1. Project and Information Systems: IS Strategy Triangle Model
Jason C. H. Chen, Ph.D.
Professor of MIS
School of Business Administration
Gonzaga University
Spokane, WA 99258

2. PM (and any Business) should focus on:
creativity
Entrepreneur
企 业 家  

4. Learning Objectives
Understand the concepts of Project and Information Systems
Understand IS Triangle Strategy Model and how to employ it to improve competitive advantage for project management
Understand Porter’s Competitive Advantage Strategy and how to apply it to create/improve organization competitive advantage

5. IS vs. IT ?
IS = IT
Why?

6. Which component is more important?
MIS M I S
Which component is more important?

7. Computers Impact The good news:
Computers allow us to work 100% faster.
The bad news:
If it's green, it's biology, if it stinks, its chemistry, if it has numbers its math, if it doesn't work, its technology.
They generate 300% more work.

8. Question?
What is the only entity remains unchanged in the business?
Answer:
“Change”

9. INTRODUCTION
Shouldn’t managers rely on experts when it comes to making the decisions on IS for their organizations?
Managers today need to know about their organization’s capabilities and uses of information as much as they need to understand how to obtain and budget financial resources.
A manager who does not understand the basics of managing and using information cannot expect to be successful in today’s business environment.
“NO”
Managing information is a critical skill for success in today’s business environment
All decision made by company include, at some level, the management and use of IS
Managers know –
a) organization’s capabilities, and 2) use of information as much as they need to understand how to obtain and budget financial resources

10. Reasons: IS must be managed as a critical resource
Figure I.1 - Reasons why business managers should participate in information systems decisions
Reasons:
IS must be managed as a critical resource
IS enables ________ in the way people work together.
change
IS are part of (and integrate) almost every aspect of business.
IS enable or inhibit business ___________ and new __________.
opportunities
strategies
IS can be used to combat ____________
business challenges from competitors

11. Technology vs. Technique
is the making, usage, and knowledge of tools, machines, techniques, crafts, systems or methods of organization in order to solve a problem or perform a specific function.
It can also refer to the collection of such tools, machinery, and procedures.
Technique
Personal habits
Work style

12. Failed IS Projects
Standish Group found that 67 percent of all software projects are challenged
Late, over budget or fail to meet performance criteria.
Managing a business project means managing an information systems project.
Why?
Many systems use or integrate the Internet. 12

13. Successful IS Projects
To succeed, “a” general manager must be a project manager and must learn how to manage this type of risk.
Executive management no longer has an option but to consider skilled IT project management as fundamental to business success.

14. The Need for Project Management
Critical for companies today: the ability to adapt existing business processes faster than the competition
Typical adaptation projects include:
“Rightsizing” the organization (what is another name?)
Reengineering business processes
Adopting more comprehensive, integrative processes

15. What are the three elements in the “Project Triangle”?
What is the center in the triangle?

16. Project Triangle (Project Management Trade-offs)
Time
Cost
The center of project triangle is
QUALITY
Figure 11.2 Project Triangle (Project Management Trade-offs) – mbus626
Scope
The objective of the PM is to define project’s scope realistically and ultimately deliver quality of product/service on time, on budget and within scope.

17. Typical Project Management trade-offs
Scope
Product: quality, features, functions
Project: work required to deliver product/service
Time – the time required to complete the project
Cost – all the resources required to carry out the project.
Cost vs. Quality
The quality of a system will normally impact its cost.
Figure above shows the three sides of the project triangle. 17

18. Project Manager’s Role
The project manager will typically be involved in:
Ensuring progress of the project according to defined metrics..
_____________
Ensuring progress toward deliverables within _____ and
_________________
Running coordination meetings.
Negotiating for resources on behalf of the project.
Business projects are often initiated because of a successful business case. 
A successful project begins with a well-written business case (i.e., spells out components of the project.)
Identifying risks.
time
resource constraints
But, not to determining the best fit of the project in the organizations vision
A business case is a structured document where all relevant information needed to make a decision is laid out. It is similar to a legal case.
The business case for an IT project is (ch. 10; p Pearlson)
a way to establish IT priorities. Determine which projects to invest in
an opportunity to identify how IT and the business will
deliver new benefits,
gain commitment from business managers,
and create a basis for monitoring the investment
Primary elements are listed in Figure 10.4
Critical to business case is to identify
costs and benefits,
Financial and non-financial.
Fig 10.5 shows how these benefits are identified. 18

