Strategic Alignment IST 297A School of Information Sciences and Technology Strategic Alignment IST 297A www.ist.psu.edu

Critical strategy variables I School of Information Sciences and Technology Critical strategy variables I Five Forces 1. Threat of new entrants 2. Threat of substitutes 3. Bargaining power of suppliers 4. Bargaining power of buyers 5. Rivalry among firms Service Inbound Logistics Operations Outbound Marketing Margin Support activities Value Chain Scope Advantage Generic Strategies Cost Leadership For an overview of the School++ Differentiation Cost Focus Differentiation Focus Porter, Michael, Competitive Advantage, 1985

Critical strategy variables II School of Information Sciences and Technology Critical strategy variables II Scope Advantage Generic Strategies Five Forces 1. Threat of new entrants 2. Threat of substitutes 3. Bargaining power of suppliers 4. Bargaining power of buyers 5. Rivalry among firms Service Inbound Logistics Operations Outbound Marketing Margin Support activities Value Chain Cost Leadership Focus Differentiation N. Venkatraman, 2000 1. Vision 2. Governance 3. Resource allocation 4. Infrastructure 5. Management team For an overview of the School++

Key questions as strategist School of Information Sciences and Technology Key questions as strategist 1. How do I keep track of all the variables I need to address? 2. What drives what? Do I start with a particular area? 3. How do you plan for the transition from “brick to click”? 4. How do I justify the process? For an overview of the School++

Strategic Alignment Business Strategy IT Strategy Scope Scope School of Information Sciences and Technology Strategic Alignment Business Strategy IT Strategy Scope Scope Competency Make/Buy Competency Make/Buy Org. Infrastructure IT Infrastructure For an overview of the School++ Structure Architecture Processes Skills Processes Skills

Planning Perspectives School of Information Sciences and Technology Planning Perspectives Business Strategy Organization Infrastructure IT Strategic Execution Business Strategy Organization Infrastructure IT Competitive Potential Business Strategy Organization Infrastructure IT IT Service Level Business Strategy Organization Infrastructure IT Technology Potential For an overview of the School++

How do you plan for the transition? School of Information Sciences and Technology How do you plan for the transition? Business Strategy Organization Infrastructure IT .dot Business Strategy Organization Infrastructure .dot Scope Advantage Five Forces 1. Threat of new entrants 2. Threat of substitutes 3. Bargaining power of suppliers 4. Bargaining power of buyers 5. Rivalry among firms Cost Leader Focus Differentiation N. Venkatraman, 2000 1. Vision 2. Governance 3. Resource allocation 4. Infrastructure 5. Management team For an overview of the School++ .dot Strategy Infrastructure