Porter Had It Right   Leave a comment


The principles that Michael Porter espoused in his 1985 book “Competitive Advantage: Creating and Sustaining Superior Performance” still hold up. This is true even for his approach to developing technology strategy that he detailed in that book.

This is his method for developing a technology strategy:
1. Identify all distinct technologies in the value chain
2. Identify potentially relevant technologies in other industries or under development
3. Determine the likely path of change of key technologies
4. Determine which technologies and potential technological changes are most significant for competitive advantage and industry structure
5. Assess the firms relative capabilities in important technologies and the cost of making improvements
6. Select a technology strategy, encompassing all important technologies, that reinforce the firm’s overall competitive strategy
7. Reinforce business unit technology strategies at the corporate level

Now, upon recently reading Brad Stone’s book about Amazon (“The Everything Store”) it occurred to me that even Jeff Bezos had applied this strategy to his firm. That Jeff continuously and relentlessly focused on the technologies in the value chain in order to improve his firms operational effectiveness.

And so to the questions. What technology is in use in the value chain in your organisation? How can it be improved? What is the likely roadmap for those technologies? Is there alignment between the IT strategy and the business strategy?

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Posted December 11, 2013 by terop in Architecture, ICT Strategy, Organisational Development

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