Information Architecture for the World Wide Web, Second Edition

Defining Business Strategy

Over the past few decades, Michael Porter, a Harvard Business School professor and successful entrepreneur, has played an influential role in leading and shaping the field of business strategy and our understanding of competitive advantage.

In his brilliant book On Competition, Porter defines strategy by contrasting it with operational effectiveness.

Operational effectiveness means performing similar activities better than rivals perform them. Operational effectiveness includes but is not limited to efficiency.

He notes that operational effectiveness is necessary but not sufficient for business success. He then answers the question, what is strategy?

Strategy is the creation of a unique and valuable position, involving a different set of activities.

He goes on to explain that “the essence of strategy is in the activities—choosing to perform activities differently or to perform different activities than rivals.” It is this strategic fit among activities that provides a sustainable competitive advantage, which is ultimately reflected in long-term profitability.

Alignment

So how do we align our information architecture activities with business strategy? Well, we need to begin by finding out what strategies our business is pursuing. This can be nearly impossible in large organizations.

As consultants to Fortune 500 firms, we’ve rarely had much access to the senior executives who (we assume) could articulate their company’s business strategy. And the people ...