Technology Strategy & You

Paul M. Di Gangi, Ph.D.---------------------------------------

#InfoSysProfessor #LoyolaMaryland

Q&A

How do you view Technology?

Cost vs. Innovation Models

Today’s Schedule8:00a

10:15a

Value Disciplines

Balanced Technology Scorecard

{Break}

Value Chain Decisions

Question

What does technology do for you?

Question

How do you view technology in your

organization?

“The greatest IT risk facing most companies is more prosaic than a catastrophe. It is, simply, overspending.”

~ Nicholas Carr

04/09/2023

Pathways of ITCarr., N. (2003) Harvard Business Review “Does IT Matter?”

IT’s Infrastructural

Ubiquitous

Non-competitive

Low Switching Costs

IT’s Proprietary

Unique

A Competitive Weapon

Costly

First v. Second~ Mover Advantage ~

Question

How is technology treated in different

areas of your business?

Question

Is technology assessed in the same way across

your business functions?

Learning from the Balanced Scorecard

Kaplan, R. S. and Norton, D. P. (2005) Harvard Business Review “Balanced Scorecard: Measures That Drive Performance”

BalancedScorecardApproach

Definition: a methodology that converts an organization’s value drivers, such as customer service, innovation, operational efficiency, and financial performance, to a series of defined metrics

Schwalbe (2010)

Financial Customer

Operational Sustainability

I N N

O V

A T

I O N

C O

S T

What is the acceptable range for performance?How do we assess performance of this technology?

When do we assess the performance of this technology?

What are the key technology objectives for this scorecard section?

How well does this technology handle scalability? (Fast v. Slow)

Can this technology evolve as new features and requirements are placed on the technology by management or stakeholders?

OBJECTIVES

ASSESSMENT

SCALABILITY & EVOLVABILITY

Financial

What do we need to demonstrate our financial health to

stakeholders?

What types of systems go here?

Operations

What do we need to efficiently and effectively manage our

operations?

What types of systems go here?

Customers

What do we need to connect with our customers?

What types of systems go here?

Sustainability

How can we retain knowledge and grow as an organization?

What types of systems go here?

Question

How often do you review your IT

portfolio?

Stress Break

Question

What role does the relationship between IT and competition play in

your IT investment decisions?

Business Must Drive Technology

1. Assess state of competition

2. Determine business strategies

3. Identify business processes

4. Align technology tools

Run Grow Transform

TB

M 3

GS - Overall Cost

Leadership

-Bottom LineManagement

-Focus &Differentiation

-Top LineManagement

- New Differentiation

-Top LineManagement (Focus onInnovation)

Value Disciplines

Best Total CostSouthwestWalmart

Core ProcessesSupplier Relations

Production Operations

Role of ITAutomation

Supply Chain Integration

IT Infrastructure EmphasisManagement of large-scale

transaction volume

Best Product3M

Apple

Core ProcessesProduct/Service Enhancement

Role of ITSupport design of new product information

IT Infrastructure EmphasisEnable team-oriented

data networks

Best Total SolutionHarrah’s

Ritz Carlton

Core ProcessesCustomer Relations

Marketing & Sales Support

Role of ITPersonalization

Mass Customization

IT Infrastructure EmphasisFacilitate access to disparate

pools of customer data

Operational Excellence Product LeadershipCustomer Intimacy

Treacy, M. and Wiersema, F. (1993) Harvard Business Review “Customer Intimacy and Other Value Disciplines”

RhetoricalQuestion

How can IT help in managing your

business?

The Value Chain

Takeaways

Technology Strategy

Ubiquitous Infrastructure

Proprietary Content &

How can we effectively use tech…

dependsITon your strategy!

Thanks for Listening

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