Lecture 5A - EA as a Strategy

Question 1

What is an example of unification?

Answer 1

Delta Airlines

Question 2

What is an example of diversification?

Answer 2

Carlson

Question 3

What is an example of coordination?

Answer 3

Metlife

Question 4

What is an example of replication?

Answer 4

ING Direct

Question 5

What is the Value Network as proposed by McDonald?

Answer 5

• The enterprise plus its customers, intermediaries and suppliers
• Defines the full scope of capabilities that support the value proposition to the customer
• Allows the enterprise to access the set of capabilities beyond their own enterprise
• Sources capabilities and defines the interfaces with firms in the network.

Question 6

What is the enterprise in the value network?

Answer 6

The central node and the focal point for architecting decisions

Question 7

What are the suppliers in the value network?

Answer 7

They provide products, services and materials that are the basis for additional enterprise products and services

Question 8

What are the intermediaries in the value network?

Answer 8

They provide products and services that reduce the cost and increase the effectiveness of the customer value propositions.
(logistics, financial services etc.)

Question 9

What are complementors in the value network?

Answer 9

They offer products and services that extend the value of the customer’s value proposition by enhancing the quality of value of the product.
On-site repair/support

Question 10

Which 3 models are there in the value network according to McDonald?

Answer 10

1. Value network diagram
2. Capabilities Diagram
3. Capability blueprint

Question 11

What is the value network diagram?

Answer 11

• > Captures the scope of the enterprise. Shows actors and capabilities involved.
• Highest level model
• Includes: Enterprise, Suppliers, Intermediaries, Complementors and customers markets
• Under enterprise there is a list of their capabilities (product management, marketing, service fulfillment etc.)
• An enterprise may participate in one or more value networks

Question 12

What is the capabilities diagram?

Answer 12

> Outlines the relationships between capabilities within 1 enterprise, capturing the scope and interfaces to network players.

• Shows capability definitions
• Information flows between capabilities
• Interactions between internal capabilities, value network actors and customers

Question 13

What is the capabilities blueprint?

Answer 13

> Defines the scope of capability in terms of its elements.

• Shows the details of each capability within an enterprise