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Three lenses for IT strategy, IT's impact, Inbound logistics, IT's…
Three lenses for IT strategy
Five forces model (Telescope)
Value chain (Magnifying glass)
Competitive Litmus test (Microscope)
Creates competitive advantage
Sustains competitive advantage
Valuable but not rare ← a temporary competitive advantage
Valuable and rare
Solution: creating news apps faster than they're imitated
But often financially exhausting and unsustainable
for example: Purchased apps can often be imitated →destroys their rarity
for example: most IT infrastructure
Many analytics initiatives
Operational-but not strategic-value
Merely creates competitive parity
Strategy = How will you deliver more value than your archrivals to explicitly IDed
Value creation = Making outputs worth more than inputs
Value chain = lens for understanding this ⁓ prevailing business model
Each activity can crosscut functions
Each steps has physical + informational components ←trifecta increasing it
Building blocks of strategy ←undergird al costs and differentiation
Threat of New Entrants
Fierceness of Competition
Threat of Substitutes
Threat alone suffices
Often industry outsiders
Caps prices, raises cost
Trifecta breeds these
Customers' Bargaining Power
Suppliers' Bargaining Power
It is about the three lenses (level of zoom) which give sharp insight for formulating IT strategy
IT strategy requires understanding on:
Three lenses must be use together because they zoom into different aspects of your firm's competitive landscape
IT alters the industry attractiveness but also provides antidotes. IT can alter the attractiveness of an entire industry by increasing transparency, blurring industry boundaries, enabling legacy-free business models, and squeezing margins
Firms can use IT to erect unconventional competitive barriers using network effects and analytics-driven customization
How it is affecting your industry (using the five-forces lens)
How it can alter how your firm creates value vis-à-vis your archrivals (using the value-chain lens)
Whether a particular IT asset can create a sustainable competitive advantage (the litmus-test lens)
IT's impact
a. increases transparency
b. erases geography
c. blurs industry boundaries
d. legacy- free business models
Inbound logistics
Operations
Outbound logistics
Marketing
After-sales services
Demand management
IT's effect on industry
Firm vis-à-vis archrivals
Competitive advantage in individual IT assets
Unconventional competitive barriers
Operational effectiveness
Supply management
V (valuable)
R (rare)
N (Non-substitute)
i (Inimitable)