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PPTTEST 4/29/2015 19:07 1 IT Ron Williams Information Technology Management Strategy & IT.

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Presentation on theme: "PPTTEST 4/29/2015 19:07 1 IT Ron Williams Information Technology Management Strategy & IT."— Presentation transcript:

1 PPTTEST 4/29/ :07 1 IT Ron Williams Information Technology Management Strategy & IT

2 PPTTEST 4/29/ :07 2 IT Ron Williams IT Strategy Triangle Business Strategy Organizational Strategy IT Strategy All 3 Strategies Need to be in Harmony Multiple Ways to Create Harmony

3 PPTTEST 4/29/ :07 3 IT Ron Williams Business Strategy Frameworks High level strategic business concepts –Efficiency ( low cost) vs. Innovation –Value disciplines (Tracy & Wiersema) Operational Excellence Product Leadership Customer intimacy More specific strategic business concepts –Porter’s Generic Strategies Framework (and its variants) –Co-opetition (Brandenburg and Nalebuff) –Hypercompetition and the New 7-S’s framework (D’Aveni)

4 PPTTEST 4/29/ :07 4 IT Ron Williams Value Capturing Strategies Product Leadership Customer Intimacy Operational Excellence Leadership requires a primary strategy

5 PPTTEST 4/29/ :07 5 IT Ron Williams Porter’s Value Chain Suppliers Enterprise Intermediaries Customers Value Chain Vertical Process Integration 3 Ways to Differentiate Low Cost Differentiation as Viewed by Customer Narrow Segment Focus Joined-up Business

6 PPTTEST 4/29/ :07 6 IT Ron Williams Hypercompetition and the New 7-S’s framework (D’Aveni) Sustained competitive advantage is not possible Only temporary advantages exist, created by a company’s speed and aggressiveness. Assumes: –Every advantage becomes eroded –Sustaining an advantage uses too much time and resources. –Instead, companies must seek to stay ahead of its competitors by creating temporary advantages –These are done in small steps over short competitive cycles. Focus on creating the next temp. advantage.

7 PPTTEST 4/29/ :07 7 IT Ron Williams Co-opetition – The Value Net Value Net Virtual integration Differentiation Focus on Customer Needs Co-source Processes Coordinate Partners to Assemble Strategic Advantage Enterprise Customers Suppliers Intermediaries/ Complementors Competitors/ Substitutors New Joined- up Business

8 PPTTEST 4/29/ :07 8 IT Ron Williams Attributes of the different Value Capturing Strategies Processes optimized for end to end supply Operations culture is standardized, simplified, tightly controlled, centrally planned Metrics are cost based Integrated, Reliable, High speed transaction systems Standardization “When it absolutely, positively has to be there overnight Focus on Core Processes of invention, product development, and market exploitation Loosely knit, ad hoc business structure Metrics are on product success and don’t punish experimentation Operations culture is individualistic, out of the box, futuristic, Team based Focus on core processes of solution development, results management, relationship management Operations culture delegates decision making to employees closest to customer Metrics are based on results from carefully selected and nurtured clients. Intent is to create deep and lasting relationships with clients Specific (custom) solutions preferred over general solutions Product Leadership Customer Intimacy Operational Excellence Leadershi p requires a primary strategy

9 PPTTEST 4/29/ :07 9 IT Ron Williams Traditional IT Investment Portfolio Communications Data Base Office Automation Groupware MIS Decision Support Knowledge Mgn’t Processing Business Activities Orders Sales Shipment

10 PPTTEST 4/29/ :07 10 IT Ron Williams The Value Chain Information Flows Suppliers Enterprise Intermediaries Customers Value Chain Joined-up Business Information Flows Product to Customer Vertical integration Processes are internally focused Product/Service Flow

11 PPTTEST 4/29/ :07 11 IT Ron Williams Future State : The Value Net Drive from customer need – not products Assemble the solution from the value net to match the need Virtual integration Processes are externally focused & executed by the members of the value net that can best execute them Value Net Enterprise Customers Suppliers Intermediaries/ Complementors Competitors/ Substitutors New Joined- up Business

12 PPTTEST 4/29/ :07 12 IT Ron Williams The Business Organization (Hammer and Champy) Jobs and Structures Management and Measurement systems Business Processes Values and Beliefs

13 PPTTEST 4/29/ :07 13 IT Ron Williams Flat Organizational Structure Hierarchical Organizational Structure Region Industry Region 1 Region 2 Region 3 Ind. 1Position for Ind. 1 in region 1 Pos. for Ind.1 in region 2 Pos. for Ind.1 in region 3 Ind. 2Pos. for Ind.2 in region 1 Pos. for Ind.2 in region 2 Pos. for Ind.2 in region 3 Ind. 3Pos. for Ind.3 in region 1 Pos. for Ind.3 in region 2 Pos. for Ind.3 in region 3 Matrix Organizational Structure Hierarchical, flat and matrix organizational structures

14 PPTTEST 4/29/ :07 14 IT Ron Williams The networked organization The networked organization is a new form, made possible by IS. Instead of rigid hierarchies, all parts of the company are connected by formal and informal communications.

15 PPTTEST 4/29/ :07 15 IT Ron Williams IT Impact on Organization ( Structure, Processes, Culture)? Computer Transaction systems Databases PC Telecommunications Internet

16 PPTTEST 4/29/ :07 16 IT Ron Williams How do You Get the 3 in Sync? Business Strategy Organizational Strategy IT Strategy Change Enabler One-way? Two-way? Improvisation?

17 PPTTEST 4/29/ :07 17 IT Ron Williams What Happens When my Business Strategy is Value-Net Based?


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