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Enterprise Strategy/AW/09

            Arj Wignaraja
IS
Strategy
                         IM
What?                 Strategy

                      Who?


              IT
           Strategy

           How?
Internal
                           S W
                           O T
                                                         External




               Helpful               Harmful


On a SWOT analysis, IT/IS can appear in any of the 4 quadrants
Potential
                                Entrants

              Rivalry among                 Threat of New
              Existing firms                Entrants




          Bargaining
                               Competitors        Bargaining
Sellers                                                             Buyers
                                 The firm
          Power of Sellers                        Power of Buyers


                                       Threat of Substitute
                                       Product or Service


                               Substitutes

          IS/IT can be used to counter Porter’s five forces
Strategic Advantage
                      Uniqueness perceived
                                                   Low Cost Position
                          by customer




                      DIFFERENTIATION                    COST
                                                      LEADERSHIP
        Broad
Scope




                                         FOCUS
        Narrow




                       Differentiation                Cost Focus
                            Focus




                 IS/IT is an enabler for each of Porter’s generic strategies
firm infrastructure

               human resource management

               technological development
support
activities     procurement




                                                                service
                           operations




                                                    marketing
                                        outbound




                                                     & sales
              logistics
             inbound




                                        logistics




                           primary activities
                      IS/IT impacts every part of the value chain
Strategic impact of future systems
                      Low                    High

            Low          SUPPORT       TURNAROUND




Strategic impact
of current
systems                  FACTORY       STRATEGIC



            High
1. Gain top          2. Creating the
    management           technological
    support              infrastructure




  3. Creating the     4. Creating a sharing
     database            culture
     structures


5. Populating the
   database & using
   the knowledge
09 e3 it & km lecture notes

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09 e3 it & km lecture notes

  • 2. IS Strategy IM What? Strategy Who? IT Strategy How?
  • 3. Internal S W O T External Helpful Harmful On a SWOT analysis, IT/IS can appear in any of the 4 quadrants
  • 4. Potential Entrants Rivalry among Threat of New Existing firms Entrants Bargaining Competitors Bargaining Sellers Buyers The firm Power of Sellers Power of Buyers Threat of Substitute Product or Service Substitutes IS/IT can be used to counter Porter’s five forces
  • 5. Strategic Advantage Uniqueness perceived Low Cost Position by customer DIFFERENTIATION COST LEADERSHIP Broad Scope FOCUS Narrow Differentiation Cost Focus Focus IS/IT is an enabler for each of Porter’s generic strategies
  • 6. firm infrastructure human resource management technological development support activities procurement service operations marketing outbound & sales logistics inbound logistics primary activities IS/IT impacts every part of the value chain
  • 7. Strategic impact of future systems Low High Low SUPPORT TURNAROUND Strategic impact of current systems FACTORY STRATEGIC High
  • 8. 1. Gain top 2. Creating the management technological support infrastructure 3. Creating the 4. Creating a sharing database culture structures 5. Populating the database & using the knowledge

Notas do Editor

  1. Inbound logistics :Receipt and handling of inputs into the process and disseminating them within the firm, such as warehousing, inventory control and vehicle scheduling.2. Operations: Transforms the inputs into final product such as machining, packaging,testing and equipment maintenance.3. Outbound logistics: Collecting, storing and distributing the products to buyers. Thismay include finished goods warehousing, delivery vehicle operation, order processing and scheduling.4. Marketing and sales: Concerned with providing customers with a means to buy and enjoy the product and inducing them to do so. Includes advertising and promotion, channel selection, sales force management and pricing policy.5. Service: Post-purchase service to enhance or maintain the value of a service such as installation, maintenance, training and supply of parts and consumables.