Strategic Change
Introduction
Strategic change is a core aspect of an organization’s pursuit of sustainability. According to Sabri and Sabri-Matanagh (2012), Information Communication Technology (ICT) is a key driver in facilitating organizational change hence increasing the likelihood of achieving organizational sustainability. During the current era of technological advancement, business organizations are increasingly integrating ICT in an effort to promote the creation of knowledge through inter and intra-knowledge transfer. ICT has further contributed to the development of operational effectiveness. Thus, a strong positive correlation exists between investment in ICT and organizational performance.
The Internet is one of the most important information communication technologies that have a profound impact on business practices (Sabri & Sabri-Matanagh 2012). Advancement in Internet technology has led to the emergence of the concept of the Internet of Things (IoT), which according to Poduel (2006) entails ‘an evolving array of technologies that extend the idea of instantaneous connectivity beyond computers, smartphones, and tablets to everyday objects such as home appliances, cars, and medical devices’ (p. 997). Yu et al. (2016) assert that IoT has led to the emergence of an era of interconnectivity on everything device. One of the notable features of IoT is that it is based on a global-scale network-based infrastructure that utilizes different things such as virtual things and physical devices (Yu et al. 2016).
IoT is increasingly gaining ground amongst businesses in different sectors with regard to the application of modern wireless and wired telecommunication. However, in order to enhance the effectiveness of ICT in driving strategic organizational change using IoT, it is essential for businesses to develop an effective IoT plan. Amongst the fundamental issues that should be taken into consideration in devising the IoT plan are security and privacy (Britton 2016). Despite the benefits associated with big data, this era has been characterized by an increase in privacy and security challenges. The increase in incidences of cybercrime is one of the notable threats to privacy and security in the application of IoT (Smith 2015). This paper entails an investigation of how organizations intending to use IoT data for strategic change should address privacy and security challenges associated with developing an IoT plan. The analysis is conducted in relation to JetBlue Airlines.
Analysis
JetBlue is a well-established company that was founded in 1998 in the United States. The airline's stocks are traded under the NASDAQ under the ticker symbol JBLU. The airline has a fleet size of 228 aircraft and has currently established operations in 101 destinations across North and South America.
Means and approaches employed in accomplishing strategic change using ICTs
Successful implementation of strategic change is influenced by the extent to which the different aspects of strategic change have been taken into consideration (Miorandi et al. 2012). Therefore, to enhance the contribution of ICT as a driver for strategic change, businesses are entrenching different methods and approaches as explored herein.
Establishment of a network firm and fostering interoperability
Firms are using ICT to transform their organization into a network firm (Sabri & Sabri-Matanagh 2012). The network firm entails an organizational form that is established by developing connections with different firms and organizational entities. Vilaseca, Torrent, and Diaz (2002) assert establishing a network firm requires a firm to take into consideration a number of issues. First, establishing a network firm requires a firm to undertake internal cultural change with regard to internal organizational processes. Business organizations are progressively employing ICT as a way of achieving interoperability (Szykman et al. 2001). Vilaseca, Torrent, and Diaz (2002) assert that interoperability is a key element in achieving strategic organizational change because it fosters collaboration with different stakeholders. According to Poduel (20006), interoperability is a vital issue in promoting the capacity with which business organizations exploit IoT in enhancing strategic change. By taking into account the concept of interoperability in implementing IoT businesses are able to establish and sustain communication with different end-users using different technological devices. Popplewell (2010) asserts that businesses are increasingly focusing on establishing standardized ICT technologies in order to unlock the values associated with IoT.
ICT as a driver for strategic change is also used in establishing strategic integration between different external and internal organizational stakeholders such as suppliers and customers (Information Resource Management Association 2016). Strategic integration between the different organizational stakeholders leads to the creation of synergy, which is essential in enhancing strategic transformation (Rawat et al. 2014). JetBlue is committed to achieving sustainable competitiveness by undertaking strategic change. The firm has identified IoT as one of the core components of ICT that will contribute to the achievement of sustainability. One of the ways through which JetBlue exploits IoT is to enhance the travel experience. For example, JetBlue provides customers with free satellite television in every seat within its airline (Snyder 2012). In an effort to positively exploit the advantages associated with IoT, JetBlue has established the JetBlue Technology Ventures.
