Assignment:
Task 1:
a. Identify various IT assets and their business value returns mentioned in the case study using the IT Portfolio theory.
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Asset
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IT Portfolio Asset Class
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Business Value
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E.g. product inventory system
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E.g. transactional asset
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Gap digitized its entire product inventory system and introduced retail services.
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Digital capability; being able to provide omni services through seamless interaction between physical and online stores
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Hint: You may find it challenging to identify various IT assets in the case study due its focus on analytics systems. However, there are mentions of various IT assets/functions of IT assets (e.g. product inventory). You are also welcome to guesstimate the usual ones that most organisations likely to own (e.g. HR system, Payroll, infrastructure). Explanations should be included briefly in the relevant table cell.
b. To what extent does this organisation have an IT portfolio which provides a balanced view of value, risk and return?
Apply the theory of IT portfolio and risk-return balance discussion to build your argument. Ask yourself: "To what extent does the case organisation have an IT portfolio, which provides a balanced view of value, return and risk?"
Ask yourself: "To what extent does the case organisation have an IT portfolio, which provides a balanced view of value, return and risk?"
Task 2:
a. Based on the Resource based view of the firm (RBV), develop a list of resources and capabilities that the organisation has access to.
b. How do you think that resources and capabilities add value and rarity for Gap?
Hint: In building the list of resources and capabilities, make sure you allocate them in the right category (e.g. tangible/intangible, technical or norms/values). Discuss value and rarity in terms of principles of RBV and VRIO.
Readings:
Predicting Consumer Tastes with Big Data at Gap
By Ayelet Israeli and Jill Avery