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Three Lenses for IT Strategy, Threat of new entrants, Suppliers'…
Three Lenses for IT Strategy
Competitive Litmus Test (Microscope)
Does a particular IT asset can create a sustainable competitive advantage?
Valuable
Rare
Creates Competitive Advantage
Not Rare
Temporary Competitive Advantage
example
most IT infrastructure
no strategic value
mere competitive necessities
Inimitable (unique)
Sustains Competitive Advantage
Non-substitutable
What?
helps judge whether a discrete IT asset can produce a sustainable competitive advantage
Five Forces Model (Telescope)
How it is affecting your industry?
Managers can control
Increases operational effectiveness
Unconventional competitive barriers
Managers cannot control
Increases transparency
Erases Geography
Blurs industry bpundaries
Legacy-free business model
What is the Components?
Rivalry among existing competitors
What?
a powerful competitive analysis tool to determine the principal competitive influence in a market
Value Chain (Magnifying Glass)
How it can alter how your firm creates value vis-a-vis your archrivals?
Steps
Operational Effectiveness
Inbound & outbound logistics
Operations
Sales
Services
Value-added
Inbound & Outbound Logistics
Merketing
Operations
Services
Linkages
Structural reconfiguration – disintermediation (bypassing firms in your value chain – Amazon brought authors directly to consumers in book industry
Coordination
Among functions
Among firms
Substituting inventory with information
Anticipating shifts in demand
What?
a step-by-step business model for transforming a product or service from idea to reality
Threat of new entrants
entry ease/barriers
geographical factors
incumbents resistence
new entrants strategy
routes to market
Suppliers' bargaining power
brand reputation
geographical coverage
product/service level quality
relationships with customers
bidding processes/capabilities
Customer's bargaining power
buyer choice
buyers size/number
change cost/frequency
product/service importance
Threat of substitutes
alternatives price/quality
market distribution changes
fashion and trends
legislative effects