L006 IT Strategy (2016)

1. IT STRATEGY MANAGING INFORMATION SYSTEMS IN ORGANIZATIONS Prepared by: Jan Wong Download at: www.slideshare.net/janwong

2. TECHNOLOGY or MANAGEMENT OF TECHNOLOGY? WHICH IS MORE IMPORTANT?

3. TECHNOLOGY or MANAGEMENT OF TECHNOLOGY? WHICH IS MORE IMPORTANT? • IT is so accessible and open therefore businesses can’t complete on technology alone. • Competitive advantage is derived from how technology is used instead. • It’s not about investing in IT but where and how.

4. IT PLAYS A BIG ROLE IN BUSINESS INNOVATION IT STRATEGY

5. IT PLAYS A BIG ROLE IN BUSINESS INNOVATION IT STRATEGY • Allows creation of applications that has strategic advantages. • It’s a competitive weapon. • It supports strategic change. • Allows networking between partners. • Potential cost reduction. • Provides competitive business intelligence.

6. COMPETITIVE INTELLIGENCE Many competitors monitor their competitors. But why? The internet plays a vital role in supporting competitive intelligence.

7. COMPETITIVE INTELLIGENCE Many businesses monitor their competitors. But why? The internet plays a vital role in supporting competitive intelligence. • Increases market knowledge of the business. • It drives business performance. • Raising the quality of strategic planning.

8. WAYS ON HOW TECH AFFECTS COMPETITION3

9. #1: CHANGES OF INDUSTRY STRUCTURE & ALTERS THE RULE OF COMPETITION

10. #1: CHANGES OF INDUSTRY STRUCTURE & ALTERS THE RULE OF COMPETITION • Increases the power of buyers. • Raises barrier of entry. • Inﬂuencing the threat of substitution.

11. #2: GIVES COMPETITIVE ADVANTAGE TO OUT- PERFORM RIVALS • Lowering cost. • Enhancing differentiation. • Changing competitive scope.

12. #3: SPAWNS NEW BUSINESSES, EVEN FROM OWN OPERATIONS • Creates derived demand for new products. • Creating new business from old ones. • New businesses become feasible with technology.

13. CASE STUDY: PORT OF SINGAPORE Problem: As one of the world’s largest international port, faced increased global competition. Solution: Implementing an intelligent system (i.e. port management system). Results: Reduced cycle time to 4 hours (versus 16-20 hours in neighbouring ports) and 30 seconds in loading time (versus 4-5 minutes in neighbouring ports).

14. BUSINESSES HAVE TO CONSIDER SOME MAJOR ISSUES Despite the notable beneﬁts of Information Systems,

15. MAJOR ISSUES TO CONSIDER WHEN IMPLEMENTING AN INFORMATION SYSTEM 4

16. JUSTIFICATION • COST • BENEFITS CAN BE INTANGIBLE • NEGATIVE EXPERIENCES • INSUFFICIENT KNOWLEDGE • POSSIBLE INCONVENIENCE 1

17. RISKS & FAILURES • UNFORESEEN CHALLENGES • CHANGE OF TECHNOLOGY OR BUSINESS PROCESSES • POTENTIAL LOOPHOLES OR SECURITY FLAWS • USER ADAPTATION CAN BE A CHALLENGE 2

18. FINDING APPROPRIATE I.S. • NOT AN EASY TASK ESPECIALLY IN LARGE ORGANISATIONS • THERE IS NO ONE-SIZE-FITS-ALL • A BALANCE BETWEEN COST, BENEFITS, RISK AND SCALABILITY • TIME CONSUMING PROCESS 3

19. MANAGERIAL ISSUES • REQUIRES MUCH PLANNING • RISKY AS IT INVOLVES THE ORGANISATION AS A WHOLE • THE ABILITY TO SUSTAIN COMPETITIVE ADVANTAGE • ETHICAL ISSUES THAT MAY LEAD TO LEGAL DISPUTES • CONSIDERATION OF PRIVACY ISSUES 4

20. BUSINESSES HAVE TO FIND WAYS TO SUSTAIN I.S. ADVANTAGE Understanding the major issues,

21. BUSINESSES HAVE TO FIND WAYS TO SUSTAIN I.S. ADVANTAGE Understanding the major issues, 1. Create inward systems   Not visible to competitors and has limited external access. 2. Create a system that is difﬁcult to duplicate  Comprehensive, innovative, expensive and complex. 3. Combine system with structural changes  Includes business process, workﬂows, organisational structure.

22. GUEST SPEAKER TECHNOLOGY DIRECTOR OPENMINDS MALAYSIA

23. PORTER’S 5 FORCES A method to study your competitive landscape To determine the severity or the intensity of competition.

24. • Threat of New Entry • Bargaining Power of Suppliers • Bargaining Power of Buyers • Threat of Substitution • Rivalry among Existing Firms PORTER’S 5 FORCES A method to study your competitive landscape To determine the severity or the intensity of competition.

25. PORTER’S 5 FORCES Substitutes (Existing companies that provides an alternative product / service) BuyersSuppliers Potential Entrants (Existing companies that have yet to enter the market) Industry Competitors (Existing companies that competes in the exact market space) Bargaining Power of Suppliers Bargaining Power of Buyers Threats of New Entry Rivalry Among Existing Firms Threat of Substitute Products or Service

33. PORTER’S 5 FORCES

34. How can businesses overcome the competitive forces? RESPONSE STRATEGIES TO THE 5 FORCES8To reduce the intensity of competition and to increase the barrier of entry in the industry.

35. How can businesses overcome the competitive forces? 1. Cost Leadership   Providing products / services at the lowest cost in the industry. 2. Differentiation  Have a unique selling proposition. 3. Focus  Selecting a niche market; being the big ﬁsh in a small pond. 4. Growth  Increase market share by acquiring more customers or by selling more products. RESPONSE STRATEGIES TO THE 5 FORCES8

36. How can businesses overcome the competitive forces? 5. Improve Internal Efﬁciency  Improve employee and customer satisfaction / productivity. 6. Alliances  Working with business partners for growth opportunities. 7. Customer Relationship Management (CRM)  Emphasising on customer-oriented approaches. 8. Innovation  Always developing new products and services. RESPONSE STRATEGIES TO THE 5 FORCES8

37. Questions, anyone?

L006 IT Strategy (2016)

Recommended

Recommended

More Related Content

What's hot

What's hot (20)

Viewers also liked

Viewers also liked (17)

Similar to L006 IT Strategy (2016)

Similar to L006 IT Strategy (2016) (20)

More from Jan Wong

More from Jan Wong (13)

Recently uploaded

Recently uploaded (20)

L006 IT Strategy (2016)