Chapter 7 Summary Implementing a Vision: Strategy, Tactics and Business Plan

Chapter 7 What is the chapter all about? – –The strategies, tactics, and business plans necessary to implement a vision. – –Deciding what things are worth doing relative to a business plan. – –Getting those things done!

Defining the Three Key Elements Vision: Identifies what the organization wants to look like at some logical point in the future. Strategy: How a company will achieve the long-term goal of the vision. Tactics: More specific time-oriented, measurable ways to make a vision a reality.

Sensing Opportunity Vision Strategy Tactics and Business Plan Agreement & Commitment Implementation (Action) Feedback The Vision to Action Process Figure 6-1

When in Doubt Whether dealing with vision, strategies or tactic think customer! Remember that a major difference between companies is how they treat their customers. Value to Customer!

IS and Business Strategy Strategies should be kept simple when possible. The goal is for Information Systems is to help business strategies succeed. Information Systems are never a strategy alone.

A Valid Theory of Business The first signs of fundamental change rarely appear among customers. They show up among non-customers. Unexpected failure is as much a warning sign as unexpected success and must be taken seriously.

Internal Assessment External Assessment The Three Components of a New Strategy Vision A New Strategy Figure 7-1

SWOT Analysis Strengths Weaknesses Opportunities Threats Suggest strategies that should be tested against Vision Goals Company Values Financial Status Cash Position ROI Position Societal Demands Competition Core Competencies People Skills Overall Resources

Conclusions A strategy should often be kept relatively simple. Success relies on gaining understanding, acceptance, and support by people within the company. The strategy must accomplish its objectives by providing direct or indirect value to customers. Information Systems can only be successful if it supports the right business strategies.

Possible Exam Questions 1. Describe the steps from vision to implementation and the major challenges to accomplish of each of them. 2. Provide multiple company examples of a major business strategy and how information systems enabled an otherwise impossible implementation of the strategy.

Chapter 8 & 9 Introduction Evaluating Business Strategies and Information Systems Roles, Roles & Relationships Concept

Where Are We? Section I: The Business Environment Chapters 2 – 5 Section II: The Company Environment Chapters 6 – 7 Section III: The Use of Information Systems

Vision Strategy Tactics Business Plan Competitive Options Roles, Roles and Relationships Redefine and/or Define Telecommunications as the Delivery Vehicle Success Factor Profile Figure 1-4 A Systematic Approach

Chapter 8 Evaluating Business Strategies and the Use of Information Systems: Strategic Option Generator

Strategic Option Generator As the name suggests, this model can be used to identify multiple options that can be used to focus the strategies of a company to gain a competitive advantage through the use of information systems. In this class it is to be used as an after the fact evaluation of what actually happened with a company.

TARGET CUSTOMERCOMPETITORSUPPLIER THRUST DIFFERENTIATION COST INNOVATION GROWTH ALLIANCE MODE DIRECTION OFFENSIVEDEFENSIVE USEPROVIDE EXECUTION STRATEGIC ADVANTAGE STRATEGIC OPTION GENERATOR Figure 8-1

Chapter 9 The Roles, Roles and Relationships Concept A concept that is very important to our academic health!

Roles, Roles & Relationships Concept Role of Information Systems Role of Senior Management The relationship between those that run the business and those responsible for managing information systems

Other Key Topics 1. Triggers of Action Model. 2. Technology Transfer Through Organizational Learning Concept. 3. Information Systems Organization as a Business within a Business Concept. 4. Outsourcing of IS Management.

Competitive Advantage Action Initiators Vision Strategy Tactics Process Improvement Crisis Management Executive Power Business Leadership Technology Leadership Figure 9-5 Making It Happen!

Technology Transfer Through Organizational Learning There is a direct correlation between the successful introduction of a new information system within an organization and the learning curve of the primary users.

A Business Competitors Board of Directors Suppliers Users Products/Services Figure 9-6

Outsourcing Logical? Necessary? Appropriate? Cost-effective? What? With Whom? Where? How Long? Risk?

Conclusions Chapters 8 and 9 begin the discussion on how to assess the use of Information Systems in an organization through the Strategic Option Generator model, the Roles, Roles & Relationships concept, phases of management and leadership, and outsourcing. THANK YOU!

Vision Strategy Tactics Business Plan Competitive Options Roles, Roles and Relationships Redefine and/or Define Telecommunications as the Delivery Vehicle Success Factor Profile Figure 1-4 A Systematic Approach

TARGET CUSTOMERCOMPETITORSUPPLIER THRUST DIFFERENTIATION COST INNOVATION GROWTH ALLIANCE MODE DIRECTION OFFENSIVEDEFENSIVE USEPROVIDE EXECUTION STRATEGIC ADVANTAGE STRATEGIC OPTION GENERATOR Figure 8-1

Biggest Mistake Target, thrust and mode are fairly straight-forward so they don’t tend to cause problems for students. Direction is a source of problems and confusion since the name of the element is not self-explanatory. This element deals with whom the use of IS is intended.

TARGET CUSTOMERCOMPETITORSUPPLIER THRUST DIFFERENTIATION COST INNOVATION GROWTH ALLIANCE MODE DIRECTION OFFENSIVEDEFENSIVE USEPROVIDE EXECUTION STRATEGIC ADVANTAGE Federal Express Analysis Using the Strategic Option Generator Figure 8-2

TARGET CUSTOMERCOMPETITORSUPPLIER THRUST DIFFERENTIATION COST INNOVATION GROWTH ALLIANCE MODE DIRECTION OFFENSIVEDEFENSIVE USEPROVIDE EXECUTION STRATEGIC ADVANTAGE UPS Analysis Using the Strategic Option Generator Figure 8-3