Chapter 12 Introduction Using Information Systems to Compete: A Success Factor Profile

Chapter 12 IntroductionChapter 12 Introduction

Using Information Systems to Using Information Systems to Compete: A Success Factor ProfileCompete: A Success Factor Profile

Success Factor Profile to Success Factor Profile to Understand Successful Use of ISUnderstand Successful Use of IS

1.1. Initial Planning Process: Initial Planning Process: to focus information to focus information systems on competitive issues.systems on competitive issues.

2.2. Assessment of the Progress: Assessment of the Progress: assessment of new assessment of new systems and how they are meeting competitive systems and how they are meeting competitive objectives.objectives.

3.3. Audit Device for Mature Systems:Audit Device for Mature Systems: to make to make sure the company has not missed a shift in the sure the company has not missed a shift in the dynamics of the organization’s competitive dynamics of the organization’s competitive environment. environment.

Important Factors Included in the Important Factors Included in the ProfileProfile

Business Vision:Business Vision: A documented outlook addressing logical A documented outlook addressing logical and achievable goals that can be both understood and accepted and achievable goals that can be both understood and accepted throughout the organization.throughout the organization.

Culture:Culture: “the way we do things around here.”“the way we do things around here.” Risk Management:Risk Management: Financial factors, risks that the Financial factors, risks that the

company is willing to take in running the business.company is willing to take in running the business. Plan Implementation:Plan Implementation: Must be viewed as a process and Must be viewed as a process and

not a document driven by calendar dates.not a document driven by calendar dates. Information Systems Integral to the Business:Information Systems Integral to the Business: What What

would happen to the business if the information systems would happen to the business if the information systems suddenly stopped working? suddenly stopped working?

Important Factors includes in the Important Factors includes in the ProfileProfile

Information Systems Justification Process: Financial strategies specific to IS and an ability to articulate the value of information systems to the business.

Executive and Information Systems Management Partnership: Senior management and information systems managers developing an open dialogue and an ongoing working relationship.

Executive Information Systems Experience: Senior executives that truly understand the key factors relative to the effective use of information systems.

Important Factors Included in the Important Factors Included in the ProfileProfile

Operational Automation:Operational Automation: Internal operations is Internal operations is one of the major opportunity areas for the effective use one of the major opportunity areas for the effective use of information systems. of information systems.

Linkage to Suppliers and/or Other Business Linkage to Suppliers and/or Other Business Partners:Partners: Strong alliances and information systems Strong alliances and information systems use to build a stronger competitive position. use to build a stronger competitive position.

Linkage to Customers:Linkage to Customers: Major value to customer Major value to customer realized with customers through electronic links. realized with customers through electronic links.


Linkage to Customer Service: Linkage to Customer Service: This is the This is the services part of the value chain.services part of the value chain. It deals with It deals with linking the customer for on-line diagnostics and in linking the customer for on-line diagnostics and in some cases actual repair. some cases actual repair.

Pervasive Computing Literacy:Pervasive Computing Literacy: Is the Is the computer literacy of the people in the organization computer literacy of the people in the organization good enough to effectively utilize more advanced good enough to effectively utilize more advanced systems that have a competitive advantage objective?systems that have a competitive advantage objective?


Information Systems Architecture: A major factor in

the success of the company based on identifying an

architecture on how to design and build future systems.

Information Systems Marketing: The information

systems organization had a pro-active effort to market and sell

possible new information systems.

Information Systems and User Relations: A good,

ongoing relationship between the information systems

organization and users.

Evaluating Profile Factors in Evaluating Profile Factors in Section III of the ATPSection III of the ATP

1.1. Identify five or six key factors.Identify five or six key factors.

2.2. How important were each of these factors as they How important were each of these factors as they related to gaining a competitive advantage? related to gaining a competitive advantage?

3.3. Who played a key role in making them key Who played a key role in making them key success factors: senior management, functional success factors: senior management, functional management or information systems management or information systems management.management.

ConclusionsConclusions

The Success Factor Profile is:The Success Factor Profile is:

The fifth and final part of the structured analysis process.The fifth and final part of the structured analysis process. It can be used as a planning vehicle to identify key factors It can be used as a planning vehicle to identify key factors

that must be addressed for an organization to use that must be addressed for an organization to use information systems to gain competitive advantage.information systems to gain competitive advantage.

It can also be very effective in summarizing the reasons It can also be very effective in summarizing the reasons why a specific company was able to gain competitive why a specific company was able to gain competitive advantage through the use of information systems.advantage through the use of information systems.

This last approach is how it will be used in our papers.This last approach is how it will be used in our papers.

Possible Exam QuestionsPossible Exam Questions

Is there a single factor that dominates the Is there a single factor that dominates the explanation for the successful use of explanation for the successful use of information systems to gain a competitive information systems to gain a competitive advantage?advantage?

In what three modes (time frames) can the In what three modes (time frames) can the Success Factor Profile be used?Success Factor Profile be used?

