Information System Strategic

8/8/2019 Information System Strategic

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Establish the Plan Purpose Processeo Scope

I -.-_ _ _ _ _ _ _ _ _C = = = ~ ~ ~ = = ~ ~ ~ ~ = = = = = = = = ~ - - - - - - -Document High Level Bu.siness Direction

Business Plan (Mission., Vision. Values,Goals, Objectives, Business Priorities)Business Information (History, Description,Financial Summary, Industry Summary,Environmental Fac tOC'S , Intc:mal Strengthsand Weaknesses) Environmental Requirements

". External Requirements (Customers, ." '1 1 .Suppliers)-:,,_~j!!ILViS~r----.------""-:r - - - - - - - - - - - - - - - - - - - - - ,DocwnentDeWledLevel Buslaess Directicn II Information Needs ~I Business Processes L, --I~ _ 0 _ P!!Sl!t~~ui"!91E1~ ~I

Document CU1'TentIS Situation - Internal IS Environment Organizational Structure ' Expenditures BacJdog Other Locations IDocument Current IS Situation - External IS Industry Trends .Competitor Profiles

IDetermine IS Direction Mission, Visione Strategic Objectives' Stra~es [S and the Business Goals Computing Architecture Policies and Responsibilities Annual IS Objectives Service ArchitectureT

r - - - - - - - - - - - ~ - - - - - - - - - - - -t Determine Gap from Current to Future./ I Business Operating Vision Assessment

r , Environmental R . irements A3sessment. ...~uI Infonnation Needs AssessmentI External Requirements Assessment: ~. Business Applicatio\sseasmentI Business Requirements Assessment II Technical Computing Architecture Assessment I~ - - - - - - - - - - - - T - - - - - - - - - - -Determine RecommendationOptions (~st. Time, Resources, Benchmark

Infonnati on. Advantages, Disadvantages)RecommendationROI Analysis


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Exhibit 2.1 Table of Contents with PhasesTable of Contents

I.II.

Phase1,2,3,PhasePhasePhasePhasePhasePhase

III.

Management OverviewThe PlanA. PurposeB. ProcessC. ScopeHigh-Level Business DirectionA. Business PI(~mMission, Vision, Values, Goals,Objectives, Business Priorities)

B. Business Information (History, Description, FinancialSummary, Industry Summary, Environmental Factors,Internal Strengths and Weaknesses)

C. Environmental Requirements s:D. External RequirementsE. Operating VisionDetailed Business DirectionA. Information NeedsB. Business ProcessesC. Business RequirementsCurrent Information Systems Situation - Internal .A. Information Systems EnvironmentB. Organizational StructureC. ExpendituresD. BacklogE. Other LocationsCurrent Information Systems Situation - ExternalA. Information Systems Industry TrendsB. Competitor Profiles IInformation Systems DirectionA. MissionB. VisionC. Strategic ObjectivesD. StrategiesE. Information Systems and the BusinessGoalsF. Computing ArchitectureG. Information ArchitectureH. Policies and ResponsibilitiesI. Annual ObjectivesJ . Service Architecture

PhasePhasePhasePhasePhasePhasePhasePhasePhasePhasePhasePhasePhasePhasePhasePhasePhasePhasePhasfPhasePhasePhasePhasePhasePhasePhasePhase

Phase

IV.

v.

VI.

VII.,


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Exhibit 2.1 Table of Contents with Phases (continued)Table of Contents

Vllt. Gap AnalysisIX. Recomrnendation

A. OptionsB. Recommendations-C. Return "n I~vestment An2tysisX. AppendixA. Planning GroupsB. Planning ProcessC. Business DirectionD. Detailed Business RequirementsE. Roles and ResponsibilitiesF. Information Systems BacklogG.lnformation Systems lndustry TechnologiesH. Competitor Profiles'I. Business Application Assessment

Phase 4Phase 4Phase 4Phase 4Phase 4Phase 1Phase 1Phase 1Phase 2Phase 3Phase 3Phase 3Phase 3"Phase-4

Establish the Piau Purpose Process Sco e

Document High Level BusinessDirection


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Exhibit 3.1 Summary of Business Drivers

The business plan identifies better operating effectiveness through the followingkey success factors: Creation of high performance customer-oriented organization Increased manufacturing efficiencies, 'consolidations, and outsourcing .Enhanced sales and customer-support processes Redefined financial and administrative processes tha! reduce cost

The key success factors that apply to information systems are: Improved operating efficiency Improved operating effectiveness

The following key strategic issues..may have a significant impact>on business . '-syste~s and support architectures: Divestitures, .acquisitions, partnerships Investments in emerging markets Third-party distribution Automation of activities that connect the company with customers and'suppliers

Company initiativesFollowing are the boundary conditions for information systems: Implement the plan in segments; define each segment as a project Balance costs with benefits for each project Mtflimiie external customer disruption Adhere to' predominant information technology industry standards Reiy on proven information technology.,(>roducts and processes


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Table 3.1 Environmental Requirements Make-to.:.order Make-to-stock Configure-to-order . Process manufacturing Discrete manufactudng Repetitive manufac tur ing Job shoj. Discrete work orders Sell software Sell hardware Sell services Distributed processing Support of multiple divisions and locations Multipfe plants, integrated~ .... Multiple locations in a warehouse Distribution Distribution network, multi-level Multiplecurrenty: sell, invoice, buy, pay, report Purchase non-stock products for re-sale Configure products for sale. Repair, recondition, or' service our product Input to worldwide financial and sales reporting Blanket purchase orders Just-In-Time manufacturing capabilities Decimal inventory/Bill of Material quantities Back-flush inventory.and resources Finite capacity loading Computer Aided Design and Computer Aided Manufacturing interface Electronic Data Interchange interface . Interface to automated plant equipment Shelf life sensitive materials Use potency and grade-materials FDA and government reporting requirements (EPA, NRC, etc.) Free-stock capabilities Forecast demand Standard and actual costing Subcontract production Hazardous useand toxic materials Lot control Serial number control Engineering change control

. . .


