The IS/IT strategy
Its conceptualized in three categories scope, competence and governance. a) Scope is the set of specific technologies which support the business strategy or which may shape new strategic initiatives in the future. b) Competence refers to the attributes of IS/IT strategy such as reliability or flexibility which could positively contribute to supporting current business strategy or creating new strategy. c) Governance on the other hand refers to the organizational mechanisms for obtaining required competencies. Roles of IS/IT Organizational expectations, goals and focus for IS/IT, as well as the strategic
nature of the current and future portfolio of information systems can all be considered significant elements of the role that IS/IT plays within an organization. IS/IT roles with respect to organizational expectations of the contribution of in executing the overall business value chain: (1) Supporting individual value chain (2) Activities, integrating the value chain, (3) Changing business processes, and (4) Changing the scope of the business and organizational business models. Integration of the organizational value chain involves both the ability to support value chain activities in
isolation and the ability to connect systems, applications, data, and business processes across the organization. Changing business processes involves supporting and integrating the value chain as well as the ability to enhance business processes and relationships with suppliers and customers. McFarlan’s Strategic Grid The strategic Grid has always been used to assess both the current and the potential impact of information system. The grid is a two by two strategic impact of IS under development together with strategic impact of the application system in place. Support (low, low). For the case of Focus HighTech.
Com, IT has heard little relevance, though it has supported the existing process. Strategic (high high). The role that IT has played in the formulation of the business strategies of the company has been unique. Turnaround (low existing, high developing). In the operation of Focus HighTech. Com, it has been analysed that IT is going to be main strategic point in developing the company. Factory (high existing low developing). The daily operation of the business has been good in the recent past, and no IT development has imposed a drastic change to the company. Porter’s competitive strategies 1.
The threats of the sustitute products involved, the buyers/clients willingness to sbstitute computers and services in his/her disposal and also client perception on differented products or sevices. 2. The threat of the new entrants to the market- this involved restriction to operate in some regions due to stringent rules in place/unfriendly government policies. Minimal access to some distribution channels also acted as a barrier. 3. The competitive rivalry-due to advancement in technology there is a cut throat competition in the market, also number of competitors is increasing day after day this has also possed a challenge to the business.
Advertisement should be done intensively to capture the market. 4. Customers bargaining power. Majority of the buyers are very sensitive with pricechange this has continued to be the challenge to the business as a result of piracy in softwares. 5. Suppliers bargaining power. The degree of differentiation of the inputs and their cost has been a challenge to most people and this has posed a challenge because of high demand. The IS/IT strategy has assisted the management to resolve and apply the modern technology to make sure they are selling the company, rather than the product.
Also in overcoming the challenge, threats and competition the strategies has contributed to the formation of a formidable decision to safeguard the firm’s operation activities. The business has Store 1 and Store 2 already within the city, and Store 3 is expected by the end of next year. If their strategy works, the company will have differentiated itself sufficiently to compete favourable against their competitors. Availability is also very important. The home office buyers tend to want immediate, local solutions to problems.