NotesMBAStrategic Management of IT
MBA 946-18

Strategic Management of IT Notes

Program:MBA
Semester:Semester 4
Credits:4
Units:4 Units

Subject Overview

The sixth MIS group elective, covering the role of IT in strategic management planning approaches, IT-enabled competitive advantage via the value chain, IT as a strategic resource and inter-organizational systems, and digital transformation success factors in industrial strategy. A 4-credit elective theory paper.

Unit-wise Syllabus

4 units — open any unit for detailed topic-wise notes, diagrams and important exam questions

  • Role of IT and Executive Support Systems in decision making
  • types of strategic management planning approaches (ad hoc, data collection, organization chart, top-down, bottom-up)
  • planning for strategic IT applications
ComparisonIT planning approaches
How
Weakness

Top-down

From business strategy to IT

May miss operational needs

Bottom-up

From user needs upward

May lack strategic focus

Ad hoc

Respond as needs arise

No coherence

Study guide

This unit covers IT in decision making, executive support systems, planning approaches (ad hoc, data collection, organisation chart, top-down, bottom-up) and planning strategic IT applications. Compare the planning approaches.

Read Unit 1 notes
  • Value chain and Porter's Value Chain Model
  • value chain analysis and its advantages
  • understanding linkages and interrelationships
  • approach to IS/IT strategy formulation
ClassificationPorter's value chain
Value chain
  • Primary: inbound logistics

  • Primary: operations

  • Primary: outbound logistics

  • Primary: marketing and sales

  • Primary: service

  • Support

    Infrastructure, HR, technology, procurement

Study guide

You study Porter's value chain, its analysis, linkages and the approach to IS/IT strategy formulation. Draw the value chain of a company and mark where IT adds value.

Read Unit 2 notes
  • Turning technology into business transformation
  • IT as strategic source and competitive advantage
  • risks of using IT strategically
  • inter-organizational systems (IOS) and competitive advantage
  • the strategic grid
FrameworkMcFarlan's strategic grid
  • Support

    Low current and future impact of IT

  • Factory

    High current, low future impact

  • Turnaround

    Low current, high future impact

  • Strategic

    High current and future impact

Study guide

You study IT as a strategic resource, business transformation, competitive advantage, the risks of strategic use, inter-organisational systems and the strategic grid. Place a company's systems on the strategic grid.

Read Unit 3 notes
  • Fundamental characteristics of industrial dynamics
  • visioning IT's strategic role
  • diversification strategies through digital transformation
  • success factors and implications
  • factors for shifting to digital and AI transformations
ProcessDigital and AI transformation roadmap
  1. 1

    Vision for IT's strategic role

  2. 2

    Assess digital maturity

  3. 3

    Prioritise use cases

  4. 4

    Build data and AI capabilities

  5. 5

    Scale what works

  6. 6

    Measure business value

Study guide

You study industrial dynamics, the strategic role of IT, diversification through digital transformation and the factors for shifting to digital and AI. Evaluate the digital readiness of a company.

Read Unit 4 notes

Why Strategic Management of IT Matters

Aligning IT with business strategy is a core responsibility of CIOs and IT managers, and a valued perspective for any technology leader.

How to Prepare for Strategic Management of IT

  • Analyse how a company uses IT for advantage.
  • Learn the value chain and strategic grid.
  • Follow digital and AI transformation stories.

Strategic Management of IT: Frequently Asked Questions

What is the strategic grid?

It classifies a company's IT portfolio by how important current and future systems are to its strategy.

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