19. The Great Dividing Line Between SUCCESS and
FAILURE
Can be Expressed
In Five Words
“I Did Not Have ______”
TIME

20. Planning is everything ... What are Two Major Outputs for an organization?
Vision
develop
Mission
Customers,
market,
competition
guide
Strategy
create
Vision statement: one that a company (or projects) would like to be
Mission statement: is about where and what they portray today
Knowledge ---> Intelligence ---> Wisdom
Attention economy:
Time and attention are the scarcest resource. The completion for available attention is heating up; investing it wisely became a competence of increasing value.
Only wisdom can guide effective decisions on how we invest our attention.
Experience economy:
Today’s customers are looking for more than products/services; they want to have a memorable experience of buying and using them for achieving their aspirations.
One of the largest buying powers in the US, “cultural creative” value transformation higher than other types of market offers.
Tactic
Products,
Services N

21. What is “Strategy”?
A strategy is a plan of action designed to achieve a vision.
The science or art of combining and employing the means of war in planning and directing large military movements and operations.
"Strategy is the direction and scope of an organization over the long-term: which achieves advantage for the organization through its configuration of resources within a challenging environment, to meet the needs of markets and to fulfill stakeholder expectations".

22. Strategy vs. Tactics Strategy versus Tactics
Long range versus day-to-day
Dreaming versus doing
Doing the right thing versus doing things right
The fundamental principles of strategy are the same for all, all times, and all situations. Only tactics change, and tactics are modified to the times.
In warfare, battlefield tactics is how to handle one’s army when it is face-to-face with the enemy.
Today each of us has to be our own strategic leader. Every company, every state need a strategy for competing and surviving (if not succeeding). In these unstable uncertain times even more so.
Conflict isn’t the whole of life, but it is an important part of it. If you always run away from confrontation or try to insulate your life against opposition, you are unlikely to achieve very much. Whatever and whoever you are, there will be times when you will have to fight and win.
All of us are engaged in a constant struggle for life, and in many if not most of our encounters with others, we must negotiate. The negotiation is, in many ways, the modern equivalent of samurai combat. Even friendly negotiation requires a similar approach to combat. Everyone, whatever they do, has to negotiate, not only over money and benefits, but also over almost any arrangements involving another person. You need to know what you want and you need to be able to get it.
“Strategy without tactics is the slowest route to victory. Tactics without strategy is the noise before defeat.” Sun Tzu

23. Strategy vs. Tactics Name an example of Strategy vs. Tactics
Today each of us has to be our own strategic leader. Every company, every state need a strategy for competing and surviving (if not succeeding). In these unstable uncertain times even more so.
Conflict isn’t the whole of life, but it is an important part of it. If you always run away from confrontation or try to insulate your life against opposition, you are unlikely to achieve very much. Whatever and whoever you are, there will be times when you will have to fight and win.
All of us are engaged in a constant struggle for life, and in many if not most of our encounters with others, we must negotiate. The negotiation is, in many ways, the modern equivalent of samurai combat. Even friendly negotiation requires a similar approach to combat. Everyone, whatever they do, has to negotiate, not only over money and benefits, but also over almost any arrangements involving another person. You need to know what you want and you need to be able to get it.
“All men can see these tactics whereby I conquer, but what none can see is the strategy out of which victory is evolved.” Sun Tzu

