I T A P

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  • IT is only an essential element of the strategic vision, the initiative which the organization chooses to undertake so as to achieve competitive edge.
  • IT is only an essential element of the strategic vision, the initiative which the organization chooses to undertake so as to achieve competitive edge.
  • Top line approach: goal is to increase revenues
    Bottom line approach: goal is to minimize expenses
  • Application of RGT depends on considerations of the maturity of the organization.
    Regardless of maturity, all organization must focus on TRANSFORMATION.
  • Buyer power is high when buyers have many choices from whom to buy and low when their choices are few.
    Loyalty programs (reward customers based on the amount of business they do with particular customers) are best IT-based examples of reducing buyer power.
    Supplier power is high when buyers have few choices from whom to buy and low when their choices are many.
  • The value chain is an important graphical tool that helps you identify important business processes within the entire value chain.
  • I T A P

    1. 1. Sales (06/2010) Cash 1 $ 25,000.00 cash 2 $ 149,555.00 Receivables $ 15,000.00 Total Sales $ 189,555.00 Expenses(06/2010) Cost of Goods $ 13,000.00 Admin Expenses $ 11,650.00 Payroll $ 12,000.00 Total Expenses $ 36,650.00 Top Line Reach new customers, offer new products, cross-sell services, offer complementary products Bottom Line Optimize manufacturing processes, decrease transportation costs, reduce cost of human capital, minimize errors in a process
    2. 2. Your suppliers Your Organization Your Customers Supplier power to be low Buyer power to be high Supplier power to be high Buyer power to be low Buyer power is high when buyers have many choices from whom to buy and low when their choices are few. Supplier power is high when buyers have few choices from whom to buy and low when their choices are many.
    3. 3. Receive and Store Raw Materials Make the product or service Deliver the product or service Market and sell the product or service Service after the sale Purchasing Research and Development Human Resources Management Management, Accounting, Finance, Legal
    4. 4. Receive and Store (5.2%) Make the product or service (40.3%) Deliver the (6.6%) sell 4.3% Service after (2.2%) Purchasing (27%) Research and Development (4.2%) Human Resources Management (7.1%) Management, Accounting, Finance, Legal (3.1%) Value-added view of a necktie manufacturer Receive and Store (9.2%) Make the product or service (10.4%) Deliver the (18.2%) Sell 36% Service (14.5%) Purchasing (12%) Research and Development (3.3%) Human Resources Management (3.2%) Management, Accounting, Finance, Legal (5.2%) Value-reduced view of a necktie manufacturer
    5. 5. Rece ive and Stor e (5.2 %) Make the product or service (40.3%) Delive r the (6.6%) sell 4.3 % Service (2.2%) Purchasing (27%) Research and Development (4.2%) Human Resources Management (7.1%) Management, Accounting, Finance, Legal (3.1%) Value-added view of a necktie manufacturer Recei ve and Store (9.2% ) Make the produc t or service (10.4% ) Deliver the (18.2% ) Sell 36% Service (14.5%) Purchasing (12%) Research and Development (3.3%) Human Resources Management (3.2%) Management, Accounting, Finance, Legal (5.2%) Value-reduced view of a necktie manufacturer Evaluating value chains is particularly effective because it forces the organization to gather and analyze quantifiable information.

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