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HOW TO DEVELOP BUSINESS STRATEGY: ICT
MODEL
@Dr. Eng. Talaat H. Mohammad Refaat
Senior Consultant
https://www.linkedin.com/in/talaatrefaat
@
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HISTORICAL BACKGROUND (1)
I was a Senior Consultant, National
Group for Communication and
Computer, NGC, Riyadh, KSA. at
January, 1994 – October, 1994,
In the frame of the rapid growth of
NGC, specially while trying to gain
subcontracts with AT&T after the
later had won a huge contract
with the Ministry of Post,
Telegraph & Telephone (PTT); now it
is “Saudi Telecom Company” (STC),
KSA http://www.stc.com.sa/
CONTINUE ,,,,,,
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HISTORICAL BACKGROUND (2)
The contract includes Telephone Exchanges to provide 1.5
million telephone lines, Transmission and junction links,
Information Systems, Subscriber radio network, Training
Facilities and programs... etc. The total contract value is
three billion and nine hundred fifty one million US dollars.
In the frame of these circumstances the following tasks
have been conducted:
A study titled :
"Business Strategy for Business Development Sector";
CONTINUE ,,,,,,
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HISTORICAL BACKGROUND (3)
The Directors, Departments and Projects managers needs to
Improve the Decision Making Process have been identified,
The material for the following topics were prepared :
Project Awareness and Definition Course, Network Analysis
Course; Project Management & Control Tools, Quantitative
Approaches to Management Awareness; Decision Support
Systems (DSS) Awareness; Procurement Methodology Awareness
and Writing the Wining Proposal Awareness;
A training room equipped with recent H/W , S/W, and devices had
been established;
CONTINUE ,,,,,,
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HISTORICAL BACKGROUND (4)
A two months courses and awareness including the mentioned
topics have been taught for about 15 Directors, Departments,
and Projects Managers of NGC;
Professional Presentations explaining complex concepts and
ideas through highly developed communication and
presentation skills have been done for NGC clients as well as
NGC Projects Managers.
"In spite the fact that the mentioned work was done 20 years
ago, yet I found that it may SHED A LITTLE LIGHT ABOUT HOW
TO DEVELOP A BUSINESS STRATEGY“
Dr. Talaat Refaat
https://www.linkedin.com/in/talaatrefaat
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BUSINESS STRATEGY
FOR
BUSINESS DEVELOPMENT SECTOR,
NGC
NGC
Subject: Business Strategy
By : Dr Eng T. H. M. Refaat
Presented to : General Manager & Sadek Al-Sharkawi
Date : 11/3/1415H- 18/8/1994G
Presented to : Omar Al-Akeel & Maged Al-Hagbani
Date : 13/3/1415H- 20/8/1994G
&
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BUSINESS STRATEGYFOR
BUSINESS DEVELOPMENT SECTOR,
NGC
Dr. Eng. Talaat H. Mohammad Refaat
Senior Consultant
Riyadh, Kingdom of Saudi Arabia
Rabi Awal 1415 H
August, 1994 G
@
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CONTENTS
SECTION 1 : INTRODUCTION
SECTION 2 : WHY BUSINESS STRATEGY FOR BDS/NGC
SECTION 3 : MISSION STATEMENT FOR BDS/NGC
SECTION 4 : VISION STATEMENT FOR BDS/NGC
SECTION 5 : ENVIRONMENT OF NGC
5.1 EXISTING NGC ORGANIZATION
5.2 AGENTS OF NGC
5.3 STRENGTHS OF NGC
5.4 WEAKNESSES OF NGC
5.5 THREATS CONFRONTING NGC
5.6 OPPORTUNITIES FOR NGC
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CONTENTS (CONT.)
SECTION 6 : GOALS OF BDS/NGC
SECTION 7 : BDS/NGC ORGANIZATION
7.1 DEPARTMENTS OBJECTIVES
7.2 DEPARTMENTS SCOPE OF WORK
SECTION 8 : JOB DESCRIPTION
SECTION 9 : RECRUITMENT APPROACH IN STAGES
SECTION 10 : COST OF STAGE # 1
REFERENCES :
ATTACHMENTS:
A1: DECISION MAKING PROCESS
A2: PROJECT / MGMT LIFE CYCLE
A3: LIST OF PENDING ACTIVITIES WITH GM
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1. INTRODUCTION
Characteristics of current situation of NGC:
increase in number, volumes and values of its projects.
increase in the complexity of its projects.
drastic change in kind of its customers.
opportunities to increase its marketshare.
opportunities to create new services.
opportunities in marketing of new products.
