Section 18.3. Strategic Fit


18.3. Strategic Fit

Let's draw an example from Porter's On Competition to learn how to connect the dots between business strategy and information architecture. Porter uses "activity-system maps" as a tool for examining and strengthening strategic fit. Figure 18-2 shows an activity-system map for Vanguard, a leader in the mutual fund industry.

Figure 18-2. An activity-system map for Vanguard


As Porter explains, Vanguard is widely respected for providing services to the conservative, long-term investor, and the company's brand is very different from that of competitors such as Fidelity and T. Rowe Price.

Vanguard strives for a strategic fit between all its activities, from limiting the costs of advertising and business travel to fostering shareholder education and online information access. Low costs and informed investors go hand in hand.

This strategy is no accident. As founder John C. Bogle explains, early in its history, Vanguard established "a mutual structure without precedent in the industrya structure in which the funds would be operated solely in the best interests of their shareholders."[] Noting that "strategy follows structure," he suggests that it was logical to pursue "a high level of economy and efficiency; operating at bare-bones levels of cost, and negotiating contracts with external advisers and distributors at arms-length. For the less we spend, the higher the returnsdollar for dollarfor our shareholder/owners."

[] John C. Bogle, "The Vanguard Story," http://www.vanguard.com/bogle_site/october192000.html.

What's exciting is that this strategy is evident in the design of Vanguard's web site, the main page of which is shown in Figure 18-3. First of all, notice the clean page with minimal branding. There are no fat logos or banner ads; usability is obviously a high priority. Second, notice the lack of technical vocabulary for which the financial industry is renowned. Vanguard makes an explicit point of using "plain talk."

Figure 18-3. Main page of the Vanguard web site


And as you explore, you see an emphasis on education, planning, and advice woven throughout the site. Tools like a site glossary, a site map, and a site tour help customers to navigate and educate themselves at the same time.

Vanguard's web site is distinctive, and that's how it should be. It's different by design and reflects the company's unique strategy. For web sites, structure follows strategy, and the best companies exhibit individuality in both areas. That's why Dell.com is different from Compaq and IBM, and Landsend.com is different from L.L. Bean and J. Crew.

Rather than copy their competitors and engage in zero-sum price wars, these companies work to understand, leverage, and strengthen their unique positions within their industries. And their web sites are increasingly acknowledged as important strategic assets that can be used to achieve competitive advantage.




Information Architecture for the World Wide Web
Information Architecture for the World Wide Web: Designing Large-Scale Web Sites
ISBN: 0596527349
EAN: 2147483647
Year: 2006
Pages: 194

flylib.com © 2008-2017.
If you may any questions please contact us: flylib@qtcs.net