IT SystemsIT Systems

11 ITS are the toolstools organizations use to meet the MIS challenge to provide perfect service at customer moment of value (LundbergLundberg )

2.a2.a VF’sVF’s market response strategy (Walmart) provided competitive advantage (Levi) by integratingintegrating IOS, TPS, DSS (O’ConnellO’Connell)

development involves SDLC including C:B considerations of all business processes ---opportunity costs: carrying costs of unsold inventory, stock-out w.r.t. perfect service at customer moment of value

2.b2.b Organizations that do not use ITS to be more efficient in performing business processes (e.g. market response/ inventory replenishment) so that provide perfect service at the customer moment of value lose competitive advantage in the Innovation Innovation EconomyEconomy (Business WeekBusiness Week: 1Aug05, 31Jul06: 1Aug05, 31Jul06; K-martK-mart : Wal-Mart; : Wal-Mart; Levi’sLevi’s vs Vanity Fair; vs Vanity Fair; LL Bean LL Bean vs Penny’s; vs Penny’s; CIOCIO 1Aug02 1Aug02)

2.c2.c Levi’sLevi’s response with its own ITS for turn-around with Wal-Martt (CIOCIO 15Jul03) illustrates WhyWhy ITIT DoesDoes MatterMatter (HBSHBS 10Sep03)

CasesCases are like parablesparables to teach difficult concepts (JCJC used everyday stories to explain faith, hope, love to primitive people)

many did not comprehend because they closed their eyes (PhariseesPharisees) or turned away (richrich youngyoung manman)

YOUYOU must look to see, listen to hear, and think to understand ((Global Business CredentialGlobal Business Credential: : listen & learnlisten & learn))

33 Real world organizationalorganizational structuresstructures are are complexcomplex because of their super-ordinate goals (4a4a) and complex missions (5a5a).

Key is not to discuss information flows nor ITS until 6a6a

4a4a different organizational levels and functional areas are assigned to make different kinds of decisions that require different kinds of information and coordination of activities (4b -4b - battle:war; dean:chair))

5a5a variety of product lines within mission increases complexity of organizational structures (5b - (5b - CSSCSS entitiesentities))

6a6a Consequently, informationinformation flowsflows are complexcomplex. . Different ITS are designed to provide different information between / to different organizational levels / product divisions / functions so organizational activities can be integrated ((CIO CASESCIO CASES))

7a7a ITSITS are designed to perform the information processing tasks (5Cs5Cs) that support these complex information flows ((Vanity FairVanity Fair))

7c7c Therefore, understanding & using IT systems beginsbegins with ““gettinggetting thethe architecturearchitecture rightright”” –identifying the information flows needed to support essential business processes (FLYZIKFLYZIK, CIO of DHS, CIO 1Dec02)

Essential to begin CIO casesbegin CIO cases with understanding the business processesbusiness processes (problemsproblems) then use ITS ITS to support support the information information flowsflows

8a8a Basic typesBasic types of ITS ITS supporting information flows in complex organizations

studied to provide guidance for benchmarkingbenchmarking w.r.t. bestbest practicespractices (KPMGKPMG provided to CSS)

Your task in CIO CASESCIO CASES is to identify or suggest the application of best practices including ITS

9a9a TPSTPS are the primary ITS primary ITS because :9b9b primary real world interface primary real world interface by capture / cradle / communicate / create / convey (all 5Csall 5Cs) information about fundamental events (objects)fundamental events (objects)

used throughout the organization organization related to journalizingjournalizing of transactions in accounting – capture real world in symbolssymbols that can be cradled to do all 5Cs

sales/SRA (AR), purchases/PRA (AP), CGS / CGM (Inv) etc. CIO casesCIO cases: BuildingBuilding: orders / use materials; DockDock: location / movement containers; HomelandHomeland: entry /exit country, hazmat (NASA);

