School of Information Sciences and Technology Strategic Alignment

School of Information Sciences and Technology Strategic Alignment IST 297 A www. ist. psu. edu

School of Information Sciences and Technology Critical strategy variables I Scope Cost Leadership Differentiation Cost Focus Differentiation Focus Advantage www. ist. psu. edu Service Outbound Logistics Marketing Operations Inbound Logistics Support activities n Generic Strategies Value Chain gi ar M Five Forces 1. Threat of new entrants 2. Threat of substitutes 3. Bargaining power of suppliers 4. Bargaining power of buyers 5. Rivalry among firms Porter, Michael, Competitive Advantage, 1985

School of Information Sciences and Technology Critical strategy variables II Scope Service Marketing Operations Outbound Logistics Inbound Logistics in Cost Leadership Support activities g ar Generic Strategies Value Chain M Five Forces 1. Threat of new entrants 2. Threat of substitutes 3. Bargaining power of suppliers 4. Bargaining power of buyers 5. Rivalry among firms Differentiation N. Venkatraman, 2000 Cost Focus Differentiation Focus Advantage www. ist. psu. edu 1. Vision 2. Governance 3. Resource allocation 4. Infrastructure 5. Management team

School of Information Sciences and Technology Key questions as strategist 1. How do I keep track of all the variables I need to address? 2. What drives what? Do I start with a particular area? 3. How do you plan for the transition from “brick to click”? 4. How do I justify the process? www. ist. psu. edu

School of Information Sciences and Technology Strategic Alignment Business Strategy IT Strategy Scope Competency Make/Buy Structure Processes Skills Org. Infrastructure www. ist. psu. edu Competency Make/Buy Architecture Processes Skills IT Infrastructure

School of Information Sciences and Technology Planning Perspectives Strategic Execution IT Strategy Business Strategy Organization Infrastructure IT Service Level IT Strategy Business Strategy Organization Infrastructure IT Infrastructure www. ist. psu. edu Competitive Potential Business Strategy Organization Infrastructure IT Strategy IT Infrastructure Technology Potential Business Strategy Organization Infrastructure IT Strategy IT Infrastructure

School of Information Sciences and Technology How do you plan for the transition? IT Strategy Business Strategy . dot Strategy Organization Infrastructure IT Infrastructure Organization Infrastructure . dot Scope Strategy Five Forces 1. Threat of new entrants 2. Threat of substitutes 3. Bargaining power of suppliers 4. Bargaining power of buyers 5. Rivalry among firms . dot Infrastructure www. ist. psu. edu Cost Leader Differentiation Cost Focus Differentiation Focus Advantage N. Venkatraman, 2000 1. Vision 2. Governance 3. Resource allocation 4. Infrastructure 5. Management team