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1. INTRODUCTION(CONT)
Therefore, setting a Strategy for NGC is a must at least for the
following reasons:
to organize and reallocate its resources.
to reposition itself relative to its new competitors.
to satisfy the new customer needs.
to capitalize on strengths and opportunities.
to take advantage of changes in marketplace.
to improve the decision making process.
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1. INTRODUCTION(CONT)
Within the current circumstances, a suggestion from the
top management of NGC was introduced to reorganize NGC
into four main sectors:
Projects Sector,
Business Development Sector, (New)
Commercial Sector, and
Financial & Administration Sector.
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1. INTRODUCTION(CONT)
Another suggestion was introduced, to include the
following posts in the new NGC organization:
public relations manager,
information systems manager,
legal advisor,
feasibility studies advisor,
telecom advisor, and
media manager.
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1. INTRODUCTION(CONT)
This report is dedicated for setting the Business Strategy
for the new sector in NGC: Business Development
Sector.
The Strategy was set in the frame of the characteristics of
the current situation of NGC.
The report also resolves the Consultants’ issue as well as
the new suggested posts.
This report is composed of ten sections.
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2. WHY BUSINESS STRATEGY FOR BDS / NGC
To formulate the Mission Statement for Business
Development Sector (BDS).
To formulate the Vision Statement for BDS.
To set Goals and Objectives of the BDS.
To devise an appropriate organization capable for the
achievement of these Goals and Objectives.
To allocate new resources to the organization in stages.
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2. WHY BUSINESS STRATEGY FOR BDS / NGC(cont)
To comply with the imposed requirements set by new
customers.
To reposition BDS relative to the similar competitors
organization specially in the frame of the new changes in
NGC marketplace.
To form a basis for making action decision-now! since
immediate action decision is a must for NGC regarding the
new changes in marketplace.
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3. MISSION STATEMENT FOR BDS / NGC
The MISSION OF
BDS OF NGC
IS
to encourage and enable
all NGCs managers at the three
managerial levels
to improve
the decision making process
for all types of decisions
strategic, tactical & technical
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4. VISION STATEMENT FOR BDS / NGC
The VISION OF
BDS OF NGC
IS
quantitative approaches, DSS, TQM, HRM,
advanced S/W & H/W
& different methodologies
become
common tools that
everyone in NGC uses
to help him
to achieve his objectives
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5. ENVIRONMENT OF NGC
All the elements of the Business Strategy for BDS/NGC: the
mission statement, the vision statement, the goals, the
objectives, the organization, the scope of work, ... etc,
will be highly affected by NGC environment.
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5. ENVIRONMENT OF NGC(cont)
There are many dimensions to the environment. One
approach the analyst can view the NGC environment
dimensions is as follows:
5.1 EXISTING NGC ORGANIZATION
5.2 AGENTS OF NGC
5.3 STRENGTHS OF NGC
5.4 WEAKNESS ES OF NGC
5.5 THREATS CONFRONTING NGC
5.6 OPPORTUNITIES FOR NGC
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5. ENVIRONMENT OF NGC(cont)
5.1 EXISTING NGC ORGANIZATION
history of NGC.
current organization.
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5. ENVIRONMENT OF NGC(cont)
5.2 AGENTS OF NGC
MOPTT NEC AT&T
Saudi Telecom
ATTI-SCI Ministry of Information
Royal Telecom
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5. ENVIRONMENT OF NGC(cont)
5.3 STRENGTHS OF NGC
empowered board of directors
empowered top management
culture, history & reputation
financial status
credibility
opportunities (details next)
trust from its agents
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5. ENVIRONMENT OF NGC(cont)
5.4 WEAKNESSES OF NGC
understaffing specially in: procurement dept.
personel & administration dept.
finance dept.
lack of policies & procedures.
lack of job analysis and description
mismatching between job title and actual function.
organization without depth.
lack of communications between departments.