IndianIndian: orders & parts like : orders & parts like DellDell; ; JackpotJackpot: patron play;: patron play; RxRx: prescribe & administer meds 9c9c primary customer interfaceprimary customer interface

when customers perceive an inadequate interface they perceive the entire organization as inadequate (LaSalleLaSalle: bursar/billing & financial aid; K-MARTK-MART/ / Dolyestown manager : Target / Wal-mart; DANA-FARBERDANA-FARBER CANCER CENTER)

databases (DBMS) & networks are components of shared information RFIDRFID are new technology ((ideas vs things ideas vs things with potential to perform basic transaction processing tasks (capture / cradle / communicatecapture / cradle / communicate)

more reliably, timely & efficiently (TESCOTESCO, VNUNet.com 16Jan03; WAL-MARTWAL-MART 14Jul03)

10a10a CISCIS 10b10b the new customer interface that extends TPS by placing technology in customers’ hands ((external or internal) ) so provides opportunity for:

M-commerceM-commerce because customer can process their own transactions anywhere / / anytime ((LASALLELASALLE online registration, databasesdatabases, grades; SECSEC Electronic Data Gathering, Analysis and Retrieval System)

I-commerceI-commerce involving 2-way communication (WSJWSJ 29Oct01: : P&GP&G; DockDock ofof BayBay RFID system provides information to & from to & from truck driver truck driver ; Rx FILESRx FILES warningwarning before administer; UPSUPS online tracking;)

Go to Go to Proctor & Gamble website: pg.compg.com (folders in IT Systems) enhances capability to provide perfect service at customer moment of value moment of value ( 10d – 10f 10d – 10f ))

11.a11.a MISMIS after TPS & CIS capture &cradle data11b11b createscreates / conveysconveys flow information in periodic / / predetermined reports to alert (operational) management to opportunities / threats similar

to sentrysentry or point man point man (GRADES report to students; library material use : acquisitions; CSS occupancy rates : intake, QC reports : material use & scrap)

11c11c AR aging scheduleAR aging schedule 11d 11d characteristics: periodic / summarized / comparative / exception

Dashboard (NETSUITENETSUITE, LEVI’SLEVI’S)

14.a14.a EISEIS14a14a highly interactivehighly interactive MISMIS combined with DSS / AI DSS / AI for creating new information & conveying in flexible formats

ACCESSACCESS team projects team projects, , Excel Capabilities include: data warehouse (cradling), drill down (whatis.comwhatis.com) / query (creating), flexible data presentation (reports -

conveyingconveying)

IT Systems in Organizations:IT Systems in Organizations:

tools to meet the MIS challengetools to meet the MIS challenge

““TheThe real valuereal value will come from getting thewill come from getting the right informationright information (good, clean, timely, (good, clean, timely, reliable data) to thereliable data) to the right peopleright people, at the, at the right timeright time, and giving those people the, and giving those people the tools to find the meaningtools to find the meaning in it.”in it.” Declaration of IntegrationDeclaration of IntegrationAbbie LundbergAbbie LundbergCIO 1Dec2002CIO 1Dec2002

Vanity FairVanity Fair illustratesillustrates ITSITS areare toolstools to meetto meet MIS MIS challengechallenge in the in the information ageinformation age

Vanity Fair Uses Vanity Fair Uses ITIT systemssystems as as toolstools to to Beats the Pants off Levi Strauss Beats the Pants off Levi Strauss

VF’s market response systemmarket response system replenishes inventory in 3 days 3 days ((speedspeed)) with only best-sellingbest-selling styles ((forceforce) ) which increases ROIROI “We get more sales from the same amount of inventory…” 1.31.3 Levi’sLevi’s takes month LL BeanLL Bean & SearsSears similar supply chain problems email 30Aug05email 30Aug05

Actually three integratedintegrated IT systems IT systems: O’Connell O’Connell CEO, Indian CEO, Indian

transactions processing system ccaptures, ccradles & ccreates basic information about transactions

interorganizational system ccommunicates retailer (Wal-Mart) sales information to VF by linking computers

decision support system ccreates, ccommunicates, cconveys the styles, sizes and related groups of goods to ship

IntroductionIntroductionSys-2.aSys-2.a

The strategy “ …was built on the backbone of a fully integrated system with all the elements (5Cs) needed to provide the right kind of information at right time to make the right kind of decisions.” O’Connell, CEO Indian Motorcycle