24. Information System Strategy Triangle
Business (Firm)
Strategy
Where is the business going and why?
Direction for business
Needs and priorities
IT impact and potential
Infrastructure and services
Supports business
Organizational Strategy
IS/IT Strategy
Fail to balance these three strategies
IS fail to support business goals
IS fail to support organizational system
Misalignment between business & org. strategies
A business strategy is a well-articulated vision of where the business seeks to go and how it expects to get there; An organizational strategy is the organization’s design, as well as the choices it makes to define, set up, coordinate, and control its work processes; IS strategy is the plan the organization uses in providing information systems and services.
IS strategy can itself affect and is affected by changes in a firm’s business and organizational strategies. Moreover, IS strategy always has consequences – intended or not – on business and organizational strategies.
Business strategy
business decisions; -- Objective and direction; -- Change;
Organizational strategy
-- A plan that answers the question: How will the company organize in order to achieve its goals and implement its business strategy?
Thus, it is a plan for organizational design, and choices the firm makes that define, set up, coordinate, and control its work processes.
business based; - Demand oriented; - Application focused
IS/IT strategy
activity based; -Supply oriented; -Technology focused
Gain strategic advantage by using IT …
It consists of four major elements: 1) Architecture/Infrastructure, 2) MIS Organization, 3) Funding and 4) Project Management
What is required?
How it can be delivered?
1. Architecture/Infrastructure
2. MIS organization (Sourcing, Governance etc.)
3. Funding

25. Information System Strategy Triangle
PROJECT MANAGEMENT
Business (Firm)
Strategy
Where is the business going and why?
Direction for business
Needs and priorities
IT impact and potential
Infrastructure and services
Supports business
Organizational Strategy
IS/IT Strategy
Fail to balance these three strategies
IS fail to support business goals
IS fail to support organizational system
Misalignment between business & org. strategies
A business strategy is a well-articulated vision of where the business seeks to go and how it expects to get there; An organizational strategy is the organization’s design, as well as the choices it makes to define, set up, coordinate, and control its work processes; IS strategy is the plan the organization uses in providing information systems and services.
IS strategy can itself affect and is affected by changes in a firm’s business and organizational strategies. Moreover, IS strategy always has consequences – intended or not – on business and organizational strategies.
Business strategy
business decisions; -- Objective and direction; -- Change;
Organizational strategy
-- A plan that answers the question: How will the company organize in order to achieve its goals and implement its business strategy?
Thus, it is a plan for organizational design, and choices the firm makes that define, set up, coordinate, and control its work processes.
business based; - Demand oriented; - Application focused
IS/IT strategy
activity based; -Supply oriented; -Technology focused
Gain strategic advantage by using IT …
It consists of four major elements: 1) Architecture/Infrastructure, 2) MIS Organization, 3) Funding and 4) Project Management
What is required?
How it can be delivered?
1. Architecture/Infrastructure
2. MIS organization
3. Funding
Information Resources can be used efficiently and effectively.

26. Information System Strategy Triangle
A business strategy is a well-articulated vision of where the business seeks to go and how it expects to get there.
An organizational strategy is the organization’s design, as well as the choices it makes to define, set up, coordinate, and control its work processes.
IS strategy is the plan the organization uses in providing information systems and services.

27. WHY STRATEGY?
Why is it important for business strategy to drive organizational strategy and IT strategy? What might happen if business strategy were not the driver?
The primary point in this chapter is that in any well-run organization, the business strategy drives the rest of the operational strategy, and information systems is no different. However, typically, managers seem to think that changing or upgrading an information system (or even a component of an information system) will only positively impact a business. Quite the opposite, in fact, is true. By making changes in organizational strategy or IT strategy first, the triangle is "out of balance" and there will be consequences in the affected areas.
For example, building a virtual organization, but not changing the business strategy to something like "insuring our people are productive and have the widest possible work place opportunities" can lead to significant disconnects between workers, their managers, and their customers. And, worse, without supplying the virtual worker with the appropriate information system (a computer at home, a laptop, etc) will lead to a decrease in productivity by the virtual worker, and a major disruption of business operations.
IBM focused on IT strategy (H/S W) however, did not balance Business and Organizational strategies, it failed in early 1990s.

28. Why is it important for business strategy to drive organizational strategy and IT strategy? What might happen if business strategy were not the driver?
Typically, managers seem to think that changing or upgrading an information system (or even a component of an information system) will only positively impact a business. Quite the opposite, in fact, is true. By making changes in organizational strategy or IT strategy first, the triangle is "out of balance" and there will be consequences in the affected areas.
For example, building a virtual organization, but not changing the business strategy to something like …
"insuring our people are productive and have the widest possible work place opportunities" can lead to significant disconnects between workers, their managers, and their customers. And, worse, without supplying the virtual worker with the appropriate information system (a computer at home, a laptop, etc) will lead to a decrease in productivity by the virtual worker, and a major disruption of business operations.

