IT Strategy & Planning
اسلاید 1: Chapter 131Chapter 13Information Technology For Management 6th EditionTurban, Leidner, McLean, WetherbeLecture Slides by L. Beaubien, Providence College John Wiley & Sons, Inc.IT Strategy & Planning
اسلاید 2: Chapter 132Learning ObjectivesExplain how IT can contribute to strategic objectives and competitive advantage.Assess potential impacts of IT using several frameworksExplain the value and challenges of aligning business and IT strategies.Describe the importance of IT planning and methodologies to facilitate it.Discuss factors to be considered to optimize that allocation of an organization’s IT resources.Identify and describe how to build strong relationships between information systems department and business units.
اسلاید 3: Chapter 133Strategic Information System
اسلاید 4: Chapter 134Information Technology – Supports Strategic ManagementInnovative applications: Create innovative applications that provide direct strategic advantage to organizations.Competitive weapons: Information systems themselves are recognized as a competitive weaponChanges in processes: IT supports changes in business processes that translate to strategic advantageLinks with business partners: IT links a company with its business partners effectively and efficiently.
اسلاید 5: Chapter 135Information Technology – Supports Strategic Management (Continued)Cost reductions: IT enables companies to reduce costs.Relationships with suppliers and customers: IT can be used to lock in suppliers and customers or to build in switching costs.New products: A firm can leverage its investment in IT to create new products that are in demand in the marketplace.Competitive intelligence: IT provides competitive (business) intelligence by collecting and analyzing information about products, markets, competitors, and environmental changes .
اسلاید 6: Chapter 136Porter’s Competitive Forces Model
اسلاید 7: Chapter 137We Develop a Competitor AnalysisFirst Competitive ForceWhat Drives them?What are they Doing and What Can they do?What are their strengths & weaknesses?Is Competition Intense?
اسلاید 8: Chapter 138Second Competitive ForceWe Analyze the Entry BarriersIf nothing slows entry of competitors, competition will become intense.Incumbent Reaction?What Actions are required to build market share?Production Process?
اسلاید 9: Chapter 139We Analyze the Substitute ProductsThird Competitive ForceProducts or services from another industry enter the market.Customers becoming acclimated to using substitutes.Is the substitute market growing?
اسلاید 10: Chapter 1310We Analyze the Supply ChainFourth & Fifth Competitive ForcesWho controls the transaction?Each element adds value – question: who captures it?The SuppliersThe Buyers
اسلاید 11: Chapter 1311Generic Strategies Developing a Sustained Competitive AdvantageCost leadership strategy: Produce products and/or services at the lowest cost in the industry.Differentiation strategy: Offer different products, services, or product features. Niche strategy: Select a narrow-scope segment (niche market) and be the best in quality, speed, or cost in that market.Analyzing the forces that influence a company’s competitive position will assist management in crafting a strategy aimed at establishing a sustained competitive advantage. To establish such a position, a company needs to develop a strategy of performing activities differently than a competitor.
اسلاید 12: Chapter 1312Generic Strategies Developing a Sustained Competitive Advantage (Continued)Growth strategy: Increase market share, acquire more customers, or sell more products. Alliance strategy: Work with business partners in partnerships, alliances, joint ventures, or virtual companies.Innovation strategy: Introduce new products and services, put new features in existing products and services, or develop new ways to produce them.Operational effectiveness strategy: Improve the manner in which internal business processes are executed so that a firm performs similar activities better than rivals.
اسلاید 13: Chapter 1313Generic Strategies Developing a Sustained Competitive Advantage (Continued)Customer-orientation strategy: Concentrate on making customers happyTime strategy: Treat time as a resource, then manage it and use it to the firm’s advantage.Entry-barriers strategy: Create barriers to entry. Lock in customers or suppliers strategy: Encourage customers or suppliers to stay with you rather than going to competitors.Increase switching costs strategy: Discourage customers or suppliers from going to competitors for economic reasons.
اسلاید 14: Chapter 1314The Value ChainPrimary activities are those activities in which materials are purchased, processed into products, and delivered to customers. Each adds value to the product or service hence the value chain.Inbound logistics (inputs)Operations (manufacturing and testing)Outbound logistics (storage and distribution)Marketing and salesServiceAccording to the value chain model (Porter, 1985), the activities conducted in any organization can be divided into two parts: primary activities and support activities.
اسلاید 15: Chapter 1315The Value Chain (Continued)Unlike the primary activities, which directly add value to the product or service, the support activities are operations that support the creation of value (primary activities)The firm’s infrastructure (accounting, finance, management)Human resources management Technology development (R&D) ProcurementThe initial purpose of the value chain model was to analyze the internal operations of a corporation in order to increase its efficiency, effectiveness, and competitiveness. We can extend that company analysis by systematically evaluating a company’s key processes and core competencies to eliminate any activities that do not add value to the product.