Levi’s responded to VF Levi’s responded to VF with its own IT Transformationwith its own IT Transformation

Levi’s plan to market through Wal-Mart required an IT IT transformation transformation of its supply chain so: 41.A,341.A,3Replenish on time – speedspeed 42.1042.10 with what the customer wants - forceforce

43.143.1

Lack of information translated to poor performance 43.743.7 Couldn’t track product65% on time product delivery

Why IT does matter!Same systems as VF (TPS, IOS, DSS) with dashboarddashboard (MIS) 44.144.1 “right style in the right place at the right time” -- (95%)

45.645.6 “Today, there are encouraging signs Levi’s is turning around.” 45.6 45.6 Sales grew for the first time in 6 years and Levi’s in Fashionworld’s

list of top ten brands preferred by young women. 45.645.6

IntroductionIntroductionSys-2.cSys-2.c

Asssignment CIO 15Jul03Asssignment CIO 15Jul03

“what customers wanted…when they are needed, not before and certainly not after.”

Why IT Does MatterWhy IT Does Matter Harvard Business School

McFarlan & Nolan 10 Sep 2003

Technology’s transformingtransforming potentialpotential 1.71.7 Levi’s 1.1: Levi’s 1.1: BroadVisionBroadVision

1. The most important thing to understand is IT has enabled every industry’s transactiontransaction costscosts (TPS, CIS) to decrease continually as with ((21.721.7) ) Perry EllisPerry Ellis 2.12.1

creating the feasibilityfeasibility of products and services not not possible in the pastpossible in the past (Stonyfield; Jackpot; Rx: (Stonyfield; Jackpot; Rx: telemetry, EMR)telemetry, EMR)

IntroductionIntroductionSys-2.dSys-2.d

Why IT Does MatterWhy IT Does Matter Harvard Business School

McFarlan & Nolan 10 Sep 2003

Technology’s transformingtransforming potentialpotential

2.2. OrganizationOrganization boundariesboundaries have become permeablepermeable, organicorganic (grow as needed), and globalglobal through IT networks and the Internet (2.1)(2.1)

Providing opportunities for improvement of organizational structuresorganizational structures ((2.6) 2.6) such as information information partnershipspartnerships and virtual organizationsvirtual organizations

Observed:Observed: Wal-Mart: VFVF ++ Levi’sLevi’s; Penny’sPenny’s :: TAL; all CIO casesall CIO cases)

IntroductionIntroductionSys-2.dSys-2.d

Why IT Does MatterWhy IT Does Matter Harvard Business School

McFarlan & Nolan 10 Sep 2003

Technology’s transformingtransforming potentialpotential

3. IT can changechange the rules and assumptions about competitioncompetition, providing opportunities to expand expand customer valuecustomer value (MIS Challenge) and create strategic create strategic advantage advantage (Dell, ToyotaDell, Toyota) 2.2, 2.6 2.2, 2.6

Unless nurtured and evolvedevolved, IT-enabled competitive advantage doesn’t enduredoesn’t endure (Vanity Fair (Vanity Fair vs. Levi’s) Levi’s)

2.52.5

IntroductionIntroductionSys-2.eSys-2.e

Why IT Does MatterWhy IT Does Matter Harvard Business School

McFarlan & Nolan 10 Sep 2003

EvaluatingEvaluating these opportunities (threats)opportunities (threats) is vitally importantvitally important, non-boring work. 3.23.2

New technologiesNew technologies (e.g. RFIDRFID) will allow things to be transformedtransformed in nonlinear ways and give companies the opportunity to differentiatedifferentiate themselves (all CIO casesall CIO cases)

2.52.5 3.23.2

These jobsThese jobs will be of unparalleled importanceunparalleled importance in the decades ahead and prototypesprototypes of leadership skills needed for survival 3.63.6

Only Only limitlimit is management team’steam’s imaginationimagination 2.4 2.4

IntroductionIntroductionSys-2.eSys-2.e

Global Business Credential: Global Business Credential: Thinking Change BrainThinking Change Brain

