Slide 2.1 Curtis/Cobham © Pearson Education Limited 2008 Chapter 2 Strategy and Information Systems

Slide 2.2 Curtis/Cobham © Pearson Education Limited 2008 Business Strategy Need for strategy Strategic business planning –determine mission and objectives –identify future performance against objectives –develop strategy Strategies –Business IS strategy –Business IT strategy

Slide 2.3 Curtis/Cobham © Pearson Education Limited 2008 Competitive Forces Within an Industry Five forces model –suppliers –customers –substitute products –new entrants –competitor rivalry

Slide 2.4 Curtis/Cobham © Pearson Education Limited 2008 Environmental Influences on the Organization PEST analysis –political/legal –economic –sociocultural –technological

Slide 2.5 Curtis/Cobham © Pearson Education Limited 2008 The Nolan Stage Model 1. Initiation 2. Contagion 3. Control 4. Integration 5. Data administration 6. Maturity

Slide 2.6 Curtis/Cobham © Pearson Education Limited 2008 The Nolan Stage Model (Continued) Figure 2.4 The six-stage Nolan model

Slide 2.7 Curtis/Cobham © Pearson Education Limited 2008 The Earl Model Figure 2.5 Earl’s model of multiple learning curves Source: Adapted from Galliers and Sutherland, 1991

Slide 2.8 Curtis/Cobham © Pearson Education Limited 2008 Exploitation of IT Through the Value Chain Primary activities Support activities Figure 2.7 The value chain

Slide 2.9 Curtis/Cobham © Pearson Education Limited 2008 Value Chain Figure 2.8 Information technology in the value chain

Slide 2.10 Curtis/Cobham © Pearson Education Limited 2008 The Strategic Grid Figure 2.9 The strategic grid Source: Adapted from Applegate et al, 1999

Slide 2.11 Curtis/Cobham © Pearson Education Limited 2008 Critical Success Factors Example: mail order company Objective –increase market share by 5% per annum –CSFs: effective advertising, faster order processing, faster distribution –IS applications: market research database, computerized telephone ordering, computerized delivery scheduling

Slide 2.12 Curtis/Cobham © Pearson Education Limited 2008 IS Strategy Today Business strategy and IT strategy –alignment –mainstream vs. innovative Enterprise resource planning Business process re-engineering –business process improvements Outsourcing