29. Example
Give an example in which a company fails to perform well because it does not align its three strategies.
Any?
too much focus on IT
used to be considered as a “hardware” company (Mainframe, Mini-computers, PC, DOS etc.)
new division established in early 1990: GLOBAL SERVICIE DIVISION
it now becomes a “Service” corp. – “TOTAL solution”
IBM
too much focus on IT
Used to be considered “hardware” company (PC, DOS etc.)
New division established in early 1990: GLOBAL SERVICIE DIVISION
“Service” corp. – “TOTAL solution”

30. Louis V. Gerstner, Jr. IBM former CEO and president (1992-2002)
Prior to joining IBM, Mr. Gerstner served for four years as chairman and chief executive officer of RJR Nabisco, Inc. This was preceded by an 11-year career at American Express Company, where he was president of the parent company and chairman and CEO of its largest subsidiary, American Express Travel Related Services Company. Prior to that, Mr. Gerstner was a director of the management consulting firm of McKinsey & Co., Inc., which he joined in 1965.
In January 2003 he assumed the position of chairman of The Carlyle Group, a global private equity firm located in Washington, DC.

31. HW
Each Group finds out another example (not limited to the high-tech industry) and analyze it using the IS/IT Triangle Strategy model.

32. Another Example?
Give another example (not in the high tech industry) in which a company fails to perform well because it does not align its three strategies.
Any?
too much focus other than IT
inefficient organization structure
Inefficient IT usage
IBM
too much focus on IT
Used to be considered “hardware” company (PC, DOS etc.)
New division established in early 1990: GLOBAL SERVICIE DIVISION
“Service” corp. – “TOTAL solution”

33. FORD IS Strategy Triangle: Old Strategy
Business (Firm)
Strategy
TOO MANY BRANDS/
FOCUSES
Organizational Strategy
IS/IT Strategy
Fail to balance these three strategies
IS fail to support business goals
IS fail to support organizational system
Misalignment between business & org. strategies
A business strategy is a well-articulated vision of where the business seeks to go and how it expects to get there; An organizational strategy is the organization’s design, as well as the choices it makes to define, set up, coordinate, and control its work processes; IS strategy is the plan the organization uses in providing information systems and services.
IS strategy can itself affect and is affected by changes in a firm’s business and organizational strategies. Moreover, IS strategy always has consequences – intended or not – on business and organizational strategies.
Business strategy
business decisions; -- Objective and direction; -- Change;
Organizational strategy
-- A plan that answers the question: How will the company organize in order to achieve its goals and implement its business strategy?
Thus, it is a plan for organizational design, and choices the firm makes that define, set up, coordinate, and control its work processes.
business based; - Demand oriented; - Application focused
IS/IT strategy
activity based; -Supply oriented; -Technology focused
Gain strategic advantage by using IT …
It consists of four major elements: 1) Architecture/Infrastructure, 2) MIS Organization, 3) Funding and 4) Project Management
COMPLICATED and Inefficient structure
Inefficient and ineffective IT usage N

34. FORD IS Strategy Triangle: New Strategy (ONE FORD)
ONE FORD STRATEGY:
One Team,
One Plan,
One Goal
Business (Firm)
Strategy
A simple-sounding plan with big consequences
Organizational Strategy
IS/IT Strategy
"An automobile has about 10,000 moving parts, right? An airplane has two million, and it has to stay up in the air." (on being asked "How are you going to tackle something as complex and unfamiliar as the auto business when we are in such tough financial shape?")
Alan Mulally, 2007[14]
If I were Mulally, I'd be excited too, because Ford is probably as well-positioned as it has ever been -- thanks to a simple-sounding plan with big consequences.
SIMPLE and Efficient Structure
Efficient and Effective IT Usage and Support N

35. If I were Mulally, I'd be excited too, because Ford is probably as well-positioned as it has ever been -- thanks to a simple-sounding plan with big consequences.

