Important ReminderImportant Reminder

Section III of the Analysis Term Paper must include a focus on the Internet strategy and implications to your company.

Section IV of ATPSection IV of ATP

What have key business strategies and IS support meant to the company to date and have they postured the company for success in dealing with the challenges of the future?

Receives a separate grade.

ReengineeringReengineering

Hammer Definition: Reengineering is the

fundamental rethinking and radical redesign of

business processes to achieve dramatic

improvements in critical, contemporary

measures of performance, such as cost, quality,

service and speed.

Key words are fundamental, radical, dramatic and processes.

Michael Hammer VideotapeMichael Hammer Videotape

The father of reengineering.

At least the term.

ChapterChapter 1010 SummarySummary

The Redefine and/or Define Concept

and

Change Management

Important Chapter TopicsImportant Chapter Topics

1.1. Redefine/Define Concept – a key concept Redefine/Define Concept – a key concept of the structured analysis approach.of the structured analysis approach.

2.2. The Value to Customer ModelThe Value to Customer Model

3.3. Change Management: A major Change Management: A major management challengemanagement challenge

The Redefine and/or Define ConceptThe Redefine and/or Define Concept

The ultimate goal is to provide value

to customers

Redefine -> Change

Define -> Clarify

The Redefine and/or Define The Redefine and/or Define ConceptConcept

Three options are available to achieve the Three options are available to achieve the

value-to-customer goal:value-to-customer goal:

Redefine and/or Define the BusinessRedefine and/or Define the Business

Redefine and/or Define Products and/or ServicesRedefine and/or Define Products and/or Services

Redefine and/or Define Business ProcessesRedefine and/or Define Business Processes

The Product and Service The Product and Service Delivery ProcessDelivery Process

Value-Add ProcessWhat the Customer

Buys

Product/Service

Del

iver

y P

roce

ss

Pro

duct

/Ser

vice

Value to CustomerFigure 10-1

• Stock, Bond and Mutual Fund Trades• Financial Product Options • Competitive Fees• Timely Execution of Trades and Money Transfer• Personal Service• Confidence in Financial Custodial Responsibility

Charles Schwab & Co.

• Computer Based Trades• Client Broker Service Street Smart Telebroker Equalizer• OneSource• Electronic Transfers• Trade Risk Analysis

Value to Customer

Product/Service

Del

iver

y Pr

oces

s

Bro

kera

ge S

ervi

ceWhat the Customer BuysValue-add Process

Figure 10-2

Value to Customer Analysis

Challenges to Change Challenges to Change ManagementManagement

Four Challenging Factors:Four Challenging Factors: The pace and time pressures of change.The pace and time pressures of change. Financial controls may not allow an increase in the Financial controls may not allow an increase in the

number of employees despite company growth.number of employees despite company growth. Shifting of productivity and other operational Shifting of productivity and other operational

objectives to IT.objectives to IT. Dramatic improvements in IT price, performance, Dramatic improvements in IT price, performance,

and functions.and functions.

ConclusionsConclusions

Information system can change the business Information system can change the business processes, products and/or services, and the processes, products and/or services, and the nature of the business.nature of the business.

Employees and business managers must Employees and business managers must understand and accept the need for rapid understand and accept the need for rapid and sometimes frequent change.and sometimes frequent change.

Possible Exam QuestionsPossible Exam Questions

1.1. Explain the redefine and/or define concept and Explain the redefine and/or define concept and provide a specific and different company provide a specific and different company example that fits the concept.example that fits the concept.

2.2. Identify and explain three things that would Identify and explain three things that would probably be included in a change management probably be included in a change management approach where a major new information system approach where a major new information system must be installed with a fast implementation must be installed with a fast implementation schedule.schedule.

Chapter 11Chapter 11

Telecommunications Telecommunications

as as

the Delivery Vehicle the Delivery Vehicle

My 1996 PredictionsMy 1996 Predictions

1. Growth and significance of the Internet.

2. Growth and significance of Groupware.

3. Growth and significance of integrated

voice-data applications.

Networks Plus DataNetworks Plus Data

No Field In the World Offers

More Promise Than the Twin

Technologies of Computers and

Telecommunications.

What Are Telecom Networks?What Are Telecom Networks?

• A Critical Business Resource.

• An Increasing Number of Voice and Data Products and Services.

• A Large and Important Industry.

