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IT Strategy

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    • 1. Strategy and IS
      • Describe the roles of business, organizational and IS strategy
      • Compare and contrast: Porter’s three generic strategies model, D’Aveni’s hypercompetion model, and Brandenburger and Nalebuff’s co-opetition model
      • Describe the major components and apply the value chain, competitive forces and strategic thrusts models
      • Discuss risks of IS success
      • Discuss eras of IT use
    • 2. Strategic Advantage
      • Does an organization need Information Systems to gain strategic advantage?
    • 3. Strategy - A Plan
      • Business strategy drives organizational and information systems strategy
      • Information systems strategy - plan the organization uses in providing information services
      • Information systems strategy is affected by a firm’s business and organizational strategies
      • Organizational strategy - organization’s design as well as the choices it makes to define, set up, coordinate and control its work processes
      • Remember interdependency!
    • 4. Porter’s Three Generic Strategies
      • Cost leadership (lowest cost in industry)
      • Differentiation of products/services
      • Focus (finding a specialized niche)
        • cost
        • differentiation of product or services
    • 5. Be Low Cost Producer - IT strategic if it can:
      • Help reduce production costs & clerical work
      • Reduce inventory, accounts receivable, etc.
      • Use facilities and materials better
      • Offer interorganizational efficiencies
    • 6. Produce Unique Product - IT strategic if it can:
      • Offer significant component of product
      • Offer key aspect of value chain
      • Permit product customization to meet customer’s unique needs
      • Provide higher/unique level of customer service/satisfaction
    • 7. Fill Market Niche - IT strategic if it can:
      • Permit identification of special needs of unique target market
      • Spot and respond to unusual trends
    • 8. D’Aveni’s Hypercompetition Model
      • Focused on turbulent environment
      • Advantages are rapidly created and eroded
      • Sustaining an advantage can be a deadly distraction
      • The goal is disruption, not sustainability, of advantage
      • Initiatives are achieved with a series of small steps
    • 9. Four Arenas of Competitive Advantage
      • Cost/quality
      • Timing/know-how
      • Strongholds
      • Deep pockets (short-term only)
    • 10. Seven S’s
      • Superior Stakeholder Satisfaction
      • Strategic Soothsaying
      • Positioning for Speed
      • Positioning for Surprise
      • Shifting the rules of competition
      • Signaling strategic intent
      • Simultaneous and Sequential Strategic Thrusts
    • 11. Brandenburger and Nalebuff’s Co-opetition
      • Optimally combining cooperation and competition
      • Valu Net of competitors and complementors
    • 12. Strategic Information Systems
      • IS that help gain strategic advantage
      • Significantly change manner in which business supported by the system is done
      • Outwardly aimed at direct competition
      • Inwardly focus on enhancing the competitive position
      • Create strategic alliances
      • IS can support business strategies
    • 13. Eras of IT
    • 14. Eras of IT
    • 15. Unusual Suspects: Information Resources
      • Information systems infrastructure
      • Information and knowledge
      • Proprietary technology
      • Technical skills of the IT staff
      • End users of the information system
      • Relationship between IT and business managers
      • Business processes
    • 16. Strategy Axioms
      • Axiom: A scarce resource adds value
        • Corollary: only if there is a need
      • Altnernative axiom: Value is derived from plentitude
        • What good is a single fax machine?
    • 17. Firm Infrastructure (general management, accounting, finance, strategic planning) Human Resource Management (recruiting, training, development) Technology Development (R&D< product and process improvement) Procurement (purchasing of raw materials, machines, supplies) Support Activities Primary Activities Inbound Logistics (raw materials handling and warehous- ing) Operations (machine assembling, testing) Outbound Logistics (warehous- ing and distribution of finished product) Service (installation, repair, parts) Marketing and Sales (advertising, promotion, pricing, channel relations)
    • 18. Value Chain Model
      • Chain of basic activities that add to firm’s products or services
      • Primary activities
      • Secondary activities
    • 19. Value Chain Primary Activities
      • Inbound
      • Outbound
      • Operations
      • Marketing and Sales
      • After-Sale Services
    • 20. Value Chain Support Activities
      • Technology development
      • Procurement
      • Human Resources Management
      • Management Control
        • accounting/finance
        • coordination
        • general management
        • central planning
    • 21. Competitive Forces
      • Threat of entry of new competition
      • Bargaining power of suppliers
      • Bargaining power of buyers
      • Threat of substitute products or services
      • Rivalry among existing firms
    • 22. Strategies for Competitive Forces
      • Note - strength of force is determined by factors in industry
      • Gain a competitive edge
      • Build defenses against forces
      • Formulate actions to influence forces
    • 23. Strategic Questions
      • Can IT create barriers to entry? (new entrants)
      • Can IT build in switching costs? (buyers)
      • Can IT strengthen customer relationships? (buyers)
    • 24. Strategic Questions (cont)
      • Can IT change the balance of power in supplier relationships? (suppliers)
      • Can IT change the basis of competition? (competitors)
      • Can IT generate new products?(competitors, substitutes)
    • 25. Wiseman’s Theory of Strategic Thrusts
      • Strategic purposes that drive the use of the firm’s resources
      • Differentiation
      • Cost
      • Innovation
      • Growth
      • Alliance
    • 26. Searching for Specific Opportunities
      • What is the mode of the thrust? (offensive, defensive)
      • What is the direction of the thrust? (use, provide)
      • What is the strategic target of the thrust? (supplier, customer, competitor)
    • 27. Risks of IS Success
      • Change the Basis of Competition
      • Lower Entry Barriers
      • Promote Litigation or Regulation
      • Awake Sleeping Giant
      • Reflect Bad Timing
      • Are Too Advanced