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Tugas 2
          IS Strategic Planning - M7233



              RESUME CHAPTER 2
An Overview of Business Strategy Concepts
    and the IS/IT Strategy Implications

                       Oleh:
                  ABDURRASYID
                    1112200642
                  Kelas : 04 MBM




          UNIVERSITAS BINA NUSANTARA
     MANAJEMEN SISTEM INFORMASI JENJANG S2
                    JAKARTA
                      2012
IS Strategic Planning - M7233




THE EVOLVING NATURE OF STRATEGY AND STRATEGIC PLANNING IN
ORGANIZATIONS




Strategy versus Planning
        Strategy making process should be: capturing what the manager learns from all sources
(both the soft insights from his or her personal experiences and the experiences of others
throughout the organisation and the hard data from market research and the like) and then
synthesising that learning into a vision of the direction that the business should pursue.
        Hamel7 asserts that planning is about programming not discovering, that strategy making
must be democratic and is not the sole preserve of senior managers. you ‘cannot see the end from
the beginning’, a situation that is similar when embarking on developing an IS/IT strategy.
        Strategy can therefore be defined as: an integrated set of actions aimed at increasing the
long-term well-being and strength of the enterprise relative to competitors.
There are essentially three interrelated processes that can contribute to the establishment of such a
strategy:
     1. strategic thinking—creative, entrepreneurial insight into the ways the enterprise could
        develop;
     2. strategic planning—systematic, comprehensive analysis to develop a plan of action;
     3. opportunistic decision making—effective reaction to unexpected threats and
        opportunities.

THE STRATEGIC FRAMEWORK
The framework considers the factors involved in business strategic management in three layers
   1. The external environment Ex: Economic, Social, Political, Legal, Ecological,
       Technological
   2. Pressure groups and stakeholders.
   3. Internal business strategizing and planning.




                                                                                             Page | 1
IS Strategic Planning - M7233




Pressure Groups and Stakeholders
Pressure groups are characterized by making demands of the organization. They require that the
enterprise acknowledges their existence and the effect they can have, and they expect appropriate
responses from management to satisfy their particular interest.
The stakeholders have a direct financial interest in the organization, and demand a fair share of
the wealth created.

Business Strategy Formulation and Planning Processes
        A key issue of any strategy process is to determine the scope. Should it cover the
organization as a whole, or should the organization be considered in smaller, discrete parts where
it may be more appropriate and easier to develop coherent strategies and plans? These
organizational components are often called ‘strategic business units’ (SBUs).
        business unit can be defined as: a unit that sells a distinct set of products or services,
serves a specific set of customers and competes with a well-defined set of competitors. A key
element in any business planning process is to set business or organization objectives. Objectives
values are often expressed in terms of the ‘mission’ of the organization, which is usually a
statement of its long-term aims and purpose.
Situation Analysis consists of two essential elements, called SWOT
     1. concerns the current strategy and an understanding of the enterprise’s strengths and
        weaknesses.
     2. analysis of the competitive environment so that the enterprise can quite clearly identify
        its position in the marketplace and possible future strategic options.

    evident that such frameworks are not widely used, perhaps due to the high degree of
formality implied in this approach. It need not be bureaucratic or prescriptive, but each of the
elements should be addressed.

STRATEGY IMPLEMENTATION

Two models of strategic management
   1. strategy formation.
   2. strategy formulation.




                                                                                           Page | 2
IS Strategic Planning - M7233




STRATEGY TOOLS AND TECHNIQUES
Portfolio and Planning Matrices, Ex: The Boston Matrix (or Boston Square)

The Boston Matrix emphasizes a few key issues in strategy:
   1. The need to manage products according to market opportunities and pressures, not
       internal factors.
   2. The need to reinvest net cash inflows into future products to ensure continuing sources of
       revenue.
   3. The need to have a complete and balanced portfolio if the business is to thrive in the long
       term.