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5. ENVIRONMENT OF NGC(cont)
5.4 WEAKNESSES OF NGC
lack of definitions (tasks, projects, missions, ... etc)
lack of quantitative approaches to management
major weakness in decision making process.
(see attachment A1)
one - man - show oriented company.
major weakness in HRM
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5. ENVIRONMENT OF NGC(cont)
5.5 THREATS CONFRONTING NGC
If NGC decides to continue without fast and concrete
actions to overcome the current weaknesses (section 5.4),
the major threat confronting NGC will be:
survivability of NGCsurvivability of NGC
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5. ENVIRONMENT OF NGC(cont)
Analyzing the dimensions of threats, the analyst finds following breakdown:
wrong strategic decisions regarding the business directions and the available opportunities.
wrong tactical decisions regarding the current projects. wrong operational decisions regarding the daily transactions. loosely managed projects.
HENCE increase in the degree of manager frustration
(see project/management life cycle, attachment A2).
HENCE loss moneywise, loss reputationwise, loss trustwise, loss creditwise,
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5. ENVIRONMENT OF NGC(cont)
5.6 OPPORTUNITIES FOR NGC
The following are the potential opportunities for NGC:
Modified CAMODS (SCADA) for users other than
PTT
OSP for private sectors
Private data network
CODEC
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5. ENVIRONMENT OF NGC(cont)
Switching for non-PTT
ARAMCO
GCC Telecom Projects
SCECO
Broadcast for GCC
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6. GOALS OF BDS / NGC
In the frame of the characteristics of the current situation of
NGC; the mission and the vision statement of BDS / NGC;
and environment of NGC, BDS / NGC have five goals:
G0, G1, ..., G4.
G0 is temporary goal specially during the building stage.
The other four goals are permanent goals.
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GOAL # 0
to establish
mission stmt, vision stmt, goals, policies,
procedures & adequate organization
for BDS / NGC;
objectives, scope of work
for departments, and
job analysis and description
for people
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GOAL # 1
to facilitate collection, keeping,
updating for all information related
to NGC on different media, and
to avail these information to all NGC users.
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GOAL # 2
to establish
systems assurance function, product
assurance function, and process assurance
in the meantime
to build and to improve
i a quality control system
to all parts of the project
ii a training system
to all NGC candidates
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GOAL # 3
to assist projects, managers
to perform
the four key stages of the project :
initiation, establishment, implementation,
and project completion.
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GOAL # 4
to perform
professional system studies,
feasibility studies
in the meantime
to devise systematic means for
attaining objectives
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Business Develop.Sector
Business Develop.Sector
SA & D Dept.SA & D Dept.Proj Plg&F. Up Dept.Proj Plg&F. Up Dept.TQM & Trng Dept.TQM & Trng Dept.Info CenterInfo Center
BDD
7. BDS/NGC ORGANIZATION
to satisfy the concerned part of GOAL # 0
to satisfy GOAL # 1
to satisfy the concerned part of GOAL # 0
to satisfy GOAL # 1
to satisfy the concerned part of GOAL # 0
to satisfy GOAL # 2
to satisfy the concerned part of GOAL # 0
to satisfy GOAL # 2
to satisfy the concerned part of GOAL # 0
to satisfy GOAL # 3
to satisfy the concerned part of GOAL # 0
to satisfy GOAL # 3
to satisfy the concerned part of GOAL # 0
to satisfy GOAL # 4
to satisfy the concerned part of GOAL # 0
to satisfy GOAL # 4
BDS/NGC Departments Objectives
CoordinationAdmin Asst.
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Business Develop.Sector
Business Develop.Sector
Coordination
SA & D Dept.SA & D Dept.
AP poolSA pool
Proj Plg&F. Up Dept.Proj Plg&F. Up Dept.
UC poolPP& FU pool
TQM & Trng Dept.TQM & Trng Dept.
QCQ Ass.
Info CenterInfo Center
Doc. & Lib Sec
Doc. Standard
Doc.
Lib
S / W Engr.
DBA
Network Admin
H / W M & R
Tech. Supp. Sec
Admin Asst.
7. BDS/NGC ORGANIZATION
Tr.
BDS/NGC FUNCTIONS
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Business Develop.Director
Business Develop.Director
Coordinator
Secrt.
SA & D Mgr.SA & D Mgr.
