In 1999, the major problem facing the “AOL Anywhere” strategy was how high-speed, broadband technologies would impact the company’s future growth. If AOL were to remain dominant against its competitors, it, too, would have to offer broadband access. Indeed, the emergence of broadband was the motivation behind the AOL/Time Warner merger, which was announced on January 10, 2000. The merged company became a formidable presence in the Internet, media, and entertainment fields. 2. What appear to be the strengths of this strategy? Do you think AOL’s strategy is proactive or reactive, and why?
One of the strengths of the strategy is that the company was able to expand into the next level of the media venues that the world was achieving. The strategy was a reactive one, AOL needed to make major changes to adapt the new technologies in the new worldly age. 3. Telecommunication capacities are doubling every six months. What are the implications of this for AOL’s strategy? What are the implications of this for IT and other functional managers in most firms today?
The merger for AOL did cause some implications for the company, one was expense, AOL would have needed to hire new employees that were skilled in the new areas of the company and create a new division for the company to keep and manage the new areas. 4. Research reveals that office automation as an issue has been declining in importance for IT executives. What might this mean in terms of strategic information systems?
Strategic information systems (SIS) are information systems whose unique functions or specific applications shape an organization’s competitive strategy and provide it with competitive advantage. Office automation in the IT system is not an easy accomplishment, systems are used constancy with no breaks by far more personal across a company, the process needs to be monitored and watch. 5.