IT strategy 1

Today¶s Business Environment

‡ ‡ ‡ ‡ ‡ Increased globalization Increased competitive pressure Frequent mergers Rapidly changing technology Evolving patterns of consumer demand

IT Strategy
‡ Set of decisions made by IT and senior management ‡ Deployment of technology infrastructures ‡ Relationship of technology choices to business choices

IT Roles in Strategy
‡ Transformation driver
± Create and exploit new markets ± Link customers to firm ± Define new standards of excellence

‡ Enabler of transformation
± Interconnect people and processes ± Span organization boundaries ± Bridge geographical distances

Opportunities
‡ Can IT change basis for competition? ‡ Can IT change balance of power among buyers and supplyers? ‡ 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?

Relationship of Strategies to Plans

‡ Strategy is a collection of statements that expresses or proposes a means through which an organization can fulfill its mission
± Identifies the goal or objective

‡ Plan is a detailed description of how an organization can accomplish its mission

± Lays out in detail the steps necessary for the organization to accomplish the goal

Elements of a Strategy Statement

Strategy Outline
1. 2. 3. 4. Nature of the business Environment Goals and objectives Strategy ingredients