AP
AP
SA, FS
SA
Proj Plg&F. Up MgrProj Plg&F. Up Mgr
UC
UC
PP& FUS
PP & FUS
PP & FUS
TQM & Trng MgrTQM & Trng Mgr
Tr. SpQC Sp.
QC Offr.
Q Ass. Sp.
Info Center MgrInfo Center Mgr
Doc. & Lib Mgr
Doc. Sp.
Doc. Tech
Lib
S / W Engr.
DBA
Network Admin.
H / W Tech
Tech. Supp. Mgr
BDD
ICM TQM&TM PP&FUM SA&DM
Secrt.
Exc. Secrt.
QC Offr.QC Offr.
7. BDS/NGC ORGANIZATION
UC
BDS/NGC ORGANIZATION CHART
پپ ‚‚ƒ ƒ„
…
… „
‡ ٹ‡
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Business Develop.Director
Business Develop.Director
Coordinator
Secrt.
SA & D Mgr.SA & D Mgr.
AP
AP
SA, FS
SA
Proj Plg&F. Up MgrProj Plg&F. Up Mgr
UC
UC
PP& FUS
PP & FUS
PP & FUS
TQM & Trng MgrTQM & Trng Mgr
Tr. SpQC Sp.
QC Offr.
Q Ass. Sp.
Info Center MgrInfo Center Mgr
Doc. & Lib Mgr
Doc. Sp.
Doc. Tech
Lib
S / W Engr.
DBA
Network Admin.
H / W Tech
Tech. Supp. Mgr
BDD
ICM TQM&TM PP&FUM SA&DM
Secrt.
ü Exc. Secrt.
QC Offr.QC Offr.
7. BDS/NGC ORGANIZATION
UC
BDS/NGC ORGANIZATION CHART
¤
¤
¤
¤¤¤¤
¤
¤
¤
¤
¤
ü
ü
پ ‚ „پ‚ ƒ ƒ„…
ٹ‡‡…
ü Exist
¤ P1
= 3
=13
¤
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10. MANPOWER COST OF STAGE # 1
SEQ JOB TITLE REQNo
CODE DEPT BASIC SALARYRANGE (SR)
COST /MIN
YEARAVER
1 Software Engineer 1 S/WE Info Center 4000 - 6000 76.800 115.200
2 Database Admin 1 DBA Info Center 4000 - 6000 76.800 115.200
3 Network Admin 1 NETA Info Center 4000 - 7000 76.800 134.400
4 Librarian 1 LIB Info Center 3000 - 5000 57.600 96.000
5 Doc. & Graph Tech 1 DOCT Info Center 3000 - 5000 57.600 96.000
6 Quality Control Sp. 1 QCS TQM & Trn 7000 - 10000 134.400 192.000
7 Proj Plan & FU Sp 2 PP& FUS Pr Pl & FU 2*4000 - 7000 153.600 268.800
8 User Coordinator 1 UC Pr Pl & FU 3000 - 5000 57.600 96.000
9 Systems Analyst 1 SA Sys A & D 6000 - 8000 115.200 153.600
10 Analyst Prog 1 AP Sys A & D 4000 - 7000 76.800 134.400
11 Exec Secretary 1 ESEC 4000 - 6000 76.800 115.200
12 Secretary 2 SEC 2 * 3000 - 5000 115.200 192.000
TOTAL 56.000-89.000 1.075.200 1.708.800
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REFERENCES
1 - Refaat, Talaat Harb, “Large Scale Manpower Planning
Models”, Ph. D. Dissertation, Cairo, 1988
2 - Cornish, William G.F. with Board of Directors of SCS,
“Strategic Plan for the Saudi Computer Society”, Riyadh,
KSA, 1993
3 - Refaat, Talaat Harb, “Information & Computer Systems
Department Business Plan”, UPMOC, I & CS, Riyadh, KSA,
1993
4 - Alexander Hamilton Institute, “How to Plan and Manage an
Effective Wage and Salary Program”, Modern Business
reports, USA, 1984.
5 - UPMOC, “Job Description”, Technical Report, Riyadh, KSA,
1992.
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REFERENCES (CONT.)
