This action might not be possible to undo. Are you sure you want to continue?
What is st rat egy ?
I t is a plan for achieving purpose Concept of st rat egy in m ilit ary in t he t im e of ancient Greeks. Spread t o diplom at ic and business cont ext s. St rat egy result s from careful analysis St rat egies m ay change according t o environm ent al changes so I S developm ent s t hat support ed t hem m ay ended in such cases.
The process of specifying an organizat ion's obj ect ives developing policies and plans t o achieve t hese obj ect ives allocat ing resources so as t o im plem ent t he plans I t is t he highest level of m anagerial act ivit y, usually perform ed by t he com pany's Chief Execut ive Officer ( CEO) and execut ive t eam .
St rat egic planning is a way t o ident ify and m ove t oward desired fut ure st at es. SWE 523 . I t is t he process of developing and im plem ent ing plans t o reach goals and obj ect ives.
Su ppor t s in it ia t ive : Rewarding init iat ive behavior result s in bet t er com m it m ent and m ot ivat ion.Cle a r goa ls: Helps m aking t o t act ical choices m ade during t he lifet im e of t he st rat egy. W e ll m a n a ge d : Good leadership is needed. Fle x ible : Taking advant age of chages. Con ce n t r a t e d : Resources and energy is concent rat ed when and where it m at t ers m ost . SWE 523 .
SWE 523 .When developing a st rat egy I nvest igat e t he sit uat ion Develop som e alt ernat ive courses of act ion Evaluat e t hese decisions Choose t he decision t o be im plem ent ed I m plem ent our decision and follow it By using t his process we can develop a m odel of st rat egic m anagm ent .
There are m any analyt ical t ools t o help in t his process. Those we exam ine are. m ost of which are concerned wit h offering ways of analysing t he current sit uat ion. SWOT PESTEL Balanced Business Scorecard Bost on Group Mat rix SWE 523 .
A SWOT Analysis is a st rat egic planning t ool used t o evaluat e t he St rengt hs W eaknesses Opport unit ies Threat s involved in a proj ect or in a business vent ure. SWE 523 .
There are int ernal fact ors st rengt hs and weaknesses from int ernal fact ors opport unit ies & t hreat s from ext ernal fact ors. SWE 523 . a proposit ion or idea. It helps in decision making how t he firm may use it s st rengt hs and opport unit ies t o overcome weaknesses and t hreat s.I t m easures a business unit .
perform ed early in t he proj ect developm ent process helps organizat ions evaluat e t he environm ent al fact ors int ernal sit uat ion facing a proj ect . SWE 523 .
Opport unit ies and t hreat s refer t o how t he ext ernal environm ent s effect s your t eam / business/ group.St rengt hs and w eaknesses are at t ribut es t hat m easure your int ernal capabilit y. SWE 523 .
Ex a m ple s of Possible St r e n gt h s a n d W e a k n e sse s Experience Resources Pat ent s Good reput at ion Originalit y Cust om er Service Efficiency Com pet it ive Advant ages SWE 523 .
Ex a m ple s of Possible Oppor t u n it ie s a n d Th r e a t s Business Alliances New Product s and/ or Services I ncreasing Market Sat urat ion Target ing a New Market Segm ent Locat ing a New Source of Revenue Unfulfilled cust om er need SWE 523 .
SWOT analysis can help in t urning weaknesses and t hreat s int o opport unit ies. SWE 523 . and ult im at ely int o st rengt hs.
3 A SWOT matrix SWE 523 .Figure 2.
Have customer lists.user sector. We cannot supply end-users abroad. Customer service staff need training. Strengths End. Weaknesses We would be a small player. Need more sales people. which are not being covered or developed by its normal distributors. No pilot or trial done yet. No direct marketing experience. Some staff have experience of end.user sales control and direction. quality and reliability. The manufacturer tries to create a new company of its own to distribute its products direct to certain end-user sectors. Spare manufacturing capacity. SWE 523 . Right products. Product innovations ongoing. Limited budget. who historically rely on distributors to take their products to the end user market. Delivery-staff need training. Better product life and durability. Direct delivery capability.SWOT example The scenario is based on a business-to-business manufacturing company.
Market demand very seasonal. SWE 523 . Vulnerable to reactive attack by major competitors. New specialist applications. Could extend to overseas.) Opportunities Could develop new products.SWOT example (cont. Possible negative publicity. Threats Environmental effects would favour larger competitors. Retention of key staff critical. Can surprise competitors. Profit margins will be good. End-users respond to new ideas. Existing core business distribution risk.
