information technology planning and management (itpm) إدارة وتخطيط تكنولوجيا...

Information Technology Planning and Management (ITPM)

تكنولوجيا وتخطيط إدارةالمعلومات

Naji Shukri AlzazaUniversity of PalestineMarch 2010

Naji ShukriAlzaz, ITPM, University of Palestine,

March 2010

SWOT AnalysisStrengths, Weaknesses, Opportunities, and Threats


March 2010

Overview•Strengths and weaknesses are generally

internal factors.•Opportunities and Threats are generally

external issues.•Planning and Organizing Tool

▫organizational strategic planning▫public policy development▫personal career planning

•Helps focus on key issues•helps focus the commercialization research• feeds into commercialization strategy


March 2010

Strengths

•Consider from both the view of the firm (product) as well as from customers and competitors

•Realistic and not modest•One’s strength is another’s weakness•Questions:

▫What are the firm’s advantages over others?▫What does the firm do well?▫What makes you stand out from your

competitors?


March 2010

Weaknesses

•Consider from internal and external viewpoint

•Be truthful so that weaknesses may be overcome as quickly as possible

•One’s strength is another’s weakness•Questions.

▫What is done poorly?▫What can be improved?▫What should be avoided?


March 2010

Opportunities and Threats

•Primarily external in nature•Represent characteristics of:

▫ the research environment▫growth in potential markets▫changes in the competitive, economic,

political/legal, technological, or socio-cultural environments

•A threat to some is an opportunity to another.


March 2010

Questions!!

•Questions on opportunities:▫Is there a product/service area that others

have not yet covered?▫Are there emerging trends that fit with

your company's strengths?•Questions on threats:

▫Are your competitors becoming stronger?▫Are there emerging trends that amplify one

of your weaknesses?


March 2010

Strengths could be!!In general• marketing expertise• location of your business• innovative product• company image• any other aspect that adds

value to your product or service

In IT• technological capability:

speed, efficiency, precision, power, etc.

• stage of development relative to competitors: Copyrights, prototype.

• characteristics of the lead researcher: commercialization focus, reputation, other complimentary work.

• cost


March 2010

Weaknesses could be!!In general• lack of marketing

expertise• undifferentiated products

and service (i.e. in relation to your competitors)

• location of your business• damaged reputation

In IT• technological weakness:

lack of speed, efficiency, precision or power

• lead researcher uninterested in commercialization

• stage of development or uncertainty with regard to technological capabilities

• cost


March 2010

Opportunities could be!!In general• a developing market such

as the Internet. • mergers, joint ventures or

strategic alliances• a new international

market• a market vacated by an

ineffective competitor• any external factor that

may create demand or the possibility for increased profitability

In IT• a new or untapped market• an old market needing

technological advances• a recent technological

development that can be used as a catalyst for others (possibly through licensing)

• change in regulatory environment that creates demand for new technology


March 2010

Threats could be!!In general• a new competitor in your

market• price wars with

competitors• a competitor has a new,

innovative product or service

• competitors have superior access to channels of distribution

In IT• other ongoing research or

commercialization efforts• a large existing

competitor• market volatility

(unstable) (because we are new market entrants)

• market access (for supplies or customers)


March 2010

Caution!!


March 2010

Suggestions for conducting SWOT•Be realistic; no need to inflate strengths

or be in denial about shortcomings.•Distinguish between where your

technology is today, and where it could be in the future.

•Be specific… Avoid grey areas.•Always analyze in the context of your

competitive environment.•Keep your SWOT short and simple.


March 2010

Using the SWOT Analysis•Weaknesses should be looked at in order

to convert them into strengths.•Try to match your strengths with external

opportunities.•Threats should be converted into

opportunities.•Strengths and opportunities should be

matched.


March 2010

Expanding Your SWOT Analysis

•Delve deeper into the details of the technology.

•Include more detailed competitor information in the analysis.

•Take a closer look at the business environment.

•Expand the reach of a SWOT analysis through surveys.