6 - Imperial Chemical Industries, Central Labour Dept, “The ICI Method of Job Appraisement for General Worker Jobs”, London, 1948, 1951, ..., 1955
7 - IBM, “ Organizing Data Processing Activity”, New York, 1973
8 - Roetzheim, William H., “Structured Computer Project Management”, Prentice Hall, New Jersey, 1988.
9 - UNESCO, “Vacancy Notice Forms”, Paris, 1993
10 - ITU, “International Telecommunication Union - Recruitment of Experts, Field Vacancies Notice”, Geneve, 1993.
11 - FAO, “Food and Agriculture Organization of UN - Vacancy Announcements”, Rome, 1993.
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REFERENCES (CONT.)
12 - Refaat, Talaat Harb, “Contribution to the Improvement of
the System of Medium Repair of Anti - Aircraft Guided
Rockets in Medium Repair Workshop” Dipl. Project Oper.
Res., MTC, Cairo, 1979.
13 - Refaat, Talaat Harb, “Leveling of Resources”, International
Symposium INTERNET, Project Planning & Implementation
in Developing Countries, Cairo, 1984.
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DecisionLevel
Effect System Approach XYZLevel Approach
XYZNeeds
Strategic LR OpenDescriptiveQualitative
QuantitativeNO NO
LRPTechnology
Transfer,Know How
+ Tools
Tactical MR Open/
Close
DescriptiveQualitative
QuantitativeY
AlmostDescriptiveSometimesQualitative
MRPTechnology
Transfer,Know How
+ Tools
Technical /Operation
SROpen
/Close
DescriptiveQualitative
QuantitativeY
AlmostDescriptive
Task Force,Immediate
Action
ATTACHMENTSA1: Decision making process
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ATTACHMENTS (CONT.)
أطــوار حـياة المشــروع / اإلدارة
A2: PROJECT/MANAGEMENT LIFE CYCLE معاقبة البريءPUNISH THE INNOCENT
الزمن
البحث عن المذنبSEARCH FOR THE GUILTY
START THE NUMBERED MEMOS
تفــاؤلUNINFORMED
OPTIMISMMA
NA
GE
R F
RU
ST
RA
TIO
N
PROJECT STARTONE
TIME
طبا
حإل
ا
DEADLINE DATE
PANIC
LOOSELY MANAGED PROJECT
غموضVAGUE CONCERN
MA
NA
GE
RIA
L O
VE
RK
ILL
ضـعف السـيطرة
ذعـر
BDSTR- 46BDSTR- 46NGC ATTACHMENTS (cont.)
A1: List of pending activities with GM (as of 16 August 1994)
1. ACHIEVEMENT REPORT
05/06/94 Report Received
23/07/94 First Major Meeting with GM
28/07/94 Brief Meeting with GM
2. G M A
16/07/94 Cost Benefit Analysis Report
06/08/94 Memo on (New) GMA Courses
BDSTR- 47BDSTR- 47NGC ATTACHMENTS (cont.)
A1: List of pending activities with GM (as of 16 August 1994) (cont.)
3. OBSTACLES
09/07/94 Some Problems will be Obstacles Memo
(Marakkal)
30/07/94 Some Problems will be Obstacles Memo
(PC Failure)
4. RURAL COMMUNICATIONS
07/08/94 Complete Report on NEC Visit by Engr
Tharwat S Badran
07/08/94 Memo on NEC Visit for the
Improvement
of O&M S/W for SRS
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MAJOR PROBLEMS
1. The current workload in BDS needs
TWO COMPLETELY DIFFERENT CHARACTERS
even in the attitude,
Thinking, Recognizing, Designing,
Setting Strategies, Policies, Procedures,
Setting goals & objectives, ... etc
Implementing : PM, NGC LAN, Documentation
Standard, .... etc
It will be solved after hiring people stage 1
2. To keep the link between Sponsor & PM
Workload iWorkload i
Workload iiWorkload ii
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The objectives, scope of work, workload,
sophistication, time consumption and
deliverables,
of the following twins
are completely different
Proj Mgmt impl Inst. of a LAN Producing a quality
for a proj document
Devising Activating a Lan Setting a system &
a Proj Mgmt System with Doc., Proc. & Procedures for
operating Inst. Documentation
dimensions of complexity
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THE OBJECTIVE
Eval & SelectionProcurement ofDevice X
n
ProcurementMethodology
Know How