WO STRATEGIES These strategies are based on overcoming institutional weaknesses to take advantage of market opportunities. WT STRATEGIES These strategies are based on overcoming/minimizing institutional weaknesses to avoid market threats. SWE 523 . SO STRATEGIES These strategies are based on institutional strengths to take advantage of market opportunities.1. 3. 4. ST STRATEGIES These strategies are based on institutional strengths to avoid market threats. 2.
cultural T echnological Environmental and Legal that affect organization now or in the future. We need t o be aware of ext ernal fact ors affect ing our organizat ion and how t hey m ight change I S developm ent s.I t is describing t he ext ernal fact ors of P olitical Economic S ocio. SWE 523 .
life st yle. Socio. SWE 523 .cult ural : Changes in dem ography. inflat ion.owned ent erprises int ernat ional polit ics ( price of oil. educat ion et c.Governm ent at t it udes t owards privat e and st at e. raw m at erial supply) Econom ic : I nt erest rat es. m arket share et c. working condit ions. currency exchange.
Legal : Ant i.t rust and m onopoly legislat ion. SWE 523 . specific t axat ion legislat ions et c. use of energy et c. exploit m arket ing inform at ion and ext end choices by int ernet et c. im pact of pollut ion. Environm ent al : Clim at e change. laws against pollut ion.Technological : New ways of delivering a service t hrough t he use of t echnology. raw m at erial supplies.
Addresses int angible aspect s cust om er perspect ive t he int ernal business perspect ive em ployee perspect ive SWE 523 .
Cust om er Perspect ive How cust om ers see t he organizat ion? Measures response and delivery t im es defect rat es Followup service Cust om ers are surveyed t o find out what it is like t o be a cust om er of our organizat ion. SWE 523 .
How well our business is running ? What processes m ust work excellent ly if we are t o exceed our cust om ers expect at ions ? SWE 523 .
SWE 523 .Oft en called t he learning and growt h or organizat ional growt h perspect ive . Const ant developm ent of em ployees Much m ore t han j ust t raining .
SWE 523 .Robson s analysis of I S opport unit ies 3 generic business st rat egies t o respond t o t he five com pet it ive forces by using IS to reduce overall cost s different iat e product s and services from t he com pet it ion s offerings and add addit ional feat ures on t hem concent rat e on m arket segm ent s and support act ivit ies in t hem .
2nd edn.Robson s analysis of I S opport unit ies Figure 2. Strategic Management & Information Systems. Prentice Hall.6 Robson s analysis of the five forces and IS opportunities Source: W Robson. 1997 SWE 523 .
Centrally planned where the planning cycles for businesses and IS are closely linked and IS strategy is embedded in business strategy.Generic I S st rat egies for organizat ions There are six st rat egies offered for t he developm ent of I S in organizat ions by Gregory Parsons. SWE 523 . 1. 2. Leading edge where there is a belief that innovative technology can create organizational gains and that risky investment can generate big paybacks. These are.
Necessary evil where organizations see the developm ent of I S as a necessary evil and believe the information is not important to their SWE 523 business. Scarce resource scope of the IS function is deliberately limited by budget constraints. . 4. 5. There is a danger of slow m oving and unresponsive to customer.) 3. 6. A free market users make decisions so IS department behaves as a competitive business unit. Monopoly the information is a corporate asset and st rat egy for I S developm ent is founded on it .Generic I S st rat egies for organizat ions ( cont .
SWE 523 .S m odel I t proposes t hat t here are ot her fact ors in addit ion t o st rat egy t hat m ake an organizat ion effect ive.How st rat egy and syst em s link wit h organizat ional cult ure. t he 7.
covering everything from management information systems. areas of expertise and responsibility (and how they inter.The 3Ss across the top of the model are described as 'Hard Ss': Strategy: the direction and scope of the company over the long term. Systems: formal and informal procedures that govern everyday activity. online systems. through to the systems at the point of contact with the customer (retail systems. SWE 523 .relate). Structure: the basic organization of the company. call center systems. etc). its departments. reporting lines.
and were termed 'Soft Ss' by McKinsey: Skills: the capabilities and competencies that exist within the company. What it does best. Ultimately they guide employees towards 'valued' behavior. trained and motivated.The 4Ss across t he bot t om of t he m odel are less t angible. more cultural in nature. Shared values: the values and beliefs of the company. Staff: the company's people resources and how the are developed. Style: the leadership approach of top management and the company's overall operating approach. SWE 523 .
since new structures and strategies are difficult to build upon inappropriate cultures and values. processes. The soft factors can make or break a successful change process. SWE 523 .systems like internal career plans and management training will have an impact on organizat ional cult ure ( m anagem ent st yle) and t hus will affect structures. If one element changes then this will affect all the others.Effective organizations achieve a fit between these seven elements. and finally characteristic competences of the organization. For example. a change in HR.
Thank you for part icipat ing. .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.