BIS3324 – Le5 (1Mar2016)

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1. Case Study – Vtech – Video Watch and Web site
   1. Q&A
      1. Strategic Environment
         1. Its product / services / supply chain:
            1. tailor existing latest technology to produce new products; but not R&D;
         2. Competitor
         3. How competitive
         4. Long term challenges and issues
      2. Mission / Vision (https://www.vtech.com/en/about-us/brand-mission-strategy/) – keywords: innovative, high quality, minimize impact to environment;
         1. What are they?
            1. Mission: electronic learning, education toys,
         2. how to communication: board, meeting, training
         3. what are the associate plan / practice / scheme to deal with the long term issues: strategy and its execution,
            1. R&D, Human resources, marketing and R&D hardware, matching partners in different countries;
            2. R&D Committee, positioning in technology market,
            3. Competitive edge:
               1. understanding about customers (kids), communication with customers,
               2. Low selling price hits competitors;
               3. Management: division of authority between international branches; branches could decide local marketing, sales and accounting operations; technology strategy by head office;
               4. Internal share scheme;
               5. High production efficiency, DongGuang Factory;
               6. Close motherboard and computer manufacturing in 1996; as lower competitive advantage in supply chain;
         4. Strategy: new market eg. South America / Mexico / China…
         5. New factory with high production capacity;
      3. Strategy:
         1. Product Innovation: R&D commitment and steering committee, Investment in expertise;
         2. Operational Excellence: Cost leadership
         3. Gain in Market Share: Well understand customer need;
         4. Geographical expansion: China, Mexico, India
         5. IT will take part in executing strategies above; such as system software…
         6. Dark side: server data breach
2. Content
   1. Strategic Alignment
      1. Strategic Alignment Model (SAM)
         1. **IT roles: support / bring in new process or value /
            1. Operation role (strategic execution): Business strategy -> Business Infrastructure -> IT infrastructure; eg. IT department like chef and under admin department; drive by business users; easy to budget control and cost control; lack of utilization of technology; low value of IT;
            2. Technology transformation: Business strategy -> IT strategy -> IT Infrastructure; interface with management;
            3. Competitive potential: IT strategy -> Business strategy -> Business Infrastructure; operational department is willing to change as redesigning the internal processes; IT familiar with business operations;
            4. Service Level: IT strategy -> IT infrastructure -> business infrastructure;
3. Follow-ups:
   1. Identify IT strategies (outsource / in-house develop) to support Business strategies?
   2. mindsets / framework in developing / transforming to technology transformation perspective; Gain business knowledge;
   3. ERP – selling best practices – drive changes to operational department; attitude about acceptance of changes;
   4. portion of Strategic environment in assignment 1:
      1. Product / services / supply chain / how competition / long term challenges / mission and vision / how to communicate / what are the associate plan / practice  / scheme to deal with long term issues;
   5. Interim presentation ~10 slides;

 

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