Entrenching ICT in enhancing knowledge management
an organization’s success in implementing change initiatives is influenced by the effectiveness with which the firm’s management teams make decisions on the intended change. Integrating knowledge management constitutes one of the most effective practices through which organizations can succeed in undertaking change initiatives. Jawadekar (2011) defines knowledge management as ‘the process of blending a company’s internal and external information and turning it into actionable knowledge through technology platform’ (p. 67). Considering the informational role of ICT, its integration in enhancing strategic change in ensuring that organizational change initiatives that a firm intends to undertake are effectively entrenched by developing knowledge cannot be underestimated (Information Resources Management Association 2016). Thus, ICT has become an integral component in implementing strategic change by ensuring that the process of making decisions on organizational change is based on knowledge. The effectiveness of ICT in stimulating strategic change is enhanced by the fact that ICT fosters information sharing, which promotes multidisciplinary work (Kamel 2010). ICT enables organizations to succeed in integrating strategic change by improving and enhancing efficiency in communication, which is a fundamental issue in strategic change.
Sabri and Sabri-Matanagh (2012) assert that ICT is characterized by a high degree of scalability, which means that an organization is able to exploit information from a wide range of information. Through this approach, a holistic approach is entrenched in making strategic change by obtaining information from a wide range of information hence increasing the likelihood of the change being successfully implemented (Kausar et al. 2008).
Key issues associated with achieving ICT-based strategic change
To enhance the contribution of ICT in enhancing the attainment of strategic change, it is imperative for businesses to take into consideration a number of issues. Amongst the fundamental issues related to the establishment of effective IoT architecture, infrastructure, and promoting privacy and security. One of the ICT models that business enterprises should employ includes the oneM2M model. The model is comprised of three main layers that include; network services, common services, and applications (Che et al. 2011). The application layer is comprised of high-level applications and programs. The common services layer is comprised of different applications that enable businesses to undertake diverse service functions such as policy enforcement, discovery, and management. On the other hand, the network service layer enhances connectivity, transport, and service functions (Poduel 2006). The three layers of the oneM2M model operate as a network, which underlines the significance of ensuring interoperability in enhancing the contribution of ICT in enhancing organizational change initiatives.
In addition to ICT infrastructure, integration of effective IoT-enabling technologies is also critical in promoting ICT’s effort to enhance strategic change. Amongst the fundamental IoT technologies include communication hardware, microprocessors, big data analytics, and algorithms (Poduel 2006). These technologies provide businesses an opportunity to benefit from cloud computing, which is critical in exploiting big data (Poduel 2006). These elements are vital in making IoT a viable reality. These technologies enhance the effectiveness with which businesses undertake different functions such as knowledge management. For example, these technologies enable businesses to employ different management information systems such as expert and decision support systems.
On the basis of this aspect, businesses are able to successfully employ business intelligence hence making effective operational decisions (Zhou 2013). In line with its quest to entrench ICT as a driver for strategic organizational change, JetBlue outsources different technology companies to manage its ICT infrastructure. Some of the notable ICT firms that JetBlue has outsourced include Comarch ICT and Verizon. Currently, JetBlue has outsourced Comarch to manage the ICT infrastructure of its loyalty system and to implement a booking system known as Navitaire (Comarch 2017). Through this approach, JetBlue has been able to undertake a remarkable strategic change in the quest to foster a strong customer experience.
Security and privacy
Security and privacy are some of the major challenges associated with IoT. According to Britton (2016), privacy entails ensuring the customers’ information is respected. Thus, businesses intending to integrate IoT in delivering unique customer experiences have to ensure that the customers’ personal information is taken into consideration. For example, the right to use customer information should be limited. Britton (2016) further emphasizes that assuring customers of the privacy of their information is critical in determining the extent to which customers trust the ICT technologies implemented by the firm. Thus, in the quest to leverage the advantages inherent in IoT such as the flight booking system, JetBlue’s management team should ensure that that effective ICT security measures are integrated.
