1. Bu $ ine $$ $trategy Copyright © 2006 Patrick McDermott The University of California Berkeley Extension pmcdermott@msn.com Strategy versus Tactics Understand the industry, market, customers, competitors, suppliers, partners and capabilities of the business. Identify opportunities and threats, and actively identify trends and future scenarios.

2. Porter’s Competitive Forces Industry Competitors Suppliers Substitutes Buyers Potential Entrants Threat of substitute products or services Bargaining power of suppliers Bargaining power of buyers Threat of new entrants Rivalry Among Existing Firms Porter, Michael E., Competitive Strategy: Techniques for Analyzing Industries and Competitors, New York: The Free Press / Macmillan (0-02-925360-8), 1980, p. 4.

3. I.S. Competitive Forces Industry Competitors Suppliers Substitutes Buyers Potential Entrants Threat of substitute products or services Bargaining power of suppliers Bargaining power of buyers Threat of new entrants Rivalry Among Existing Firms Edwards, Chris, John Ward & Andy Bytheway, The Essence of Information Systems, Second Edition, London: Prentice Hall (0- 13-359308-8), 1995 (1991), p. 58. Can IT change the suppliers’ bargaining power? Can IT build barriers to entry? Can IT generate new products or services? Can IT reduce buyers’ bargaining power? Or keep ahead Or keep satisfied Or keep ahead

4. 3 Disciplines Porter, Michael E., Competitive Strategy: Techniques for Analyzing Industries and Competitors, New York: The Free Press / Macmillan (0-02-925360-8), 1980. Treacy, Michael & Fred Wiersema, The Discipline of Market Leaders: Choose Your Customers, Narrow Your Focus, Dominate Your Market, Reading, Massachusetts: Addison-Wesley (0-201-40719-1), 1995.

5. Don’t Make an S of Yourself First Mover Early Adopters Tech Leaders With the Crowd: Early Majority Late Majority Laggards Technology Adoption S-Curve InnovationGrowthMaturityMaintenance

6. Why an S Curve? “A slow gestation giving way to rapid alterations in youth, followed by a lengthy and substantially unchanging adulthood, followed by decline and eventual death, seemed to be a nearly universal pattern among living things.” Warsh, David, Knowledge and the Wealth of Nations: A Story of Economic Discovery, New York: W.W. Horton (978-0-393-05996-0 0-393-05996-0), 2006, pp. 67-68.

7. Growth / Share Matrix Growth Rate Income (or Market Share) The Boston Box Bruce Henderson of BCG: Boston Consulting Group, 1970

8. Kaizen 改善 –Microsoft Spellchecker accepts as English word McDonalds or Chez Panisse? Bigger Small Cars My PowerPoints

9. What to Maximize  ROI Return on Investment  Total Profit  Market Share College: Greatest Number of Classes –Dean, too Tech Leadership This Quarter versus the Long Term The First-Mover Advantage $ ROI $ Total Profit $ $ Market $hare

10. Paradoxes  Control Chaos Assimilation Isolation Intelligence Stupidity Freedom Enslavement Engagement Disengagement Efficiency Inefficiency Fulfilling Creating Needs New Obsolete Mohr, Jakki, Marketing of High-Technology Products and Innovations, Upper Saddle River, New Jersey: Prentice Hall (0-13-013606-9), 2001, p. 373.