Session 4 : Role of ICT in Business Strategy 4.pdfOutsourcing 5. Vertical Integration . Low Cost...
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INFORMATION STRATEGY POST GRADUATE DIPLOMA IN BUSINESS AND FINANCE 2014 Session 4 : Role of ICT in Business Strategy Tharaka Tennekoon B.Sc (Hons) Computing, MBA (PIM - USJ)
Transcript of Session 4 : Role of ICT in Business Strategy 4.pdfOutsourcing 5. Vertical Integration . Low Cost...
INFORMATION STRATEGY
POST GRADUATE DIPLOMA IN BUSINESS AND FINANCE 2014
Session 4 : Role of ICT in Business Strategy
Tharaka Tennekoon B.Sc (Hons) Computing, MBA (PIM - USJ)
Porter’s Generic Strategies
Low Cost Strategy
Revenue Cost Profit
Waste
1. Process Efficiency 2. Low cost raw material 3. Low cost labour 4. Outsourcing 5. Vertical Integration
Low Cost Strategy
Revenue Cost Profit Revenue Cost Profit
Option 1 Option 2
Low Cost Strategy
Narrow Broad
Burger’s King
Differentiation Strategy
Differentiation Strategy
Narrow Broad
Competitive Scope
Segment Scope
Vertical Scope
Geographical Scope
Industry Scope
Porter’s Value Chain Analysis – Printing Company
Information Intensity
Information intensity of the
value chain
Information content of the product
Low
High
Low High
Airlines Banks
Newspapers Education Services
Hotline Service
Oil refining
Bricks
Porter’s Five Forces
Competitors
New Entrants
Customers
Substitutes
Suppliers
Change Industry Structure/ Creating new business
Create Competitive Advantage
Create Competitive Advantage
Effect on Competitiveness 1. Changes Industry Structure
Alters the rules of competition 2. Creates competitive advantage
New ways to outperform the competition 3. Creates new business
Within the company’s existing operations Totally new areas
Been competitive with ICT 1. Assess Information Intensity 2. Role of ICT in the industry 3. Identify ways how ICT can create competitive advantage 4. Investigate how ICT can create new business 5. Develop a plan to take advantage of ICT
Tharaka Tennekoon, B.Sc (Hons), MBA (PIM - USJ)
+94 773403609