36. Alan Mulally: President and CEO, Ford Motor Company
In September 2006
Prior to joining Ford in September 2006, Mulally served as executive vice president of The Boeing Company, and president and chief executive officer of Boeing Commercial Airplanes. In that role, he was responsible for all of the company’s commercial airplane programs and related services. Mulally also was a member of the Boeing Executive Council and served as Boeing’s senior executive in the Pacific Northwest.
"An automobile has about 10,000 moving parts, right? An airplane has two million, and it has to stay up in the air." (on being asked "How are you going to tackle something as complex and unfamiliar as the auto business when we are in such tough financial shape?")
Alan Mulally, 2007[14]
If I were Mulally, I'd be excited too, because Ford is probably as well-positioned as it has ever been -- thanks to a simple-sounding plan with big consequences.
Management style
Mulally negotiated four new agreements with United Auto Workers, which has brought down labor costs from $76/hour to $55/hour.

37. BRIEF OVERVIEW OF BUSINESS STRATEGY FRAMEWORKS

38. Striving for Competitive Advantage
Firm level: Industry & Competitive Analysis
Business level
Competitive Forces Model (more details will be discussed next class)
Competitive Strategy
D’Aveni’s Hypercompetition Model (7s)
FIRM LEVEL – INTERNAL
BUSINESS LEVEL - EXTERNAL
Value-Chain Analysis

39. Business Strategy Frameworks
Porter’s Generic Strategies Framework (and its variants)
Hypercompetition and the New 7-Ss framework (D’Aveni)
Porter’s Generic Strategies Framework (and its variants)
-- Porter’s generic strategies model and its variants are useful for diagnostics or understanding how a business seeks to profit in its chosen marketplace, and for prescriptions, or building new opportunities for advantage.
-- The models were developed at a time when competitive advantage was sustainable because the rate of change in any given industry was relatively slow and manageable.
Hypercompetition and the New 7-S’s framework (D’Aveni)
-- The models suggest that the speed and aggressiveness of the moves and countermoves in any given market create an environment in which advantages are “rapidly created and eroded.” N

40. Competitive Advantage Focus
Figure 1.2: Porter’s Generic Strategy Framework –
3 Strategies for achieving Competitive Advantage
Competitive Advantage
Uniqueness
Perceived by
Customer
Lower Cost
Position
Industrywide (Broad Target)
Overall Cost Leadership
Differentiation
Competitive Scope
Three generic strategies
Cost leadership
differentiation (internal differentiation [e.g., stock option, bonus, salary increase] is good for building performance culture within the organization) From PRODUCT differentiation to SERVICE differentiation (BLUE OCEAN)
Focus (focused strategy is to develop a new market niches for specialized products/services where a target area better than its competitors) means an appropriate position/market
a. cost or
b. differentiation
PRODUCT differentiation  SERVICE differentiation  INNOVATION (BLUE OCEAN STRATEGY)
Core concept of this strategy are two basic principles:
1. Competitive advantage is believed to be the GOAL of any strategy
2. It is to be believed that a firm must define the TYPE of CA it seeks to attain and the scope within which it will be attained.
From “all things to all people” (a below-average performance) to a focus on core competencies.
Particular Segment only (Narrow Target)
Focus
Competitive Mechanism N
Dr. Chen, The Trends of the Information Systems Technology
TM -40

41. Porter’s Competitive Advantage Strategies
Cost leadership: be the cheapest
Differentiation: focus on making your product and/or service stand out for non-cost reasons
Focus: occupy narrow market niche where the products/services can stand out by virtue of their cost leadership or differentiation.

42. Business Strategies and its Competitive Advantage Innovation Alliance
Uniqueness
Perceived by
Customer
Lower Cost
Position
Industrywide (Broad Target)
Cost Leadership
Differentiation
Alliance
Innovation
Growth
Competitive Scope
Particular Segment only (Narrow Target)
Cost Focus
Differentiation Focus
Three generic strategies
Cost leadership
differentiation (internal differentiation [e.g., stock option, bonus, salary increase] is good for building performance culture within the organization) From PRODUCT differentiation to SERVICE differentiation (BLUE OCEAN)
Focus (focused strategy is to develop a new market niches for specialized products/services where a target area better than its competitors) means an appropriate position/market
a. cost or
b. differentiation
PRODUCT differentiation  SERVICE differentiation  INNOVATION (BLUE OCEAN STRATEGY)
Core concept of this strategy are two basic principles:
1. Competitive advantage is believed to be the GOAL of any strategy
2. It is to be believed that a firm must define the TYPE of CA it seeks to attain and the scope within which it will be attained.
From “all things to all people” (a below-average performance) to a focus on core competencies.
Knowledge-based economy
Industrial economy
Competitive Mechanism N
Dr. Chen, The Trends of the Information Systems Technology
TM -42