Chapter 12Chapter 12

Using Information Systems to Compete:

Success Factor Profile

Success Factor ProfileSuccess Factor Profile

Federal ExpressFederal Express

Success Factor ProfileSuccess Factor Profile

1. Vision

2. Culture

3. Executive and Information Systems

Management Partnership

4. IS Integral to the Business

British AirwaysBritish Airways

SuccessSuccess Factor Profile Factor Profile

1. Vision

2. Culture

3. Information Systems Integral to the Business

4. Executive and IS Management

Partnership

5. Information Systems Architecture

Organizational ImprovementOrganizational Improvement

Processes

Tools

Culture

Three Essential Elements

Which one is most important?

The ability to change the culture of a company is both necessary and sufficient since it is the beginning, the middle and the end to making change.

CultureCulture

Culture Importance!Culture Importance!

Corporate culture is amorphous but crucial, hard to nail down and harder still to change.

There is also a fear that too much change risks killing the best a company offers or what made them successful.

Corporate culture is not unlike a human body when faced with a transplant.

Whether it needs help or not, the immune system is set up to fight—and sometimes reject what is foreign.

Company CulturesCompany Cultures

Southwest Airlines’ culture is spirited and customer oriented.

Microsoft’s culture is brilliant and ruthless.

Gannett’s culture is only the fittest survive.

“When USA Today turns a profit we will release the prisoners.”

Alan Neuharth

Harley-Davidson Culture Harley-Davidson Culture

1. Ethics and honesty.

2. Have fun!

3. Renewal, not survival.

4. Total experience.

5. Commitment, not compliance.

6. Community.

Richard Teerlink

Company Culture or Marketing Slogans?

• DuPont: Better things for better living through chemistry.

• Federal Express: Absolutely and positively overnight delivery.

• Allstate Insurance: You’re in good hands with Allstate.

• Frito-Lay: There is no such thing as doing too much for a customer.

Risks and Pitfalls of Cultures

• A strong culture can become a deterrent to necessary change.

• It can cause inconsistency if you can’t adhere faithfully and consistently to the values it intends to promote.

• It can cause organizational obsolescence.

Chapter 13Chapter 13

IS Organization and

Personnel Considerations

IS Organizationand PersonnelConsiderations

IS Valueand Financial

Strategies

IntegratingBusiness andIS Planning

TQM andInformation

Systems

Roles, Rolesand Relationships

Information Systems Management Issues

A Successful EnterpriseA Successful Enterprise

• Based on a Clear and Simple Theory of Business.

• Clearly Understood Objectives.

Information Systems OrganizationInformation Systems OrganizationIS Vice President

Data BaseAdministration

Figure 13-1

Office Systems Planning AdministrativeStaff

Data BaseAdministration

NetworkOperations

ComputerOperations

Development &Maintenance

ProjectManagers

SystemsAnalysts

Programmers

SystemsSupport

SystemsProgramming

DevelopmentCenter

InformationCenter

Scope of IS OrganizationScope of IS Organization

MISOrganization

DPDept.

CorporateInformation

Systems

Tele-communications

OfficeSystems

End UserComputing

?

IS Organization and Personnel

1. What is the logical skill profile for the person that heads the information systems organization?

2. How difficult is the information systems manager job compared to other major functions within a company?

3. To whom should the information systems manager report?

4. Is there something unique about information systems that there is really a need for a steering committee that spans the organization?

5. Is there a logical alternative to having a steering committee?


6. If the information systems manager reported to you, what major factors would you like to review with her on a regular basis to assure yourself that the information systems organization is being well managed?

7. It is not unusual to find people who feel that information systems employees are different from other employees. Is this actually the case? If so, how would you suggest that they be treated and managed?

8. What will the information systems organization look like in the future? What are the primary reasons that it is changing?


9. Are there major issues to be addressed in establishing

the information systems organization of the future?

10. Does the current information systems environment

call for the creation of newly structured jobs and skill

profiles?

IS Organization and PersonnelIS Organization and Personnel

1. What is the logical skill profile for the person

that heads the information systems organization?

IS Manager ProfileIS Manager Profile

• Business Knowledge

• Management Experience

• People and Organizational Skills

• Politically Astute

. . . On an IT Knowledge Base

A Non-IT Background Information A Non-IT Background Information

Systems Manager Short Changes Systems Manager Short Changes

Both Company Management and Both Company Management and

Users.Users.


2. How difficult is the information systems manager job compared to other major functions within a company?

Difficulty of IS Manager JobDifficulty of IS Manager Job

• Largest Staff Function

• A Dual Personality Job

• Provides Both Products and Services

• Must Interface with Multiple Groups

• Frequently Deal with Uniformed Publics

• Function in an Area of Rapid Change

• Under Frequent Financial Scrutiny


3. To whom should the information systems

manager report?

The IS Executive Should Report To?The IS Executive Should Report To?

• CEO, President or General Manager

What criteria should be used to make this decision?

• Chief Financial Officer

• VP of Operations

• None of the Above


6. If the information systems manager

reported to you, what major factors

would you like to review with her on a

regular basis to assure yourself that the

information systems organization is

being well managed?