Develop Develop GlobalGlobal Credential Credential

CompetenciesCompetencies ( (AICPAAICPA) in ) in TeamTeam PresentationPresentation

probe probe relentlessly.relentlessly.44

integrate integrate knowledge.knowledge.44

synthesize synthesize solutions & solutions & new paths.new paths.66

listen & learn.listen & learn.55

from experiences of from experiences of others: ideal & nadirothers: ideal & nadir

CIO CIO casescases

difficult difficult problemsproblems

complex, complex, ambiguous ambiguous challengeschallenges

Stra

tegi

es

Stra

tegi

es

Syste

ms

Syste

ms

Informatio

n Age

Information Age

((MIS challenge

MIS challenge

data, info., k

nowledge,

data, info., k

nowledge,

5C)5C)

conceptsconcepts:: tools solve tools solve difficult problemsdifficult problems

TEAMTEAMTIMETIME

VF used 3 integrated IT systems integrated IT systems that performed all 5Cs5Cs to achieve competitive advantage

By providing perfect service perfect service (right jeans) at customer moment customer moment of value of value (right time and right place)

Levis’s responded with its own IT systems

Same IT systems as VF with Dashboard to provide right right information information to right people right people at right timeright time

Changed on time from 65% to 95% & in FashionWorld top 10

Why IT still matters!Why IT still matters!

Information flows are complex because organizational structures are complex

Basic IT systems (7) are best practices best practices for benchmarkingbenchmarking

ReviewReview Vanity Fair & Levi’s

UsingUsing ITIT systems to meet the systems to meet the MIS challenge MIS challenge requiresrequires understandingunderstanding::

I.I. Organizational StructuresOrganizational Structures are complex because of complex, superordinate goals

II.II. Information flowsInformation flows in organization are similarly complex

III.III. IT systemsIT systems (ITS)(ITS) are designed to perform information processing tasks (5Cs)(5Cs) to support these information flows in organizational structures

IntroductionIntroduction Sys-3Sys-3

Strategies, Strategies, goals & goals &

directivesdirectives

Communication Communication toto / competitive intelligence / competitive intelligence fromfrom customers, suppliers, other partners & constituenciescustomers, suppliers, other partners & constituencies

Communication among Communication among functionalfunctional units & units & workwork teamsteams

OUTWARD FLOW OF INFORMATION

Complex Information Flows in OrganizationsComplex Information Flows in OrganizationsSys-6.a

Communication to Communication to customers, suppliers & customers, suppliers &

other partnersother partners..

How the How the organization is organization is

operating & operating & transactionstransactions

that have that have occurredoccurred

INWARD FLOW OF INWARD FLOW OF INFORMATIONINFORMATION

STRATEGICSTRATEGICmissionmissionTACTICALTACTICALplansplans

OPERATIONALOPERATIONALimplementationimplementation

NONMANAGEMENTNONMANAGEMENToperationsoperations DOWNWARD FLOW OF DOWNWARD FLOW OF

INFORMATIONINFORMATION

UPWARD FLOW OF UPWARD FLOW OF INFORMATIONINFORMATION

HORIZONTAL FLOW OF INFORMATIONHORIZONTAL FLOW OF INFORMATION

Seven Seven fundamentalfundamental IT Systems (ITS) IT Systems (ITS) Support Support Information Flows Information Flows in Organizationsin Organizations

by Performing Information Processing Tasks (by Performing Information Processing Tasks (5Cs5Cs))

Transaction Processing Systems Transaction Processing Systems TPSTPS Customer Integrated SystemsCustomer Integrated Systems CISCIS Management Information SystemsManagement Information Systems MISMIS Executive Information SystemsExecutive Information Systems EISEIS Decision Support SystemsDecision Support Systems DSSDSS Workgroup Support SystemsWorkgroup Support Systems WSSWSS Interorganizational SystemsInterorganizational Systems IOSIOS

Transaction Processing Systems (TPS)Transaction Processing Systems (TPS)ITS in OrganizationsITS in OrganizationsSys-9.a

Most important ITS because Most important ITS because everythingeverything beginsbegins here!here!

