Strategy Audit

A Strategy Audit of the business model:

Assesses business context
Analyzes customers
Analyzes competitors and substitutes
Assesses the business network
PP. 44-45
Capabilities enable a company to execute
current strategy while providing a platform for
future growth.
P. 45
Porter's Value Chain
Primary Activities (e.g., Create Demand, Fulfill Demand, Serve the
Customer)
Support Activities (i.e., activities that make the primary activities possible)
The value chain suggest that the methods of achieving competitive
advantage are
Lowering Cost
Adding Value
SCM is driven by understanding the value chain
ERP integrates all the information together in a single application
SCM applications leverage the ERP as a single major source for up-to-date
information
Most CIOs who have tried to install SCM applications say they are glad they
did ERP first
http://www.cio.com/article/40940/Supply_Chain_Management_Definition_and_Solutions
Value Chain
Value Network
Refer to Appendix 1 B in the Textbook for more about Value Networks
Capability Audit
A Capability Audit of the business model
Analyzes processes and infrastructure
P. 46
Streamlined, synchronized processes are one of
the most powerful sources of IT-enabled
proprietary advantage.
P. 46
Capability Audit
A Capability Audit of the business model
Analyzes processes and infrastructure
Evaluates people and partners
P. 46
Have leaders developed clear performance
targets, measurement systems, rewards, and
punishments that ensure transparency and
fairness?
P. 47
Capability Audit
A Capability Audit of the business model
Analyzes processes and infrastructure
Evaluates people and partners
Assesses organization and culture
P. 46
Does the informal culture support or hinder
individuals and groups as they attempt to fulfill
their roles and responsibilities
P. 47
Capability Audit
A Capability Audit of the business model
Analyzes processes and infrastructure
Evaluates people and partners
Assesses organization and culture
Evaluates leadership and governance
P. 46
Governance systems include strategic controls (scanning the
environment, defining strategic position, setting goals, and
prioritizing projects and investments); operating controls
(defining short-term objectives and controlling current
business operations and projects); effective risk management
(identification and management of key risks); and effective
development and management of the shared values and
culture that guide decisions and actions.
http://finance.yahoo.com/news/risk-management-gains-stature-c-120000255.html
P. 47
Value Audit
A Value Audit of the business model
Identifies internal and external stakeholders
Identifies business model drivers and alignment
Develops the financial model and determines
financing needs
PP. 48-49
Using the DuPont Formula to
Deconstruct ROE
http://www.nickols.us/se_intervention_logic.htm
Evolving the Amazon.com Business
Model (1995-2000)
Assessing the Impact of IT on Business
Model Alignment
Impact of IT on Industry Structure and
Relationships
IT Impact Map: IBM Path to Business Transformation
IT Impact Map: Medtronic (MDT) Path to Business
Transformation
Assignments Due
Case Study II
Reading I
News item A: Globalization
News item B: Geert Hofstede Cultural Factors
News item C: Business Agility
Group project: One page description of the
project