Strategy is like playing chess where you try to determine your opponent's next move. In business it's the same way. You are trying to determine what your competition will do and then counter it. Imagine trying to run a business without a counter when your competition does something that takes away some of your loyal customers. This could be detrimental to the business.
Strategic planning is the key to longevity within any organization or industry. Strategic planning involves looking ahead and determining what actions need to be taken presently in order to achieve success in the future. Strategy also involves a great deal of planning and based on the developed plans, tough decisions must be made by the executive body to make sure the organization achieves long-term goals.
Strategy formulation can be a difficult task to accomplish. This task however is very important and can result in a more effective ...
The relationship between strategic management and business is discussed.
IT Management and Business Strategy
You have been appointed Information Technology manager of a company in which IT systems are viewed as expensive and misaligned with the business strategy. Recent IT implementations have overrun their budget and schedule, and the company's board is considering outsourcing its IT support function. In addition, an important merger with a competitor must take place in the near future, if at all possible. Fears have been expressed that the IT systems of the competitor company may not be compatible with your own company's Systems.
Describe how you could achieve and maintain alignment between IT systems and the business strategy, using Portfolio Management techniques.
Show how you could use Gate Methodology to ensure that new IT projects would be delivered on time and to budget.
Describe the risks of IT Outsourcing and suggest ways to overcome these risks.
Show how you would carry out a Due Diligence exercise to investigate the board's fears of incompatibility between the merging companies.