Build: materials; Dock: Build: materials; Dock: containers; Homeland: containers; Homeland: hazmat; Indian orders/ parts hazmat; Indian orders/ parts like Dell; Jackpot: patron like Dell; Jackpot: patron play; Rx: scripts /admin. meds play; Rx: scripts /admin. meds

fundamental fundamental events:events:

primary interface with primary interface with real world – captures in real world – captures in symbols symbols ((journalizejournalize) ) so so

5Cs 5Cs TescoTescoRFIDRFID

ideas vs.

things

DatabaseDatabase(DBMS:DSS)(DBMS:DSS)

NetworksNetworks

applications across applications across many industries many industries (TechRepublic (TechRepublic 18Aug03 p.18Aug03 p.2.12.1))

VanityVanity FairFair, , Penny’sPenny’s, , DellDell

AskAsk teams?teams?

TescoTesco

The The Future Future of RFIDof RFID

NASA NASA monitors monitors

hazardous hazardous materialsmaterials

The The Future Future of RFIDof RFID

TescoTesco

NASA NASA monitors monitors

hazardous hazardous materialsmaterials

RFIDRFID in shipping in shipping

labelslabels(PDR timer)(PDR timer)

Seven fundamental IT Systems (ITS)Seven fundamental IT Systems (ITS) Support Information Flows in ComplesOrganizationsSupport Information Flows in ComplesOrganizations

by Performing Information Processing Tasks (by Performing Information Processing Tasks (5Cs5Cs))

Transaction Processing Systems Transaction Processing Systems TPSTPS Customer Integrated SystemsCustomer Integrated Systems CISCIS Management Information SystemsManagement Information Systems MISMIS Executive Information SystemsExecutive Information Systems EISEIS Decision Support SystemsDecision Support Systems DSSDSS Workgroup Support SystemsWorkgroup Support Systems WSSWSS Interorganizational SystemsInterorganizational Systems IOSIOS

Sys-8Sys-8

ITS ITS are bestbest practicespractices for benchmarkingbenchmarking in CIO casesCIO cases

Customer Integrated Systems (CIS)Customer Integrated Systems (CIS)ITS in OrganizationsITS in OrganizationsSys-10.aSys-10.a

LaSalleLaSalleRxFilesRxFilesDock(Driver)Dock(Driver)BuzzsawBuzzsawJackpotJackpot(Winet)(Winet)

1.captures

2.communicates

6. creates 5. conveys4. communicates

7. communicate8. convey9. create10. convey 11. communicate

3.cradles

Technology in customers’ hands

NetworksNetworks

DatabaseDatabase(DBMS:DSS)(DBMS:DSS)

&&On-lineOn-line bankingbanking

Customer Integrated System (CIS)Customer Integrated System (CIS)

The new customer interface that extends TPS by placing technology in the hands of customers (external or internal) process their own transactions, anywhere / anytime (m-commerce)(m-commerce).. SEC’s EElectronic DData GGathering, AAnalysis, and RRetrieval system

(EDGAREDGAR) provides on-line: software, tutorial, filing, retrieval LaSalleLaSalle: on-line registration, library databases, reporting grades

provide opportunity for two-way communication ((I-commerceI-commerce)) WSJ 29Oct01 WSJ 29Oct01 P&GP&G, Road Runner Sports, Victoria’s SecretVictoria’s Secret Jackpot Jackpot information about customers & to customers Rx Files Rx Files warning before medication administered Dock Dock information makes driver efficient and willing to return

ITS in OrganizationsITS in OrganizationsSys-10.bSys-10.b

PP&&GG’s’s CIS supports CIS supports I-commerce by I-commerce by

two-way two-way communication with communication with customers / clientscustomers / clients

to

to

fromto

to

““P&G’s P&G’s innovativeinnovative capability is based on the application of capability is based on the application of technologytechnology to making to making connectionsconnections with with customerscustomers and and developing a deep developing a deep understandingunderstanding of their habits, needs and of their habits, needs and wants.” wants.” P&G.com (P&G.com (JackpotJackpot; ; DHS)DHS)

Customer-Driven InnovationOptimizemag.com Feb07

from

For both Tesco &

Kroger, the

approach begins

with individual

purchase data

from loyalty cards,

giving a look into

every bag of

groceries and

providing data on

neighborhood (ZIP

& telephone) as

well as seasonal buying patterns.

