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Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Instructor’s.

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Presentation on theme: "Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Instructor’s."— Presentation transcript:

1 Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Instructor’s Manual Module 1 IT and Business Advantage > US$ 2 trillion spent on IT worldwide in 2007  Continued rapid spending growth  Truly global spending distribution Ever increasing dependence on and impact of IT  Search for opportunity  Avoidance of operational risk Module 1 discusses how to leverage IT to create business advantage.

2 Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Module 1: IT and Business Advantage Overview of Chapters Chapter 1 Introduces the organizing framework for the module Defines a business model Explores evaluation of business models Chapters 2 Examines the impact of IT on business models Chapter 3 Examines the impact of IT on organizational capabilities Chapter 4 Examines the impact of IT on business value

3 Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Module 1: IT and Business Advantage The Five Competitive Forces that Shape Strategy Michael Porter’s classical theory of strategy formulation Original HBR article in 1979 Simple, powerful description of five forces Five forces analysis in practice Five forces distinguished from contemporary “factors” (e.g. the internet) What can we learn from this article? How economic value is created and claimed by participants in a business network or industry How IT might change the relative strength of each force

4 Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Module 1: IT and Business Advantage Amazon.com: The Brink of Bankruptcy Traces evolution of Amazon.com from founding in 1994 to 2001 The case ends with the company poised at the “brink of bankruptcy” What can we learn from this case? Apply business model thinking Demonstrate how IT can be used as a key driver of business value through its impact on strategy and organizational capabilities Identify how to identify IT-enabled proprietary assets that can serve as a platform to exploit disruptive change

5 Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Module 1: IT and Business Advantage Canyon Ranch Founded in 1979 Leader in health resort and spa industry Facing increasing competitive pressure Goal: leverage customer information to increase customer loyalty and cross-selling opportunities Role of IT in building CRM capabilities What can we learn from this case? How to use information assets to drive business value How IT can shape strategy and capabilities

6 Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Module 1: IT and Business Advantage Boeing’s e-Enabled Advantage Until late 1990s, largest commercial airplane company Airline industry faces multiple challenges Customers face increased cost pressure Fragmented suppliers Boeing drops to #2 behind government-subsidized rival, Airbus Strategic goal: use IT to regain market dominance More information-driven product and service offerings Improved IT-enabled efficiency What can we learn from this case? How to use IT to differentiate a product and create new revenue streams by selling packaging and selling information and by creating new service offerings

7 Applegate, L.M., Austin, R.D., and Soule, D.L., Corporate Information Strategy and Management, 8 th edition, Burr Ridge, IL: McGraw-Hill/Irwin, 2009 Module 1: IT and Business Advantage Royal DSM N.V.: IT enabling Business Transformation Diversified Netherlands-based company Coal mining, industrial chemicals, life science products, etc. Strategic shift from highly cyclical businesses to high growth businesses Rapid divestitures and acquisitions Use IT to enable rapid growth and acquisition integration Standardization of IT infrastructure and applications IT function shifts from support to strategic What can we learn from this case? How to leverage IT in support of organizational flexibility and agility How to use IT to build an organizational platform for business transformation


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