Strategic Management
2
The Dynamics of Strategic Planning
• Strategy large-scale action plan that sets the
direction for an organization
• Strategic management process that involves managers from all
parts of the organization in the formulation and the implementation of strategies and strategic goals
3
The Strategic Management Process
4
APPROACHES TO STRATEGIC PLANNING
1Business-
Led
2Method-Driven
3Admin
4Organizational
5Technology
UnderpinningAssumption
Business Plansand NeedsShould DriveIS Plans
FormalizedPlanningMethodology
Use Firm’sMethodology
ContinuousShared PlanningActivities
Quality Business/InformationModeling
Emphasis ofApproach
Use BusinessPlans to LeadDevelopment ofIS Plans
Selection ofBest Method/Best Consultant
Project ROI User/ISCooperation andLearning
Creation ofBusiness Process/InformationModels
Slogan BusinessDrives IS
PlanningNeeds aMethod
Follow theRules
Themes withTeams
Model theBusiness
Key toSuccess
OperationalizedBusiness Plan
IntegratedStrategic,Tactical, andImplementationMethodology
EffectiveSteeringCommittee
ExperiencedUsers and ISPersonnel
Quality BusinessProcessReengineeringPrograms
Problem Business PlanQuality
Availability ofMethodologies
Tactical Tactical Difficult
ContinuousShared PlanningActivities
User/ISCooperation andLearning
Themes with
ExperiencedUsers and ISPersonnel
Tactical
5
StrategicBusiness V ision
Strategic Business Planning (Transform ation) Fram ework
O rganizationVision
O rganizationStrategy
ISStrategy
ExistingIS /IT
Strategy
ExistingO rganizational
Form
O rganizationRedesign
HRInitiatives
IS /ITDevelopment
B usiness Transform ation Planning
C hange M anagem ent Process
Vision
Planning
Delivery
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Strategic P lanning M ethodology
INTERVIEW ING ANALYSIS & PLANNING STRATEGY
DEVELOPMENT
M issionStatem ent
B usinessPlan
M IS Strategy
O rganizationStrategy
Serv ice LevelStrategy
M arketingStrategy
O perationsStrategy
M anagem entSty le
TechnologyStrategy
IT /IS Strategic Planning
O BJECTIVES: Social Economic Medical
Resources: Economic Medical
Enterprise Assessm ent
Research
Service Availability Survey
Products Availability Survey
Market Structure Survey
EconomicAnalysis
byService
&product
A ssessm ent C riteria
M arketSegm entation
A nalys is
C om petitivepositionA nalys is
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A n a lysis
A n a lysis
Producing an In tegra ted Business /Techno logy S tra teg ic P lan
C o m p e tito rsB u sin e ssP ro file s
C u rre n tT e ch n o lo g y
A rch ite ctu re s
C u rre n tA p p lica tio nP a cka g e s
U tilize T e a m 'sT e ch n o lo g yB a ckg ro u n d
U tilize T e a m 'sIn d u stry
K n o w le d g e
M a n a g e m e n tIn te rvie w s
T e ch n o lo g yS ta ff
In te rvie w s
U se rIn te rvie w s
D ra ftB u sin e ss
P la n
P re lim in a ryT e ch n o lo g y
P la n
P L A N N IN G
W O R K S H O P
P re lim in a ryB u sin e ss
P la n
D ra ftT e ch n o lo g y
P la n
T e ch n o lo g yM a n a g e m e n t
In te rvie w s
M a n a g e m e n tIn te rvie w s
B u d g e t &Im p a ct
A n a lysis
B u d g e t &Im p a ct
A n a lysis S tra te g icT e ch n o lo g y
P la n
S tra te g icB u sin e ss
P la n
Crossim pact
analysis
Crossim pact
analysis
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The Contingency Theory of Management
Environm ent: In terna l & Externa l
Technology: In terna l & Externa l
Product/Service
Structure
DesiredMgmt/Org
Style
-H ierarica l(C om m and)
-D em ocra tic(S hared Leadersh ip)
-P artic ipa tive (S e ll)
P roduction R & DE ngineering
Stable TurbulentDynamic
AutocraticLeader
Empow eringLeader
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Common Grand Strategies
• Growth strategy involves expansion/technology diffusion
• Stability involves little or no significant change
• Defensive involves reduction in the organization’s
efforts
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SWOT Analysis Tool
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Porter’s Five Competitive Forces
1. Threat of new entrants/technologies
2. Bargaining power of suppliers
3. Bargaining power of buyers
4. Threat of substitute products or services
5. Rivalry among competitors
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Porter’s Four Competitive Strategies
• Cost-leadership strategy keep the costs, and hence prices, of a
product or service below those of competitors and to target a wide market
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Porter’s Four Competitive Strategies
• Differentiation strategy offer products that are of unique and
superior value compared to those of competitors but to target a wide market
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Porter’s Four Competitive Strategies
• Cost-focus strategy keep the costs of a product below those of
competitors and to target a narrow market
• Focused-differentiation offer products that are of unique and
superior value compared to those of competitors and to target a narrow market
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The Product Life Cycle
Stage 1: Introduction the new product is introduced into the
marketplace
Stage 2: Growth most profitable stage period in which customer demand
increases, the product’s sales grow, and competitors may enter the market
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The Product Life Cycle
Stage 3: Maturity period in which the product starts to fall out
of favor and sales and profit begin to fall off
Stage 4: Decline period in which the product falls out of
favor and the organization withdraws from the marketplace
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