Itecn453 business strategy

ITEC N453 – Information

Technology Practices201220 - Week 03 - Lecture 01

• Assessment 01• Introduction to Business Strategy• Basic Principles of Strategy• Elements of Business Strategy • Mission• Vision• Objectives• Market Strategy

Assessment 01• Due Week 8• 20% (10% Group, 10% Individual)• Emerging Technology Report and Presentation • You need to research an emerging technology and

present it to the class.• You need to define and describe the emerging

technology.• You need to present a brief tutorial showing a practical

example on how the emerging technology is used / implemented.

• You need to present case examples on how the emerging technology is used to improve the organization’s efficiency.

• Emerging Technology Examples: Cloud Computing, Data Mining, Mobile Computing, Social Computing

Business Strategy• What is strategy? (Search online for an easy-to-understand definition)

[1] Chew, K. & Gottschalk, P. “Information Technology Strategy and Management” 2009.

Business Strategy• What is strategy?• “… principles, a broad based formula, to be applied in

order to achieve a purpose.” [1, P. 73]

• Thompson and Strickland (2003, p.3) postulate, “a company’s strategy is the game plan management is using to stake out a market position, conduct its operation, attract and please customers, compete successfully, and achieve organizational objectives.” [1, P.32]


Basic principles of Strategy• Porter (2001) stipulates that a company needs to follow six fundamental principles to establish and maintain a distinctive strategic positioning [1, P.32]:• It must start with the right goal: superior long-term return

on investment.• A company’s strategy must enable it to deliver a value

proposition. • Strategy needs to be reflected in a distinctive value chain. • Robust strategies involve trade-offs.• Strategy defines how all the elements of what a company

does fit together.• Strategy involves continuity of direction.


Basic principles of Strategy - Homework

• Divide yourselves into groups of 4 – 6 members each• Access the following web page:http://bit.ly/Xy8RW3

• Study the basic principles of strategy according to Porter• Write an easy-to-understand explanation summary for each principle. Each summary should be between 50 & 100 words. Include an Example to explain each point. • Write your answers as a reply to BB-Learn Discussion Message[1] Chew, K. & Gottschalk, P. “Information Technology Strategy and Management” 2009.

http://bit.ly/Xy8RW3

http://bit.ly/Xy8RW3

Necessary elements of a business strategy

• Mission• Vision• Objectives• Market Strategy


Elements of a business strategy - Mission• Describes the reason for firm existence.• Example: the reason for law firm existence is client's needs for legal advice. [1, P. 33]

• Exercise: • What is the mission statement of the HCT?• Find and discuss two organization's mission.


Elements of a business strategy - Vision

• Describes what the firm wants to achieve.• Example: The law firm wants to become the leading law firm in UAE.• The vision represents the view that senior managers have for the future of the organization, so it is what hey want it to become.

• What’s HCT’s vision?• Find another educational institution vision and compare it to this of HCT’s.


Elements of a business strategy - Objectives

• The set of major achievement that will accomplish the vision.• Example: the law firm can choose to merge with another law firm to become the leading law firm in UAE. • Describe where the business is heading.

• Exercise:• Find HCT objectives• Find another firm’s objectives.


Elements of a business strategy – Market Strategy

• Describes market segments and products.• Example: the law firm can focus on corporate clients in the area of tax law.

• Exercise:• What can be the HCT Market Strategy• Find the market strategy of another firm.


End of Lecture

Itecn453 business strategy

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