1. Information Technology Management
Strategy & IT

2. Organizational Strategy
IT Strategy Triangle
Business Strategy
Organizational Strategy
IT Strategy
All 3 Strategies Need to be in Harmony
Multiple Ways to Create Harmony

3. Business Strategy Frameworks
High level strategic business concepts
Efficiency ( low cost) vs. Innovation
Value disciplines (Tracy & Wiersema)
Operational Excellence
Product Leadership
Customer intimacy
More specific strategic business concepts
Porter’s Generic Strategies Framework (and its variants)
Co-opetition (Brandenburg and Nalebuff)
Hypercompetition and the New 7-S’s framework (D’Aveni)

4. Value Capturing Strategies
Product Leadership
Leadership requires a primary strategy
Operational Excellence
Customer Intimacy

5. Porter’s Value Chain Enterprise Value Chain Joined-up Business
Customers
Suppliers
Enterprise
Joined-up Business
Intermediaries
Vertical Process Integration
3 Ways to Differentiate
Low Cost
Differentiation as Viewed by Customer
Narrow Segment Focus

6. Hypercompetition and the New 7-S’s framework (D’Aveni)
Sustained competitive advantage is not possible
Only temporary advantages exist, created by a company’s speed and aggressiveness.
Assumes:
Every advantage becomes eroded
Sustaining an advantage uses too much time and resources.
Instead, companies must seek to stay ahead of its competitors by creating temporary advantages
These are done in small steps over short competitive cycles. Focus on creating the next temp. advantage.

7. Co-opetition – The Value Net
Enterprise
Customers
Suppliers
Intermediaries/
Complementors
Competitors/
Substitutors
New Joined-up Business
Value Net
Virtual integration
Differentiation
Focus on Customer Needs
Co-source Processes
Coordinate Partners to Assemble Strategic Advantage

8. Attributes of the different Value Capturing Strategies
Focus on Core Processes of invention, product development, and market exploitation
Loosely knit, ad hoc business structure
Metrics are on product success and don’t punish experimentation
Operations culture is individualistic, out of the box, futuristic, Team based
Focus on core processes of solution development, results management, relationship management
Operations culture delegates decision making to employees closest to customer
Metrics are based on results from carefully selected and nurtured clients. Intent is to create deep and lasting relationships with clients
Specific (custom) solutions preferred over general solutions
Product Leadership
Customer Intimacy
Operational Excellence
Leadership requires a primary strategy
Processes optimized for end to end supply
Operations culture is standardized, simplified, tightly controlled, centrally planned
Metrics are cost based
Integrated, Reliable, High speed transaction systems
Standardization “When it absolutely, positively has to be there overnight

9. Traditional IT Investment Portfolio
MIS
Decision Support
Knowledge Mgn’t
Processing Business Activities
Orders
Sales
Shipment
Communications
Data Base
Office Automation
Groupware

10. The Value Chain Information Flows
Customers
Suppliers
Enterprise
Joined-up Business
Intermediaries
Product to Customer
Vertical integration
Processes are internally focused
Product/Service Flow
Information Flows

11. Future State : The Value Net
Enterprise
Customers
Suppliers
Intermediaries/
Complementors
Competitors/
Substitutors
New Joined-up Business
Drive from customer need – not products
Assemble the solution from the value net to match the need
Virtual integration
Processes are externally focused & executed by the members of the value net that can best execute them

12. The Business Organization (Hammer and Champy)
Processes
Values and
Beliefs
Jobs and
Structures
Management
and Measurement systems

13. Hierarchical, flat and matrix organizational structures
Region
Industry
Region 1
Region 2
Region 3
Ind. 1
Position for Ind. 1 in region 1
Pos. for Ind.1 in region 2
Pos. for Ind.1 in region 3
Ind. 2
Pos. for Ind.2 in region 1
Pos. for Ind.2 in region 2
Pos. for Ind.2 in region 3
Ind. 3
Pos. for Ind.3 in region 1
Pos. for Ind.3 in region 2
Pos. for Ind.3 in region 3
Hierarchical
Organizational
Structure
Matrix
Organizational
Structure
Flat
Organizational
Structure

14. The networked organization
The networked organization is a new form, made possible by IS.
Instead of rigid hierarchies, all parts of the company are connected by formal and informal communications.

15. IT Impact on Organization ( Structure, Processes, Culture)?
Computer
Transaction systems
Databases PC
Telecommunications
Internet

16. How do You Get the 3 in Sync?
Business Strategy
Organizational Strategy
IT Strategy
Change Enabler
One-way?
Two-way?
Improvisation?

17. What Happens When my Business Strategy is Value-Net Based?