Victoria’s Victoria’s SecretSecret

“Collaboration with customers is transforming product-development strategies ….tapping into an almost endless source of ideas for new product offerings that will differentiate you from your competition.” Feb07 p27

NabiscoNabisco 100 100 calorie sensible calorie sensible snack packssnack packs

Sys-10.dSys-10.d

Rise of I-CommerceRise of I-Commerce ““We tend to take a very narrow lens when we think about e-

commerce. It’s not just about buying and selling things on the Net.” (1.5)(1.5) Sawhney, Professor e-connerce,Sawhney, Professor e-connerce,

Northwestern UnversityNorthwestern Unversity

“The information they provide to customers on their Web sites, along with the intelligence merchants are able to gather about consumers can be at least as valuable as the stuff the actually sell on line.” (1.3)(1.3) Michael Totty Michael Totty

News Editor, News Editor, WSJWSJ

On the internet, “Information gathering is much more important than actually selling actual products to consumers” (2.10)(2.10) Waits, research manager, P&GWaits, research manager, P&G

WSJ Report 29 Oct WSJ Report 29 Oct 0101

ITS in OrganizationsITS in OrganizationsSys-10.eSys-10.e

Rise if I-CommerceRise if I-Commerce

“In today’s electronic age, the role of IT is becoming increasingly significant across all areas of our (P&G’s) business.”

“From day one, you’ll work on a core business team …. Here we improve business results by exploiting IT capability for P&G’s customer teams….”

“We develop a thorough understanding of our customers system, datadata and informationinformation …. We then transform this understanding into knowledgeknowledge and insight about the customer, the market and the consumer.”

PG.com/information technologyPG.com/information technology

7Feb057Feb05

ITS in OrganizationsITS in OrganizationsSys-10.eSys-10.e

BUS 205 BUS 205 CIO teamCIO team

5.communicate

4.creates

Inventory reports Accounts Receivable

QC reports

6.convey

NetworksNetworks

(DBMS:DSS)(DBMS:DSS)

DatabaseDatabase2.cradles

PeriodicPeriodic PredeterminedPredetermined SummarizedSummarized ComparativeComparative

Like Like sentrysentry, , alerts management alerts management

to threats or opportunitiesto threats or opportunities

NetworksNetworks3.communicates3.communicates

Sys-11.aSys-11.a

Management Information SystemsManagement Information SystemsITS in OrganizationsITS in Organizations

Levi’s &Levi’s &NetsuiteNetsuite

Dashboards Dashboards

((cio.comcio.com))

After TPS (CIS) After TPS (CIS) capturecapture & cradle & cradle datadata, MIS create & , MIS create & conveyconvey upward flow of upward flow of informationinformation about transactions & operations about transactions & operationsTPSTPS

CISCIS1.capture

Sys-11.c ITS in OrganizationsITS in Organizations

predeterminedpredetermined structurestructure

periodicperiodic

summarysummary

exceptionsexceptions

comparativecomparative

Roll over the Roll over the highlighted highlighted

numbers on the numbers on the screen to see screen to see

descriptions ofdescriptions of NetSuite NetSuite

Dashboard Dashboard (Levi’s)(Levi’s)

To see a different To see a different rolerole, , click on one of the three role buttons directly below, click on one of the three role buttons directly below,

Roll over the highlighted numbers on the screen to see descriptions of Roll over the highlighted numbers on the screen to see descriptions of NetSuite Dashboard featuresNetSuite Dashboard features. .

The Dashboard offers instant real-time snapshots of The Dashboard offers instant real-time snapshots of key performance indicators. key performance indicators.