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Table 3.2 Customer Requirements Electronic Data Interchange Electronic sales ;md cornpli~nc.e information Improved communication through the Internet (for example: home page) Worldwide corporate combined information for buying agreements Ability to interface with distributors and affil iates Bar coding Enhanced switchboard and telecommunications to more quickly get to the righperson Credit card capabilities Improved lead times Easier order entry Improved order information, availability, advise on late orders

" Ability to handle special orders and requests' Services subscriptions Better price and value High quality Easier to do business with Ability to provide electronic media and documentation (e.g., CD-ROM) Capabilities for providing data from bundling sales Warranty information

Table 3.3 Supplier Requirements Electronic Data Interchange Supplier certification, preferred vend'Or information Ability to link and integrate with outside services for materials and dependentservices

Supplier corrective action tnformation Ability to interchange drawings and specifications electronically Conformance history Product development information

Table 3.2 includes examples of possible customer requirements.Table 3.3 identifies examples of possible requirements from supplie

which the company utilizes. .


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Table 3.4 Information NeedsFinancial:

Sales (domestic, export, inter-com~ny) Gross margin or profit (cost of sales),% Operating margin or profit Capital commitments and expenditures Days Sales Outstanding Cost reductions Incurred expenses Selling expenses, General & Administration Other income and expenses Interest expense Net income Balance sheet Cash flow Budget Forecast Ooerati r12 exoenses


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Tab!e-3.4 :fv; .r.ation Needs (continued) Profits by customer III industry Backl(")~(units ?n~ ~01f3rs). Royalty income and expense

Human Resources:J I l l Employee information, including background, experience, demographic,personal

. Number of employees: Man-ufacturing, Product Support, Sales, Marketing,General & Administrative, R&D, by location

Salary, increase, and.pension data Training courses takenill Employee survey data' Turnover rate EO measurements and government reporting Organizational reporting relationships Workers comp incidents, costs Healthcare costs Benefit information Salary market data by geography, type

Manufacturing Operations: Variances (overhead spending, volume, manufacturing, purchases, workorder, purchase price, other)

Scrap (product changes, expiration) Overdue Throughput time Rework (percentage, hours) Scrap (dollars,units) Reserve for potentially 'obsolete material Shrinkage and inventory adjustments Scrap arid obsolescence % to standard r;,ceipts Labor hours by system and operations (tracking run average of actual versusstandard, labor tracking by part number)

Variances (rework, work order, scrap, obsolescence) by product Inventory (turns, dollars, Days Inventory On Hand) Allocation and backlog, average throughput time versus stated lead time bypart number -

Direct material, direct labor cO~J percent System cost roll-up Cost of revisions (Design Change Orders: scrap, rework, standard increase)' DCa throughput and volume by distinction code Fixed costs Batch size costs


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Table 3.4 Information Needs (continued) Corrective action status (internal and external) Simulation capability (what in ' % on time, on quality of work orders Capacity levels (shop floor, facilities) Inventory accuracy Excess and slow moving inventory Facility and equipment utilization ratio Forecast versus actual units produced,. Pending changes-' 80M, standard cost, routings Customer service level Standard receipts to inventory Summary of shipments (dollars, units by zone) First-pass yield by assembly Supplier cost, quality and delivery performance Reporting 0[\ vendor activity' -. Conformance and acceptance (Incoming, In-process, Final te*1g) Volume produced by commodity

Field Service and Support: Total service costs per product (labor, travel, other field, in--n.se,. parts) Number of installations completed (net, cumulative, average) Number of preventive maintenance calls Product support costs Number of repair service calls Service contracts Warranty obligations Cost and time to repair Reliability measurements

Quality: First-pass access yield I Warranty costIi Installation success Number of complaints Unscheduled service calls pee product, Calls per instrument for key accounts Mean time to repair . Mean time between service calls Average number of calls per service rep Total scrap and obsolescence Volume produced Service level Corrective actions, and recalls Total cost of recalls Customer survey resuIts


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Table3.4 Information Needs (continued) Number of returns Mean time between failure Num,ber of Design Change Orders

Regulatory: Shipment control ISO requirements and dC~:Jn:tentation Export cornrnoditr reporting EPA, NRC , hazardous waste info FDA information

Marketing: Customer placements'" Sales by zone, region, territory, representative, customer, product group andclass; account, product

Market share data: gains, .losses by product and location Gross profit by account and product Competitive activity Customer membership data, including sales and administrative fees Placements by location Data won and lost Pricing, discount Commissions Forecast (units) Revenue by business segment, product class, etc. Integration of buying group data

Engineering and R&D: R&D expenses New product sales Time to market Number of releases Patents, awards Infringements costs

;'

It): IS costs as % of sales. Backlog and completed hours (project, support maintenance) Average time for request completion Process elapsed time for completion Sales-per employee System availability System response time Cost of processing a transaction

Information System Strategic

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