Discussion Questions

1. Discuss the framework for Strategy formulation with example?

Where to compete and how to have cost leadership and
differentiation.

Strategy Formulation
Strategy formulation is a structure by which an association picks the most
suitable action to accomplish its characterized objectives, targets and
mission.

Strategy formulation has six steps as:

1. Define the organization,
2. Define the strategic mission,
3. Define the strategic objectives,
4. Define the competitive strategy,
5. Implement strategies, and
6. Evaluate progress.

Step 1. Define the Organization

Characterizing is to recognize the organization's clients. An organization must
distinguish the components that esteemed by its clients

Step 2. Define the Strategic Mission

Company’s strong key statement of purpose ought to incorporate the qualities
that holds the idea of the business, uncommon capacities or position the
association holds in the commercial centre.

Step 3. Define the Strategic Objectives

Characterizing key targets may incorporate market position comparative with
the opposition, creation, piece of the overall industry, client administrations,
company development, innovation, and deals increments.

Step 4. Define the Competitive Strategy

An organisation to figure out where it fits into the commercial centre. Three
variables must be viewed as while deciding the competitive strategy: the
industry and commercial centre, the organization's position competition with
the opposition, and the organization's strengths and weakness.

Step 5. Implement Strategies

An organisation may find a way to comprehend the commercial centre,
characterize itself, and recognize the opposition. Nevertheless, without
implementing the procedure, the organisation work will be no worth.

Step 6. Evaluate Progress

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If objectives not met, the organisation must be versatile and adaptable to
perceive that changes may required.

COST LEADERSHIP and DIFFERENTIATION

Cost leadership is way of producing goods and services at the lowest cost.
Differentiation consists in differentiating the product or service offered by the
firm, it could be achieved in various ways, through design, brand image,
technology, features, customer service, and dealer network.

2. Explain BCG Matrix (cash cow, stars, problem child, dogs) with
example.
BCG matrix is a planning model, which depends on the perception that an
organization's specialty units can be ordered into four classes:
 Cash Cows  Question Marks
 Stars  Dogs
Stars High Growth, High Market Share
Star units are leader in the class. Products are appealing and these are highly
competitive in the class.

Question Marks High Growth, Low Market Share

The capability of these products is doubtful. In the event that the growth rate
is high with the correct strategies and ventures, however having low market
share is known as a question mark.

Cash Cows Low Growth, High Market Share

These products produce intriguing profits however should be replaced because
the future development will be lower.

Dogs Low Growth, Low Market Share

Dogs hold low piece of the overall industry contrasted with competitors.
Neither do they produce money nor do they require huge money.

Example
A perfect example to demonstrate BCG matrix could be the BCG matrix of
PepsiCo. The company has perfected its product mix over the years according
to what’s working and what’s not.

Here are the four quadrants of PepsiCo’s growth-share matrix:

 Cash Cows – With a market share of 58.8% in the US, Frito Lay is the
biggest cash cow for PepsiCo.
 Stars – Even though Pepsi’s share in the market has reduced to 8.4%, it
is still the star for PepsiCo because of its brand equity.
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 Question Marks – Since it’s a mystery whether the diet food and soda
industry will boom in the future and will PepsiCo’s products will find their
place or not, Diet Pepsi, Pepsi Max, Quaker, etc. fall in the question
marks section of the PepsiCo’s BCG matrix.
 Dogs – As of now, there is not any product line that falls in the dogs
section of the PepsiCo’s BCG matrix.

3. Summarize a Business Model in detail.

Business model is a description of how your business makes money.. In their
simplest forms, business models can be broken into three parts:

 Everything it takes to make something: design, raw materials,

manufacturing, labour, and so on.
 Everything it takes to sell that thing: marketing, distribution, delivering a
service, and processing the sale.
 How and what the customer pays: pricing strategy, payment methods,
payment timing, and so on.

A successful business model just needs to collect money from customers than
to make the product. This is called your profit. New business models can
improve any of these three components. Maybe you can lower costs during
design and manufacturing. you can find more effective methods of marketing
and sales. Keep in mind; you do not have to come up with a new business
model without effective strategy.

4. Write down stages of the evolution of the IS/IT strategy process.

IS STRATEGY:
“The process of identifying computer-based applications to be implemented,
which is both highly aligned with corporate strategy and has the ability to
create an advantage over competitors”.

IT STRATEGY;
It concerned with outlining the vision of how technology can support
organization’s demand for information systems; Addresses provision of IT
capabilities and resources (HW, SW, and Telco) and services (operations,
systems development, and support).