43. BRIEF OVERVIEW OF ORGANIZATIONAL STRATEGIES

44. Summary of Key Strategy Frameworks
Generic Strategies: Competitive Advantage (CA) through low cost, differentiation or focus
Hypercompetition: CA is temporary, created through speed and aggression in the market
to be introduced next class

45. Porter’s Model vs. Hypercompetition Model Competitive Advantage
Industries
Competitive Advantage
(Characteristics)
(How to)
Porter’s Model
Relatively stable
Establish a strong, long-term position and defend it.
Attain a fit with the environment as in traditional markets
Hyper-competition Model
Dynamic
1) Ever-increasing competition
2) Changing power between players
Short-lived, take advantage of any small window of opportunity that arises (thru speed and aggression)
1) change rules of competition
2) create disruptions (during which temporary advantages can be exploited)
Due to characteristics of the instability of the markets in e-Commerce, Downes and Mui (1998) show that there are three forces that must be added to Porter’s five forces model: globalization, digitalization, and deregulation.
digitalization – the improvement and cost reductions in digital technology have had significant impact in business for many years now. The Internet has simply accelerated much of what was already happening and spread it into other industries across the world (esp. the information-based industries).
Deregulation and liberalization – it opened up new opportunities for many firms, and recent years have seen an increase in the number of related diversifications. (e.g., UK companies in the energy sector have branched out into related markets such as other forms of energy or telecommunications, making use of their physical distribution networks).
Globalization – an international level of many industries and liberalization of many markets (e.g., Eastern Europe) have opened up new foreign markets for Western firms while bringing Western firms into competition with multinationals based in other countries.,
Such international competition is likely to accelerate following political moves, such as the signing of the General Agreement on Trade and Tariffs by the leading industrial nations which promise to reduce barriers to international trade.

46. Figure - Business Level: The Value Chain
Competitive
Advantage
(Value)
A company’s value activities fall into nine generic categories.
-- Primary activities are those involved in the physical creation of the product, its marketing and delivery to buyers, and its support and servicing after sale.
-- Support activities provide the inputs and infrastructure that allow the primary activities to take place.
IT can profoundly affect one or more of these activities -
- sometimes simply by improving effectiveness,
- sometimes by fundamentally changing the activity, and
- sometimes by altering the relationship between activities.
In addition, the actions of one firm can significantly affect the value chain of key customers and suppliers.
Operations: Boeing -- Lean Manufacturing
After-Sale Service - maintenance technology
Devices identify potential problems before the customer notices a difficulty and enable the service representative to fix the elevator before it breaks down, reducing repair costs and increasing customer satisfaction.
Corporate Infrastructure
- on-line links to integrate remote locations (27% sales growth)
MANAGEMENT CONTROL
- more sophisticated reward systems software (sales commission on each
product sold by its sales force; thus
(a) maximum incentive: sales force; (b) NO incentive: ensure the customer continued to be satisfied with the
services coordination of activities
- coordination of activities
airline, truck, railroad: optimizing schedule, fueling, cargoes by using , groupware, videoconferencing: a networked “workflow” system.
Technology Development
support for research and development; CHINA(SPARK MIS)
Procurement
market knowledge (purchase price, exert pressure on --> supplier N

47. Manufacturing Industry Value Chain Product and Service Flow
Support Activities
Administrative and Other
Indirect Value Added
Firm as a value chain – describe the firm as a set of interrelated activities (value chain).
-- Every firm is a collection of activities performed to design, produce, market, develop, and support its product.
-- it is a reflection of
its history,
2) its decision making, and
3) its approach to implementing its decisions and
4) underlying economic of the activities themselves.
Primary activities are those involved in taking the raw materials and developing the products and services for the customers. There are five generic sets of primary activities.
Support activities can be divided into four generic categories.
Though firms in the same industry may have similar value chains, the value chains of competitors often differ.
First of all, the value chains help the firm deliver products and services to its customers.
From the customer’s point of view, the value delivered by a firm (to the customers) depends on the superiority of its products or service relative to the price paid by the customer.
The value appropriated by the firm, on the other hand, depends on the value created by the customers, but in relationship to the firm’s cost structure.
In general, the value appropriated should exceed the opportunity cost of capital.
Research and
Development
Engineering
Production
and Manufacturing
Marketing
Sales and
Distribution
Service
Primary Activities N
Dr. Chen, The Trends of the Information Systems Technology

