IT STRATEGY GUIDELINES
Saikat Ghosh
MBCS CITP
BUSINESS STRATEGY
Any company must choose one of these value disciplines
 and act upon it consistently*




                                                               IT Strategy Guidelines - Saikat Ghosh
 Operational Excellence
 Product Leadership

 Customer Intimacy




                                                           2
*The Discipline of Market Leaders by Treacy and Wiersema
THE VALUE DISCIPLINE

                      Operational
                      Excellence




                                                   IT Strategy Guidelines - Saikat Ghosh
                       Value
                     Discipline

         Product                    Customer
        Leadership                  Intimacy



                                               3
OPERATIONAL EXCELLENCE
 These companies stress on providing a reasonable
  quality at a very low price.




                                                             IT Strategy Guidelines - Saikat Ghosh
 Focus on efficiency, streamlining operations, supply
  chain management, no frills, volume centric.




                                                         4
PRODUCT LEADERSHIP
 These companies concentrate on offering products
  that push performance boundaries.




                                                           IT Strategy Guidelines - Saikat Ghosh
 Their proposition to customers is an offer of best
  product in the marketplace.




                                                       5
CUSTOMER INTIMACY
 These companies excel in customer attention and
  customer service.




                                                        IT Strategy Guidelines - Saikat Ghosh
 Focus in customer relationship, lifetime value
  concept, reliability and customer expectation.




                                                    6
THE TECHNOLOGY DISCIPLINE

                         Internal
                         Process
                       Technologies




                                                         IT Strategy Guidelines - Saikat Ghosh
                        Value
                      Discipline

       Development                    Relationship
       Technologies                   Technologies




                                                     7
VALUE BASED TECHNOLOGY FOCUS
Aligned with your business value discipline you
  choose your technology focus




                                                      IT Strategy Guidelines - Saikat Ghosh
 Internal Process Technologies
 Development Technologies

 Relationship Technologies




                                                  8
INTERNAL PROCESS TECHNOLOGIES
 Is concerned with the way the company works
  internally and focuses on operational efficiency.




                                                            IT Strategy Guidelines - Saikat Ghosh
 It helps to deliver results in performance which is
  based on the effectiveness of internal processes.



             WORKFLOW AUTOMATION
                    RFID
                   MOBILITY

                                                        9
DEVELOPMENT TECHNOLOGIES
 Focus on developing new products, new markets
  and new business for the company to engage in.




                                                       IT Strategy Guidelines - Saikat Ghosh
 Helps the company’s opportunity capture and
  analysis process, the product development process
  and the company’s market opportunity analysis
  system

            BUSINESS INTELLIGENCE
              DATA WAREHOUSING

                                                      10
RELATIONSHIP TECHNOLOGIES
 the systems a company uses to liaise and to
  communicate with its external trading partners: its




                                                           IT Strategy Guidelines - Saikat Ghosh
  customers and supplier
 It builds upon the company's internal process capabilities
  and take that operational excellence capability out into
  the trading marketplaces.

                          CRM
                        ANALYTICS

                                                          11
HOW TO DECIDE ?
   Who are your top customers and products ?
   What margin do you make via each of these customers
    and products?




                                                                  IT Strategy Guidelines - Saikat Ghosh
   How reliable is the technology platform on which these
    products are based ?
   Is the technology platform translatable into other product
    areas ?
   How dependent are your customers on you for the
    product they buy ?
   What development programs are you doing for your top
    customers ?
   Are commercial operations and technical people all
    involved in development programs , and each                  12
    accountable for the program success ?
TECHNOLOGY ENABLEMENT
 Differentiate products and develop new products
 Develop new business opportunities




                                                     IT Strategy Guidelines - Saikat Ghosh
 Reduce costs of its operations

 Facilitate strategic change




                                                    13

IT Strategy

  • 1.
  • 2.
    BUSINESS STRATEGY Any companymust choose one of these value disciplines and act upon it consistently* IT Strategy Guidelines - Saikat Ghosh  Operational Excellence  Product Leadership  Customer Intimacy 2 *The Discipline of Market Leaders by Treacy and Wiersema
  • 3.
    THE VALUE DISCIPLINE Operational Excellence IT Strategy Guidelines - Saikat Ghosh Value Discipline Product Customer Leadership Intimacy 3
  • 4.
    OPERATIONAL EXCELLENCE  Thesecompanies stress on providing a reasonable quality at a very low price. IT Strategy Guidelines - Saikat Ghosh  Focus on efficiency, streamlining operations, supply chain management, no frills, volume centric. 4
  • 5.
    PRODUCT LEADERSHIP  Thesecompanies concentrate on offering products that push performance boundaries. IT Strategy Guidelines - Saikat Ghosh  Their proposition to customers is an offer of best product in the marketplace. 5
  • 6.
    CUSTOMER INTIMACY  Thesecompanies excel in customer attention and customer service. IT Strategy Guidelines - Saikat Ghosh  Focus in customer relationship, lifetime value concept, reliability and customer expectation. 6
  • 7.
    THE TECHNOLOGY DISCIPLINE Internal Process Technologies IT Strategy Guidelines - Saikat Ghosh Value Discipline Development Relationship Technologies Technologies 7
  • 8.
    VALUE BASED TECHNOLOGYFOCUS Aligned with your business value discipline you choose your technology focus IT Strategy Guidelines - Saikat Ghosh  Internal Process Technologies  Development Technologies  Relationship Technologies 8
  • 9.
    INTERNAL PROCESS TECHNOLOGIES Is concerned with the way the company works internally and focuses on operational efficiency. IT Strategy Guidelines - Saikat Ghosh  It helps to deliver results in performance which is based on the effectiveness of internal processes. WORKFLOW AUTOMATION RFID MOBILITY 9
  • 10.
    DEVELOPMENT TECHNOLOGIES  Focuson developing new products, new markets and new business for the company to engage in. IT Strategy Guidelines - Saikat Ghosh  Helps the company’s opportunity capture and analysis process, the product development process and the company’s market opportunity analysis system BUSINESS INTELLIGENCE DATA WAREHOUSING 10
  • 11.
    RELATIONSHIP TECHNOLOGIES  thesystems a company uses to liaise and to communicate with its external trading partners: its IT Strategy Guidelines - Saikat Ghosh customers and supplier  It builds upon the company's internal process capabilities and take that operational excellence capability out into the trading marketplaces. CRM ANALYTICS 11
  • 12.
    HOW TO DECIDE?  Who are your top customers and products ?  What margin do you make via each of these customers and products? IT Strategy Guidelines - Saikat Ghosh  How reliable is the technology platform on which these products are based ?  Is the technology platform translatable into other product areas ?  How dependent are your customers on you for the product they buy ?  What development programs are you doing for your top customers ?  Are commercial operations and technical people all involved in development programs , and each 12 accountable for the program success ?
  • 13.
    TECHNOLOGY ENABLEMENT  Differentiateproducts and develop new products  Develop new business opportunities IT Strategy Guidelines - Saikat Ghosh  Reduce costs of its operations  Facilitate strategic change 13