Lessons from Zara 1. IT is an aid to judgement and not a substitute 2. Technology initiative comes from within 3.

Process is focus 4. Alignment is pervasive - existing or widespread Enablers IT as strategic advantage Business-IT partnership IT leadership Senior Executive support Well-prioritized IT projects Inhibitors IT misaligned with strategy Business-IT misalignment Lack of IT leadership Unsupportive management Poor IT prioritization New Rules for Management Spend Less Follow, Don't Lead: Moore's Law guarantees that the longer you wait to make an IT purchase, the more you'll get for your money. Focus on Vulnerabilitites and not oppurtunities

Value Chain: Interlinked value-adding activities that convert inputs into output s which, in turn, add to the bottom line and help create competitive advantage. A value c hain typically consists of (1) inbound distribution or logistics, (2) manufacturing operations , (3) outbound distribution or logistics, (4) marketing and selling, and (5) after-sales servic e. These activities are supported by (6) purchasing or procurement, (7) research and development, ( 8) human resource development, (9) and corporate infrastructure. From Michel Porter vALUE cHAIN: Firm level Value Chain and Industry Level Value Chain Advantages Vertical Integration Better Coordination System innovation Lower Transactional Costs

Advantages of Vertical Disintegration Specilization ad focus on core competencies Component Innovation Competitive pressure on each activity driving the cost low E-Transformation

Classic Disintermediation Remediation Network Based Mediation The mediation strategies depend on products customizability and information cont ent Classic Disintermediation: Supplier --- Customer, Affected by drivers that perta in to inherent Characteristics of product and services Remediation: Supplier ---- Distributor ---- Customer Network Based Mediation: Supplier1, Supliers2--- Distributor ---- Customer1, Cus tomer2

These depend on the inherent Product Characteristics Information Content: Nearly all products and services have information, but the amount varies widely. Those which have benfit from e-transformation Customizabilty: IT allows companies to tailor an offering to specific ne eds and preferences of an individual. Electronic Deliverability: Some products can be delivered onlined, most benefited by IT Aggregation Effects: Products and Services differ in a way they can be c ombined or aggregated, bank offers multiple products B2C- Business to Customer Search Costs: Before the Advent of IT, it took lot of time to search for the music etc, industries with high search costs have transformed etc hospital/ trav Real Time Interface: Required for companies that deal with information t hat changes unpredictably and suddenly, online trading, news, social media Contracting Risk: Low ticket items of predictable quality lend themselve s to online model eg: Toys, Music, Books, while high ticket items do not eg: Jew elery B2B Network Effect: The usage increase with increase in the number of people using it Standardization Techniques: Increase B2B usages Missing Competencies: Companies lacking internal expertise depend on oth er companies to fill the gap, Air Canada - IBM inflight entertainments

Business Model: Describes the Rationale of how the firm creates, captures and delivers value. Freemium model, partly free and part paid. The paid component sustains the compl ete model. Servitzation of the Products: Products today have higher service component than the previous decades, which is called servitization of the products. Business Model: Industry Model Transformation, Revenue Model Transformation Enterprise model Transformation Business Model Transformation

Customer Value Proposition Profit Model Key resources Key processes Operating Model Degree of Integration degree of Standardization 2 by 2 matrix _ Diversifcation, Replication, Co-ordination, Unification Architectural Maturity Phase Bussiness Silos, Standardized Technology, Optimized Core, Business Maturity (SOA )