Alec Korogodsky-Practitioner Article-What Is Your Digital Business Strategy?

                In this particular article the authors are arguing that managers have a responsibility to maintain an IT infrastructure not only for the possible returns from using technology but how technology can give their firms a competitive advantage. The authors begin by describing how Netflix evolved their strategy from providing DVD’s through the mail to streaming movies and shows through the Internet, and eventually linking streaming Internet straight to television. Thanks to maintaining a long term evolving business strategy Netflix is primed to dominate the movie and television show rental market for years to come. Next the authors argue that IT should be created as a strategic asset that is directly in line with the firms overall strategy. They believe that firms struggle with IT strategy because firms have trouble communicating their strategy and hiring managers to make decisions regarding IT at every level. The authors propose a theory to over come this called ITracy.

                ITracy involves what the authors call the three pillars: synchronizing IT and business strategies, effectively governing IT, and managing IT with discipline. In regards to synchronizing IT, Michael Porter’s three principles to gaining a competitive advantage through IT are referred. The first principle is changing the industry structure by using IT to tilt the balance of power in the favor of the firm. The second is by using IT to outperform rivals by either cost differentiating or serving a highly niche segment effectively. The third way is to create new businesses using IT.

                To govern IT effectively, the authors argue that governance involves five principles. Managers must decide what IT decisions are crucial and who should be making them. The second principle is how the function of IT should be organized. Next managers must determine what to spend on IT projects and how to distribute between projects by prioritizing which IT projects are most essential to achieving the firm’s overall strategy. The fifth principle is managers must decide what to outsource and what to keep within the firm. Managing IT with discipline involves managers having a vision about what the future of IT potentially holds for their firm and how they can be one step ahead of the competition to ensure they get a competitive advantage.

                Reading this article Best Buy kept coming to mind. Its plain to see that retail stores are slowly being crushed by the online marketplace. Companies like Borders and Blockbuster have been annihilated by their online competitors. However Best Buy continues to open stores and bring in a steady revenue stream. But why is that when you can just order your electronics online instead of going to the store? Because Best Buy saw the growing popularity of online shopping and instead structured a fantastic IT strategy and dominate the online electronics market. Their website is very easy to use and provides either home delivery or in store pick up allowing convenience to the consumer. If Blockbuster developed a similar IT infrastructure years ago they would most certainly be thriving today.

Source:

Mithas, S., & Lucas, Jr., H. C. (2010). What is Your Digital Business Strategy? IT Professional, 12(6), 4-6. Retrieved from http://libproxy.uhcl.edu:2086/xpls/abs_all.jsp?arnumber=5662565&tag=1

The Strategy Seminar: Business Leaders-Henry Vargas-Current Events Article-Windows 8 and the New Era of Microsoft

Windows 8 and the New Era of Microsoft

            Microsoft recently put out in the market in the center of Times Square New York and all around the world their new version of Windows software, Windows 8 and their surface tablet. There is a lot of pressure since the company and CEO expect the product to regain over the market lost to Apple and Google. Some critics believe that the future of the company depends on how popular is their new software.

            The new design is completely different than what it has been seen before with Windows 7, therefore, Microsoft is risking losing old Windows users to its new version by pushing them away from what they know how to use and prefer and not being good enough for new users who belong to the competence. New PC’s have already installed Windows 8, and those with Windows 7 would have to pay the costs to upgrade their computers. Microsoft believes their dominance in the computer market could be lost if this new concept is unsuccessful.

            CEO Steve Ballmer believes the new software to be like a dream where everything is possible to do and even when nothing is done it is still entertaining. There are different selections of devices, where the new tablets and best PC’s are included. Ballmer wants for Windows 8 to become an essential part of everyone’s life in regard to screen technology.

            The new devices are significantly different in that they are touch screen as well as controlled by the usual keyboard and mouse, to please differing preferences in the population. While some users like the new look of the mosaic of options others believe it could puzzle and irritate those who are used to the common Windows look, especially when using the desktop mode and not being able to see the usual icons, making it hard to adjust to the new version.

