Tugas 2 IS Strategic Planning - M7233

RESUME CHAPTER 2

An Overview of Business Strategy Concepts and the IS/IT Strategy Implications

Oleh:ABDURRASYID

1112200642Kelas : 04 MBM

UNIVERSITAS BINA NUSANTARA

MANAJEMEN SISTEM INFORMASI JENJANG S2

JAKARTA

2012

IS Strategic Planning - M7233

THE EVOLVING NATURE OF STRATEGY AND STRATEGIC PLANNING IN ORGANIZATIONS

Strategy versus Planning

Strategy making process should be: capturing what the manager learns from all sources (both the soft insights from his or her personal experiences and the experiences of others throughout the organisation and the hard data from market research and the like) and then synthesising that learning into a vision of the direction that the business should pursue.

Hamel7 asserts that planning is about programming not discovering, that strategy making must be democratic and is not the sole preserve of senior managers. you ‘cannot see the end from the beginning’, a situation that is similar when embarking on developing an IS/IT strategy.

Strategy can therefore be defined as: an integrated set of actions aimed at increasing the long-term well-being and strength of the enterprise relative to competitors.There are essentially three interrelated processes that can contribute to the establishment of such a strategy:

1. strategic thinking—creative, entrepreneurial insight into the ways the enterprise could develop;

2. strategic planning—systematic, comprehensive analysis to develop a plan of action;3. opportunistic decision making—effective reaction to unexpected threats and

opportunities.

THE STRATEGIC FRAMEWORKThe framework considers the factors involved in business strategic management in three layers

1. The external environment Ex: Economic, Social, Political, Legal, Ecological, Technological

2. Pressure groups and stakeholders.3. Internal business strategizing and planning.

Pressure Groups and Stakeholders

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IS Strategic Planning - M7233

Pressure groups are characterized by making demands of the organization. They require that the enterprise acknowledges their existence and the effect they can have, and they expect appropriate responses from management to satisfy their particular interest.The stakeholders have a direct financial interest in the organization, and demand a fair share of the wealth created.

Business Strategy Formulation and Planning ProcessesA key issue of any strategy process is to determine the scope. Should it cover the

organization as a whole, or should the organization be considered in smaller, discrete parts where it may be more appropriate and easier to develop coherent strategies and plans? These organizational components are often called ‘strategic business units’ (SBUs).

business unit can be defined as: a unit that sells a distinct set of products or services, serves a specific set of customers and competes with a well-defined set of competitors. A key element in any business planning process is to set business or organization objectives. Objectives values are often expressed in terms of the ‘mission’ of the organization, which is usually a statement of its long-term aims and purpose.Situation Analysis consists of two essential elements, called SWOT

1. concerns the current strategy and an understanding of the enterprise’s strengths and weaknesses.

2. analysis of the competitive environment so that the enterprise can quite clearly identify its position in the marketplace and possible future strategic options.

evident that such frameworks are not widely used, perhaps due to the high degree of formality implied in this approach. It need not be bureaucratic or prescriptive, but each of the elements should be addressed.

STRATEGY IMPLEMENTATION

Two models of strategic management1. strategy formation.2. strategy formulation.

STRATEGY TOOLS AND TECHNIQUES

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IS Strategic Planning - M7233

Portfolio and Planning Matrices, Ex: The Boston Matrix (or Boston Square)

The Boston Matrix emphasizes a few key issues in strategy:1. The need to manage products according to market opportunities and pressures, not

internal factors.2. The need to reinvest net cash inflows into future products to ensure continuing sources of

revenue.3. The need to have a complete and balanced portfolio if the business is to thrive in the long

term.

Competitive Forces and Competitive Strategies

A RESOURCE-BASED VIEW OF STRATEGYCompetencies and Competitive Advantagethree paths to market leadership based on Treacy and Wiersma suggestion

1. Operational (or Process) Excellence2. Customer Intimacy3. Product Leadership

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