A system approach towards an effective IT strategy for modern electric utilities

Abstract

Summary form only given. The objective of this paper is to highlight some of the common pitfalls of information technology (IT) strategy among electric utilities and to put forward a framework towards the formulation of a more effective IT strategy. An effective IT strategy that forms an integral part of the business strategy is imperative to today's utilities in turning the threats posed by deregulation into opportunities and in exploiting the potentials offered by the advancement in IT. The proposed framework draws not only from the insights gained from a case study and a quantitative survey conducted, but also from concepts and theories from various related disciplines, such as strategic management, organization theories, and information systems. A combination of qualitative and quantitative methods was used in this research study. The case study revealed that despite a proactive attempt by the studied utility to formulate an IT strategy to better position itself in the newly deregulated environment, the IT strategy was found to be ineffective and to have little impact to the utility's business activities. The system approach proposed in this paper has several implications. It not only makes the IT strategy more complex by having to relate to other organizational elements, it also forces the IT strategy to become a central issue of the management due to its encompassing feature and impacts on the organisation as a whole.