IT Creating Business Advantage

Description
This is a presentation that includes topics like technological changes,forces influencing business strategy,industry and competitive advantage,impact of IT on operations and strategic decision making.

Creating Business Advantage with IT

Technology, Business, and Societal Evolution During the 20 th Century

Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 1 Figure 1- 2

Technological Changes
? The Internet and broadband networks

? The World Wide Web and high-performance

Servers ? Uniform Resource Locator (URL) and browser ? Multimedia digital devices ? Wireless networks and protocols ? Object-oriented programming languages and database technologies.

Forces That Shape Business Strategy
? Value Chain Analysis

? Industry and Competitive Analysis
? Strategic Grid Analysis

The Value Chain Defines Industry Structure and Relationships

Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 1 Figure 1-3

Market Roles

Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 1 Figure 1-4

Forces Influencing Industry and Competitive Advantage

Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 1 Figure 1-5

The Impact of IT on Strategy and Operations
High

Factory
IT Impact on Core Operations
Goal: Improve performance of core processes Leadership: Business unit executives Project Management: Process reengineering

Strategic
Goal: Transform organization or industry Leadership: Senior executives & board Project Management: Change management

Support
Goal: Improve local performance Leadership: Local level oversight Project Management: Grassroots experimentation

Turnaround
Goal: Identify and launch new ventures Leadership: Venture incubation unit Project Management: New venture development High

Low

IT Impact on Core Strategy

Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 1 Figure 1-6

Analyzing the Impact of IT on Strategic Decision Making
? Can IT be used to reengineer core value

activities and change the basis of competition? ? Can IT change the nature of relationships and the balance of power among buyers and suppliers? ? Can IT build or reduce barriers to entry? ? Can IT increase or decrease switching costs? ? Can IT add value to existing products and services or create new ones?



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