What is Strategy? by ywp5Yn

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									What is Strategy?


      IT Strategy
      Ken Peffers
         UNLV
    September 2004
Strategy

 Originally military concept
Levels of Action

 Strategy
    The highest levels of planning and action
    Having to do with goals, objectives,
    survival
 Tactics
    Methods of implementing strategy
 Operations
    Day to day and hour by hour planning
    and actions
 [Different organizations have different strategies]
A Strategy Against Terrorism
(North American)
  Maintain a large military capability
     Liberty worth fighting for
  Develop sophisticated, intelligent weapons to take
  the place of large numbers of soldiers
     Voluntary army
     Sensitivity to casualties
  Have sufficient strength to act alone if necessary
  Preempt the enemy by striking at probable and
  potential adversaries
     Engage the enemy in his territory
     The best defense is a good offense
An Alternate Strategy
(European)

  Maintain a minimum level of military
  capability
     War is always bad—experience of two world
     wars
     Military expenditures interfere with more
     important expenditures
  Deal with terrorism using statements
  deploring it, diplomacy, and law
  enforcement
  Tolerate a reasonable level of terrorism
US Strategy in the Middle East
A Subsidiary Strategy

  Strike directly at states that support
  terrorism
  Develop leverage with other states to
  encourage them to behave
     Cut off funding for terrorists
     Cooperate with law enforcement, etc.
     Move toward democratic governance
Tactics

 Turn power over to interim
 government
 Train Iraqi military and police forces
 Contract with Halliburton to provide
 food and beverage service to the
 troops
Operations

 Plan and carry out the activities for
 the day
 Schedule and implement patrols for
 the day
 Deliver MRE in sufficient quantity
 Perform scheduled maintenance on
 vehicles
 Compute and issue payroll
 statements for personnel
Strategy in Business
 Involves basic choices
 about mission,
 objectives and goals
 of the firm
 Strategic choices
   Product                Firm size
   Customers              Innovation
   Pricing                Resources
   Growth                 Channels
                          Cost vs differentiation
Strategy—Kim & Mouborgne
 Six stages of buyer experience
    Purchase, delivery, use, supplements, maintenance,
    disposal
 Six utility levers
    Customer productivity, simplicity, convenience, risk, fun &
    image, environmental friendliness
 Choose one or more cells in 2X2 framework in
 which to provide exceptional value
 Identify the strategic price
    achieve economies of scale and network externalities
 Develop and achieve cost target
 Consider sourcing
 Overcome adoption hurdles
Strategy—George Day
 Growth of the firm
 Price—value leaders
   Grow by extending value—growth
   proposition to adjacent markets
 Relational—value partners
   Grow by expending the definition of the
   solution
 Performance—value leaders grow by
 constant innovation
Strategy—Kim and Mauborgne
 Value innovation
 Rethink the value provided to the customer
 Four questions
   Which industry factors should be eliminated?
   Which factors should be reduced below
   industry standards?
   Which factors should be increased above
   industry standards?
   Which factors should be created that industry
   never considered?
Strategy—Moore
 Technology Adoption              Innovation
      Life Cycle                     Type
Early Market            Disruptive
Chasm
Bowling Alley           Application
Tornado                 Product
Main Street early       Process
Main Street Mature      Experimental
                        Marketing
Main Street Declining   Business Model
                        Structural
Fault Line
End of Life
What is IT Strategy

 Subservient to business strategy
 Alignment of IT goals and objectives
 with those of the business
IT Strategy Issues—Polansky,
Inuganti, and Wiggins
 IT Governance—how is IT managed,
 measured, etc.
 IT Portfolio management
   Which systems to build?
 IT organization and staffing
 Technology & architecture
 Sourcing
   Build or buy, in or outsourced
 Support corporate governance
   Accountability, transparancy
IT Strategy Issues
 Business intelligence-actionable
 Business transformation
   Integration
   Process improvement
 Customer Care
   CRM
 Internet & E-business
   E-business strategies
   Applications
   Employee portals
   VOIP
Other Issues?

								
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