SIT Chapters 1-4
Information Systems Strategy Triangle - correct answer-simple framework for describing the
alignment necessary with business systems and for understanding the impact of IS on
organizations
must be balanced
(in clockwise rotation)
1- (top) Business Strategy
2- (right) Information Strategy
3- (left) Organizational Strategy
Business Strategy - correct answer-drives organizational and IS strategies
a plan of action to fulfill business goals
BP Oil Spill - correct answer-series of IT failures
BP ignored the IT warnings, triangle was not aligned/balanced
organization misalignment
How a business strategy forms - correct answer-1) Alignment
2) Synchronization-anticipate the future
3) Convergence-Business/IS intertwined and interchangeable
Strategy - correct answer-coordinated set of actions to fulfill objectives, purposes, and goals
starts with a mission
Mission - correct answer-its purpose
Examples of Mission Statements - correct answer-Facebook: Getting people to connect
Zappos: WOW customer service
Amazon: satisfy customer sets--consumer, seller, developer
L.L. Bean: quality merchandise, reasonable profit
Porter's Framework - correct answer-to achieve competitive advantage
1) cost leadership
2) differentiation
3) focus
Cost Leadership - correct answer-organization aims to be lowest-cost producer in the
marketplace
usually only 1 cost leader
Examples of Cost Leadership - correct answer-Walmart, Suzuki, Overstock.com
Differentiation - correct answer-offers something unique in the market place
price charge for customer from differentiator must be fair relative to competitor
, Examples of Differentiation - correct answer-Progressive Insurance, Coca Cola, Publix
Focus - correct answer-tailor offerings to a specific audience either by cost or by
differentiation
Cost Focus - correct answer-organization seeks a cost advantage within its segment
Differentiation Focus - correct answer-seeks to distinguish its products/services within the
segment
allows for local competitive advantage
Examples of Cost Focus - correct answer-Marriot
Examples of Differentiation Focus - correct answer-Ritz-Carlton (CRM)
JetBlue (initially cost) (leg room, Direct TV)
Dynamic Environment Strategies - correct answer-strategic advantages= not sustainable
trying to sustain them= deadly distraction
*hypercompetiton*
-create competitive advantage by acting with speed, agility, and aggreesive
Hypercompetition - correct answer-sense/respond with agility and aggressiveness
*creative destruction
*GE Jack Welch: GYB/DYB
*Steve Jobs: Cannibalize your products
Problem with Porter's Framework - correct answer-Competitive advantages= no longer
sustainable
Will be eroded by:
better cost/quality
timing/know-how
strongholds
deep pockets
Destroy Your Business/Grow Your Business - correct answer-GE Jack Welch
GE employees develop strategies to destroy (DYB) GE's competitive advantage to find fresh
ways to reach new customers/better serve existing ones (GYB)
Cannibalizing your products - correct answer-Steve Jobs
Must cannibalize your own products before competitors do
(ex:) iPod, iPhone, iPad
Organizational Strategy - correct answer-design of work processes
can support/hinder business strategy
Leavitt's Business Diamond - correct answer-Identifies the crucial components of an
organization plan
Information Systems Strategy Triangle - correct answer-simple framework for describing the
alignment necessary with business systems and for understanding the impact of IS on
organizations
must be balanced
(in clockwise rotation)
1- (top) Business Strategy
2- (right) Information Strategy
3- (left) Organizational Strategy
Business Strategy - correct answer-drives organizational and IS strategies
a plan of action to fulfill business goals
BP Oil Spill - correct answer-series of IT failures
BP ignored the IT warnings, triangle was not aligned/balanced
organization misalignment
How a business strategy forms - correct answer-1) Alignment
2) Synchronization-anticipate the future
3) Convergence-Business/IS intertwined and interchangeable
Strategy - correct answer-coordinated set of actions to fulfill objectives, purposes, and goals
starts with a mission
Mission - correct answer-its purpose
Examples of Mission Statements - correct answer-Facebook: Getting people to connect
Zappos: WOW customer service
Amazon: satisfy customer sets--consumer, seller, developer
L.L. Bean: quality merchandise, reasonable profit
Porter's Framework - correct answer-to achieve competitive advantage
1) cost leadership
2) differentiation
3) focus
Cost Leadership - correct answer-organization aims to be lowest-cost producer in the
marketplace
usually only 1 cost leader
Examples of Cost Leadership - correct answer-Walmart, Suzuki, Overstock.com
Differentiation - correct answer-offers something unique in the market place
price charge for customer from differentiator must be fair relative to competitor
, Examples of Differentiation - correct answer-Progressive Insurance, Coca Cola, Publix
Focus - correct answer-tailor offerings to a specific audience either by cost or by
differentiation
Cost Focus - correct answer-organization seeks a cost advantage within its segment
Differentiation Focus - correct answer-seeks to distinguish its products/services within the
segment
allows for local competitive advantage
Examples of Cost Focus - correct answer-Marriot
Examples of Differentiation Focus - correct answer-Ritz-Carlton (CRM)
JetBlue (initially cost) (leg room, Direct TV)
Dynamic Environment Strategies - correct answer-strategic advantages= not sustainable
trying to sustain them= deadly distraction
*hypercompetiton*
-create competitive advantage by acting with speed, agility, and aggreesive
Hypercompetition - correct answer-sense/respond with agility and aggressiveness
*creative destruction
*GE Jack Welch: GYB/DYB
*Steve Jobs: Cannibalize your products
Problem with Porter's Framework - correct answer-Competitive advantages= no longer
sustainable
Will be eroded by:
better cost/quality
timing/know-how
strongholds
deep pockets
Destroy Your Business/Grow Your Business - correct answer-GE Jack Welch
GE employees develop strategies to destroy (DYB) GE's competitive advantage to find fresh
ways to reach new customers/better serve existing ones (GYB)
Cannibalizing your products - correct answer-Steve Jobs
Must cannibalize your own products before competitors do
(ex:) iPod, iPhone, iPad
Organizational Strategy - correct answer-design of work processes
can support/hinder business strategy
Leavitt's Business Diamond - correct answer-Identifies the crucial components of an
organization plan
