Critical Success Factors

The limited number of areas in which results, if they are satisfactory will
ensure successful competitive performance for the organisation Rockhart*.
Critical Success Factors (CSFs) are the irreducible minimum requirements that have
to be met with limited internal resources and within a broader business context in
alignment with broad business strategy to ensure profitability and competitive
viability.

Aligning Business Operations and Management with Strategy

Thomas Powel discusses the results of a referenced study and says: The
results support the notion that some organization alignments generate
supernormal profits to the firm and constitute and important source of
competitive advantage (Powel 1992 p.128). Business operations, supported
by Data Processing IS/IT, integrated with MIS driven management better deploy
structure, assets, skills, knowledge, competencies, values, styles, culture and
relationships present within the internal business environment (Ward & Peppard
p.187). This is to be driven by an overarching plan or action; pattern of behaviour;
organisational worldview and business perspective. For example, as Petersen notes
Through Retail LinkWalmart has created a vendor managed inventory system
where they let you the supplier decide where to put SKUs and how to ship through
to stores (Petersen 2013) with tangible success since Retail Link performance
Reports show a fiscal year dollar sale increasing a minimum of 14% and a maximum
of 210% for period 95-03.

Critical Success Factors as a function of Invention and Innovation

The Cisco Newsroom cites the findings of one of their 2005 studies saying:
Innovation is clearly the most important factor in business success,
according to business and technology leaders. Fifty-three percent cited it
as having the biggest impact on competitiveness A well-trimmed
organisation yields success. Innovation and invention increases this all the more by
creating new products and services or drastically improving existing ones through
the use of IS/IT. For example In 2001, Apple and Steve Jobs introduced the iPod
digital music player, which could hold 1,000 songs in a pocket-sized device. It
became a best-seller (Travis 2011). This innovation and many others have
allowed Apple Inc to become the Worlds Most Valuable Brand according to a
November 2014 study (Source Forbes Inc)

Leadership as a Critical Success Factor

When the CIO is integrated into the entire business model and plays a key role in developing
strategic plans, the company is better poised to roll out new initiatives and achieve profitability
( Linda Ray, Demand Media ). IT supports business, so too, must the IT executive

support the business executive. With both technological expertise and business
acumen, the IT executive must align himself to be the strategic support of the
business executive(s)
CSFs as a part of a living whole
In conclusion, the activity of executing a CSF analysis must be seen as a tool. One
that exists as part of a management toolbox. The toolbox will include but not be
limited to, SWOT analysis PESTEL, Balance Scorecard, Porters 5 forces, TOWS Matrix
etc. However, the question of how to skilfully use them are paramount. If done well,
the business works as a living whole