The Evolution of IS/IT Strategy Process

Stage 1
Typical early planning Need to plan the interfaces b/w applications, developed
separately, project support applications built management perceives IS/IT in
that limited role
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Stage 2
Top down review of IS/IT in light of business dependence and prioritized list of
key operational applications for operations and MIS Approaches that used are
very methodological, normally based on derivatives of IBM’s ‘Business Systems
Planning’

Stage 3
Centres around detailed IS/IT planning with better balanced portfolio. More
attention to key operational systems and less to support applications through
stages 1-3 evolution is from isolated ‘efficiency’ applications to integrated
‘effectiveness’ systems.

Stage 4
User-driven Start seeing new opportunities. Using information in new ways to
provide business leverage and freedom to innovate High potential
opportunities driven by business.

Stage 5
Most difficult stage to reach Innovative ideas from Stage 4 need evaluation,
linking IS/IT
Potential to business strategy. Strategic applications identified and agreed
upon in context of business strategy.

5. Describe the relationship of evolving organizational maturity and IS

planning.
Five stages of organization evolution
Organizations usually evolved through five evolutionary growth stages:

Concept Stage
The concept stage is the stage of start-up. It alluded to as the formation,
thought, or pre-seed stage. The key component being tended to in this stage is
what essential value proposition is.

Start-up Stage
When you have canvassed your business idea and are fulfilled that it is all
setup, it is an ideal opportunity to make it official and launch your start-up.
Many accept this is the least secure phase of the whole business.

Credible Stage
To be Credible, an organisation needs a financial project and plan and a
operational plan. The key players responsible for creating and conveying plan
to accomplish their part of the arrangement typically guaranteed by a
motivation that rewards success.

Sustainable Stage
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On the off chance that a business does a couple of things directly in its
beginning periods, it can especially improve the chances of sustaining growth
and remarkable execution in future stages.
Maturity Stage
At the point when the business develops, sales start to gradually diminish.
Overall revenues get more slender, while income remains generally quite. As
firms approach maturity, significant capital spending is largely behind the
business, and in this way, cash generation is higher than the profit on the
income statement.

IS Planning
Strategic planning for information system frameworks (SPIS) is to give a
deliberate procedure to building up a long-extend plan for information system
based on the organisation overall strategic plan.

A framework is proposed for:

 Showing how the planning efforts coordinated as a particular sequence of
events, modelling, and designing the ISA,
 Identifying organisation entities that should start and arrange arranging,
displaying, and planning the ISA,
 Identifying the necessary procedures for promoting the interactions
necessary between the organisational entities for compelling SPIS
headings and activities,
 Distinguishing and grouping the current SPIS strategies that are helpful
for SPIS activities dependent on their qualities as procedures, methods,
and apparatuses, and
 Identifying roads for additional research as far as reacting to the evident
lacking on that exists in the accessible strategy.

6. Devise the framework for IT/IS strategy formulation.

At its core, an information technology strategy framework defines the

essential elements of the IT department’s overall method and the way those
factors should to interact and grow to provide continued value.
An IT strategy framework that enables these checks and balances will help
bring business and IT alignment to the forefront and result in benefits such as
the following:
It believes that over 10 percent of IT investments do not absolutely advantage
business initiatives
At all. Eliminating these outliers could easily do away with 10 percent of your
IT expenses.
• By fine-tuning IT investments in line with your new alignment mechanisms,
you will be capable of make initiatives more green and create a higher ROI.
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• With an alignment-targeted IT strategy framework, you will have a guide for
making better selections when it comes to IT budgeting, application lifestyles
cycles, enterprise-wide structure planning, staffing, outsourcing, and greater.
• An organized and laser-targeted framework gives you deep visibility into the
modern country of business and IT alignment to pick out where value is being
lost, root causes of misalignment, and the impact that management choices
have on alignment and value over time‍

7. Explain the implementation of Information Technology in the

department you are working in your organization or any other
organization.
The below six stages, is a guide for help explore any innovation
implementation.

Step 1: Communication
Start with an all-hands meeting to talk about the plans, including the timetable,
who will be affected, and information on the projects you have chosen.

Step 2: Outline a Blueprint for Change

At the point when you choose to overhaul your innovation, you need a blueprint
to deal with the change. A decent outline ought to incorporate a realistic
period and budget.

Step 3: Assemble the Right Integration Team

At the stage of implementation, you've chosen a vendor and a framework (or
systems) that you feel will lift your business. Presently you have to consider
how that innovation and third party integration will be required.

Step 4: Assess Your Data and Your Team

It's essential to require some time to insure the information you're moving is
accurate and appropriately stored. Your implementer, alongside other allotted
clients, should get an plan under way to tidy up your information before
migration.

Step 5: Migration and Testing

A greater part of the time and resources spent on an innovation change is the
prep work. A few people will be excited for change, and some will battle it in
spite of their earnest attempts to grasp what is best for the business.

The migration procedure can be dull and frightening on occasion, however

there is no more prominent sentiment of alleviation than realizing that your
information has moved over appropriately and superbly into another
framework.