Opens Up Entirely New Ways of Thinking

About:

• Products• Customers• Markets• Competition• Productivity• Service• Organization

Telecom NetworksTelecom Networks

Linking Users to Information within Applications on Linking Users to Information within Applications on NetworksNetworks

BUSINESSENTERPRISE

•Traditional Data•Text•Images

Information•Graphics•Voice•Video•Multi-media

Applications•Functions•Organizational Processes•Personal

Users

•Enterprise•Organization•Department•Individual

Network

•LANs•WANs

• Public• Private

•Wired•Wireless

Figure 11-2

Telecom Network ChallengesTelecom Network Challenges

• Connectivity and Compatibility.

• Performance (Processors, Bandwidth, Storage)

• Cost.

• Control (Management).

• Ease of Use.

Client Server ComputingClient Server Computing““The Best of Both Worlds!?”The Best of Both Worlds!?”

• Better Performance

• Shared Data

• Easier to Use

• Sense of Ownership

• Good Modularity (expand and contract)

• Applications Implemented Faster

• More Cost Effective

1. Ease of use for the end-user through seamless access to data and computer resources made possible by multi-vendor, multi-platform interfaces.

2. Adding capacity in a modular form.3. Enabling applications to become scaleable.4. Enabling the information systems organization to

respond quickly to business change.5. Maintaining an emphasis on data integrity and

concurrency through time stamped copies.6. Minimizing communication transmission volumes.

Client-Server Computing BenefitsClient-Server Computing Benefits

Data Management ProcessData Management Process

1. Data Capture

2. Indexing and Defining the Data

3. Compression

4. Storage

5. Access and Retrieval

6. Transport

7. Data Presentation

Open Systems EnvironmentOpen Systems Environment

SoftwareSoftware

ApplicationsApplications

5. Software Development Tools5. Software Development Tools

Other ServicesOther Services 1. Operating1. Operating SystemSystem

2. Communication2. Communication ServicesServices

6. Systems6. SystemsManagementManagement ServicesServices

3. Database3. Database

4. User 4. User InterfaceInterface

Figure 11-4Figure 11-4

IS ArchitectureIS Architecture

A blueprint that depicts how future systems

will be designed and built.

The various systems components are

explicitly defined so that multiple people can

build systems around the same base line.

Information Systems FocusInformation Systems Focus

Information Systems has become enterprise-wide through a logical, broad scope systems analysis.

1. Driven by the needs of those that run businesses.

2. Made possible through improved IT price/performance.

3. Made possible through the ability to conceptualize an enterprise-wide system.

BUSINESS AND INFORMATIONTECHNOLOGY DYNAMICS

• INFORMATION SYSTEMS ARCHITECTURE• OPEN SYSTEMS• STANDARDS

MULTI-VENDOR/MULTI-PRODUCTS

USER ORGANIZATIONS• APPLICATION FUNCTION• EASE OF USE• SEAMLESS AND TRANSPARENT

VENDOR HARDWARE ANDSOFTWARE PRODUCTS

AND/OR SERVICES

Figure 11-3

1. Proprietary and Closed.

2. Proprietary and Published.

3. Open and Published.

Possible Standards ScenariosPossible Standards Scenarios

The Internet is a global web of networks and servers.

It connects people to people, businesses to people and businesses to businesses.

Intel Internet DefinitionIntel Internet Definition

The Internet is a network of networks.

It is a good example of how agreed upon standards can truly work in a network-based, inter-organizational information systems world.

Jack Callon’s DefinitionJack Callon’s Definition

Ways to Win on the WebWays to Win on the Web

• Selling to Businesses (B2B) – Intel Corp.• Corporate Intranet – Sun Microsystems• Streamlining the Supply Chain – Dell Computer• Direct Marketing – Dell Computer• Selling to Consumers - Amazon.com• Customer Service - Federal Express and UPS• Coordinating Finances - Cisco Systems• Selling Education – University of Phoenix

The InternetThe Internet

Is it time for optimism or pessimism?

We have had periods of both regarding the Internet.

Internet Market OpportunitiesInternet Market Opportunities

Market SegmentsMarket Segments

(Access Points)(Access Points)

Browser Browser CompaniesCompanies

Internet Internet Service Service

ProvidersProviders

Content Content ProvidersProviders

Internet Internet Solution Solution

ProvidersProviders

EnterpriseEnterprise

IntranetIntranet

ExtranetExtranet

Medium CompanyMedium Company

Intranet, ExtranetIntranet, Extranet

Small CompanySmall Company

Internet AccessInternet Access

ExtranetExtranet

ConsumerConsumer

Internet AccessInternet Access

MicrosoftMicrosoft

MozillaMozilla

NetscapeNetscape

AOLAOL

Etc.Etc.

