancement in computing power and its devices, which is widely available and coupled with the low cost as indicated by Moore's "Law".
The availability and accessibility of these infrastructures and technology only continue to infíltrate in a global scale. In this global network economy, technology and knowledge become the core of sustaining wealth and value to the stakeholders. As a result, it is unrealistic for any firms to ignore the importance of information capital, and human capital as a means to sustain growth in this global competitive environment in the realm of e-business.
Applegate, 2007 stated that some academicians and business futurists would agree that the traditional organizational designs would be inadequate to cope with in the turbulent and increasing network world. "The characteristics of a global network economy could be summarized as agile, innovative and entrepreneurial. These do not compromise efficiency, power and reach that come with size and scale" (p.57). Most firms now are increasingly tapping into the extended network of partners to achieve higher economies of scale and power while creating higher value proposition demanded in the global environment. ?-Business has become a critical factor for competitiveness and productivity growth.
As such, firms are now faced with the challenges in creating 1) a lean and agile enterprise influenced by the alignment of the enterprise with the environment and 2) the strategy chosen to quickly and effectively respond to opportunity and threats. In doing so, the alignment can only be effective...