48. Four Important Entities for a Successful Enterprise
Capital （资本）
Technical （技术）
Human （人才）
Information
_________ （信息）

49. Essential Value Propositions for a Successful Company
__________ Model
__________ Competency
outsourcing
offshoring
__________
Set corporate goals and get executive sponsorship for the initiative
Business
Core
First, you have to have a business model, then, the company needs to set corporate goals and get executive sponsorship for the initiative."
"Start with your business objectives of the product or service the company is selling, figure out where it is in the lifecycle, and determine which phase of CRM to focus on, for example, the company should determine whether it wants to focus on acquiring customers, retaining customers or up-selling and cross selling to customers."
Examples: Dell vs. Gateway and Toyota vs. GM/FORD
Execution

50. Major Issues for the Next Society
1. Internationalization
4I + 1K
2. Technology
Internationalization
Integration
Innovation
Information
and
Knowledge
Population might determine the “Standards” (e.g., Cellular phone protocol etc.)
3. Population

51. HWs Research and study the following
“Porter’s Five Competitive Force” Model
Google mini-case (group)

52. Mini Case Study
Case Study : Google
Questions #1 thru # 4

53. Information System Strategy Triangle
Business (Firm)
Strategy
Organizational Strategy
IS/IT Strategy
The "last mile" is the final leg of delivering connectivity from a communications provider to a customer. The phrase is therefore often used by the telecommunications and cable television industries. The actual distance of this leg may be considerably more than a mile, especially in rural areas. It is typically seen as an expensive challenge because "fanning out" wires and cables is a considerable physical undertaking. In countries employing the metric (as opposed to the imperial) measurement system, the phrase last kilometre is sometimes used. Because the last mile of a network to the user is also the first mile from the user to the world, "first mile" is sometimes used. N

54. Information System Strategy Triangle for GOOGLE
1. Innovation and Openness
2. Differentiation
Business (Firm)
Strategy
New concept of Organization (organize the world’s information and make it universally accessible and useful)
Fail Fast Approach (FFA) vs. GBG (Grow Big Fast, Get Broken Fast)
IT revolution (otherwise, the company will run the risks of collapsing data system).
Organizational Strategy
IS/IT Strategy
Internet (Web-based Applications)
Cloud computing N

55. Q#1. How is Google’s mission statement related to its business strategy?
Ans: Google’s primary goal is to “organize the world’s information and make it universally accessible and useful” (mission statement).
Google continues to take risks and expand into new markets to further its reach into the information world. It takes advantage of new avenues to expand its market share by making information freely available on its Intranet, and by willing to take risks by investing in speculative and strange projects if they see a large potential payoff.

56. 2. How does Google’s information systems strategy support its business strategy?
Ans: Through openness and innovation. It permits users to download their own software, maintain official and unofficial blogs, and buys and makes software to suit the needs of the business.
IT encourages innovation by allowing employees to spend 20% of their time on a project of their own choosing. This “flexible” IT structure supports the innovation and creativity that its business strategy espouses.

57. 3. How does Google’s organizational strategy supports its business strategy?
Ans: Google has a culture of innovation and creativity. However, it still provides a level of structure when making decisions. Specifically, Google’s mission statement relates to its business strategy by making data on all ongoing projects and systems available to all of its employees through its corporate Intranet.
Any employee can see what is transpiring in other areas and can lend a hand through Google’s “free day” policy and other open work-environment strategies.

58. 4. Which of Porter’s three generic strategies does Google appear to be using based upon this case? Provide a rationale for your response.
Ans: Differentiation, though one may argue that cost leadership is also utilized with its very reasonable ad costs. However, though the use of its innovative processes, and unique business model, Google has differentiated itself from its competitors by keeping a clean and simple interface (which most of the other search engines have emulated), and by continuing to invest in its employees, to provide innovation on a large scale.