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Planning and Managing IT Infrastructure
Notes In considering these questions, from the market or customer’s perspective, there are three
variables to consider. The first variable is to consider if the function, activity or business practice
has significant customer value or market differentiating qualities. If the answer is no, stop doing
those activities immediately. If the answer is yes for any function, activity or business practice
then attempt to quantify the value the company brings to the customer versus the value the
competitors bring to the customer on the same issue. The second variable is to think and sort the
issues in terms of order qualifiers. That is, the function, activity or business practice must be
done to complete the business transaction; but does not particularly add value. Theses activities
are, in a way, the price of admission, the activities that must be undertaken in the process of
doing business and all competitors are about equal in the eyes of the customer.
The third variable is best thought of as “order winners”. That is the function, activities or
practices are conducted in a superior fashion compared to the competition and are highly valued
by the customer. It is this third variable that sets a company apart from the competition and
squarely aligns the company’s total offering with the customer’s total need. These are Key
Success Factors.
Example: Key Success Factors might include the following:
Strategic market segmentation
Understand competitor’s strengths and weaknesses
Respond to customer’s needs and wants
Efficiencies through e-commerce/technology
Reliable delivery
Strong service
Solid sales and support staff
Reduces costs, operates lean
Utilise employees strategically
In the process of analysis of Key Success Factors it is important to have a realistic view of both
the drivers of the market and of the customer’s needs. It is also important to understand and to
define the position of the company as compared to competitors for the Key Success Factors.
Key success factors can exist in both the functional areas of the company and in the condition or
circumstances of the company. Functional Key Success Factors might include such things as the
following: manufacturing – proprietary processes, marketing – after sale service or highly
trained sales force, supply chain – on time, perfect order delivery, Technology – on line, real
time information exchange between the company and the customer.
Example: Key Success Factors relating to the condition or circumstances would be as
follows: favourable market image or reputation, low cost operations (not limited to
manufacturing), location relative to customer, exclusive processes in manufacturing or supply
chain.
The final step in the analysis of Key Success Factors is to determine the total value of the Key
Success Factors that the company brings to the customer versus the Key Success Factors that the
competitors bring to the customer. Arrange the Key Success Factors in order of priority from the
viewpoint of the customer and focus on those functions, activities and practices that bring the
most value to the customer, and are considered most important to the customer, and are most
differentiated from the competitors.
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