JetBlue has entrenched ICT as one of the drivers of strategic change in the quest to create a unique customer experience. One of the methods through which JetBlue employs ICT entails integrating diverse inflight technologies such as free Wi-Fi (Investor Relations 2017). Additionally, JetBlue has entrenched cloud computing as one of the technologies in the delivery of customer experience. One of the areas in which the airline applies cloud computing relates to e-commerce. Cloud computing has enabled the firm to offer customers personalized services. However, the airline ensures that the security and privacy of the customers’ information is optimally taken into consideration by incorporating the cloud multiple-tenancy model. According to Che et al. (2011), the ‘multiple-tenancy model is an important function characteristic of cloud computing that allows multiple application of cloud service providers currently running in a physical server to offer cloud service for customers’ (p. 587). Under the multiple-tenancy model, JetBlue has ensured that its physical servers and processes are effectively configured in order to address the customers’’ demands through the integration of the virtualization technique. Thus, the airline runs multiple virtual machines which provide customers an opportunity to use their applications to share different computing resources such as memory, storage, and processes. Che et al. (2016) affirm that virtualization minimizes security problems such as viruses and intrusion from other virtual machines hence reducing the likelihood of the customers’ data from being damaged by malicious applications. JetBlue progressively evaluates the effectiveness of the multiple-tenancy security models in enhancing the security and privacy of customers’ information. Through this approach, the firm has been able to exploit ICT in fostering the development of positive customer experience.
Technology-related strategic change as a social-technical intervention
Organizations are motivated to implement different information communication technologies such as IoT of the need to enhance their long-term performance. For example, JetBlue has over the past few years invested extensively in implementing technology-related strategic changes as integrating inflight information communication technologies in order to enhance the firm’s effectiveness in creating unique customer experience. In spite of making technological changes, the contribution of technology in enhancing technological performance is influenced by the effectiveness with which the requisite components of strategic change are taken into consideration. According to Daft (2006), integrating the social-technical systems approach is one of the most effective ways through which the value of technology-related change can be realized. This approach emphasizes on enhancing interaction between the human and technical dimensions (Applebaum 1997).
In employing technology to drive strategic change, JetBlue has taken into account diverse social-technical interventions. First, the firm has factored in the human component by ensuring that the employees understand the value of implementing technology in the firm’s quest to achieve a competitive advantage in the global airline industry. The firm has ensured that employees understand the value of technology as one of the elements of organizational culture (Daft, Murphy & Wilmott 2010). Through this approach, JetBlue has been able to significantly reduce resistance to implementing technological changes within the firm’s operation. In addition to this strategy, the firm has entrenched a comprehensive communication approach (Sharma 2016). Through this approach, JetBlue has been able to establish and nurture a strong degree of openness in entrenching IoT as one of the components of its organizational culture. This has arisen from the fact that the airline has been able to significantly reduce resistance to implementing change (Garrety & Badham 2000).
The significance of openness in implementing strategic change is underlined by Daft (2006) who asserts that ‘designing the organization to meet human needs while ignoring human needs, may inadvertently cause problems’ (p. 275). The firm further ensures that the implementation of technology-related strategic changes is based on a project approach. This is achieved by ensuring that all the relevant departments within the firm are adequately incorporated in implementing change. Through integration of the project-based approach, JetBlue has been able to nurture a high degree of inclusivity hence increasing the effectiveness with which the firm’s employees focus on entrenching the implemented technologies in serving their customers’.
Conclusion
The analysis indicates that ICT plays a fundamental role in driving strategic organizational change. Implementation of ICT can enhance the effectiveness with which a firm interacts with its customers, which is critical in developing a strong base of loyal customers. Some of the methods and approaches that firms employ in enhancing the effectiveness of ICT in driving strategic change entail promoting interoperability between the ICT infrastructure implemented by the firm and the technologies that customers use. Additionally, ICT is also valuable in enhancing the effectiveness with which a firm exploits knowledge management in driving strategic change.
To enhance the effectiveness of ICT in driving strategic change within organizations such as improving the customers’ level of satisfaction, it is imperative for firms to take into consideration a number of key issues. Amongst these issues include entrenching effective IoT infrastructure. Ensuring security and privacy is another critical issue in leveraging IoT to foster strategic organizational change. The analysis shows that JetBlue has taken into consideration security and privacy as one of the fundamental issues in exploiting ICT in driving strategic change. The firm has achieved this goal by entrenching the multiple-tenancy model which is one of the most effective security models. This has significantly contributed to the development of a high degree of trust amongst customers with regard to the reliability and credibility of the different information communication platforms that the firm has implemented
In addition to these issues, the firm’s success in fostering technology-related change is enhanced by the integration of social-technical interventions. Amongst the issues that the firm has taken into account entail ensuring that the employees are adequately informed of the value of the change that the firm intends to undertake. This has played a critical role in creating trust between the firm’s employees and the new technologies. The outcome is that employees are committed to employing the technology in undertaking their roles and responsibilities hence increasing the firm’s success in offering customers a unique experience.
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