            The risk is large, critics say; this new version appears to be a mix between the old known Windows and a fresh tablet device which is uncertain to succeed. Windows 8 is expected to compete with other tablets, especially Apple’s. Experts say that this could be the last shot for Ballmer to bring about success to the company, if this does not occur, Microsoft should be looking to make a change in CEO. During the time Ballmer has been CEO the stocks of the company have devaluated to about half, therefore with Windows 8, they cannot risk losing to much as they have invested already about one billion in marketing for Windows 8. Ballmer own about 4% of the stock and Bill Gates owns 5.5 % of the stock.

            In my opinion, Microsoft is a follower in the aspect that they come up with new products after the market has been established. Time will tell if Microsoft can still compete with the new markets.

Work Cited:
Goldman, David. In Windows 8, Ipad has its first real challenger. CNN Money.  October 26, 2012 Retrieved from: http://money.cnn.com/2012/10/26/technology/mobile/windows-8-tablets-ipad/index.html

Prigg, Mark. Microsoft's big gamble: Critics say firm 'risks alienating users' as Windows 8 software and Surface tablet go on sale around the world. Mail online. 06:37 EST, 25 October 2012 Retrieved from: http://www.dailymail.co.uk/sciencetech/article-2222981/Windows-8-launch-Critics-say-firm-risks-alienating-users-software.html

Tsukatama, Hayley. Microsoft’s Surface tablet, Windows 8 operating system go on sale. Washington Post Technology. October 26 2012 Retrieved from: http://www.washingtonpost.com/business/technology/surface-windows-8-go-on-sale/2012/10/26/b987d26c-1f90-11e2-9cd5-b55c38388962_story.html?wprss=rss_national

The Strategy Seminar: Business Leaders-Virgil Cammack-Practitioner Article-A Context-Oriented Approach to Leader Selection: A Strategy for Uncertain Times

          On A Context-Oriented Approach to Leader Selection --A Strategy for Uncertain Times

 

In the Lucy Povah and Kate Sobczak article A Context-Oriented Approach to Leader Selection --A Strategy for Uncertain Times, the authors maintain that successful leaders have “learning agility,” which is the ability to apply experience to new and different situations. The authors propose their “L-I-V-E-D” (Learning Agility, Intelligence, Values, Emotions, and Drive) model for context-oriented leader selection. Over this L-I-V-E-D framework in leader selection is placed the External Context, the Business Strategy, and the Internal Culture. The idea of a “fit” in leader selection is that the prospective candidate’s            L-I-V-E-D core elements of leadership must “fit” into the company-specific environment (external context, business strategy, and internal culture). The authors admit that the most important core element Learning Agility is the most difficult to measure.

What is unusual about this article is the authors’ sense of disdain for using the potential candidate’s life history in evaluating his core elements or fit within the company-specific environment. The authors want to test and create simulations for reactions and indicators of the core elements. It is as if during a candidate’s entire life he was acting and not representing himself truthfully, and to reveal his true nature he must be tested, even though, of course, he knows he is being tested and would most likely act out the desired behavior.

Another unusual element about the article is that the needed business strategy and needed internal culture was already known by someone other than the future company leader. It is this person or persons that set these parameters by which the candidate is judged. I beg to ask the question:

If you have someone that already knows the needed strategy and needed internal culture, isn’t your search for a company leader over? Don’t you just choose that person?

Great leaders demonstrate the needed strategy and needed internal culture, often to the shock and horror of the company insiders and vested stakeholders. Iconic leaders set the standard --against a contrasting backdrop of peers.

WORK CITED

Povah, Lucy and Kate Sobczak. A Context-Oriented Approach to Leader Selection:  A Strategy for Uncertain Times. People & Strategy. October 2010; 33(4):40-47.