March 2010

Where Do I Start?

•Try to determine why your company might be troubled and what short-term and long-term steps can be taken to improve performance.


March 2010

The Decision Form• The decision form is unforgiving!• Make sure you ALWAYS carefully check over

your decisions.• Turn in all decisions on disks• Paying careful attention to use the correct units.• ALL GROUPS MUST TURN IN THEIR

DECISIONS ON TIME!!!


March 2010

Keys to Success

•Develop a strategy and act accordingly.•A premium quality producer can charge

more for a product, but will have greater expenses on quality, technology, etc.

•A low cost producer should have lower overhead, but must still put out a product with good value.

•The best companies will develop strategies and consistently implement their strategy.


March 2010

Keys to Success…

•First mover advantage•Know your competition.•The price you can charge is directly

related to the value/price relationships of the other firms in the industry.

•Generally speaking, it is better to be well positioned in your market. For example, be THE highest priced/ differentiated competitor or THE low cost/ volume producer.


March 2010

Keys to Success…

•Spend some on all major expense areas (major areas are marketing, operations technology and new product research).

•Do not give up if you don’t first succeed.•Many companies that start off in the hole

can rebound by the end of the semester.•Make sure you control your debt.•Know your strategy in relation to other

companies.


March 2010

Keys to Success…

•Pricing and capacity are the two most important decisions to manage.

•Managing cash and debt are the next most important.


March 2010

Give your work a name!


March 2010

Limitations of SWOT Analysis


March 2010

SWOT Analysis -What to Look For


March 2010

SWOT Analysis -What to Look For!!

Potential Resource Potential Resource Strengths Strengths

Potential Resource Potential Resource WeaknessesWeaknesses

Potential Company Potential Company OpportunitiesOpportunities

Potential External Potential External ThreatsThreats

•Powerful strategy

•Strong financial condition

•Strong brand name image/reputation

•Widely recognized market leader

•Proprietary technology

•Cost advantages

•Strong advertising

•Product innovation skills

•Good customer service

•Better product quality

•Alliances or Partners

•No clear strategic direction

•Obsolete facilities

•Weak balance sheet; excess debt

•Higher overall costs than rivals

•Missing some key skills/competencies

•Subpar profits

•Internal operating problems . . .

•Falling behind in Research & Development

•Too narrow product line

•Weak marketing skills

•Serving additional customer groups

•Expanding to new geographic areas

•Expanding product line

•Transferring skills to new products

•Vertical integration

•Take market share from rivals

•Acquisition of rivals

•Alliances or partners to expand coverage

•Openings to exploit new technologies

•Openings to extend brand name/image

•Entry of potent new competitors

•Loss of sales to substitutes

•Slowing market growth

•Adverse shifts in exchange rates & trade policies

•Costly new regulations

•Vulnerability to business cycle

•Growing leverage of customers or suppliers

•Reduced buyer needs for product

•Demographic changes


March 2010

SWOT Checklist Potential internal strengths Potential internal weaknesses

Many product lines? Obsolete, narrow product lines?

Broad market coverage? Rising manufacturing costs?

Manufacturing competence? Decline in R&D innovations?

Good marketing skills? Poor marketing skills?

Good materials management systems? Poor materials management systems?

R&D skills and leadership? Loss of customer good will?

Information system competencies Inadequate information systems?

Human resource competencies? Inadequate human resources?

Brand name reputation? Loss of brand name capital?

Portfolio management skills? Growth without direction?

Cost of differentiation advantage? Bad portfolio management?

New-venture management expertise? Loss of corporate direction?

Appropriate management style? Infighting among divisions?

Appropriate organizational structure? Loss of corporate control?

Appropriate control systems? Inappropriate organizational structure and control systems?

Ability to manage strategic change? High conflict and politics?

Well-developed corporate strategy? Poor financial management?


March 2010

SWOT Checklist Potential environmental opportunities Potential environmental threats

Expand core business(es)? Attacks on core business(es)?

Exploit new market segments? Increases in domestic competition?

