A maturity framework provides guidelines through the evolutionary process of organizational development (Mettler et al., 2010). SOA adoption itself is a process and that can be assessed and improved using an SOA maturity framework. The different levels or stages of SOA adoption can be represented by SOA maturity framework and a maturity framework describes what is required to realize the value of a service-oriented approach at each level. We defined a hypothesis that the SOA maturity framework can be used to engineer methods for the SOA realization. We formulated this hypothesis because SOA adoption has mainly two stages: an IT-driven stage and a business-driven stage; SOA maturity framework provides what needs to be done to move from an IT-driven stage to business-driven stage.
The following chapter has made an attempt to elaborate several theories and concepts used in the study. A critical review of the previous research work is carried out in order to gain better understanding of the subject. The theoretical evidences are drawn from the value chain theory in conjunction with the theory of cooperative. 2.1 Theoretical Framework 2.1.1 The Concept of Value Chain As described by Kaplinsky and Morris (2001), a value chain can be defined as “the full range of activities which are required to bring a product or service from conception, through the different phases of production, delivery to the final consumer and final disposal after use”. The study in the value chain sector will improve the attempt to understand the
According to Pitts and Lie (2003), strategic management is a process that aims at fulfilling strategic duties and tasks and guiding employees toward meeting an organization‘s vision and mission. David (2009) considered the management of a strategy as ''An art and a science of formulating, implementing and evaluating cross functional decisions to enable an organization to achieve its ultimate objectives''. Pearce and Robinson (2004) treated strategic management as a flow of information through integrated stages (Environment analysis, strategy formulation, implementation and evaluation) toward the achievement of an aim. Taking into account the work of Hitt (2005), strategic management process is defined as a sound approach to help an organization to respond adequately to the abnormal state of rivalry, through checking the inside and outside context to identify opportunities and threats and to determine how to use the core abilities for the quest of the craved strategic objectives. Wheelen and Hunger (1998) defined strategic management as a set of managerial choices and actions that decide the long–term performance of a firm.
2.1 Strategies Strategy is how to achieve goals. Business strategy is ‘a broad formula for how a business is going to compete, what its goals should be, and what policies will be needed to carry out these goals’. Strategy is further defined as ‘large scale action plans for interacting with the environment in order to achieve long term goals’. A strategy is a planned approach to achievement of long term goals, including the activities a firm will undertake, the resources it will require, the markets where it will do business and so on. Business strategy is said to be more adaptive to the informal authority than the formal authority (Ramli and Iskandar, 2014).
After a proper investigation, it is possible to create options and take decisions to develop the resources, capabilities, and strategy. Organizations have their culture and behaviour that has an impact on its structure. Organization structure shows its tendency of flexibility to adopt an approach. It reminds the famous phrase of Chandler (1962) that strategy follows the structure. Denhardt (1985) argued that strategic planning construction at the organizational level, which requires attention and coordination among organizational resources at various levels.
As described by Kaplinsky and Morris (2001), a value chain can be defined as “the full range of activities which are required to bring a product or service from conception, through the different phases of production, delivery to the final consumer and final disposal after use”. The study in the value chain sector will improve the attempt to understand the distribution of power and value in the chain and to be able to address the agency of workers and small producers (Mitchell and Coles, 2011:11). According to Kaplinsky (2004), the following key elements are important in value chain which need to be recognized and which transform a heuristic into an analytical tool: • “Value chains are repositories for rent, and these rents are dynamic • Governance
The control mechanisms aim at creating focus regarding results that are desired by the organization. The Balanced Scorecard approach, as suggested by (Kaplan & Norton, 2001), addresses this aspect of performance measurement by breaking down an organization’s business strategy and objectives into a number of key performance indicators (KPIs). Depending on the business context and functional responsibilities, a KPI may represent a goal to be achieved in terms of financial objectives, customer relationship, internal processes/operational excellence, and more individual targets involving personal growth and learning. As part of the Balanced Scorecard approach, the authors also strongly suggest the importance of including a clear cause-effect based description of the outcome measures and the performance drivers of the outcomes, in order to quantify not only the effectiveness of the action addressed by an KPI but also the efficiency of it (Neely, et al.,
M&A analysts of this point of view have concentrated on organizational performance and on the factors and strategies that impact it (cf. Arbor 2001, Imprints and Mirvis 1998). As a component of the strategic management view, however with a procedure point of view, the organizational hypothesis looks to consider mergers and acquisitions as procedures by which beforehand autonomous organizations are consolidated into one. Both the strategic and the organizational fit are viewed as essential determinants of the result of any merger and acquisition (cf. Datta 1991, Jemison and Sitkin
“SWOT” ANALYSIS INFORMATION A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate the strengths, weaknesses, opportunities and threats involved in a project or in a business venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves specifying the objective of the business venture or project and identifying the internal and external factors that are favorable and unfavorable to achieve that objective. Identification of SWOTs is important because they can inform later steps in planning to achieve the objective. First, the decision makers should consider whether the objective is attainable, given the SWOTs.
It serves a filter to separate what is important from what is not, [a mission] clearly states which markets will be served and how, and [a mission] can communicate a sense of intended direction to the entire organization”. Adapted from businessdictionary.com (2017) Once a clear mission for the company has been outlined a SWOT analysis must then be undertaken. This analysis of a company’s strengths and weaknesses will aid in the creation of their own specific strategy. A SWOT analysis will also be of help when researching into the competing market. By looking at what opportunities the company has for growth and what threats may occur within their market sector, a company can change and amend the existing strategy accordingly.