Please enable JavaScript.
Coggle requires JavaScript to display documents.
Three Lenses for IT Strategy - Coggle Diagram
Three Lenses for IT Strategy
5 FORCES MODEL (TELESCOPE)
A powerful competitive analysis tool to determine the principal competitive influence in market
IT impact
managers cannot control
legacy free business model , blurs industry boundaries, erases geography, increase transparency
managers can control
increases operational effectiveness, unconventional competitive barriers
components
FIERCENESS OF COMPETITION
CUSTOMER'S BARGAINING POWER
product/service important, buyer size/number, buyer choice, change cost/frequency
THREAT OF NEW ENTRANTS
entry ease/ barriers , geographical factors, incumbent resistence, routes to market, new entrants strategy
supplier's bargaining power
brand reputation
relationship with customer
geographical coverage
product/service level quality
bidding processes/capabilities
threat of substitutes
entry ease/barriers
alternatives price/quality
fashion and trends
market distribution changes
VALUE CHAIN (MAGNIFYING GLASS)
a step by step business model for transforming a product or service from idea to reality
IT can alter
linkages
coordination
among function
among firms
substituting inventory with information
anticipating shifts in demand
Structural reconfiguration - disintermediation (by passing firms in your value chain - Amazon brought authors directly to consumers in book industry
steps
operational effectiveness
sales, inbound and outbound logistics, operations, services
value-added
marketing, services, operation, inbound and outbound logistics
COMPETITVE LITMUS TEST (MICROSCOPE)
can a discrete IT create a sustainable competitive advantage?
rare
creates competitive advantage
inimitable (unique)
sustains competitive advantage
valuable
non-substitutable
not rare
temporary competitive advantage
most IT infrastructure
no strategic value
mere competitive necessities
helps judge whether a discrete IT asset can produce a sustainable competitive advantage