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Three Lenses for IT Strategy - Coggle Diagram
Three Lenses for IT Strategy
Five Forces Model
Manager cannot control
Increases transparency
Erases geography
Blurs industry boundaries
Legacy-free business models
Manager can control
Increases operational effectiveness
Unconventional competitive barriers
Value Chain
Strategy = How’ll 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 step has physical + informational components 🡨trifecta increasing it
Building blocks of strategy 🡨 undergird all costs and differentiation
IT instrumental to tailor value chain to your firm’s strategic aspiration
Competitive Litmus Test
Can a discrete IT asset (an app, infrastructure element, or a data asset) produce a sustainable competitive advantage?
Valuable but not rare 🡨 a temporary competitive advantage
e.g., most IT infrastructure
Many analytics initiatives
Operational—but not strategic—value
Merely creates competitive parity
Valuable and rare
e.g., purchased apps can often be imitated 🡪 destroys their rarity
Solution: Creating new apps faster than they’re imitated
But often financially exhausting and unsustainable