Chapter 7 Summary

1
Chapter 7 Summary

• Implementing a Vision
• Strategy, Tactics and Business Plan

2
Chapter 7

• What is the chapter all about?
• The strategies, tactics, and business plans
  necessary to implement a vision.
• Deciding what things are worth doing relative to
  a business plan.
• Getting those things done!

3
Defining the Three Key Elements

• Vision Identifies what the organization wants to
  look like at some logical point in the future.
• Strategy How a company will achieve the
  long-term goal of the vision.
• Tactics More specific time-oriented, measurable
  ways to make a vision a reality.

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Implementation (Action)
The Vision to Action Process
Agreement Commitment
Tactics and Business Plan
Strategy
Feedback
Vision
Sensing Opportunity
Figure 6-1
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When in Doubt
Whether dealing with vision, strategies or tactic
think customer!
Remember that a major difference between
companies is how they treat their customers.
Value to Customer!
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IS and Business Strategy
Strategies should be kept simple when
possible. The goal is for Information Systems is
to help business strategies succeed. Information
Systems are never a strategy alone.
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A Valid Theory of Business

• The first signs of fundamental change rarely
  appear among customers. They show up among
  non-customers.
• Unexpected failure is as much a warning sign as
  unexpected success and must be taken seriously.

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The Three Components of a New Strategy
Vision
Internal Assessment
External Assessment
A New Strategy
Figure 7-1
9
SWOT Analysis
Vision Goals Company Values Financial Status Cash
Position ROI Position Societal Demands Competition
Core Competencies People Skills Overall Resources
Strengths Weaknesses Opportunities Threats
Suggest strategies that should be tested against
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Conclusions

• A strategy should often be kept relatively
  simple.
• Success relies on gaining understanding,
  acceptance, and support by people within the
  company.
• The strategy must accomplish its objectives by
  providing direct or indirect value to customers.
• Information Systems can only be successful if it
  supports the right business strategies.

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Possible Exam Questions
1. Describe the steps from vision to
implementation and the major challenges to
accomplish of each of them. 2. Provide
multiple company examples of a major business
strategy and how information systems enabled an
otherwise impossible implementation of the
strategy.
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Chapter 8 9 Introduction

• Evaluating Business Strategies and Information
  Systems
• Roles, Roles Relationships Concept

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Where Are We?

• Section I The Business Environment
• Chapters 2 5
• Section II The Company Environment
• Chapters 6 7
• Section III The Use of Information Systems

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A Systematic Approach
Vision Strategy Tactics Business Plan

• Competitive Options
• Roles, Roles and Relationships
• Redefine and/or Define
• Telecommunications
• as the Delivery Vehicle
• Success Factor Profile

Figure 1-4
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Chapter 8

• Evaluating Business Strategies and the Use of
  Information Systems Strategic Option Generator

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Strategic Option Generator
As the name suggests, this model can be used to
identify multiple options that can be used to
focus the strategies of a company to gain a
competitive advantage through the use of
information systems.
In this class it is to be used as an after the
fact evaluation of what actually happened with a
company.
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STRATEGIC OPTION GENERATOR
TARGET
CUSTOMER
COMPETITOR
SUPPLIER
THRUST
DIFFERENTIATION COST
INNOVATION GROWTH ALLIANCE
MODE
OFFENSIVE
DEFENSIVE
DIRECTION
USE
PROVIDE
EXECUTION
STRATEGIC ADVANTAGE
Figure 8-1
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Chapter 9

• The Roles, Roles and Relationships Concept

A concept that is very important to our academic
health!
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Roles, Roles Relationships Concept

• Role of Information Systems
• Role of Senior Management
• The relationship between those that run the
  business and those responsible for managing
  information systems

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Other Key Topics
1. Triggers of Action Model. 2. Technology
Transfer Through Organizational Learning
Concept. 3. Information Systems Organization as a
Business within a Business Concept. 4.
Outsourcing of IS Management.
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Making It Happen!
Competitive Advantage
Business Leadership
Technology Leadership
Tactics
Vision
Strategy
Crisis Management
Action Initiators
Process Improvement
Executive Power
Figure 9-5
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Technology TransferThrough Organizational
Learning

• There is a direct correlation between
• the successful introduction of a new
• information system within an organization
• and the learning curve of the primary
• users.

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Board of Directors
A Business
Suppliers
Users
Products/Services
Competitors
Figure 9-6
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Outsourcing
What? With Whom? Where? How Long? Risk?

• Logical?
• Necessary?
• Appropriate?
• Cost-effective?

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Conclusions

• Chapters 8 and 9 begin the discussion on how to
• assess the use of Information Systems in an
• organization through the Strategic Option
  Generator
• model, the Roles, Roles Relationships concept,
• phases of management and leadership, and
• outsourcing.
• THANK YOU!

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A Systematic Approach
Vision Strategy Tactics Business Plan

• Competitive Options
• Roles, Roles and Relationships
• Redefine and/or Define
• Telecommunications
• as the Delivery Vehicle
• Success Factor Profile

Figure 1-4
29
STRATEGIC OPTION GENERATOR
TARGET
CUSTOMER
COMPETITOR
SUPPLIER
THRUST
DIFFERENTIATION COST
INNOVATION GROWTH ALLIANCE
MODE
OFFENSIVE
DEFENSIVE
DIRECTION
USE
PROVIDE
EXECUTION
STRATEGIC ADVANTAGE
Figure 8-1
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Biggest Mistake
Target, thrust and mode are fairly
straight-forward so they dont tend to cause
problems for students.
Direction is a source of problems and confusion
since the name of the element is not
self-explanatory.
This element deals with whom the use of IS is
intended.
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Federal Express Analysis Using the Strategic
Option Generator
TARGET
CUSTOMER
COMPETITOR
SUPPLIER
THRUST
DIFFERENTIATION COST
INNOVATION GROWTH ALLIANCE
MODE
OFFENSIVE
DEFENSIVE
DIRECTION
USE
PROVIDE
EXECUTION
STRATEGIC ADVANTAGE
Figure 8-2
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UPS Analysis Using the Strategic Option Generator
TARGET

CUSTOMER
COMPETITOR
SUPPLIER
THRUST
DIFFERENTIATION COST
INNOVATION GROWTH ALLIANCE
MODE
OFFENSIVE
DEFENSIVE
DIRECTION
USE
PROVIDE
EXECUTION
STRATEGIC ADVANTAGE
Figure 8-3