Information technology management
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Information Technology Management. Strategy & IT. Business Strategy. Organizational Strategy. IT Strategy. IT Strategy Triangle. All 3 Strategies Need to be in Harmony Multiple Ways to Create Harmony. Business Strategy Frameworks. High level strategic business concepts

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Information Technology Management

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Information technology management

Information Technology Management

Strategy & IT


It strategy triangle

Business Strategy

Organizational Strategy

IT Strategy

IT Strategy Triangle

  • All 3 Strategies Need to be in Harmony

  • Multiple Ways to Create Harmony


Business strategy frameworks

Business Strategy Frameworks

  • High level strategic business concepts

    • Efficiency ( low cost) vs. Innovation

    • Value disciplines (Tracy & Wiersema)

      • Operational Excellence

      • Product Leadership

      • Customer intimacy

  • More specific strategic business concepts

    • Porter’s Generic Strategies Framework (and its variants)

    • Co-opetition (Brandenburg and Nalebuff)

    • Hypercompetition and the New 7-S’s framework (D’Aveni)


Value capturing strategies

Value Capturing Strategies

ProductLeadership

Leadership requires a primary strategy

Operational Excellence

CustomerIntimacy


Porter s value chain

Customers

Intermediaries

Porter’s Value Chain

Value Chain

Suppliers

Enterprise

Joined-up Business

  • Vertical Process Integration

  • 3 Ways to Differentiate

    • Low Cost

    • Differentiation as Viewed by Customer

    • Narrow Segment Focus


Hypercompetition and the new 7 s s framework d aveni

Hypercompetition and the New 7-S’s framework (D’Aveni)

  • Sustained competitive advantage is not possible

  • Only temporary advantages exist, created by a company’s speed and aggressiveness.

  • Assumes:

    • Every advantage becomes eroded

    • Sustaining an advantage uses too much time and resources.

    • Instead, companies must seek to stay ahead of its competitors by creating temporary advantages

    • These are done in small steps over short competitive cycles. Focus on creating the next temp. advantage.


Co opetition the value net

Competitors/

Substitutors

Enterprise

Suppliers

Customers

Intermediaries/

Complementors

Co-opetition – The Value Net

New Joined-up Business

Value Net

  • Virtual integration

  • Differentiation

    • Focus on Customer Needs

    • Co-source Processes

    • Coordinate Partners to Assemble Strategic Advantage


Attributes of the different value capturing strategies

ProductLeadership

Leadership requires a primary strategy

Operational Excellence

CustomerIntimacy

Attributes of the different Value Capturing Strategies

Focus on Core Processes of invention, product development, and market exploitation

Loosely knit, ad hoc business structure

Metrics are on product success and don’t punish experimentation

Operations culture is individualistic, out of the box, futuristic, Team based

Focus on core processes of solution development, results management, relationship management

Operations culture delegates decision making to employees closest to customer

Metrics are based on results from carefully selected and nurtured clients. Intent is to create deep and lasting relationships with clients

Specific (custom) solutions preferred over general solutions

Processes optimized for end to end supply

Operations culture is standardized, simplified, tightly controlled, centrally planned

Metrics are cost based

Integrated, Reliable, High speed transaction systems

Standardization“When it absolutely, positively has to be there overnight


Traditional it investment portfolio

Traditional IT Investment Portfolio

MIS

Decision Support

Knowledge Mgn’t

Processing Business Activities

Orders

Sales

Shipment

Communications

Data Base

Office Automation

Groupware


The value chain information flows

Customers

Intermediaries

Product/Service Flow

The Value Chain Information Flows

Value Chain

Suppliers

Enterprise

Joined-up Business

  • Product to Customer

  • Vertical integration

  • Processes are internally focused

Information Flows


Future state the value net

Competitors/

Substitutors

New Joined-up Business

Value Net

Enterprise

Suppliers

Customers

Intermediaries/

Complementors

Future State : The Value Net

  • Drive from customer need – not products

  • Assemble the solution from the value net to match the need

  • Virtual integration

  • Processes are externally focused & executed by the members of the value net that can best execute them


The business organization hammer and champy

The Business Organization (Hammer and Champy)

Business

Processes

Values and

Beliefs

Jobs and

Structures

Management

and Measurement systems


Information technology management

Hierarchical, flat and matrix

organizational structures

Hierarchical

Organizational

Structure

Matrix

Organizational

Structure

Flat

Organizational

Structure


Information technology management

The networked organization

  • The networked organization is a new form, made possible by IS.

  • Instead of rigid hierarchies, all parts of the company are connected by formal and informal communications.


It impact on organization structure processes culture

IT Impact on Organization ( Structure, Processes, Culture)?

  • Computer

  • Transaction systems

  • Databases

  • PC

  • Telecommunications

  • E-mail

  • Internet


How do you get the 3 in sync

Business Strategy

Organizational Strategy

IT Strategy

Change Enabler

How do You Get the 3 in Sync?

One-way?

Two-way?

Improvisation?


What happens when my business strategy is value net based

What Happens When my Business Strategy is Value-Net Based?


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