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Chapter 5. IS/IT Strategic Analysis: The Future Potential. Agenda. Criteria for effective planning Business strategic and IS/IT strategic analysis methods Market leadership Value Chain Strategic option generator Resource life cycle analysis. Criteria for Effective Planning.

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Presentation Transcript
Chapter 5

Chapter 5

IS/IT Strategic Analysis:

The Future Potential


Agenda
Agenda

  • Criteria for effective planning

  • Business strategic and IS/IT strategic analysis methods

    • Market leadership

    • Value Chain

    • Strategic option generator

    • Resource life cycle analysis


Criteria for effective planning
Criteria for Effective Planning

  • Situation analysis and competitive assessment

  • Evaluation of strategic options

  • Dynamic allocation of resources


Market leadership
Market Leadership

  • By Treacy and Wiersma

  • Three paths to market leadership

    • Operational excellence: low costs and consistent quality (Wal-Mart)

    • Customer Intimacy: precisely and tailoring products and services to target market (Home Depot)

    • Product leadership: product innovation (Johnson and Johnson)


Question
Question

  • How can you utilize application portfolio (high potential, strategic, key operational, and support) to market leadership business strategy?


Value chain analysis i
Value Chain Analysis - I

  • corporate value chain = support activities & primary activities = value added =

  • Value added – cost = margin


Value chain analysis ii
Value Chain Analysis - II

  • Support activities

    • Administration and infrastructure

    • Human resources management

    • Product and technology development

    • Procurement


Value chain analysis iii
Value Chain Analysis - III

  • Primary activities

    • Inbound logistics

    • Operations

    • Outbound logistics

    • Sales and marketing

    • Services


Value chain analysis types
Value Chain Analysis - Types

  • Natural

    • The unattainable optimum structure for the industry’s value adding processes and information flows based on what needs to be done

  • Contrived

    • How (far from optimal ways) thins are currently done


Is it role in value chain analysis
IS/IT Role in Value Chain Analysis

  • Information about the industry

  • Information about the corporate in the industry

  • Information about customers and suppliers to improve the business performance

  • Information flow in the corporate value chain for optimizing performance, reducing costs, and adding value


Question1
Question

  • How can you usage application portfolio in value chain to achieve business goals?


Strategic option generator i
Strategic Option Generator - I

  • By Rackoff, Wiseman and Ullrich

  • To identify strategic IS opportunities in relation to three targets

    • Customers

    • Suppliers

    • Competitors


Strategic option generator ii
Strategic Option Generator - II

  • Five strategic thrusts

    • Differentiation

    • Cost

    • Innovation

    • Growth

    • Alliance


Strategic option generator iii
Strategic Option Generator - III

  • Two strategies

    • Offensive: to create or increase a competitive edge

    • Defensive: to reduce a competitor’s advantage or prevent a potential disadvantage


Question2
Question

  • Can you give an example each for the IS/IT offensive strategy and IS/IT defensive strategy discussed in strategic option generator?


Resource life cycle analysis
Resource Life-Cycle Analysis

  • By IBM

  • Four main stages

    • Requirements determination

    • Acquisition

    • Stewardship

    • Retirement or disposal


Points to remember
Points to Remember

  • Criteria for effective planning

  • Business strategic and IS/IT strategic analysis methods

    • Market leadership

    • Value Chain

    • Strategic option generator

    • Resource life cycle analysis


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