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1、How IT can help your business strategy The Business Strategy Challenge IExternal environmentOrganizationTechnology Available Re-structuration of industriesVariability of marketsGlobalizationScarceresourcesTime-basedCompetition RegulationsSTRATEGY The Business Strategy Challenge IITechnology Availabl
2、e Re-structuration of industriesVariability of marketsGlobalizationScarceresourcesTime-basedCompetition RegulationsSTRATEGYExternal environmentStructureProcesses CulturePeopleTechnology IT Departments have grown substantially 1970-1980: IT rose from 2.6% to 3.5% of total investment By 1990: IT consu
3、med 9% By 1999: IT consumed 22%By now IT Departments spend 70% to 80% of their budget just trying to keep existing systems running!How did this happened? If youre not confused, youre not paying attention! The IT Value Creation Formula:And send it offshoreChunk it, Routinize it, Digitize it The REAL
4、Impact of ITTechnology is revolutionizing the economic, societal, and technological foundations of the old economy. Organization are developing new models for business, the economy, and government. Options for Strategic PositioningEnabled throughEffective Useof Technology Options for Strategic Posit
5、ioningEnabled throughEffective Useof TechnologyDifferentiationSonyCustomer IntegrationEDSRedefining Customer Rel.SaturnProprietary StandardMicrosoft, IntelLow CostSouthwest Horizontal Breath FidelityExclusive ChannelRural Wal-MartDominant ExchangeeBay The future belongs to those whoknow how to innov
6、ate Less: “chunk, routinize, digitize, and offshore”More: about “Creating Value” The future of IT:Thank you谢谢谢谢 1850Agrarian Economy1950Industrial Economy2010EInformation EconomyAGRARIAN WORKERS 50%AGR.14%MFG.WORKERS29%AGR.2%ITWORKERS ?MFG.11%Labor Force Compression ActivitiesBeforeNow Buying and se
7、lling text book Visit the bookstoreVisit web site for publishers and retailers Registering for classesWalk around campus to Departments, Registrars office, etc. Access campus web sitePhotography Buy film, use camera, take picture, take it for processing Use digital cameraPaying for GasolineFill up y
8、our car, go inside, pay cash or credit card Use speed pass token wave over the sensor and go Paying the Transportation Pay cash, metal tokens Metro cards electronic cardsPaying for goodsVisit store, take the item, pay , goUse self service kiosksSupplying commercial photos Use newspapers, paper, catalog or on line Use hub-like supply chain with digitized picture The New Economy VS. The Old Economy
