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Three Lenses for IT Strategy - Coggle Diagram
Three Lenses for IT Strategy
Five forces model
like a telescope because it can zoom out to the level of the industry that the company in it
help to understand how IT is altering the rules of competition for every company in industry including archivals
fierceness of competition
is driven by a bargaining power of customer and bargaining power of suppliers but by the trade of new entrants and trade-off substitues.
it shows the impact of IT in industry
IT can increase transparency
it is about the internet can increase the transparency of suppliers cost for firms and market price for customer
for example, we can use internet to know which suppliers offer the cheapest price such as Amazon, Lazada, Shopee
IT can erase geography
it is about consumer access to a broader array of sellers which increase the fierceness competition in industry
IT can blur industry boundaries
it is about trifecta (3 IT centric drives that fracture the industries which are digitization infusion and ubiquit) causing growing variety of previously independent industries to coverage
for example, scat services substitute long distance telephony or smartphone apps substitute photocopiers and smartphone and substitute cameras.
IT can enable legacy free business models
it is about IT can lower conventional entry barriers such as capital needed to enter an industry
so, it enables the business models without the legacy burdens of incumbent firms. the ex : internet enable kills has allowed red box to meet the needs of customers without the needs for thousands of stores and employee
Value Chain
like magnifying glass that can zoom in to compare your firm with your archrivals
its about how company and archivals create value and could be able to recognize where the company can use IT to imagine how it earns it kids
The strategy is fundamentally about how your firm will deliver more value than credits. Value creation is about making firm's output worth more than inputs better than creditors.
A competitiveness test
this is like microscope that can use competitively most tests to zooms in on an individual idea sets
we would know whether the itself can offer a sustainable competitive advantage over archrivals
will help to judge whether an idea set which is the apps the infrastructure element and the data assets can produce a sustainable competitive advantage or not right
it is because to create a competitive advantage using itself is different from to sustain it
in order to create a competitive advantage and reset must be able to produce something that valuable and rare meaning that are valuable in industry and rare among archrivals
in order to sustain a competitive advantage after we have created it,
we have to make sure that the archrivals must not be able to copy it which is inimitable and the archrivals must not be able to achieve the same ends differently which is non-substitutable
IT assets that able to produce competitive advantage
It assets that are valuable but not rare
IT infrastructure is not rare even when it is valuable
so, it rarely generates a competitive advantage
it has a operational value but not strategic value
it less a competitive necessity because it provides a foundation for others idea sets that might generate a competitive advantage
it assess that are valuable and rare
its IT and data are rarely sustainable competitive advantage
for ex: Purchased apps can often be imitated by archrivals. This limitation destroys their rarity
is build on purchased it ads, must add valuable new it capabilities faster than archrivals
however, this approach, normally can be financially exhausting and it is usually unsustainable.
So, purchased ads therefore can create but rarely sustain a competitive advantage