IT & KMEnterprise Strategy/AW/09

Arj Wignaraja

The 3 levels of IT

IM Strategy

Who?

IT Strategy

How?

IS Strategy

What?

IS/IT & SWOT

On a SWOT analysis, IT/IS can appear in any of the 4 quadrants

S W

O T

Internal

External

Helpful Harmful

IS/IT & Porter’s Five [Competitive] Forces

Competitors

The firm

Substitutes

BuyersSellers

Potential Entrants

Threat of New Entrants

Threat of Substitute Product or Service

Bargaining

Power of Buyers

Bargaining

Power of Sellers

Rivalry amongExisting firms

IS/IT can be used to counter Porter’s five forces

IS/IT & Porter’s Generic StrategiesStrategic Advantage

Scop

eUniqueness perceived

by customer Low Cost PositionB

road

Narr

ow

COSTLEADERSHIP

Cost Focus

DIFFERENTIATION

DifferentiationFocus

FOCUS

IS/IT is an enabler for each of Porter’s generic strategies

IT/IS & the Value Chain

technological development

human resource management

firm infrastructure

procurement

inb

ou

nd

lo

gis

tics

op

era

tion

s

ou

tbou

nd

log

isti

cs

mark

eti

ng

&

sale

s

serv

ice

margin

marginsupport activiti

es

primary activities

IS/IT impacts every part of the value chain

The criticality of IT – McFarlan’s Grid

SUPPORT TURNAROUND

FACTORY STRATEGIC

Strategic impact of current systems

Low

High

Low High

Strategic impact of future systems

5 steps to implementing a KM strategy

1. Gain top management support

2. Creating the technological infrastructure

3. Creating the database structures

4. Creating a sharing culture

5. Populating the database & using the knowledge

Theory in Practice (TIP): Tesco & Clubcard