Movie Movie

ProducersProducers

YahooYahoo

NewspapersNewspapers

Other Other

PublishersPublishers

ConsultantsConsultants

Systems Systems

IntegratorsIntegrators

Software CoSoftware Co

Book Book

Publishers.Publishers.

A Logical Thought ProcessA Logical Thought Process

Doing business with the right vision, strategy, tactics and business plan.

Doing business with the right vision, strategy, tactics and business plan and utilizing the Internet.

Conducting business on the Internet.

Internet MythsInternet Myths

1. The Internet is free!

2. The Internet is free because the federal government

subsidizes the backbone.

3. The Internet is the only major national and international

network.

4. Electronic commerce is a new innovation made possible by

the Internet.

5. Little retailers based on the Internet will drive their big

rivals out of business.

Making Money on the Internet Making Money on the Internet

1. Sell things for money.

2. Charging customers a fee—subscription or

membership.

3. Selling advertising on your web page.

Not to be confused with saving money on the Internet and/or using it as a way to communicate to a wide range of people.

Callon’s List of Important Business IssuesCallon’s List of Important Business Issues

• Direct Business Model ( E-Business)

• Supply Chain Management (SCM)

• Customer Relationship Management (CRM)

• Enterprise-wide Information Systems (Integrated

Systems)

• Outsourcing

• Business Processes Reengineering (BPR)

• Managing Change

Ready for E-Business?Ready for E-Business?

What kind of E-Business architecture--vision, strategy, cross-functional business processes, integrated applications and IT infrastructure--is needed to support new ways of doing business?

B-To-B Commerce to Reach B-To-B Commerce to Reach $6.3 Trillion in 2005$6.3 Trillion in 2005

Jupiter Research is predicting that B-to-B commerce will grow to $6.3 trillion in 2005.

What makes the next generation of E-Commerce so different is the connection of entire supply chains to the same network.

The degree to which business-to-consumer transactions have moved online will pale in comparison to the number of transactions that include companies and their partners, suppliers, and customers.

B2B Readiness B2B Readiness

1. Business Strategy

2. B2B Infrastructure

3. Business Processes

4. Application Development

Secondary ReadinessSecondary Readiness

1. B2B External Initiative

2. Trading Partners

3. Solution Provider

4. Legal

5. Security

6. Auditing

Intranet Issues Intranet Issues

• Identifying how to use an Intranet to meet business goals?

• Determining how an Intranet will impact the current network?

• Deciding if existing technologies can be reused.

• Determining the requirements for content management?

• Integrating existing applications and legacy data?

• Protecting the Intranet from outsider entry?

Intranet IssuesIntranet Issues

• Determining what centralized functions will be required?

• Deciding how to support an Intranet?

• Determining the operational requirements (additional MIS

staff and organizational structure)?

A Telecom Network Perspective

Voice Data

Efficiency

Effectiveness

CompetitiveAdvantage

VoiceApplications

PCs andApp. Packages

Voice Applications plus linkage

Systems Linkage

Integrated Voice/Data Applications

Objective

Transmission Volumes

Voice Message Volumes

Figure 11-5

Telecom Network ConclusionTelecom Network Conclusion

Telecom is an IT tool but an increasingly important resource that directly impacts the efficiency, effectiveness and competitiveness of a company.

Chapter 12Chapter 12

Using Information Systems Using Information Systems to Compete:to Compete:

Success Factor ProfileSuccess Factor Profile

Success Factor ProfileSuccess Factor Profile

Federal Express

Success Factor Profile

1. Vision

2. Culture

3. Executive and Information Systems

Management Partnership

4. IS Integral to the Business

British Airways

Success Factor Profile1. Vision

2. Culture

3. Information Systems Integral to the Business

4. Executive and IS Management

Partnership

5. Information Systems Architecture

Organizational Improvement

Processes

Tools

Culture

Three Essential Elements

Which one is most important?

Culture

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

Difficult to change so need to:Difficult to change so need to:

1. Create conditions for transformation.1. Create conditions for transformation.

2. Provide incentives to change.2. Provide incentives to change.

3. Define market place realities and goals.3. Define market place realities and goals.

4. Promote feeling of trust.4. Promote feeling of trust.

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.

Harley-Davidson Culture ElementsHarley-Davidson Culture Elements

1. Ethics and honesty.

2. Have fun!

3. Renewal, not survival.

4. Total experience.

5. Commitment, not compliance.

6. Community.

Richard Teerlink

A good leader must understand

cultural values at a particular

point in time.