Understanding Business Environment and Develop the IT Strategy

Hiya super readers!

I've got very interesting topic to share with you. I'm sure this might really important for you to operate your business. Well, operating business doesn't mean that you only care about your own business, but you need to consider about your surroundings and that is your business environment.

Understanding how your company creates value, and looking for ways to add more value, are critical elements in developing a competitive strategy. It can be measure by using Porter's theory, which is often called as Porter's five forces, which are Threat of New Entry, Supplier Power, Threat of Substitution, Buyer Power, and Competitive Rivalry.

On the same situation, businessman also need to consider about the value chain of their business. A value chain is a set of activities that an organization carries out to create value for its customers. The way in which value chain activities are performed determines costs and affects profits, so this tool can help you understand the sources of value for your organization. In achieving competitive advantage, there must be a good information system which can help the business attain the goal by its value and contributions. Therefore, operating business will be difficult if the system cannot manage it wisely. Thus, entrepreneur have to deal with much more things.

Stay tune on my website, because I will give you the detail information regarding this topic next week!