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Strategy and IT Stages of development and Alignment

Strategy and IT Stages of development and Alignment. Jatinder N. D. Gupta. The Competitive Environment. In an intensifying competitive environment, companies rightly want to know... 1. How do we compare with our best competitors? 2. What do we need to improve first? (or most?).

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Strategy and IT Stages of development and Alignment

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  1. Strategy and IT Stages of development and Alignment Jatinder N. D. Gupta

  2. The Competitive Environment In an intensifying competitive environment, companies rightly want to know... 1. How do we compare with our best competitors? 2. What do we need to improve first? (or most?)

  3. The Four Stages of Competitiveness 1. Make it/deliver it -- without any surprises. 2. Don’t let our better competitors gain too much of an advantage over us. 3. Let’s get our act together. 4. We want to be the best in the world at what’s important to us.

  4. Four Stages in IS/T’s Strategic Role • Stage 1: Internally Neutral • “Minimize the Negative Impact” • Stage 2: Externally Neutral • “Achieve Parity with our Competitors” • Stage 3: Internally Supportive • “Provide Credible Support to our Business Strategy”

  5. Four Stages in IS/T’s Strategic Role • Stage 4: Externally Supportive • “IS/T as a Significant Contributor to our Competitive Position”

  6. Minimize the Negative Impact • Outside experts are called in to make decisions about strategic IS/T issues • Internal, detailed management control systems are the primary means for monitoring performance • IS/T is kept flexible and reactive

  7. Achieve Parity with our Competitors • “Industry practice” is followed • The planning horizon for investment decisions is extended to incorporate a single-business cycle • Capital investment is the primary means for catching up with competition or achieving a competitive edge

  8. Provide Credible Support to our Business Strategy • IS/T investments are screened for consistency with the business strategy • An IS/T strategy is formulated and pursued • Longer-term IS/T developments and trends are addressed systematically

  9. IS/T as a Significant Contributor • Efforts are made to anticipate the potential of new IS/T practices and technologies • IS/T is involved “up front” in major marketing and engineering decisions (and vice versa) • Long-range programs are pursued in order to acquire capabilities in advance of needs

  10. The Competitiveness Continuum Reactive/NeutralProactive/Leader • Facilities General Purpose/ Flexible Special Purpose /Focused Static/Decaying Cont. Being Renewed • Proc. Eqpt. Purchase from Outside Internal Development of General Purpose/Standard Critical Parts/Source of “Safe” Advantage/”Better” • Make vs. Based on Cost Savings Based on Need to Dev. Buy Gain Lev. over Suppliers Special Cap./Suppliers as Equals • Workforce Constraints Resource to Solve Prob. Relations Deskill/Eliminate Develop Capabilities

  11. The Competitiveness Continuum Reactive/NeutralProactive/Leader • Measurement/ Std. Cost Accting Specialized Control Budgets/Standards Measures • IS/T Role Service Function Equal Partner Specialists Valued Source of General Mgrs • Use of Outside Extensive Exception Expertise Tech Strat Advice ”We are the ”Bring in experts” experts” • View of the “Don’t get blindsided” “Use IS to Future blindside the competition”

  12. Warning Symptoms • Complacency • Getting all your new ideas and technology from others • Short-term scorekeeping in a long-term game • Predictability • Unwillingness to take certain kinds of risks • suppliers

  13. Warning Symptoms • Vulnerability • Not making use of all your resources • functions • human resources

  14. Impediments to Competing Through IS/T • Within the IS/T • Organization Itself • In Other Functions • Threatens existing Balance of Power • At Corporate Level • Providing Resources and Continuing Support

  15. Impediments to Competing Through IS/T, cont. • Procedures and Systems • Organizational Structure • Measurement and Reward • Management Selection and Promotion • Capital Budgeting/Resource Allocation

  16. Proactive or Reactive • Generally, IS/T is reactive to he organizational goals and plans and waits to be told to do certain things. • However, time has come for IS/T to be proactive and say how they can contribute to the formulation of business goals and plans. Which one do you prefer?

  17. Thanks for Listening! • Any Questions or Comments ?

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