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Table 1 American Airlines SABRE Reservation System

Table 1 American Airlines SABRE Reservation System. Table 2 Merrill Lynch Cash Management Account. Figure 1 Rethinking Business Strategy and IT Strategy. Business Strategy. Seed Business Strategies. Target IT Priorities. IT Strategy. Enabler Role. Support Role.

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Table 1 American Airlines SABRE Reservation System

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  1. Table 1American Airlines SABRE Reservation System

  2. Table 2Merrill Lynch Cash Management Account

  3. Figure 1Rethinking Business Strategy and IT Strategy Business Strategy Seed Business Strategies Target IT Priorities IT Strategy Enabler Role Support Role

  4. Figure 2Identifying Ideas for Using IT to Enhance Competitiveness Business Strategy Business Model Value Discipline Ideas for IT-enabled Competitive Actions Competitive Actions IT Strategy Strategic Role of IT

  5. Figure 3Business Model Components • Who is the customer? • What does the customer value? • How does our product/service meet the customer’s needs? • How is revenue generated? • What is the cost structure? • How exactly is profit created? Customer Value Proposition Profit Model Critical Processes Critical Resources What are the business activities critical to our being able to both provide customers with the products and services they value and do so in a profitable manner? What are the business and technology resources necessary in order to carry out critical processes in an effective and efficient manner?

  6. Figure 4Components of Apple’s Business Model • High prices due to in-demand hardware products (new, stylish, high quality) • Moderate manufacturing and marketing costs • High margins • Technically savvy segment of the mass market • Seamless online access to content across multiple media Customer Value Proposition Profit Model Critical Processes Critical Resources • Internal product design • Product architecture • Tight control of sales and marketing • Outsourced manufacturing • Brand • Product designers and architects • Electronic content delivery platforms • Relationships with content providers

  7. Figure 5Components of Walmart’s Business Model • Cost-sensitive segment of the mass market (‘Everyday Low Prices’) • Availability of a broad range of products, enabling one-stop shopping • Low prices, low costs • High volume, high product turnover Customer Value Proposition Profit Model Critical Processes Critical Resources • Store site selection • Tailor local inventory to local market • Shelf-space optimization • Supplier relationships • Logistical processes • Retail and distribution facilities • Information technology • Employee talent in logistics, supplier management, merchandizing, purchasing and IT

  8. Table 3Overview of the Value Disciplines

  9. Table 4Strategic Roles of IT

  10. Table 5Value Disciplines and the Strategic Roles of IT

  11. Figure 6IT as a Strategic Enabler Organization (or Work Unit) Structure Product/Service Competitive Market Positioning IT Functionality Innovative IT Functionality Business Processes Employee Skills & Roles Adapted from M.S. Scott Morton (Ed.), The Corporation of the 1990s: Information Technology and Organizational Transformation. New York: Oxford University Press, 1991.

  12. Table 6Examples of IT-enabled Business Model Innovation

  13. Table 7Limiting Competitor Responses to IT-Enabled Competitive Actions Adapted from G. Piccoli and B. Ives, “IT-Dependent Strategic Initiatives and Sustained Competitive Advantage: a Review and Synthesis of the Literature,”MIS Quarterly, December 2005, pp. 747-776.

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