If the IS Executive Reported to YouIf the IS Executive Reported to You

1. Status of major projects.

2. Future capacity projections.

3. Assessment of support to key users.

4. Productivity improvements within the

I/S organization.

5. Contribution to the competitiveness of

the business.

Successful Information Systems

• Senior Management Who Run the Entire Business.

• Functional Management Who Run Major Parts of the Business.

• Actual Users of Information Systems on a Day-to-day Basis.

A Product of Good Working Relationships

Working RelationshipsWorking Relationships

• Information Systems Steering Committees

• Functional Interface Managers

• Functional End-user Coordinators

• Service Level Agreements

• User Training and Education

• Application and Technical Consultation

• Joint R&D Projects

• The Working and Personal Relationship of the I/S

Manager Within the Company

5. Is there a logical alternative to having a

steering committee?


4. Is there something unique about information

systems that there is really a need for a steering

committee that spans the organization?

• Frequently do not work the first time that an organization uses this approach. • Should function as a true “Board of Directors” for the IS organization.

• Major benefit is often visibility of IS within the organization and communication regarding major activities.

IS Steering CommitteesIS Steering Committees


7. It is not unusual to find people who feel that

information systems employees are different

from other employees.

Is this actually the case?

If so, how would you suggest that they be

treated and managed?

IS PersonnelIS Personnel

1. Does the organization have enough qualified people?

2. Do their skills address both current and future

needs?

3. Does a migrant worker mentality exist among

the information systems professionals?

4. Is the best way to grow a strong information

systems organization by hiring and developing

your own people?

IS Personnel

5. Can an information systems organization

promote long term career growth?

6. What is the relationship between the satisfaction of IS employees and the success of the business?

7. Are the above questions out-dated and is the

right future information systems organization a small core of people with the rest sub-contracted to outside companies?

IS Personnel

1. Treat new hires for information systems the same as any new employee within the company.

2. During their first five years emphasize the value of different experiences by not allowing an employee to stay with the same manager for longer than eighteen months.

3. Work to establish parity in the perspective of information systems employees towards jobs in operations, applications development and systems design/support.

IS Personnel

4. Promote information systems people into other jobs within the company. At a later date bring them back into the information systems organization with another promotion.

5. Spend more time on identifying and developing management potential people within the information systems organization.

6. Work to eliminate a mentality that job "burn-out" is inevitable with information systems employees.

IS PersonnelIS Personnel7. Make sure that the work environment is as good as that of the rest of the company.

8. Pay special attention to excessive overtime.

9. Recognize and reward those that make major contributions.

10. Have fun within the information systems organization. No one ever said that IS jobs are supposed to be dull and completely stressful.

IS PersonnelIS Personnel

11. The old “employment contract” between employee and

employer was: Do a good job and you can expect lifetime

employment. What is the new “employment contract?”

Customer Service OrganizationCustomer Service Organization

UsersCustomer

ServiceOrganization

ApplicationDevelopment

Operations

TechnicalSupport

IS Management and Administration

Executive Review Board


8. What will the information systems organization look like in the future? What are the primary reasons that it is changing?

9. Are there major issues to be addressed in establishing

the information systems organization of the future?

10. Does the current information systems environment

call for the creation of newly structured jobs and skill

profiles?

CIO JobCIO Job

To provide technology vision and leadership for developing and implementing IT initiatives that create and maintain leadership for the enterprise in a constantly changing and intensely competitive marketplace.

• To forge and carry out a vision of IS as a vital corporate resource. • To bring systems out of the back room and into the competitive marketplace.

• To coordinate an increasingly decentralized IT.

• To serve as a driving “engine of change.”

Why a CIO?Why a CIO?

• Really understand the business.• Earned a seat at the corporate table to become part of the corporate management power structure.• A strategic thinker and planner.• Political, organizational and communication skills.• Experienced in managing various aspects of an organization particularly sales and production.• Able to deal with and understand technical specialists.

CIO “Must Have” Skill ProfileCIO “Must Have” Skill Profile

Personal QualitiesPersonal Qualities

Superb leadership, communication and interpersonal skills; an ability to function in a collaborative and collegial environment; sensitivity to others; high integrity and intelligence; excellent judgment; a conceptual thinker -- strategic and well as pragmatic; and an ability to generate trust and build alliances with co-workers.

CTO: Shift or Threat to CIO?CTO: Shift or Threat to CIO?

The ascendancy of the Chief Technical Officer role points to the importance of understanding increasingly complex IT environment in general and e-business technologies specifically.

Future IS Organization?Future IS Organization?I/S Executive CIO

Client InterfaceGeneral and

AdministrationI/S Utility Telecommunications

CompetitiveSystems

Professionaland Technical

Support

Client SystemsGroups

Administration

Finance

Equipment andFacilities

DataCenter

Performanceand Planning

DevelopmentCenter

DataNetworks

VoiceSystems

Figure 13-2

Documents

Chapter 12 Introduction Using Information Systems to Compete: A Success Factor Profile