Presentation given to the Center for Closely Held Firms. The focus of this presentation was on highlighting different perspectives on IT and gaining an appreciation for it's strategic and operational role. We conclude with strategies that can help an organization manage its IT.

1. Technology Strategy & You
Paul M. Di Gangi, Ph.D.
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#InfoSysProfessor #LoyolaMaryland

2. Today’s Schedule
8:00a
How do you view Technology?
Cost vs. Innovation Models
Balanced Technology Scorecard
{Break}
Value Disciplines
Value Chain Decisions
Q&A
10:15a

3. Question
What does technology
do for you?

4. Question
How do you view
technology in your
organization?

5. “The greatest IT risk facing most companies is more
prosaic than a catastrophe. It is, simply, overspending.”
~ Nicholas Carr

6. Pathways of IT
2/7/2012 Carr., N. (2003) Harvard Business Review “Does IT Matter?”

7. IT’s Infrastructural
Ubiquitous
Non-competitive
Low Switching Costs

8. IT’s Proprietary
Unique
A Competitive Weapon
Costly

9. First v. Second
~ Mover Advantage ~

10. Question
How is technology
treated in different
areas of your
business?

11. Question
Is technology assessed
in the same way across
your business
functions?

12. Learning from the Balanced Scorecard
Kaplan, R. S. and Norton, D. P. (2005) Harvard Business Review “Balanced
Scorecard: Measures That Drive Performance”

13. Balanced
Scorecard
Approach
Definition: a methodology that converts an organization’s
value drivers, such as customer
service, innovation, operational efficiency, and financial
performance, to a series of defined metrics
Schwalbe (2010)

14. I N N O VAT I O N
Financial Custainability
COST
ustomer
Operational
S

15. O BJECTIVES
What are the key technology objectives for this scorecard section?
A SSESSMENT
What is the acceptable range for performance?
How do we assess performance of this technology?
When do we assess the performance of this technology?
S CALABILITY & EVOLVABILITY
How well does this technology handle scalability? (Fast v. Slow)
Can this technology evolve as new features and requirements are
placed on the technology by management or stakeholders?

16. What do we need to demonstrate our
financial health to stakeholders?
What types of systems go here?
Financial

17. What do we need to efficiently and
effectively manage our operations?
What types of systems go here?
Operations

18. What do we need to connect with
our customers?
What types of systems go here?
Customers

19. How can we retain knowledge and
grow as an organization?
What types of systems go here?
Sustainability

20. Question
How often do you
review your IT
portfolio?

21. Stress Break

22. Question
What role does the
relationship between
IT and competition
play in your IT
investment decisions?

23. Business Must Drive Technology
1. Assess state of
competition
2. Determine business
strategies
3. Identify business
processes
4. Align technology
tools

24. Run Grow Transform
TBM 3GS
- Overall Cost -Focus & - New Differentiation
Leadership Differentiation
-Bottom Line -Top Line -Top Line
Management Management Management (Focus on
Innovation)

25. Value Disciplines
Operational Excellence Customer Intimacy Product Leadership
Best Total Cost Best Total Solution Best Product
Southwest Harrah’s 3M
Walmart Ritz Carlton Apple
Core Processes Core Processes Core Processes
Supplier Relations Customer Relations Product/Service
Production Operations Marketing & Sales Support Enhancement
Role of IT Role of IT Role of IT
Automation Personalization Support design of new
Supply Chain Integration Mass Customization product information
IT Infrastructure Emphasis IT Infrastructure Emphasis IT Infrastructure Emphasis
Management of large-scale Facilitate access to disparate Enable team-oriented
transaction volume pools of customer data data networks
Treacy, M. and Wiersema, F. (1993) Harvard Business Review “Customer
Intimacy and Other Value Disciplines”

26. Rhetorical
Question
How can IT help in
managing your
business?

27. The Value Chain

28. Takeaways

29. Technology Strategy
Proprietary
Content
& Ubiquitous
Infrastructure

30. How can we effectively use tech…

31. IT depends
on your strategy!

32. Thanks for Listening
Questions
Connect
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