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The Strategic

Importance of IT
ENTR3160, Week 1

SHORT STRATEGIC
MANAGEMENT REVIEW
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Developing a Strategy
1. Develop mission
statement
2. Perform
environmental

analysis
3. Set strategic goals
4. Develop tactical
goals & plans
5. Develop control
framework

Mission Statement

rters Competitive Forces


Threat of Substitute
Products and Services

Supplier Power

Rivalry among
Existing Competitors

Buyer Power

Barriers to Entry

SWOT Analysis
Strengths
Weakness
Opportunitie
s

Threats

Porters Value Chain

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Strategic Goals
Specific
Measurable
Attainable
Relevant
Time-bound

Porters Generic Strategies


Cost
Leadersh
ip

Differentiati
on Strategy

Broad
Market
s

Focuse
d
Market
s

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Functional Strategies

Finance
Operations
R&D
HR

A CONTROL FRAMEWORK

The Balanced Scorecard


Financial

Learning &
Growth

Mission,
vision,
strategic
objectives

Internal
Processes

Customers
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A COUPLE OF MORE
CONCEPTS
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Distinctive Competence
Technology
Logistics
Organization
al practices
Brand name

Scope
Market Niche
Geographic
Regions
Resource
Deployment

WHAT IT HAS TO DO WITH


THE WHOLE IDEA?
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IT & Strategy
Organization
al Strategy

Operational
Strategy

IT Strategy

Current
Architecture
IT Projects
Current
Technology
Offers

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WHAT IS INFORMATION
TECHNOLOGY?
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Information Technology
..tools that
capture, store,
process,
exchange, and
use
information.

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WHY IS IT IMPORTANT?

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The Importance of IT
Gains in
productivity
Transaction costs
Speed
Decision Making
Forecasting /
planning
Collaboration

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HOW TO SUCESSFULLY
BENEFIT FROM IT?
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Successfully Benefiting
from IT
Identifying
opportunities
Smooth
implementation
Resource
allocation
Success Metrics

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