Strategic Choices for Effective Business Growth

1. What is Strategy? IT Strategy Ken Peffers UNLV September 2004

2. Strategy • Originally military concept

3. Levels of Action • Strategy • The highest levels of planning and action • Having to do with goals, objectives, survival • Tactics • Methods of implementing strategy • Operations • Day to day and hour by hour planning and actions [Different organizations have different strategies]

4. A Strategy Against Terrorism (North American) • Maintain a large military capability • Liberty worth fighting for • Develop sophisticated, intelligent weapons to take the place of large numbers of soldiers • Voluntary army • Sensitivity to casualties • Have sufficient strength to act alone if necessary • Preempt the enemy by striking at probable and potential adversaries • Engage the enemy in his territory • The best defense is a good offense

5. An Alternate Strategy (European) • Maintain a minimum level of military capability • War is always bad—experience of two world wars • Military expenditures interfere with more important expenditures • Deal with terrorism using statements deploring it, diplomacy, and law enforcement • Tolerate a reasonable level of terrorism

6. US Strategy in the Middle East A Subsidiary Strategy • Strike directly at states that support terrorism • Develop leverage with other states to encourage them to behave • Cut off funding for terrorists • Cooperate with law enforcement, etc. • Move toward democratic governance

7. Tactics • Turn power over to interim government • Train Iraqi military and police forces • Contract with Halliburton to provide food and beverage service to the troops

8. Operations • Plan and carry out the activities for the day • Schedule and implement patrols for the day • Deliver MRE in sufficient quantity • Perform scheduled maintenance on vehicles • Compute and issue payroll statements for personnel

9. Involves basic choices about mission, objectives and goals of the firm Strategic choices Product Customers Pricing Growth Firm size Innovation Resources Channels Cost vs differentiation Strategy in Business

10. Strategy—Kim & Mouborgne • Six stages of buyer experience • Purchase, delivery, use, supplements, maintenance, disposal • Six utility levers • Customer productivity, simplicity, convenience, risk, fun & image, environmental friendliness • Choose one or more cells in 2X2 framework in which to provide exceptional value • Identify the strategic price • achieve economies of scale and network externalities • Develop and achieve cost target • Consider sourcing • Overcome adoption hurdles

11. Strategy—George Day • Growth of the firm • Price—value leaders • Grow by extending value—growth proposition to adjacent markets • Relational—value partners • Grow by expending the definition of the solution • Performance—value leaders grow by constant innovation

12. Strategy—Kim and Mauborgne • Value innovation • Rethink the value provided to the customer • Four questions • Which industry factors should be eliminated? • Which factors should be reduced below industry standards? • Which factors should be increased above industry standards? • Which factors should be created that industry never considered?

13. Strategy—Moore

14. What is IT Strategy • Subservient to business strategy • Alignment of IT goals and objectives with those of the business

15. IT Strategy Issues—Polansky, Inuganti, and Wiggins • IT Governance—how is IT managed, measured, etc. • IT Portfolio management • Which systems to build? • IT organization and staffing • Technology & architecture • Sourcing • Build or buy, in or outsourced • Support corporate governance • Accountability, transparancy

16. IT Strategy Issues • Business intelligence-actionable • Business transformation • Integration • Process improvement • Customer Care • CRM • Internet & E-business • E-business strategies • Applications • Employee portals • VOIP

17. Other Issues?