Org Strategies Flashcards
What is an organization strategy?
- determines how an org needs to evolve over time to meet its obj + detailed assessment (of what needs to be done)
- provide plans to move from its existing state to a targeted state (may take time & occur in phases)
- sets of directions, to define the purposes, missions & goals for the org
- tactics (steps) -> strategy (pathway) -> goal
What does the taxonomy of digital biz strat development comprise of? (5)
- Digital biz target plan
- Vision, Mission, Targets - Digital business situaltional analysis
- Assessment of internal & external factors using Porter’s 5 Forces - Digital biz strat formulation
- Derivation & assessment of strat options
- Digital biz strat selection & determination
using Biz Process Reenginnering - Digital biz strat implementation
- Implementation / realization plan
- Resource allocation to initiatives
- Change mgmt
using Our Iceberg is Melting - Digital biz strat audit
- Performance control & Strategic control
What is Micheal Porter’s 5 Forces?
Situational analysis consisting of: (no seq, but usually look at buyers first)
1. Bargaining Powers of Buyers
2. Threat of Substitute Pdts
3. Bargaining Power of Supplies
4. Threat of New Entrants
5. Rivalry Among Existing Customer (Core)
Describe the power of buyers (as part of Micheal Porter’s 5 Forces)
The extend customers can add pressure to the org
- Price sensitivity
-> How good is the deal? Economy of scale? Customer’s loyalty to an existing brand
-> Prices differences
- Ability of substitute
-> Dont buy this particular pdt still got smtg elsewhr
- Buyer’s info
-> How much info is available to customers
- Switching costs (low switching cost - customer has high bargaining power & lower control on customers)
-> How easy is it for customers to switch brands? Do customers get the same thing if they change to another brand?
Extra: No. of customers, size of customer order, dif b/w competitors
Desc the power of suppliers (as part of Michael Porter’s 5 Forces)
The extend to which the org’s suppliers have control over the quality, services, prices of the goods they provide
- No. & size of suppliers - Many (now), 1 (past)
- Uniqueness / quality of supplier’s pdt (Simlar pdts)
- Availability of substitutes
- Switching costs
Desc the threat of substitute pdts (as part of Michael Porter’s 5 Forces)
- Existence of pdts outside what is available
- Push factors are usually cost such as ↑ prices, differentiating factors & switching costs
Desc the rivalry among existing competitors (as part of Michael Porter’s 5 Forces)
- Competition in the industry
- Size & power of the competitors matters
- Being able to match up with the cost offerrings
Desc the threat of new entrants (as part of Michael Porter’s 5 Forces)
- Easy for new players to enter the industry
- What are the capability, capital, expertise requirements
- Are thr any goct regulations & guidelines
- When the barrier of entry is low, the ↑ is the threate to existing players in the industry
What are the competitive forces for Digital Business
New providers, Customer, Substitutes, Suppliers -> Industry Competition (view the diagram for more details)
What are the steps taken in Our Iceberg is Melting - Change Mgmt? (8)
Set the Stage:
1. Create a sense of urgency
2. Pull tgt the guiding team
Decide what to do:
3. Develop the change vision & strat
Make it happen:
4. Comms for understanding & buy in
5. Empower others to act
6. Produce ST wins
7.Dont let up
Make it Stick:
8. Create a new culture & continue w it
“Changing & Succeeding under Any Conditions”
What are the principles of Biz Process Reengineering?
- Organize ard outcomes, not taskss
- Have those who use the output of the process perform the process
- Subsume info-processing work into the real work that produces the info
- Treat geographicalaly dispersed resources as tho they were centralized
- Link parallel activities instead of integrating their results
- Put the decision pt where the work is performed & build control into the processes
- Capture info once & at the source
Why implement Biz Process Reengineering?
- gain competitive advantage
- improve customer experiences
- reduce operating costs
- being efficient
Cycle of Biz Process Reengineering
Identify Process for Review -> Review Process to Analyse ‘As is’ -> Desgin ‘To be’ Process -> Test & Implement ‘To be’ Process
Every org will implement diff Biz Process Reengineering
- Many approaches that can be taken by the org to achieve BPR
- Priorities of every org will be diff
- Their target audiences are diff & thus processes has to be designed to meet the needs of the customers
- Each org has diff biz goals, biz models, biz processes & target audiences
What is the biz model canvas?
- A mgmt tool to quickly define & communicate a biz idea / concept -> clear visual representations
- Connecting external & internal factors to meet the biz needs
- Making connections b/w the ideas to make it into a biz
- to help companies think beyond product centric
(consists of key partnerss, key activities, key resources, value proposition, customer r/s, customer segments, channels, cost structure & revenue streams)
