Slide 2.

Chapter 2
Strategy and Information
Systems

Slide 2.2

Business Strategy
Need for strategy
Strategic business planning
determine mission and objectives
identify future performance against objectives
develop strategy

Strategies
Business IS strategy
Business IT strategy

Slide 2.3

Competitive Forces Within an Industry

Five forces model
suppliers
customers
substitute products
new entrants
competitor rivalry

Slide 2.4

Environmental Influences on the

Organization
PEST analysis
political/legal
economic
sociocultural
technological

Slide 2.5

The Nolan Stage Model

1. Initiation
2. Contagion
3. Control
4. Integration
5. Data administration
6. Maturity

Slide 2.6

The Nolan Stage Model (Continued)

Figure 2.4

The six-stage Nolan model

Slide 2.7

The Earl Model

Figure 2.5
Source: Adapted from Galliers and Sutherland, 1991

Slide 2.8

Exploitation of IT Through the Value Chain

Primary activities
Support activities

Figure 2.7

The value chain

Slide 2.9

Value Chain

Figure 2.8

Information technology in the value chain

Slide 2.10

The Strategic Grid

Figure 2.9

The strategic grid

Source: Adapted from Applegate et al, 1999

Slide 2.11

Critical Success Factors

Example: mail order company
Objective
increase market share by 5% per annum
CSFs: effective advertising, faster order
processing, faster distribution
IS applications: market research database,
computerized telephone ordering, computerized
delivery scheduling

Slide 2.12

IS Strategy Today
Business strategy and IT strategy
alignment
mainstream vs. innovative

Enterprise resource planning

Business process re-engineering
business process improvements

Outsourcing