University Of New Brunswick
Information Technology & E-Business MBA 6106
Case Study report
On
Value Chain and IT Transformation at Desko

Submitted By
Sharath Chandra Maddur

Instructor
Dr. Rebecca Angeles

Winter 2013
April 18, 2013

1

a) Business Strategy and IT Strategy: Recommend an improved or new business strategy and its supporting IT strategy to Desko
Business Strategy:
A Business strategy is a plan articulating where a business seeks to go and how it expects to get there. It is the means by which the business communicates its goals [1]. Desko’s business strategy, at the moment, seems to be impaired by a lack of proper understanding of current market scenario and an unpreparedness of the firm in dealing …show more content…

Provide the corporate segment of its customer base with unique products that will differentiate Desko from its competitors and give the firm an edge over others. 2. Provide Desko with an opportunity to invest more in product design and development without having a direct impact of cost hikes on the major part of its customer base. Instead, by focusing on a specific segment of customers that is not particular about low costs, but that seeks new design and innovation, Desko can pass on the costs incurring from investment in innovation to customers in exchange of unique attributes of the products designed. Desko can also gain a brand reputation from the unique products that result from this strategy. 3. Help Desko in fighting the new substitution threats arising from the customer inclination to buy more aesthetic and multi-purpose furniture as predicted by a report. This strategy will help Desko focus on producing such a kind without worrying about the costs.
However, Desko, in a way, is already dealing in a mixed strategy in manufacturing department; as their two manufacturing strategies focus on different customer segments. But there is a room for more innovation as the R&D department can be strengthened further to focus on product differentiation and serve MTO segment better.
IT Strategy:
An IT strategy is typically a long-term action plan for achieving a goal, set in the context of a rapidly changing technology environment. For any IT strategy