What is Strategy? IT Strategy Ken Peffers UNLV September 2004

Strategy Originally military concept

Levels of Action Strategy The highest levels of planning and action Having to do with goals, objectives, survival Tactics Methods of implementing strategy Operations Day to day and hour by hour planning and actions [Different organizations have different strategies]

A Strategy Against Terrorism (North American) Maintain a large military capability Liberty worth fighting for Develop sophisticated, intelligent weapons to take the place of large numbers of soldiers Voluntary army Sensitivity to casualties Have sufficient strength to act alone if necessary Preempt the enemy by striking at probable and potential adversaries Engage the enemy in his territory The best defense is a good offense

An Alternate Strategy (European) Maintain a minimum level of military capability War is always bad—experience of two world wars Military expenditures interfere with more important expenditures Deal with terrorism using statements deploring it, diplomacy, and law enforcement Tolerate a reasonable level of terrorism

US Strategy in the Middle East A Subsidiary Strategy Strike directly at states that support terrorism Develop leverage with other states to encourage them to behave Cut off funding for terrorists Cooperate with law enforcement, etc. Move toward democratic governance

Tactics Turn power over to interim government Train Iraqi military and police forces Contract with Halliburton to provide food and beverage service to the troops

Operations Plan and carry out the activities for the day Schedule and implement patrols for the day Deliver MRE in sufficient quantity Perform scheduled maintenance on vehicles Compute and issue payroll statements for personnel

Strategy in Business Involves basic choices about mission, objectives and goals of the firm Strategic choices Product Customers Pricing Growth Firm size Innovation Resources Channels Cost vs differentiation

Strategy—Kim & Mouborgne Six stages of buyer experience Purchase, delivery, use, supplements, maintenance, disposal Six utility levers Customer productivity, simplicity, convenience, risk, fun & image, environmental friendliness Choose one or more cells in 2X2 framework in which to provide exceptional value Identify the strategic price achieve economies of scale and network externalities Develop and achieve cost target Consider sourcing Overcome adoption hurdles

Strategy—George Day Growth of the firm Price—value leaders Grow by extending value—growth proposition to adjacent markets Relational—value partners Grow by expending the definition of the solution Performance—value leaders grow by constant innovation

Strategy—Kim and Mauborgne Value innovation Rethink the value provided to the customer Four questions Which industry factors should be eliminated? Which factors should be reduced below industry standards? Which factors should be increased above industry standards? Which factors should be created that industry never considered?

Strategy—Moore Technology Adoption Life Cycle Innovation Type Early MarketDisruptive Chasm Bowling AlleyApplication TornadoProduct Main Street earlyProcess Main Street MatureExperimental Marketing Main Street DecliningBusiness Model Structural Fault Line End of Life

What is IT Strategy Subservient to business strategy Alignment of IT goals and objectives with those of the business

IT Strategy Issues—Polansky, Inuganti, and Wiggins IT Governance—how is IT managed, measured, etc. IT Portfolio management Which systems to build? IT organization and staffing Technology & architecture Sourcing Build or buy, in or outsourced Support corporate governance Accountability, transparancy

IT Strategy Issues Business intelligence-actionable Business transformation Integration Process improvement Customer Care CRM Internet & E-business E-business strategies Applications Employee portals VOIP

Other Issues?