1. Chapter 1: Creating Business Advantage with IT
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2. Major Models Macroeconomic Model Evolution (pg. 27)
Value Chain (pg. 30)
Market Roles (pg. 31)
Industrial vs. Network Economy (pg. 32)
Porter’s Five Competitive Forces (pg. 33)
Strategic Grid (pg. 34)
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3. Porter’s Model Along Industry Boundaries Threat of Substitutes
Along the Extended Value Chain
Traditional
Rivalry
Among
Competitors
Bargaining Power Of
Suppliers
Bargaining Power Of
Buyers
Threat of
New Entrants
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4. A Closer Look at the Value / Supply Chain
Along the Extended Value Chain
Focal Firm
Suppliers
Buyers
IT can help integrate and strengthen the supply chain.
What does this imply for suppliers and buyers?
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5. Integration Focal Firm Suppliers Buyers
Integration means the boundaries between the focal firm and its suppliers and buyers becomes more “permeable” and “transparent”. What does THIS imply?
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6. Strengthening Focal Firm Suppliers Buyers
Strengthening means that suppliers’ and buyers’ freedom to act outside the supplying, buying relationship becomes restricted; hence unique identity becomes lowered. What does THIS imply for the suppliers and buyers?
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7. OffLoading Focal Firm Suppliers Buyers
Offloading means that processes that used to be costs or risks for the focal firm become costs or risks for suppliers and/or buyers. Coupled with other effects, what does that mean?
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8. Potential Downside? Effects of IT Integration Strengthening Offloading
Brittleness, Overcontrol, Lack of Variety
Culture of Lack of Risk Taking
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9. Value Chain DATA INFORMATION KNOWLEDGE Informa-tion Activities
Core Opera-ting Activities
Infra-structure Activities
Inbound Operations Outbound Sales After Sales Logistics Logistics Service
Facilities & Technology People
Equipment
What is the relationship among these three levels? How does it come about? How is it maintained?
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10. Market Roles The Market Producers Suppliers Customers Distributors
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11. Components of a Business Model
CONCEPT:
Opportunity &
Strategy
CAPABILITIES:
Resources needed
VALUE:
Benefits to
stakeholders
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12. Strategic Impact of IT Support: No strategic impact now or planned
Turnaround: No strategic impact now, but in the future
Factory: Current strategic impact, but nothing new planned
Strategic: Now and in the future
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13. Strategic Grid FACTORY “Reengineer” STRATEGIC “Change Management”
Low Operations Impact High
SUPPORT:
“Improvement”
TURNAROUND
“New Venture
Development”
Low Strategy Impact High
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14. Strategic Grid -Evolution
FACTORY
STRATEGIC
Low Operations Impact High
SUPPORT
TURNAROUND
Low Strategy Impact High
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15. Critical Questions What is “Strategic”? What are “core operations”?
What are “strategic activities”?
Can an entire organization be so characterized?
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16. Making the Case for IT
Type I Benefit: from IT infrastructure investment (to IT itself)
Type II Benefit: From doing business using IT infrastructure
Commerce: Production and Marketing
Content/Knowledge: Intelligence
Community: Human Process
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17. Analyzing the Impact of IT on Strategic Decision Making
Can IT Be Used to Reengineer Core Value Activities and Change the Basis of Competition? (economies of scale, scope, style)
Can IT Change the Nature of Relationships and the Balance of Power among Buyers and Suppliers?
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18. Analyzing the Impact of IT on Strategic Decision Making, Cont’d
Can IT Build or Reduce Barriers to Entry?
Can IT Increase or Lower Switching Costs?
Can IT Add Value to Existing Products and services?
Can IT Create NEW Products and Services?
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19. THEMES Market Structure and Industry Dynamics Evolving Business Models
IT Impact
Prioritizing IT Investments
Assimilation and Organizational Learning
Buy vs. Make
Partnership among Key Constituencies as IT Evolves
Protecting IT Assets and Managing Risks
Pervasive Computing: Opportunities & Risks
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