Institute of Business Administration MBA - Fall 2009

Information Industry Structure & Competitive Strategy

Course Background and Objective

The nearly instantaneous transmission and processing of information is changing the structure of entire industries, and is altering the profitable opportunities available to many firms. The ability to target profitable market segments and to identify customers is reducing the value of scale-based operations and the strategic advantage of large firms. The ability to monitor the performance of units abroad without regard to distance and time-zones, is increasing the value of cooperative partnerships. This is leading to grater reliance upon outsourcing, benefiting many services industries and once again reducing the advantage of large firms. In the prevailing situation, clearly some firms will win some will loose, but all will have to change. And yet, fundamental laws have not been repealed. How can previous economic theory, and previous experience with rapid technological change, provide insights for the development of strategy in an increasingly digital age?

This course draws upon the most recent experience in the impact of information technology upon diverse industries, ranging from securities trading to consumer packed goods relating. It integrates the experience with relevant theory to develop a theory of competitive strategy for electronic commerce, and for information-based strategies more generally. It is not tools and techniques course or a quantitative analysis course; likewise it is not a technology or an implementation course. It provides a focused and modern complement to strategic planning.

Body of Knowledge

The Structural Analysis of IndustriesStructural determinants of intensity of competition, , six major sources of barriers to entry, pressure from substitute products, bargaining powers of buyers, bargaining powers of suppliers, structural analysis and competitive strategy, generic competitive strategies (overall cost leadership, differentiation, focus)

Challenges of Managing in a Network EconomyMarket structure and industry dynamics, evolving business models, IT impact, prioritizing IT projects, protecting IT assets and managing risks.

Creating Business Advantage with ITForces that shape business strategy, value chain analysis, strategic grid analysis, analyzing the impact of IT on strategic decision making, how IT can increase switching costs, IT and barriers to entry.

Crafting Business Models (2A)Business models’ classification, businesses built on a networked infrastructure vs businesses that provide networked infrastructure, focused distributors, portals, producers etc., evolving business models.

Building Networked BusinessesThe need for new capabilities, blue print of a networked organization, building value networks, characteristics of the hierarchy, entrepreneurial and networked organizations.

Making the case for Networked Business (4A)Changing economics, comparing industrial and networked economics, linking strategy to execution to results, benefits from investment in infrastructure, benefits from doing business on a networked infrastructure.

Understanding Internetworking InfrastructureThe basic components of internetworking infrastructure, the technological elements of networks, processing system and facilities, the future of internetworking infrastructure.

Nadeem Akhtar nakhtar@engineer.com

Assuring Reliable and Secure IT ServicesAvailability, the impact of redundancy on availability, high-availability facilities, securing IT assets against malicious threats, classification of threats and security management framework, risk management of availability and security.

Managing Diverse IT InfrastructureNew service models, managing risks throughout incremental outsourcing, managing IT assets, managing relationship with service providers and partners.

Organizing and Leading the IT FunctionOrganizational issues in the control of IT activities, centralized vs decentralized control systems, drivers towards user dominance, drivers towards a centralized IT structure.

Managing IT OutsourcingWhy outsource IT functions and operations, what IT outsourcing alliances are difficult to manage, what drives outsourcing, when to outsource, structuring and managing the alliance.

A Portfolio Approach to IT ProjectsNeed and importance of project management, project management framework, why IT projects are difficult to manage, project cost, schedule and scope management. Project categories and degree of risks, risks of individual projects vs portfolio risk, process consistency and agility in project management

Business IntelligenceInformation systems and decision making using DSS and ESS, the decision making process, Data Warehousing & Data Mining, challenges in maintaining data warehouses.

Information Systems and Data Security & AuditThe need for a framework and standard procedures for security, The ISO 27001 ISMS, Salient Features of COBIT, the need for an IS/IT audit.

Grading Plan

Term exams 40 Quizzes 10 (n-1, 5-6 unannounced quizzes during semester)Assignments 05 (2-3 individual assignments, all counted)Group Assignment 05 (end of course, topic suggested by group, approved by instructor, details tba)Final exam 40

Text Books and Study Material Corporate Information Strategy & Management,

Sixth edition Lynda M. Applegate, Herbert Austin, Warren McFarlan

Instructor supplied material (e-books, case studies, articles etc)

Instructions and Class RulesSequence of topics is tentative. Topics may be added/dropped depending upon time & need. Guest speaker sessions to be adjusted in above plan as required assignments due on due date at the start of class & with 50% penalty in following class only. No re-conduct of quizzes IBA attendance rules to be strictly followed ringing mobile phones to be confiscated without exception and returned in following class and never on second violation. Leaving room for whatever reason during class is strongly discouraged. All assignment & quizzes must be retained till semester end.

Competitive Strategy – Techniques for Analyzing Industries & Competitors

Michael Porter