Executive Information SystemsExecutive Information Systems

Sys-12.aSys-12.a EISEIS

MIS MIS + + DBMSDBMS + + DSSDSS

interactiveinteractive

3.conveys3.conveys

1.cradles1.cradlesdatabasedatabase

networksnetworks

2.communicates2.communicates 4. opportunity 4. opportunity for KW tofor KW to

createcreateAccess team projectsAccess team projects

Tesco & KrogerTesco & Kroger““Optimize”, Optimize”, Information WeekInformation Week

flexible / flexible / interactiveinteractive

Artificial Intelligence Artificial Intelligence (Decision Support System - DSS)(Decision Support System - DSS)

DSS / AIDSS / AISys-13.aSys-13.a

IBM software IBM software to prevent to prevent

server failuresserver failures

blood analysisblood analysiscancer cell detectioncancer cell detection

regressionregression

DSS + DSS + GroupwareGroupware Sys-14cSys-14c GPS (zilllow.com)GPS (zilllow.com)

kknnoowwlleeddggee

complexcomplex &&

ill-structuredill-structured

infrequentinfrequentoror

subjectivesubjective

ExcelExcelAccessAccess

Expert ChoiceExpert Choice

projectsprojects

PipelinePipeline

Information processing tasks provide Information processing tasks provide shared information and decentralized computingshared information and decentralized computing

That supports decision making & innovationThat supports decision making & innovation

IA-IA-20.a20.a

shared informationshared information(networks(networks & databases)& databases)

ddecentralized computing ecentralized computing (DSS)(DSS)

decision making decision making & &

innovationinnovation

How DSS used to meet the MIS challenge in CIO Cases? How DSS used to meet the MIS challenge in CIO Cases? RxRx check script; check script; DockDock & & BuildBuild locate/unload ship or warehouse; locate/unload ship or warehouse; JackpotJackpot CRM with DBMS CRM with DBMS

capture,

capture,

ccommunicate, cradle

ommunicate, cradle

communicate,

communicate,

convey, create

convey, create (DSS)(DSS)

communicate, cradle

communicate, cradle

MicrosoftExplorer

AccessExcel

PowerPoint / Word

DSS

LaSalle & CSS LaSalle & CSS accreditation committees accreditation committees

(teams)) with each other & (teams)) with each other & administrationadministration

Communication between Communication between teamsteams formed with formed with suppliers, customers, other partners & constituencies suppliers, customers, other partners & constituencies

(Buzzsaw, APL, Indian extranet)(Buzzsaw, APL, Indian extranet)

Communication among functional Communication among functional units & units & work teams work teams (Jackpot, Rx)(Jackpot, Rx)

OUTWARD FLOW OF INFORMATION

INWARD FLOW OF INFORMATION

WSSWSS Support Information Flows Support Information Flows WithinWithin / / BetweenBetween TeamsTeams Sys-14.aSys-14.a WSSWSS

Groupware Supports 3 Group ProcessesGroupware Supports 3 Group ProcessesWSSWSSSys-14.cSys-14.c

CommunicatingCommunicating CradlingCradling

CapturingCapturingCreatingCreatingConveyingConveying

CSS adopted MS CSS adopted MS standard in 2003standard in 2003

MSMS Office:Office: PowerPointPowerPoint

WordWord ExcelExcel AccessAccess

NetscapeNetscape Explorer Explorer Lotus Lotus NotesNotes OutlookOutlook MS Live-MS Live- MeetingMeeting

Interorganizational SystemsInterorganizational Systems Sys-15.a IOSIOS

Communicate directlyCommunicate directly computer to computer computer to computer

Direct deposit pay / SSSEC & IRS filingsCSS & government agencies Indian (Dell), Jackpot (CRM),

DHS (intelligence), Building (designs), Dock (container,

ship locations), Rx (emr) Costs & Errors Costs & Errors

Speed & ForceSpeed & Force

TPS TPS & & DatabaseDatabase

NetworksNetworks

DatabaseDatabase& & DSSDSS

Initially, Initially,

B2B (TPS), B2B (TPS), Evolved Evolved

B2CB2C

professional sitesprofessional sites weather channelweather channel

RRSRRS

Vanity Fair, Levi’s, TAL

Wal-Mart Wal-Mart Penny’s Penny’s

ITSITS are are best practices best practices (general principles)(general principles) forfor benchmarking benchmarking inin CIO cases CIO cases (concrete details). (concrete details). WhiteheadWhitehead