Step 6: Go Live
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Your project is done and it's nearly time to celebrate! When the migration of
your information is finished, it's at long last time to set a go-live date with the
vendor.

8. Discuss and give examples of why business and IT alignment is

difficult?

Business-IT alignment is a procedure where a business organization utilizes IT

to accomplish business goals. Alignment is about everybody paddling the
vessel a similar way. It is about a whole organization being centered on similar
goals.

So how would we alter the course and really get IT alignment with the
business? I have utilized four straightforward advances that have worked very
well.

First, gain proficiency with language. No specialized terms, abbreviations, or

whatever other words that will make business people flee. Furthermore, make
certain to talk in summary.

Second, discover what the key, quantifiable business goals are and assemble
your strategy around them. IT just truly completes three things —
 Support the client
 Maintain framework and infrastructure
 Participate in business change
Third, measure IT such that is reliable with those business goals that you found
in step two. In this way, measure the business estimation of IT. Show that
services levels are improving while costs are diminishing.

Fourth, communicate with your IT group. Share key business goals with them.
Draw them in the key strategic process. Measure their individual performance
on similar measurements that you inferred in step three. Get your colleagues
lined up with your mission, vision and objectives so you can have an IT
organization that is lined up with the business.

At last, live by the soul of persistent improvement. You will have an IT

organisation that flourishes with business alignment, important measurements
and great communication. What's more, that is the point at which IT really
turns into a key resource that is critical to progressing business achievement.

9. How can an effective continuous and flexible IS/IT process be

structured?

1. Align IT Objectives with Company Objectives

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In the past, IT departments were often left to expand their plans for the coming
year and in different cases. However, in today’s business environment,
information technology is one of the most precarious enablers of an effective
business strategy. Therefore, to have an effective information technology
function, an employer must ensure the IT department’s goals are aligned with
the company’s goals.

2. Establish IT Governance
A main point of obstruction for both business executives and IT management
groups is the balanced inflow of latest task requests with impossibly short
deadlines. The pressure to deliver on all of the projects at the same time as
still maintaining existing solutions functioning smoothly, all with limited human
being’s resources.

3. Manage Electronic Risk

A hot topic with most companies today is information security. As data loss,
identity theft, malware and hacking tries have suffered to proliferate,
companies of all sizes have observed themselves victimized, and the headlines
continue to bring unwanted visibility to affected companies.
Information security is about identifying, measuring and managing the
business risk related to confidentiality, integrity and availability of information
assets to a level an organization can accept.

4. Measure IT Performance
If your company makes a full-size investment in informa6tion technology, it
makes sense that you could periodically compare the investment to ensure it
is providing value. Some measurements may be easy captured to validate the
effectiveness of your IT function.

10. Write short note on any one with example - Cloud

computing/Internet of things.

What is Cloud Computing and How Does It Work

Cloud computing is the conveyance of various services through the Internet.
These assets incorporate devices and applications like information stockpiling,
servers, databases, systems administration, and programming.

Types of Cloud Computing

Public Cloud
Open cloud services are best for improvement system and web servers. Your
cloud-computing supplier will give you a cut of their computerized space that
they should impart to different inhabitants.
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Private Cloud
Private clouds offer security. You don't need to share your computerized space
to any other person.

Hybrid Clouds
Hybrid clouds are the best of the both worlds. In the event that you are utilizing
a hybrid cloud, you can control an internal database and utilize the public
cloud when required.

Examples of Cloud Computing Services

Cloud Storage and Hosting

Keeping fundamental records in a central online storage location makes it

simpler for everybody to get to them. Cloud storage is indispensable for
organizations. It expands cooperation and effectiveness among associations.

Business Intelligence
The accessibility of cloud-based BI frameworks set off probably the most
progressive changes in organizations. Complex information analytics,
processing, and reporting frameworks are currently accessible by means of the
Internet at low price value..

11. Discuss the roles of IT Leadership and how do they prioritize

the activity with example (purpose alignment model).

IT leadership can be depicted as an person or gathering of persons in senior

positions answerable for dealing with an association's IT framework,
programming, applications and resources. This structures the vehicle
whereupon the organization’s business innovation system and goals are based.
Information technology is improving and developing at such a quick rate, that
what we realize today will advance, all things considered, some drawn out
influential positions have been embraced.
Knowledge Seeker
Keeping up with the most recent technology patterns isn't a choice. Trend
spotting has turns into a key job in IT leadership, as business administrators
can't keep up with everything.
• IT leadership must stay up to date with new technologies and patterns
that give a particular market advantage. Such a favorable position may give
high ROI.
• IT leadership must be continually mindful of current dangers, risk and
vulnerabilities that can totally upset authoritative system and benefit.

