AFM241 Midterm: 053106484695053106484695_12
30 May 2018
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Firms with an defensive disposition to IT
Firms that rely on technology to deliver efficient, secure, and uninterrupted services tend to
favor IT investments on mature and well tested systems.
They tend to indicate a preference for investments that ensure continuity of firm’s
operations, rather then a preference to leverage IT to improve the firm’s competitive
position.
Firms with an offensive disposition to IT
Tend to rate preference for reliable IT operations at the same level as their preference to
pursue IT initiatives that can improve the firm’s competitive position.
Expect more returns in their IT investments. Comes with additional risk
Firm’s goal is to leverage technology to compete more effectively or to raise the firm to a
position of industry leadership.
3.4 McFarlan’s Strategic Grid
The alignment among the firm’s competitive environment, business strategy, and capabilities is critical.
To be successful.
McFarlan’s Strategic Grid will guide senior executives
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Document Summary
Firms that rely on technology to deliver efficient, secure, and uninterrupted services tend to favor it investments on mature and well tested systems. They tend to indicate a preference for investments that ensure continuity of firm"s operations, rather then a preference to leverage it to improve the firm"s competitive position. Tend to rate preference for reliable it operations at the same level as their preference to pursue it initiatives that can improve the firm"s competitive position. Firm"s goal is to leverage technology to compete more effectively or to raise the firm to a position of industry leadership. The alignment among the firm"s competitive environment, business strategy, and capabilities is critical. It projects that a firm undertakes can be evaluated along two dimensions: impact of it on business operations, and impact of it on strategy. Firms may choose it projects that have high impact on strategy and not have immediate impact on day to day operations.
