Comparison of DYB and GYB Strategies
Owing to intense competition in business environment, the organizations need to come up with innovative dynamic models to sustain in global markets. This fierce competition increases due to rapid fluctuations in market conditions, technology, and environment. You will find many new companies emerging at a rapid rate, ready to destroy your business with their novel business models. Therefore, it is better to explore your weaknesses before someone else realizes you about it. Intelligent businesses critically evaluate their old business models before they are destroyed by market pace. The practice of so called “creative destruction” has emerged since 1990s in which companies destroy their own models to build upon its ashes. The leadership giant Jack Welch at General Electric (GE) used this concept of creative destruction to formulate radical changes in his company. His competitive business strategies were termed as “Destroy Your Business” (DYB) . Under his exemplary leadership, GE led to imminent e-commerce initiatives and electronic marketplaces .
DYB provides mirror to companies to assess their position in competitive marketing environment. However, after critical evaluation to find strategies for destroying business, the organizations should find new ways to reach their new customers and sustain old ones. They should strive for innovative competitive dynamic models to stay in race with latest technology and marketing skills. This strategy is termed as “Grow Your Business” (GYB) . Hence, DYB and GYB are two phases of shaping business models during rapidly changing marketing situations. They allow businesses to destroy their own models before some startup does it for them. Then, they could build upon its ashes and adapt to fresh dynamic models and technological innovations.
Cannibalization Business Strategy
Cannibalization refers to a marketing strategy in which new and fresh business products eat up the sales and demand of existing products . This strategy could produce serious impact on the sales volume and marketing share of the existing market products of the organizations. A firm is said to eat away its existing market in favor of innovative ideas.
Innovation is the key drive to marketing success in rapidly changing business environment today. The organizations need to produce competitive business models to survive in fierce marketing competition. Cannibalization is one such competitive strategy in which companies eat up their own products before they are chewed up by innovative competitors. This is another example of creative destruction, analogous to the concept of DYB introduced by Welch in GE.
Cannibalization could have serious impact on the marketing value of firms since they destroy market of existing products prematurely and don’t explore new markets for existing products. This strategy is employed as a calculated risk if company perceives the situation that cannibalization would harm their competitors more than their own market.
Apple Inc. first depicted the concept of cannibalization when it introduced iPhones when its iPod sales were on high . Moreover, Apple Inc. also rolled out iPad series to cannibalize the sales of Macintosh series. The company is using this business strategy frequently by releasing new models of its smartphones.
Another example of Cannibalization is provided by Hyundai Santro. The company introduced a novel product of Xing in the market that ate up the sales of existing Santro model. Using this marketing model, they converted their customers to a completely new product that lies within their band.
Role of Information Systems (IS) in Business Strategic Management
The Information Systems (IS) is an integral part of the modern business environment. It is a key driver of strategic management. The role of IS in dynamic business models is increasing with every passing day due to technology innovation. Therefore, it is very important to reassess IS while modifying business strategies. The following paragraphs will support this argument.
IS provides latest and most competitive corporate strategic analysis techniques. The basis of these methods is provided by the process of acquiring continuous information about core business operations . The IS formulation can be easily used for getting maximum business output . Through the use of IS, the competitive strategies could be more sustainable and effective as IS provides all the latest technological tools and resources to gain valuable business insight.
Secondly, Information Systems (IS) is useful for exploring the capacities of firms strategizing radical transformations in their competitive dynamic models. IS inputs all the available information of the company to generate outputs as clear reflection of the position of the company. The management get a clear picture about their proposed ideas and changes. This information is useful in formulating methods to innovate business models to stay ahead of competitors in technological era of th business market.
Lastly, IS could be very useful from the point of view of solving existing and predicted business problems. Most of the leading businesses maintain highly sophisticated IS to compare their outputs to desired goals and objectives. They use information to point out areas of weaknesses and act smartly to overcome them. Moreover, IS improves the accuracy of business operations and management. Therefore, it is very important to reassess IS if your business needs to reevaluate its business model.
Social IT in Coordination with IS and Organizational Strategy
Social IT finds tremendous business applications in the globally connected world of today. The businesses need to socialize a great deal to find their core customers and meet expectations of target markets. The leading firms could easily expand their reach with the help of modern Social IT tools.
Organizational and IS strategy go hand in hand and their success is heavily dependent on intelligent use of modern social media platforms. Various means of communication could be used to reach target markets and explore global customers. The business’ sales are expected to see a new high if core business operations are performed with the help of useful social gadgets. It is crucial for business management to implement the latest versions of e-commerce and other information systems in their business models for achieving success in modern business age .
The leaders of business, strategic management and planning are responsible for the successful implementation of social media tools and gadgets into their core business processes. Social IT provides a useful platform for crucial decision making and strategizing for important business operations. Through collaboration with other businesses using latest social gadgets, most of the complex business problems are solved quickly and efficiently.
Social IT provides strong bonding between IS strategy and organizational strategy. These strategies provide basis for radical transformations in business models to stay competitive in dynamic markets. The firms, who face fierce competition with their rivals around the globe, must utilize IS strategies based on social IT tools. They should strive for latest social business strategies to boost their sales and reach new markets. Global stake holders could contribute effectively in successful implementation of Social IT strategic planning.
References
Chaffey, D. (2003). Business Information Systems. Technology, Development and Management for the e-Business.
Gattorna, J. (2003). Gower Handbook of Supply Chain Management. Gower.
Lamb, C. a. (2008). Essentials of Marketing. Cengage Learning.
Pearlson, K. a. (2016). Managing and Using Information Systems, Binder Ready Version: A Strategic Approach. Wiley.
Ward, J. M. (1987). Integrating Information Systems into Business Strategies. Long Range Planning, 19--29.