Competitive Forces and Competitive Strategies




A RESOURCE-BASED VIEW OF STRATEGY
Competencies and Competitive Advantage
three paths to market leadership based on Treacy and Wiersma suggestion
    1. Operational (or Process) Excellence
    2. Customer Intimacy
    3. Product Leadership




                                                                                          Page | 3

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M7233 is strategic planning summary chapter 2 rasyid

  • 1. Tugas 2 IS Strategic Planning - M7233 RESUME CHAPTER 2 An Overview of Business Strategy Concepts and the IS/IT Strategy Implications Oleh: ABDURRASYID 1112200642 Kelas : 04 MBM UNIVERSITAS BINA NUSANTARA MANAJEMEN SISTEM INFORMASI JENJANG S2 JAKARTA 2012
  • 2. IS Strategic Planning - M7233 THE EVOLVING NATURE OF STRATEGY AND STRATEGIC PLANNING IN ORGANIZATIONS Strategy versus Planning Strategy making process should be: capturing what the manager learns from all sources (both the soft insights from his or her personal experiences and the experiences of others throughout the organisation and the hard data from market research and the like) and then synthesising that learning into a vision of the direction that the business should pursue. Hamel7 asserts that planning is about programming not discovering, that strategy making must be democratic and is not the sole preserve of senior managers. you ‘cannot see the end from the beginning’, a situation that is similar when embarking on developing an IS/IT strategy. Strategy can therefore be defined as: an integrated set of actions aimed at increasing the long-term well-being and strength of the enterprise relative to competitors. There are essentially three interrelated processes that can contribute to the establishment of such a strategy: 1. strategic thinking—creative, entrepreneurial insight into the ways the enterprise could develop; 2. strategic planning—systematic, comprehensive analysis to develop a plan of action; 3. opportunistic decision making—effective reaction to unexpected threats and opportunities. THE STRATEGIC FRAMEWORK The framework considers the factors involved in business strategic management in three layers 1. The external environment Ex: Economic, Social, Political, Legal, Ecological, Technological 2. Pressure groups and stakeholders. 3. Internal business strategizing and planning. Page | 1
  • 3. IS Strategic Planning - M7233 Pressure Groups and Stakeholders Pressure groups are characterized by making demands of the organization. They require that the enterprise acknowledges their existence and the effect they can have, and they expect appropriate responses from management to satisfy their particular interest. The stakeholders have a direct financial interest in the organization, and demand a fair share of the wealth created. Business Strategy Formulation and Planning Processes A key issue of any strategy process is to determine the scope. Should it cover the organization as a whole, or should the organization be considered in smaller, discrete parts where it may be more appropriate and easier to develop coherent strategies and plans? These organizational components are often called ‘strategic business units’ (SBUs). business unit can be defined as: a unit that sells a distinct set of products or services, serves a specific set of customers and competes with a well-defined set of competitors. A key element in any business planning process is to set business or organization objectives. Objectives values are often expressed in terms of the ‘mission’ of the organization, which is usually a statement of its long-term aims and purpose. Situation Analysis consists of two essential elements, called SWOT 1. concerns the current strategy and an understanding of the enterprise’s strengths and weaknesses. 2. analysis of the competitive environment so that the enterprise can quite clearly identify its position in the marketplace and possible future strategic options. evident that such frameworks are not widely used, perhaps due to the high degree of formality implied in this approach. It need not be bureaucratic or prescriptive, but each of the elements should be addressed. STRATEGY IMPLEMENTATION Two models of strategic management 1. strategy formation. 2. strategy formulation. Page | 2
  • 4. IS Strategic Planning - M7233 STRATEGY TOOLS AND TECHNIQUES Portfolio and Planning Matrices, Ex: The Boston Matrix (or Boston Square) The Boston Matrix emphasizes a few key issues in strategy: 1. The need to manage products according to market opportunities and pressures, not internal factors. 2. The need to reinvest net cash inflows into future products to ensure continuing sources of revenue. 3. The need to have a complete and balanced portfolio if the business is to thrive in the long term. Competitive Forces and Competitive Strategies A RESOURCE-BASED VIEW OF STRATEGY Competencies and Competitive Advantage three paths to market leadership based on Treacy and Wiersma suggestion 1. Operational (or Process) Excellence 2. Customer Intimacy 3. Product Leadership Page | 3