IT 4 Strategic Advantage

8/8/2019 IT 4 Strategic Advantage

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INFORMATIONTECHNOLOGY

forSTRATEGIC ADVANTAGE

SRIDHAR S - 09PBA152

PRINCELY BENJAMIN -09PBA153

SATHIS - 09PBA154


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Slide 2-13 : sridhar(09pba152)

Slide 14-20: sathish(09pba154)

Slide 21-26: princlely(09pba153)


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Strategic IT

Information systems that supportbusiness operations, workgroups andenterprise collaboration or effective

business decision making.

Helps company adopt strategies andbusiness processes that enable it to

reengineer or reinvent itself.


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COMPETITIVE STRATEGYCONCEPTS

Strategic information architecture

The collection of strategic information system that

supports or shape the competitive position andstrategies of a business enterprise

Strategic information system

information system that uses information technology

to help an organization gain a competitive advantage ormeet other strategic enterprise objectives.


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Competitive Forces andStrategies

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Cost leadership strategy

Differentiation strategy

Innovation strategy

Growth strategies

Alliance strategies

Other competitive strategies


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Innovation strategy

Growth strategies

Alliance strategies


Low-cost producerHelp its customer/suppliers reducetheir cost


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Innovation strategy

Growth strategies

Alliance strategies


Differentiate product/services fromtheir competitors.Focus its products or services togive it an advantage in particularsegments of niches.


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Innovation strategy

Growth strategies

Alliance strategies


New ways of doing business.Development of unique products/servicesEntry into unique markets or nichesMaking changes to the business processfor producing or distributing products andservices


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Innovation strategy

Growth strategies

Alliance strategies


Expanding companys capacity to

produce goods and servicesExpanding into global marketsDiversifying into new products andservicesIntegrating into related productsand services.

E t bli hi b i li k


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Innovation strategy

Growth strategies

Alliance strategies


Establishing new business linkagesand alliances with customers,suppliers, competitors, consultantsand other companies.

These linkages may includemergers, acquisitions, jointventures, forming of virtualcompanies or other marketing,

manufacturing, or distributionagreements between abusiness/trading partners.


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Innovation strategy

Growth strategies

Alliance strategies


Lock in customers and suppliers

Building switching costsRaising entry barriersLeveraging investment ininformation

technology


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BUILDING A CUSTOMER-FOCUSED BUSINESS

Ability to help them keep customers loyal,anticipate their future needs, respond tocustomer concerns, and provide top-qualitycustomer service.

Supporting information technologies:

CRM

internet

intranet

extranet


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VALUE CHAINAdministrativecoordinationand support

servicesCollaborative workflow intranet

HRMEmployee benefit intranet

Technology development

Product development extranet with partnersProcurement ofresources

E-commerce WEB portal for suppliers

Inboundlogistics

Automated just-in-

timewarehous

ing

Operatio

ns

Computeraided

flexiblemanufact

uring

Outbound

logistics

Onlinepoint-of-sale

&Order

processing

Marketing andsales

Targeted

marketi

ng

Competitiveadvantage


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Over to sathish - 09pba154


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Re-engineering businessprocess

Reengineering is a fundamental rethinking andradical redesign of business processes to achievedramatic improvements in cost, quality, speed,

and service. BPR( Business Process Reengineering ) combines

a strategy of promoting business innovation witha strategy of making major improvements tobusiness processes so that a company an

become a much stronger and more successfulcompetitor in the marketplace.


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Business Improvement vs.BPRBUSINESS

IMPROVEMENTSBPR

LEVEL OF CHANGE Incremental Radical

PROCESS CHANGE Improved new versionof process

Brand new process

STARTING POINT Existing processes Clean slateFREQUENCY OFCHANGE

One-time or continuous Periodic one-timechange

TIME REQUIRED Short Long

TYPICAL SCOPE Narrow, within functionsBroad, cross functional

HORIZON Past and present Future

PARTICIPATION Bottom-up top-down

PATCH TO EXECUTION Cultural Cultural, structural

PRIMARY ENABLER Statistical control Information technology


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ROLE of IT in BPR

sales manufacturin

g

finance logistics


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Agile company

AGILITY is business performance isthe ability of a company to prosper inrapidly changing, continually

fragmenting global markets for high-quality, high-performance, customer-configured products and services.


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Type of agility Description Role of IT Example

Customer

Ability to co-operate customer

in theexploitation ofinnovationopportunities

Technologies forbuilding andenhancing virtual

customercommunities forproduct design,feedback, andtesting

eBay customersare its de factoproductdevelopment

team becausethey post anaverage of 10000messages eachweek to sharetips, point out

glitches, andlobby forchanges.


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PARTNERING

Ability toleverage assets,knowledge, and

competencies ofsuppliers,distributors,contractmanufacturers,and logistics

providers

Technologiesfacilitatinginterfirm

collaboration,such ascollaborativeplatforms andportals, supply-chain systems,

etc.,

Yahoo! Hasaccomplished asignificant

transformation ofits service from asearch engineinto a portal byinitiatingnumerous

partnerships


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Operational

Ability toaccomplishspeed, accuracy,

and costeconomy in theexploitation ofinnovationopportunities

Technologies formodularization

and integration ofbusinessprocesses

Ingram Micro, aglobalwholesaler, hasdeployed an

integratedtrading systemallowing itscustomers andsuppliers toconnect directly

to itsprocurement andERP systems.


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Over to princely benjamin - 09pba153


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STRATEGIC ADVANTAGES OFUSING IT

Creating a Virtual company.

Building a knowledge creatingcompany.


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CREATING A VIRTUALCOMPANY

EngineeringTeam

Cross-functional

team

CustomerResponse

team

Intranet

Alliance withsupplie

r

Alliancewith

Customer

Extranet


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BUILDING A KNOWLEDGECREATING COMPANY

Learning organization.

Two kinds of knowledge:

Explicit TACIT


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KNOWLEDGE MANAGEMENTSYSTEM

Interact withexperts

New contentcreation

Assessingand

retrievingdocument


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IT 4 Strategic Advantage

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