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Chapter 7Chapter 7
What is the chapter all about?– The strategies, tactics, and business plans
necessary to implement a vision.– Deciding what things are worth doing relative
to a business plan.– Getting those things done!
Defining the Three Key Defining the Three Key ElementsElements
Vision: Identifies what the organization wants to look like at some logical point in the future.
Strategy: How a company will achieve the long-term goal of the vision.
Tactics: More specific time-oriented, measurable ways to make a vision a reality.
Sensing Opportunity
Vision
Strategy
Tactics and Business Plan
Agreement &Commitment
Implementation(Action)
Feedback
The Vision to ActionProcess
Figure 6-1
When in DoubtWhen in Doubt
Whether dealing with vision, strategies or tactic think customer!
Remember that a major difference between companies is how they treat their customers.
Value to Customer!
IS and Business StrategyIS and Business Strategy
Strategies should be kept simple when possible.
The goal is for Information Systems is to help business strategies succeed.
Information Systems are never a strategy alone.
A Valid Theory of BusinessA Valid Theory of Business
• The first signs of fundamental change rarely appear among customers. They show up among non-customers.
• Unexpected failure is as much a warning sign as unexpected success and must be taken seriously.
InternalAssessment
ExternalAssessment
The Three Components of a New Strategy
Vision
A New Strategy Figure 7-1
SWOT AnalysisSWOT Analysis
Strengths
Weaknesses
Opportunities
Threats
Suggest strategies that should be tested against
Vision
Goals
Company Values
Financial Status
Cash Position
ROI Position
Societal Demands
Competition
Core Competencies
People Skills
Overall Resources
Strategic Management ProcessEnvironmental Analysis
General Environment
Operating Environment
Competitive Positioning
Directions for Development
Company Analysis
Structure
Values/Culture
Skills
Resources
CompanyStrategic History
CurrentStrategy
StakeholderAnalysis
Vision &Strategy
ChosenStrategy
RealizedStrategy
CompanyVision
Reprinted with permission fromThe Strategic Management BlueprintCambridge, Ma: Blackwell, 1993.Figure 7-2
ConclusionsConclusions
A strategy should often be kept relatively simple. Success relies on gaining understanding,
acceptance, and support by people within the company.
The strategy must accomplish its objectives by providing direct or indirect value to customers.
Information Systems can only be successful if it supports the right business strategies.
Possible Exam QuestionsPossible Exam Questions
1. Describe the steps from vision to implementation and the major challenges to accomplish of each of them.
2. Provide multiple company examples of a major business strategy and how information systems enabled an otherwise impossible implementation of the strategy.
Chapter 8 & 9 IntroductionChapter 8 & 9 Introduction
Evaluating Business Strategies Evaluating Business Strategies and Information Systemsand Information Systems
Roles, Roles & Relationships Roles, Roles & Relationships ConceptConcept
Where Are We?Where Are We?
Section I: The Business Environment
Chapters 2 – 5
Section II: The Company Environment
Chapters 6 – 7
Section III: The Use of Information
Systems
VisionStrategyTactics
Business Plan
• Competitive Options• Roles, Roles and Relationships• Redefine and/or Define• Telecommunications
as the Delivery Vehicle• Success Factor Profile
A Systematic Approach
Chapter 8Chapter 8
Evaluating Business Strategies and the Use of
Information Systems: Strategic Option Generator
Strategic Option GeneratorStrategic Option Generator
As the name suggests, this model can be used to identify multiple options that can be used to focus the strategies of a company to gain a competitive advantage through the use of information systems.
In this class it is to be used as an after the fact evaluation of what actually happened with a company.
TARGET
CUSTOMER COMPETITORSUPPLIER
THRUST
DIFFERENTIATION COST INNOVATION GROWTH ALLIANCE
MODE
DIRECTION
OFFENSIVE DEFENSIVE
USE PROVIDE
EXECUTION
STRATEGICADVANTAGE
STRATEGIC OPTION GENERATOR
Figure 8-1
Chapter 9Chapter 9
The Roles, Roles and Relationships Concept
A concept that is very important to our academic health!
Roles, Roles & Relationships Roles, Roles & Relationships ConceptConcept
Role of Information Systems
Role of Senior Management
The relationship between those that run the business and those responsible for managing information systems
Other Key Topics
1. Triggers of Action Model.
2. Technology Transfer Through
Organizational Learning Concept.
3. Information Systems Organization as a Business within a Business Concept.
4. Outsourcing of IS Management.
CompetitiveAdvantage
Action Initiators
Vision
Strategy
Tactics
ProcessImprovement
CrisisManagement
Executive Power
Business Leadership
Technology Leadership
Figure 9-5
Making It Happen!Making It Happen!
Technology TransferTechnology TransferThrough Organizational Through Organizational
LearningLearning
There is a direct correlation between
the successful introduction of a new
information system within an organization
and the learning curve of the primary
users.
OutsourcingOutsourcing
Logical?
Necessary?
Appropriate?
Cost-effective?
What?
With Whom?
Where?
How Long?
Risk?
ConclusionsConclusions
Chapters 8 and 9 begin the discussion on how to
assess the use of Information Systems in an
organization through the Strategic Option Generator
model, the Roles, Roles & Relationships concept,
phases of management and leadership, and
outsourcing.
THANK YOU!
Chapter 8Chapter 8
Evaluating Business Strategies and the Use of
Information Systems: Strategic Option Generator
VisionStrategyTactics
Business Plan
• Competitive Options• Roles, Roles and Relationships• Redefine and/or Define• Telecommunications
as the Delivery Vehicle• Success Factor Profile
A Systematic Approach
TARGET
CUSTOMER COMPETITORSUPPLIER
THRUST
DIFFERENTIATION COST INNOVATION GROWTH ALLIANCE
MODE
DIRECTION
OFFENSIVE DEFENSIVE
USE PROVIDE
EXECUTION
STRATEGICADVANTAGE
STRATEGIC OPTION GENERATOR
Figure 8-1
Biggest MistakeBiggest Mistake
Target, thrust and mode are fairly straight-forward so they don’t tend to cause problems for students.
Direction is a source of problems and confusion since the name of the element is not self-explanatory.
This element deals with whom the use of IS is intended.
TARGET
CUSTOMER COMPETITORSUPPLIER
THRUST
DIFFERENTIATION COST INNOVATION GROWTH ALLIANCE
MODE
DIRECTION
OFFENSIVE DEFENSIVE
USE PROVIDE
EXECUTION
STRATEGICADVANTAGE
Federal Express Analysis Using the Strategic Option Generator
Figure 8-2