اسلاید 16: Chapter 1316The Value Chain (Continued)
اسلاید 17: Chapter 1317The Value SystemThese Internet-based EDI systems offer strategic benefits Faster business cycle (PO to Receiving)Automation of business procedures (Automated Replenishment)Reduced operational costsGreater advantage in a fierce competitive environmentA firm’s value chain is part of a larger stream of activities, which Porter calls a value system. A value system includes the suppliers that provide the inputs necessary to the firm and their value chains. This also is the basis for the supply chain management concept. Many of these alliances and business partnerships are based on Internet connectivity are called interorganizational information systems (IOSs)
اسلاید 18: Chapter 1318Sustaining a Strategic Information System (SIS)These Internet-based EDI systems offer strategic benefits.One popular approach is to use inward systems that are not visible to competitors. These proprietary systems allow the company to perform the activities on their value chain differently than their competitors.Strategic information systems are designed to establish a profitable and sustainable position against the competitive forces in an industry. Due to advances in systems development it has become increasingly difficult to sustain an advantage for an extended period. Experience also indicates that information systems, by themselves, can rarely provide a sustainable competitive advantage. Therefore, the major problem that companies now face is how to sustain their competitive advantage.
اسلاید 19: Chapter 1319Strategic Resources And Capabilities
اسلاید 20: Chapter 1320Strategic Resources And Capabilities (Continued)
اسلاید 21: Chapter 1321IT Planning – Critical
اسلاید 22: Chapter 1322IT Planning — A Critical Issue for Organizations (Continued)
اسلاید 23: Chapter 1323IT Alignment with Organizational Plans: The primary task of IT planning is to identify information systems applications that fit the objectives and priorities established by the organization. Analyze the external environment (industry, supply chain, competition) and the internal environment (competencies, value chain, organizational structure) then relate them to technology (alignment).Alignment is a complex management activity whose complexity increases in accordance with the complexity of organization.Strategic Information Technology Planning - Stage 1 The first stage of the IT planning model identifies the applications portfolio through which an organization will conduct its business. This stage can also be expanded to include the process of searching for strategic information systems (SIS) that enable a firm to develop a competitive advantage. This involves assessing the current business environment and the future objectives and strategies.
اسلاید 24: Chapter 1324The business systems planning (BSP) model, developed by IBM, deals with two main building blocks which become the basis of an information architecture.Business processes Data classesStages Of IT Growth Model, indicates that organizations go through six stages of IT growthInitiation. When computers are initially introduced.Expansion (Contagion). Centralized growth takes place as users demand more applications.Control. In response to management concern about cost versus benefits, systems projects are expected to show a return.Integration. Expenditures on integrating (via telecommunications and databases) existing systemsData administration. Information requirements rather than processing drive the applications portfolio.Maturity. The planning and development of IT are closely coordinated with business developmentStrategic Information Technology Planning – Methodologies Several methodologies exist to facilitate IT planning.
اسلاید 25: Chapter 1325Critical success factors (CSFs) are those few things that must go right in order to ensure the organizations survival and success. Critical success factors vary by industry categories—manufacturing, service, or government—and by specific industries within these categories. Sample questions asked in the CSF approach are:What objectives are central to your organization?What are the critical factors that are essential to meeting these objectives?What decisions or actions are key to these critical factors?What variables underlie these decisions, and how are they measured?What information systems can supply these measures?Scenario planning is a methodology in which planners first create several scenarios, then a team compile possible future events that may influence the outcome of each scenario.Strategic Information Technology Planning – Methodologies (Continued)
اسلاید 26: Chapter 1326Critical success factors (CSFs)Strategic Information Technology Planning – Methodologies (Continued)
اسلاید 27: Chapter 1327Global CompetitionGlobal dimensions along which management can globalizeProductMarkets & PlacementPromotionWhere value is added to the productCompetitive strategyUse of non-home-country personnel - laborMultidomestic Strategy: Zero standardization along the global dimensions. Global Strategy: Complete standardization along the seven global dimensions.Many companies are operating in a global environment. Doing business in this environment is becoming more challenging as the political environment improves and as telecommunications and the Internet open the door to a large number of buyers, sellers, and competitors worldwide. This increased competition is forcing companies to look for better ways to compete globally.
اسلاید 28: Chapter 1328IT Planning — Web-based Systems
اسلاید 29: Chapter 1329Managerial IssuesSustaining competitive advantage. Importance. Organizing for planning. Fitting the IT architecture to the organization. IT architecture planning. IT policy.Ethical and legal issues. IT strategy.
اسلاید 30: Chapter 1330Chapter 13Copyright © 2008 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without the express written permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information contained herein.
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