Week6 - Developing Business-IT Strategies

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Information technology has created a seismic shift in

the way companies do business. Just knowing the


importance and structure of e-business is not
enough. You need to create and implement an
action plan that allows you to make the transition
from an old business design to a new e-business
design.
Resulting a plan; that is an action statement of necessary
actions to achieve our goal
1) Team building, modeling and consensus

2) Evaluating what an organization has accomplished
and the resources they have acquired

3) Analyzing their business, economic, political and
societal environments
4) Anticipating and evaluating the impact of future
developments

5) Building a shared vision and deciding on what
goals they want to achieve

6) Deciding what actions to take to achieve their
goals
Definition:
Development of an organizations mission,
goals, strategies, and policies

Strategic Business Visioning
Understand the customer
Customer value
Competition
Value chain
Porters 5 Forces Analysis
Value Chain Analysis

Scenario Approach
SWOT Analysis

Strategic Positioning Matrix
Strategic Opportunities Matrix
9
New Entrants
Buyers
Suppliers
Substitutes
Intensity of
Rivalry
Bargaining Power
of Suppliers
Bargaining Power
of Buyers
Threat
of Substitutes
Threat
of New Entrants
Richard Johnson
Definition:
View of a firm as a series, chain, or
network of basic activities that add value to
its products and services, and thus add a
margin of value both to the firm and its
customers.

Definition:
Teams of managers and other planners
participate in a virtual world exercises to create,
experience, and evaluate a variety of scenarios
of what might be happening, or what might
happen in the future.
Strengths core competencies
Weaknesses substandard business performance
Opportunities potential for new markets or innovative
breakthroughs
Threats potential for losses posed by competitive
forces

SWOT analysis is used to evaluate the impact that each
possible strategic opportunity can have on a company
and its use of information technology
Help a company optimize the strategic impact of Internet
technologies for electronic business and commerce application
Helps to evaluate the strategic risk and payoff potential of
proposed business-IT opportunities
Strategic Opportunities Matrix

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