Functional ITSFunctional ITS areare integratedintegrated combinationscombinations of IT systems of IT systems intended to performintended to perform allall 5Cs5Cs so that they so that they support decision support decision making making and and innovationinnovation in complex organizations with in complex organizations with complex information flows.complex information flows. Vanity Fair & LeviVanity Fair & Levi

O’Connell, CEO IndianO’Connell, CEO Indian

““Getting the right information to the right people all the time Getting the right information to the right people all the time ……startsstarts by identifying the by identifying the business processesbusiness processes … the … the informationinformation that is most that is most consumedconsumed by those processes and by those processes and produced by those processes.produced by those processes. OnlyOnly afterafter that …will they that …will they begin tobegin to look at IT enablement look at IT enablement of the business processes.”of the business processes.”

Flyzik, DHSFlyzik, DHS

Some Final ThoughtsSome Final ThoughtsSys-16.aSys-16.a ITS in OrganizationsITS in Organizations

Some Final ThoughtsSome Final Thoughts

New technologies New technologies will continue to give companies thewill continue to give companies the opportunities opportunities toto differentiate themselves.differentiate themselves. Innovation Economy Innovation Economy

BW 1Aug05BW 1Aug05

Only, the seniorOnly, the senior management team’s imagination limits management team’s imagination limits new IT-basednew IT-based opportunities. opportunities.

Evaluating these opportunities as well as thinking through their Evaluating these opportunities as well as thinking through their implications and timing isimplications and timing is vitally important, non-boring work . vitally important, non-boring work .

These jobs will be ofThese jobs will be of unparalled importance unparalled importance in the decades ahead.in the decades ahead.

Why IT Why IT doesdoes matter! matter! McFarlan & NolanMcFarlan & Nolan

HBS 10Sep03 HBS 10Sep03

Sys-16.bSys-16.b ITS in OrganizationsITS in Organizations

Your teamYour team

Some Final ThoughtsSome Final Thoughts

CIO CASESCIO CASES are examples ( are examples (parablesparables) to teach ) to teach difficult concepts. Jesus Christ used difficult concepts. Jesus Christ used everyday everyday storiesstories to explaining faith, hope, love to primitive to explaining faith, hope, love to primitive people.people.

Many did not comprehend because they Many did not comprehend because they closed closed their eyestheir eyes like the like the PhariseesPharisees or or turned awayturned away like the like the rich young manrich young man..

You must You must looklook to see, to see, listenlisten to hear, and to hear, and thinkthink to to comprehendcomprehend..

Sys-16.bSys-16.b ITS in OrganizationsITS in Organizations

Develop Develop Global Credential Global Credential Competencies in Competencies in

TeamTeam PresentationPresentation

probe probe relentlesslyrelentlessly

integrated integrated knowledgeknowledge

synthesize synthesize solutions & solutions & new pathsnew paths

listen & learnlisten & learn

from experiences of from experiences of others: ideal & nadirothers: ideal & nadir

CIO CIO casescases

difficult difficult problemsproblems

complex, complex, ambiguous ambiguous challengeschallenges

Stra

tegi

es

Stra

tegi

es

Syste

ms

Syste

ms

Information Age

Information Age

&&

MIS Challenge

MIS Challenge

conceptsconcepts:: tools solve tools solve difficult problemsdifficult problems

Develop Develop Global Credential Global Credential Competencies in Competencies in

TeamTeam PresentationPresentation

probe probe relentlesslyrelentlessly

integrated integrated knowledgeknowledge

synthesize synthesize solutions & solutions & new pathsnew paths

listen & learnlisten & learn

from experiences of from experiences of others: ideal & nadirothers: ideal & nadir

CIO CIO casescases

difficult difficult problemsproblems

complex, complex, ambiguous ambiguous challengeschallenges

Stra

tegi

es

Stra

tegi

es

Syste

ms

Syste

ms

Information Age

Information Age

&&

MIS Challenge

MIS Challenge

conceptconcept:: tools solve tools solve difficult problemsdifficult problems

Team Team TimeTime

QuizQuiz

If Participation Indicates If Participation Indicates

Lack of PreparationLack of Preparation