Institute of Business Administration

MBA - Fall 2009

Information Industry Structure & Competitive Strategy

Nadeem Akhtar nakhtar@engineer.com

Course Background and Objective

The nearly instantaneous transmission and processing of information is changing the structure of entire
industries, and is altering the profitable opportunities available to many firms. The ability to target profitable
market segments and to identify customers is reducing the value of scale-based operations and the strategic
advantage of large firms. The ability to monitor the performance of units abroad without regard to distance
and time-zones, is increasing the value of cooperative partnerships. This is leading to grater reliance upon
outsourcing, benefiting many services industries and once again reducing the advantage of large firms. In the
prevailing situation, clearly some firms will win some will loose, but all will have to change. And yet,
fundamental laws have not been repealed. How can previous economic theory, and previous experience with
rapid technological change, provide insights for the development of strategy in an increasingly digital age?
This course draws upon the most recent experience in the impact of information technology upon diverse
industries, ranging from securities trading to consumer packed goods relating. It integrates the experience
with relevant theory to develop a theory of competitive strategy for electronic commerce, and for
information-based strategies more generally. It is not tools and techniques course or a quantitative analysis
course; likewise it is not a technology or an implementation course. It provides a focused and modern
complement to strategic planning.

Body of Knowledge
The Structural Analysis of Industries
Structural determinants of intensity of competition, , six major sources of barriers to entry, pressure
from substitute products, bargaining powers of buyers, bargaining powers of suppliers, structural
analysis and competitive strategy, generic competitive strategies (overall cost leadership, differentiation,
focus)
Challenges of Managing in a Network Economy
Market structure and industry dynamics, evolving business models, IT impact, prioritizing IT projects,
protecting IT assets and managing risks.
Creating Business Advantage with IT
Forces that shape business strategy, value chain analysis, strategic grid analysis, analyzing the impact of
IT on strategic decision making, how IT can increase switching costs, IT and barriers to entry.
Crafting Business Models (2A)
Business models classification, businesses built on a networked infrastructure vs businesses that
provide networked infrastructure, focused distributors, portals, producers etc., evolving business
models.
Building Networked Businesses
The need for new capabilities, blue print of a networked organization, building value networks,
characteristics of the hierarchy, entrepreneurial and networked organizations.
Making the case for Networked Business (4A)
Changing economics, comparing industrial and networked economics, linking strategy to execution to
results, benefits from investment in infrastructure, benefits from doing business on a networked
infrastructure.
Understanding Internetworking Infrastructure
The basic components of internetworking infrastructure, the technological elements of networks,
processing system and facilities, the future of internetworking infrastructure.

Assuring Reliable and Secure IT Services

Availability, the impact of redundancy on availability, high-availability facilities, securing IT assets
against malicious threats, classification of threats and security management framework, risk
management of availability and security.
Managing Diverse IT Infrastructure
New service models, managing risks throughout incremental outsourcing, managing IT assets,
managing relationship with service providers and partners.
Organizing and Leading the IT Function
Organizational issues in the control of IT activities, centralized vs decentralized control systems, drivers
towards user dominance, drivers towards a centralized IT structure.
Managing IT Outsourcing
Why outsource IT functions and operations, what IT outsourcing alliances are difficult to manage, what
drives outsourcing, when to outsource, structuring and managing the alliance.
A Portfolio Approach to IT Projects
Need and importance of project management, project management framework, why IT projects are
difficult to manage, project cost, schedule and scope management. Project categories and degree of
risks, risks of individual projects vs portfolio risk, process consistency and agility in project
management
Business Intelligence
Information systems and decision making using DSS and ESS, the decision making process, Data
Warehousing & Data Mining, challenges in maintaining data warehouses.
Information Systems and Data Security & Audit
The need for a framework and standard procedures for security, The ISO 27001 ISMS, Salient Features
of COBIT, the need for an IS/IT audit.

Grading Plan
Term exams
Quizzes
Assignments
Group Assignment
Final exam

40
10 (n-1, 5-6 unannounced quizzes during semester)
05 (2-3 individual assignments, all counted)
05 (end of course, topic suggested by group, approved by instructor, details tba)
40

Text Books and Study Material

Corporate Information Strategy & Management,

Sixth edition
Lynda M. Applegate, Herbert Austin, Warren McFarlan

Competitive Strategy
Techniques for Analyzing Industries & Competitors
Michael Porter

Instructor supplied material (e-books, case studies, articles etc)

Instructions and Class Rules

Sequence of topics is tentative. Topics may be added/dropped depending upon time & need. Guest speaker
sessions to be adjusted in above plan as required assignments due on due date at the start of class & with 50% penalty
in following class only. No re-conduct of quizzes IBA attendance rules to be strictly followed ringing mobile
phones to be confiscated without exception and returned in following class and never on second violation. Leaving
room for whatever reason during class is strongly discouraged. All assignment & quizzes must be retained till
semester end.