Summary: Strategic Management Of Organizations And Ict

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• Midterm exam

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• Porter’s Competitive strategies

  
  Low cost: Try to be as efficient as possible, and pass on the savings to the customer. (Aldi/Acer)
  Differentiation: Create superior products or brand value so customers are willing to pay a premium. (AH/Apple)

• Treacy & Wiersema's value disciplines

  Businesses need to focus on one discipline, while meeting industry standards in the other two. 

• Customer Life Cycle analysis

  Used to analyze the relation with your customer during the entire product life cycle
  
  Ives & Learmonth

• Lead time analysis

  Millson et al.
  
  
  Eliminate delays
  Eliminate activities
  Accelerate activities
  Parallel execution of activities
  Simplify

• Hierarchical Application Portfolio

  • Strategic planning (e.g. Profit forecast)
    
  • Management control (e.g. Inventory management)
    
  • Operational control (e.g. Payrolls)
    

  
  Anthony

• Nolan & Gibson proposed an evolutionary model

  'Stages of growth'. First four, then two more for a total of six.
  

  1. Initiation: Batch processes to automate clerical operations
  2. Contagion: Rapid growth due to user demand, little control
  3. Control: Management demands returns to be shown, creates application backlog and dissatisfied users
  4. Integration: Existing systems are integrated. DP provides a service to users
  5. Data administration: Information requirements rather than processing drive the applications portfolio and information is shared within the organization. Database capability is exploited as users understand the value of the information.
  6. Maturity: The planning and development of IS/IT in the organization is closely coordinated with business development

• Venkatraman describes three revolutionary uses of IT

  
  

  1. Business process redesign: Using IS/IT to realign business activities and their relationships to achieve performance breakthroughs;
     
  2. Business network redesign: Changing the way information is used by the organization and its trading partners, thereby changing how the industry overall carries out the value-adding processes;
  3. Business scope redefinition: Extending the market or product set based on information or changing the role of the organization in the industry.

• Succes factors in Strategic information systems:

  1. External, not internal focus
  2. Adding value, not reducing cost
  3. Sharing the benefits
  4. Understanding customers
  5. Business-driven innovation, not technology-driven
  6. Incremental development
  7. Using the information gained

• Application portfolio by McFarlan

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• Environments of IS/IT strategy by Sullivan

  Organizational IS capability is referred to as the fourth era and is about sustainability of IS. Sustainability from an IS perspective, can be defined as an organizations ability to continually deliver explicit business value through IS/IT, thus leading to an advantage.