Session 4 : Role of ICT in Business Strategy 4.pdfOutsourcing 5. Vertical Integration . Low Cost Strategy Revenue Cost Profit Revenue Cost Profit Option 1 Option 2. Low Cost Strategy

INFORMATION STRATEGY

POST GRADUATE DIPLOMA IN BUSINESS AND FINANCE 2014

Session 4 : Role of ICT in Business Strategy

Tharaka Tennekoon B.Sc (Hons) Computing, MBA (PIM - USJ)

Porter’s Generic Strategies

Low Cost Strategy

Revenue Cost Profit

Waste

1. Process Efficiency 2. Low cost raw material 3. Low cost labour 4. Outsourcing 5. Vertical Integration

Low Cost Strategy

Revenue Cost Profit Revenue Cost Profit

Option 1 Option 2

Low Cost Strategy

Narrow Broad

Burger’s King

Differentiation Strategy

Differentiation Strategy

Narrow Broad

Competitive Scope

Segment Scope

Vertical Scope

Geographical Scope

Industry Scope

Porter’s Value Chain Analysis – Printing Company

Information Intensity

Information intensity of the

value chain

Information content of the product

Low

High

Low High

Airlines Banks

Newspapers Education Services

Hotline Service

Oil refining

Bricks

Porter’s Five Forces

Competitors

New Entrants

Customers

Substitutes

Suppliers

Change Industry Structure/ Creating new business

Create Competitive Advantage

Create Competitive Advantage

Effect on Competitiveness 1. Changes Industry Structure

Alters the rules of competition 2. Creates competitive advantage

New ways to outperform the competition 3. Creates new business

Within the company’s existing operations Totally new areas

Been competitive with ICT 1. Assess Information Intensity 2. Role of ICT in the industry 3. Identify ways how ICT can create competitive advantage 4. Investigate how ICT can create new business 5. Develop a plan to take advantage of ICT

Tharaka Tennekoon, B.Sc (Hons), MBA (PIM - USJ)

+94 773403609

info@topmostline.com