Sood_Hardik_223848343_MIS782A1 (2)

VALUE OF INFORMATION MIS 770 ASSIGNMENT 1 STUDENT NAME – HARDIK SOOD STUDENT NUMBER – S223848343 EMAIL ID – S223848343@deakin.edu.au

CONTENT CHECKLIST 1. EXECUTIVE SUMMARY ------------------------------------------------------- 1 2. INTRODUCTION AND ORGANISATIONAL BACKGROUND ---------- 2 3. NVIDIA's IT PORTFOLIO ----------------------------------------------------- 3 4. RBV THEORY AND VRIO ANALYSIS --------------------------------------- 4-5 5. CONCLUSION ------------------------------------------------------------------ 5 6. REFERENCES ------------------------------------------------------------------- 6 7. APPENDICES --------------------------------------------------------------------- 7-8

INTRODUCTION AND ORGANISATIONAL BACKGROUND Nvidia, a major competitor in the market, has developed a strong business plan that harmonizes with its operations, strategic goals, and approach to the market. Applying the Business Model Canvas framework offers an organized way to look at these aspects in depth -

NVIDIA's IT PORTFOLIO: BALANCING VALUE, RISK, and RETURN Nvidia stands out in the GPU industry, not solely for its technological prowess, but also for its strategic approach to IT investments. Examining Nvidia's IT portfolio through the lens of IT Portfolio theory reveals a balanced strategy that prioritizes value creation, mitigates risk, and fosters sustainable growth.

1) Valuable Resources and Capabilities:  CUDA platform: This software enables general-purpose computing on GPUs, accelerating diverse workloads beyond graphics. This has been instrumental in driving NVIDIA's expansion into AI and other data-intensive fields. The CUDA platform generated $8 billion in revenue in 2023.  AI expertise and technology: NVIDIA boasts extensive AI expertise, with a strong team of researchers and developers, access to world-class AI research facilities, and cutting-edge AI hardware and software tools. This expertise contributed significantly to NVIDIA's $23.4 billion in AI revenue in 2023.  Brand reputation: NVIDIA enjoys a strong brand reputation for innovation and high-performance products. This reputation attracts top talent, fosters customer loyalty, and commands premium pricing for its products , contributing to its $26.9 billion in annual revenue in 2023.  Manufacturing and supply chain: NVIDIA has invested heavily in its manufacturing capabilities and supply chain, ensuring efficient production and timely delivery of its products. This has helped it ship over 18 million GPUs in 2023. 2) VRIO Analysis: A. Value:  CUDA: Provides significant value by accelerating diverse workloads and enabling new applications in AI, HPC, and other fields.  AI expertise: Delivers value by enabling NVIDIA to develop and offer innovative AI solutions and services.  Brand reputation: Creates value by attracting top talent, fostering customer loyalty, and enabling premium pricing.  Manufacturing and supply chain: Provides value by ensuring efficient production and timely delivery, enabling NVIDIA to meet customer demand and compete effectively. B. Rarity:  CUDA: While similar technologies exist, CUDA's established ecosystem, large developer community, and consistent innovation make it rare and difficult for competitors to replicate fully.  AI expertise: NVIDIA's team of AI researchers and developers, along with its access to advanced AI hardware and software tools, creates a rare and difficult-to-acquire set of resources.  Brand reputation: Building a strong brand reputation takes time, consistent performance, and strategic marketing, making it rare and difficult for competitors to imitate quickly.  Manufacturing and supply chain: NVIDIA's highly optimized manufacturing facilities and established relationships with key suppliers create a rare and difficult-to-replicate competitive advantage. C. Imitability:  CUDA: The complex technology, large and active developer community, and NVIDIA's continuous innovation make CUDA difficult for competitors to imitate fully.

 AI expertise: Years of experience, specialized knowledge, and access to cutting-edge resources make NVIDIA's AI expertise difficult to replicate.  Brand reputation: Building a strong brand reputation requires time, consistent performance, and targeted marketing strategies, making it hard for competitors to imitate quickly.  Manufacturing and supply chain: Replicating NVIDIA's highly efficient and optimized manufacturing and supply chain requires significant investment and time, making it difficult for competitors to imitate. D. Organization:  CUDA: NVIDIA has invested heavily in supporting and promoting the CUDA platform, providing developer resources, training programs, and continuous innovation.  AI expertise: NVIDIA's organizational structure and culture foster collaboration, knowledge sharing, and innovation, supporting its AI expertise.  Brand reputation: NVIDIA's marketing and branding strategies effectively communicate its value proposition and maintain its strong brand image.  Manufacturing and supply chain: NVIDIA's organizational structure and processes ensure optimized production and efficient delivery of its products. CONCLUSION NVIDIA's competitive advantage is rooted in its invaluable, rare, and difficult-to-imitate resources and capabilities. These resources are further strengthened by its unwavering commitment to continuous innovation, strategic investments, and organizational support. By meticulously balancing value creation, risk mitigation, and fostering sustainable growth, NVIDIA has positioned itself for continued success in the dynamic and ever-evolving technology landscape. However, maintaining its competitive edge will require sustained vigilance towards potential risks and a commitment to ongoing adaptation and innovation. REFERENCES Books -

CUDA Drives revenue across diverse markets (AI, gaming, HPC) Over-reliance on GPUs, potential threat from emerging technologies Fosters development of new applications and technologies, supports partnerships and ecosystem growth GeForce NOW Democratizes access to high-end gaming experiences, generates significant revenue Competition from other cloud gaming services, potential regulatory challenges Expands NVIDIA's reach to new audiences, creates opportunities for future growth in the cloud gaming market AI Infrastructure Fuels research and development in AI, enhances competitive edge in AI Rapidly evolving technological landscape, cybersecurity risks Contributes to the development of new AI solutions and products, positions NVIDIA as a leader in AI research and development Manufacturing Technologies Enables efficient production of high- performance GPUs, meets growing demand for NVIDIA products Potential disruptions in supply chain, dependence on key suppliers Reduces costs and improves production efficiency, creates a competitive advantage in the GPU market Strategic Acquisitions Expands presence in AI and related fields, accelerates innovation and growth Integration challenges, difficulty in replicating acquired knowledge and expertise Provides access to new technologies and markets, creates opportunities for cross- selling and synergies

Venture Capital Fosters collaboration and innovation with cutting- edge startups, access to new technologies and market insights Potential investment risks, difficulty in identifying successful startups Supports the development of future technologies and markets, contributes to NVIDIA's long-term growth and competitiveness