11:06
EM.412 meeting System Architecture Bruce Cameron
Corporate Strategy
Idea 1
Where to play
How to win
this is often missing
not the same as how your product is differentiated
Idea 2
What we are not going to do…
the big picture: situational conditions
for these outcomes, we are going to do x and why
for other outcomes, we are not doing this and why
constraints
Idea 3
business the firm is in
define business scope
products
markets
geography
develops core competencies
assesses opportunities and threats in the environment and strengths and weaknesses
->
Do you derive competitive advantage primarily from your architecture?
Yes
Apple, Sonos, Dyson
No
Ford, Walmart, SAP
But this is just technical architecture, not the architecture of the business
Competitive advantage
what you do while you do other things
Michael Porter’s 5 forces
answers how attractive an industry is, not corporate strategy
GE Case
https://www.wsj.com/articles/ge-powered-the-american-centurythen-it-burned-out-11544796010
Henry Mintzberg
best person I’ve read who talks about strategy
Five definitions of strategy
Strategy as plan
Strategy as pattern
Strategy as position
Strategy as ploy
Strategy as perspective
LATER things to be sure you grasp
P&L
COGS
EBITDA
Gross Margin
Relationship of cash flow to balance sheet