INFO6012: INFORMATION TECHNOLOGY STRATEGY AND VALUE SEMESTER 2, 2016
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INFO6012: INFORMATION TECHNOLOGY STRATEGY AND VALUE
FINAL EXAM NOTES
LECTURES
WEEK 2: DEVELOPING A STRATEGIC PERSPECTIVE
Business Model: how an organisation interacts with its environment to define a unique strategy, attract the resources and build the capabilities required to execute the strategy, and create value for all stakeholders.
Strategy: choosing a different position and set of activities that enable you to deliver unique value Sustainable Advantage: occurs when barriers exist that make it difficult for competitors to imitate you actions or for customers to switch
ANALYSING STRATEGY
Strategic Positioning Strategy Audit Role of IT
Market What consumers to serve and channels to reach those consumers
Customer - Identify customer problems and how to address them with products & services
- Analyse channels to reach customers
Enables collecting market info and interaction with customers Product What products and
services to offer, features and pricing
Competitor - Who are the competitors &
substitutes?
- What is different that they have and that they do?
- How much do they charge?
- Any radical new entrant?
Source of differentiation &
proprietary advantage
Business network
Roles to play and activities to perform within a network of suppliers, producers, distributors and partners
Supplier &
Partner
- Activities that different players perform and relationships in the supply chain/value networks - Network of specialised roles –
what to keep in the value chain when cost or risk in managing
Enables real time info exchange and better
communication Boundary Markets, products,
and businesses that will not be pursued
Business
Context - Industry & competitive dynamics - Demo, Economic, Political,
Regulatory & Societal factors
Can enable disruption
ANALYSING CAPABILTIES
Capability Audit Role of IT
Analyse Process and Infrastructure
- Key activities are core operation processes and support processes - Group activities into roles
- Coordinating mechanisms that enable the flow of goods & info - Infrastructure requirements
Activity coordination Real-time info exchange
INFO6012: INFORMATION TECHNOLOGY STRATEGY AND VALUE SEMESTER 2, 2016
2 Evaluate
People and Partners
- Performance measures, knowledge works, business intelligence - Identify expertise and skills needed and where to get them - Job descriptions for key roles
- Cost analysis
- Recruiting, hiring, development and performance appraisal systems
Defining, organising, and building
knowledge as intelligence Assess
Organisation and Culture
- Group employees and partners
- Clarify and formalise authority and accountability by role and unit - Formal reporting relationships and information coordination and
collaboration mechanisms
- Values and behaviours – organisation structure and culture
Information sharing
Closely monitor decisions Evaluate
Leadership and Governance
- Key positions and succession plans
- Governance systems and structures to ensure strong operating and strategic controls and effective risk and culture management across organisation
Decision making
Communication
ANAYSING VALUE Value Audit
Identify Business Model Drivers and
Alignment
- Delivered to all stakeholders internal and external - Assess interests and expectations
- What does It enable?
SWOT analysis External – Strategy
Opportunities Threats
Internal Capability
Strengths S maximise O S minimise T Weaknesses O minimise W Minimise W to avoid T Develop Financial
Model and Determine Financing Needs
- DuPont Formula to deconstruct ROE =
• Profit Margin = Net Income/Revenue
• Asset Efficiency = Revenue/Assets
• Leverage = Assets/Shareholder Equity BUSINESS MODEL ALIGNMENT
Evolving Business Model Enhance – Incremental improvements to an existing strategy or capability Expand – Launch new product categories, enter new markets or expand capabilities
Explore – Launch new businesses and build new capabilities
Exit – Exit a product or market or outsource a capability
WEEK 3: IS AND STRATEGIC ANALYSIS I
FIVE FORCES MODEL (Strategy Audit): an industry’s structural attractiveness is determined by five underlying forces of competition which in combination determine how economic value is created and divided.
- Exploit changes in the forces - Reshape the forces in your favour Threat of Entry The more difficult for firms
to enter, the greater likelihood that existing
Barriers to entry is high if:
- Capital requirements and regulation
- Proprietary assets, technologies and expertise
