Important Reminder Section III of the Analysis Term Paper must include a focus on the Internet...
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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.
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
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