Mc Farlan divided organizations in two main categories: those which requre an offensive capability and those which may be content with defensive capability.
Defensive capability for factory mode and support mode:. In here shows there is a range of reliability of information technology which ranges from low to high with low being the support mode and high being the factory mode. The high level shows that business is more defended by being more cost effectively, efficient, reliable and predictable.
Offensive capability for strategic mode and turnaround mode: the high level of relaibility seem more similar with defensive capability except that here the focus is on future or new information technology to a company
Purpose: the purpose of McFarlen is on planning. It suggests that for a company to excel further it needs first to know where it is. Where ever position in this chart a company belongs will determine expenditures such as costs for running projects and other IT equipments and thus enabling effective planning.
Another purpose of McFarlan is to address the company where it belongs according to the chart cells, company has to understand and recognise their current position so as to be easy to move forward.
Example: Airline companies such as Emirates, Warehousing, and Logistic companies, Wal-Mart use of RFID Technology.
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