Negotiator and Mediator

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Currently, numerous technology decisions must be made. These range from
decisions around security, information data storage, vendor selection, and so
on. These aspects must be arranged, procured and executed. IT leaderships is
likewise key in finding some kind of balance between meeting technology
needs and conflicting business needs. IT leadership additionally negotiate
choices on budget plan and expenditure.

Information Manager
In this day and age, there are numerous innovation choices that must be made.
These range from decisions around security, information data storage, vendor,
and so on. These aspects must be arranged, procured and executed. IT
initiative is likewise key in finding some kind of harmony between satisfying
innovation needs and clashing business needs. IT administration additionally
arranges choices on spending plan and consumption.

12. Why aligning IT with business is important, explain with

example?
Business-IT alignment integrates the information technology to the strategy,
mission, and dreams of the organization. Key characteristics in order to
achieve this alignment are:

1. The company must view information’s technology as an instrument to

transform the business. This includes exploring other revenue streams and
integrating other sides of their business into each other. For example, the use
of one central data warehouse to mix separate, but partnering businesses.

2. An employer should hold consumer service, both externally and internally,

on the utmost importance. Communication among the organisation and their
clients must not be lost.

3. An organization must rotate both IT and business specialists across

different departments and job functions. They ought to have the know-how and
experience of each sides of the business so that information and communique
is achieved. Once those 3 characteristics are achieved,

4. An organization must offer clear and specific goals to both the IT and
business personnel. This will create the combination of both entities to
achieve a common goal.

5. Ensure that IT and business employees recognize how the company makes
or loses money. This is important so that money is not carelessly poured into
the IT department and there's no return on that investment.
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6. Organizations must to create a colourful and inclusive company culture.
There need to not only be informational unity, but a business as whole.

It isn't always uncommon for business and IT specialists inside an organization

to experience conflict and in-preventing as loss of mutual know-how and the
failure to produce preferred outcomes leads to blaming and mistrust. The
search for B/I alignment frequently includes efforts to establish trust between
those two group and a mechanism for consensus decision-making

13. Small case:((Amazon or Airbnb)) on digital disruption.

- Which business has been disrupted by Amazon OR Airbnb? discuss
it in detail and how?
- Discuss the strategy in terms of technology use of Amazon or
Airbnb?

Amazon is the most disruptive company in the world as they disrupted the
retail business. "By offering the 'long tail' of items that physical retailers can't
give in stores, Amazon had the option to increase enormous offer in the
developing on the web market and take share from wasteful physical
contributions of wide combinations,"

Conventional retailers have retaliated in a few different ways, incorporating by

offering in-store help or administrations that can't be given on the web, for
example, customized determination or establishment guidance at retailers like
Home Depot (HD) or Best Buy (BBY). With a large portion of their stores in
rustic regions, retailers, for example, Dollar General (DG) or U.K.- based Tesco
(TSCO.UK) can accomplish more appealing financial matters in inadequately
populated regions than Amazon's moderately costly transportation and
conveyance to remote areas. Others, for example, Walmart (WMT) have been
exploring different avenues regarding web based requesting followed by in-
store pickup from its system of stores. Walmart and Home Depot have
additionally demonstrated ability to utilize their set up store organizes as
conveyance habitats for their own online contributions.

Here's an octet of creative ways Amazon has completely changed us. Since
Amazon Go is so new, we'll leave it off the rundown until further notice. Yet, it
absolutely may have a spot here soon.

1. PRIME
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In addition to the fact that Amazon gave individuals quick and free (beside the
yearly membership expense, obviously) delivering on thousand things with
Prime, they additionally made individuals generally expect quick and free
transportation from each other organization. Presently, it's a frustration for
Amazon clients when they purchase something on the web from anybody and
don't get it in two days. That is not simply acceptable business, it's acceptable
advertising.

2. PRIME NOW

Not one to settle for the status quo, Amazon keeps on attempting to make
transporting considerably quicker for its clients. Prime Now, which is at
present accessible just in a predetermined number of regions yet keeps
extending, empowers people to get certain Amazon things

3. PRIME AIR

Still being developed, Prime Air could be a genuine distinct advantage—

empowering clients to get their requests conveyed shortly or less by means of
automatons who drop them at your doorstep. It's hard to believe, but it's true,
flying robots will convey your bundles following you put in your request. What's
to come is coming snappy.

4. A single CLICK PURCHASES

We will in general underestimate advancements like a single tick purchasing

for allowed… until you go to another retail site and need to round out numerous
structures and navigate various pages to put in a request. In all cases, Amazon
truly has smoothed out the requesting procedure to make it as brisk and
simple as could reasonably be expected.

5. Push BUTTON
A little yet keen and down to earth development. Amazon run catches are a
physical indication of Amazon's a single tick requesting. You can get one for $5
for significant brands and afterward simply click it when you need to reorder
that thing and—voila!— your request is put.