Pre‐alliance planning: development of an information system infrastructure to support strategic alliance activities

Traditional business models are undergoing a process of redefinition following the drive to develop new business structures that support competition. The result of this has led to the development of virtual organizations, which are founded on alliance structures. In this paper a case study is used to describe the way in which a telecommunications organization and other retail electricity organizations initiated a strategic alliance, so that they could improve their market position, financial stability and customer base. A case study is used to describe the way in which a telecommunications organization explored how a strategic alliance with retail electricity organizations would be structured. Pre‐alliance activities and its impact on alliance formation, such as the design of an information systems framework, are presented and discussed. The experiences identified from the case study provide a learning opportunity for those organizations that are seeking to seize new business opportunities through strategic alliances.