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Chapter 5

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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Chapter 5

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  1. Chapter 5 IS/IT Strategic Analysis: The Future Potential

  2. Agenda • Criteria for effective planning • Business strategic and IS/IT strategic analysis methods • Market leadership • Value Chain • Strategic option generator • Resource life cycle analysis

  3. Criteria for Effective Planning • Situation analysis and competitive assessment • Evaluation of strategic options • Dynamic allocation of resources

  4. 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)

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

  6. Value Chain Analysis - I • corporate value chain = support activities & primary activities = value added = • Value added – cost = margin

  7. Value Chain Analysis - II • Support activities • Administration and infrastructure • Human resources management • Product and technology development • Procurement

  8. Value Chain Analysis - III • Primary activities • Inbound logistics • Operations • Outbound logistics • Sales and marketing • Services

  9. 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

  10. 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

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

  12. Strategic Option Generator - I • By Rackoff, Wiseman and Ullrich • To identify strategic IS opportunities in relation to three targets • Customers • Suppliers • Competitors

  13. Strategic Option Generator - II • Five strategic thrusts • Differentiation • Cost • Innovation • Growth • Alliance

  14. 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

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

  16. Resource Life-Cycle Analysis • By IBM • Four main stages • Requirements determination • Acquisition • Stewardship • Retirement or disposal

  17. 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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