Slide 4.1

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Using IS to reinvent strategy – Ch. 4 Boddy et al.

• Issues in developing an IS strategy

• IS from a strategic perspective

• Aligning IS with corporate strategy

• Positioning e-Business models

• Opportunities and problems of IS planning

• Case: Intel

Slide 4.2

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

IS strategic approaches

• Planned or emergent IS strategy? – see Figure 4.1

• IS and strategy inter-related

• Generic strategies– Operational excellence– Product leadership– Customer intimacy

What are the IS consequences of each?

Slide 4.3

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

IS and strategy – three models

Figure 4.3 General strategy determines the IS strategy

Figure 4.4 IS opportunities open up possibilities for general business strategy

Figure 4.5 Information systems & strategies affect each other: interaction model

Slide 4.4

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

IS and strategy

Figure 4.7 IS can change the competition: Porter’s modelSource: Reprinted by permission of Harvard Business Review, from Strategy and the Internet by Porter, M.E., 79(2), 2001. Copyright © 2001 by the Harvard Business School Publishing Corporation: all rights reserved

Slide 4.5

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

IS from a strategic perspective

• IS and threats from potential entrants– Aalsmeer, BBC, GoCargo

• IS and threat of substitutes– Caterpillar, Internet banking

• IS and the power of suppliers– Airlines yield management systems

• IS and the power of buyers– Wal-Mart

• IS and competitive rivalry

Slide 4.6

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Digital options

Figure 4.8 Products, processes and players can be physical, digital, or both

Slide 4.7

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Examples of digital options

Figure 4.9 Examples of digital options

Slide 4.8

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

IS and competitive rivalry

Figure 4.10 Dell’s business modelSource: Bidgoli (2004). Reprinted with permission

Slide 4.9

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

IS and alignment

Figure 4.11 Alignment between IS and organisation, in plans and in operationsSource: Sabherwal et al. (2001). Reprinted with permission

Slide 4.10

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

IS alignment

Figure 4.12 Strategic approach to alignment, based on contingencies

Slide 4.11

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

E-business strategy

Figure 4.13 Strategic options in relation to the importance of the Internet as a channelSource: Adapted from Chaffey (2007) with permission

Slide 4.12

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

Product features and the Internet

• Products vary in their suitability to be sold over the Internet:– Digitisability e.g?– Standardisability e.g?– Portability e.g?– Low touch e.g?

Slide 4.13

Boddy et al., Managing Information Systems, 3rd Edition, © Pearson Education Limited 2009

In conclusion

• Ambiguous link between IS and strategy

• Interaction between IS and strategy

• 5 forces model helps to analyse relationships

• Internet challenging many assumptions

• Using IS strategically depends on handling the organisational aspects