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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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