Widen new market segments? Increases in foreign competition?

Extend cost or differentiation advantage? Change in consumer taste?

Diversify into new growth businesses? Fall in barriers to entry?

Expand into foreign markets? Rise in new or substitute products?

Apply R&D skills in new areas? Increase in industry rivalry?

Enter new related businesses? New forms of industry competition?

Vertically integrate forward? Potential for takeover?

Vertically integrate backward? Existence for corporate raiders?

Enlarge corporate portfolio? Increase in regional competition?

Overcome barriers to entry? Changes in demographic factors?

Reduce rivalry among competitors? Changes in economic factors?

Make profitable new acquisitions? Downturn in economy?

Apply brand name capital in new areas? Rising labor costs?

Seek fast market growth? Slower market growth?


March 2010

SWOT Analysishttp://www.marketingteacher.com/Lessonstore.htm#case_studies


March 2010

Strengths• Dell is the World's largest PC maker. Profits for the 3 months to July

2005 were in excess of $1 billion US, representing a growth of around 28%. For the last couple of years it has held its position as market leader (it took it from rivals Hewlett-Packard). The Dell brand is one of the best known and renowned computer brands in the World.

• Dell cuts out the retailer and supplies directly to the customers. It uses information technology, and Customer Relationship Management (CRM) approaches to capture data on its loyal consumers. So a customer selects a generic PC model, and then adds items and upgrades until the PC is kitted out to the customer's own specification. Components are made by suppliers, never by Dell. PC's are assembled using relatively cheap labour. You can even keep track of your delivery by contacting customer services, based in India. The finished goods are then dropped off with the customer by courier. Dell has total command of the supply chain.


March 2010

Weaknesses• The company has such a huge range of products and components

from many suppliers from a plethora of countries, that there is the occasional product recall that can cause Dell some embarrassment. In 2004 Dell had to recall 4.4 million laptop adapters because of a fear that they could overheat, causing electric shocks or fires.

• Dell is a computer maker, not a compute manufacturer. It buys from a group of concentrated hi-tech component manufacturers. Whilst this is a tremendous advantage in terms of business operations, allowing Dell to focus on marketing and logistics, the company is reliant on a few large suppliers, and to an extent is locked in for periods of time (i.e. unable to switch supply dues to the lack of large suppliers in the World).


March 2010

Opportunities• Kevin Rollins replaced Michael Dell in 2004 as Dell's Chief Executive

Officer. Dell remained the company's Chairman. Despite founder Dell's massive success, new blood and a change in management thinking could lead the company into a new, even more profitable period. Dell was born in 1965, and founded Dell in 1984 with $1000 whilst studying at the University of Texas. He became the youngest Fortune 500 CEO in 1992, and will be a tough act to follow.

• Dell is pursuing a diversification strategy by introducing many new products to its range. This initially has meant good such as peripherals including printers and toners, but now also included LCD televisions and other non-computing goods. So Dell compete against iPod and other consumer electronics brands.

• Dell is making and selling low-cost, low-price computers to PC retailers in the United States. The PC's are unbranded and should not be recognised as being Dell when the consumer makes a purchase. Rebranding and rebadging for retailers, although a departure for Dell, gives the company new market segments to attack with the associated marketing costs.


March 2010

Threats• The single biggest problem for Dell is the competitive rivalry that

exists in the PC market globally. As with all profitable brands, retaliation from competitors and new entrants to the market pose potential threats. Dell sources from Far Eastern nations where labour costs remain low, but there is nothing stopping competitors doing the same - even sourcing the same or similar components from the same or similar suppliers. Remember, Dell is a PC maker, not a PC manufacturer.

• Dell, being global in its marketing and operations, is exposed to fluctuations in the World currency markets. Although it is a very lean organization, orders do have to be placed some time ahead due to their size or value. Changes in exchange rates could leave the company exposed to potential loses in parts of its supply chain.


March 2010

information technology planning and management (itpm) إدارة وتخطيط تكنولوجيا...

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