Strategic Value

1.      Cost focus: Drawing on the value discipline of operational excellence

a)      Price products and services at lowest cost

b)      Drive economies of scale through shared best practices

2.      Value differentiation as perceived by customers: Drawing on the value discipline of customer intimacy

a)      Meet client expectations for quality at reasonable cost

b)      Make the customers' product selection as easy as possible

c)      Provide all information needed to service any client from any service point

3.      Flexibility and agility: Drawing on the value discipline of product and service innovation

a)      Grow in cross-selling capabilities

b)      Develop new products and services rapidly

c)      Create capacity to manufacture in any location for a particular order

4.      Growth: How the base of the business will expand

a)      Expand aggressively into underdeveloped and emerging markets

b)      Carefully grow internationally to meet the needs of customers that are expanding their business

c)      Target growth through specific product and customer niches

5.      Human resources: Where people policies fit in

a)      Create an environment that maximizes intellectual productivity

b)      Maintain a high level of professional and technical expertise

c)      Identify and facilitate the movement of talented people

6.      Management orientation: Different aspects of business governance and decision making

a)      Maximize independence in local operations with a minimum of mandates

b)      Make management decisions close to the line

c)      Create a management culture of information sharing (to maintain or generate new business)

The Business Value of IT: Managing Risks, Optimizing Performance and Measuring Results by  Michael D. Harris, David E. Herron and Stasia Iwanicki, Auerbach Publications © 2008 (294 pages)