2004 © Dr. John T. Whiting All Rights Reserved Slide 1 The Rationale for Integrating IT Assets into...

www.e-www.e-businessmanagement.combusinessmanagement.com 2004 © Dr. John T. Whiting

All Rights ReservedSlide 1

The Rationale for Integrating IT Assets into the Strategic Business Plan in the

School Construction Industry



The Value Gained From the Integration of IT Resources into the Strategic Business Plan

Gains in Total Enterprise Business Management Efficiency: IT can reduce the operating, labor and project delivery

costs and the ability to deliver projects in a more timely manner yielding greater profit margins.



Instant P&L access to information across the business enterprise 60/24/7

* Source: E-BMC White Paper

P&L Portal Based Management

E-Business Management Partner

Operations Management

R&D Production Logistics MarketingFinance &

ControlHuman

Resource

(Total Enterprise Interconnectivity)

CEO Monitors Company Performance Via “E” Portal



The value in meeting the demands of multiple business constituencies…

Cost Effective Quality Service to Multiple Business Constituencies: Construction projects must service multiple constituencies

including: the customer, the finance organization, government regulatory agencies, the suppliers and vendors and the community.

IT can dramatically reduce the cost and increase the timeliness and accuracy of communicating with all constituencies.



Construction Marketing Plan

Internet/web based e-business structure

Customers, inspectors, politicians, etc.

School OfficialsRecord Keeping

Local Reach

National Reach

Government Compliance

Engineering

Project ManagementGeneral

Management



The Ability to Capture New Markets and Sales…

Marketing, Sales and Competition: Construction companies can respond more quickly to request for

proposals (RFP), new sales and market opportunities quickly using IT. Companies that ignore the advantages of IT will be unable to compete.



Analysis

Market Market

Determination

Marketing

Marketing Research Sales Promotion Marketing Planning

Sales Operations &Administration

Sales PolicyDetermination

Forecasting

PricingBuying

Packaging

ProgramDevelopment

SalesAids

SalesmenRecruitment

Salesmen Training

SalesmenDirection

Salesmen

CompensationOrder

Servicing

DirectSales

Advertising

Campaign

Planning

MediaSelection

CopyPreparation

Production

Requirement

DistributionProblem

Analysis

Marketing Research Marketing PlanningSales Promotions

Sales OperationsAdvertising

Marketing

Web based Market

Requirement Determination

Web based Market Analysis

Direct Sales

Sales Training

Sales Direction

Order Servicing

Program Development Sales Aids

Packaging

Distribution Problem Analysis

Sales Policy Determination

Buying

Salesmen Recruitment

Salesmen Compensation

Forecasting

Pricing

Media Selection Production

Campaign Planning

Copy Preparation

The e-business web portal marketing strategy

Speed to Market! Generating of New Sales



The Value in Reducing Project Management Costs and Increasing Profit Margins…

Project Management Cost Benefits: The startup time and costs can be significantly reduced

by using IT to manage multiple projects using a single project management team.



Project Management

Production Planning Materials Management Production Management Operations

Project EngineeringQuality Assurance

Facility Planning

Manpower Planning

Production Strategy

Budgeting

Facility Design

Methods Study

Work Measurement

Production Layout

Utilities Design

Production Equipment

Safety & Security

Maintenance

Direct & Indirect Labor Control

Materials Handling Study

Buying Purchase Research

Purchase Expediting

Receiving

ShippingInventory Control

Purchase Record Keeping

Materials Scheduling

Equipment Procuremen

tSalvage Sales

Dispatching

Materials Procurement

Project Expediting

Materials Management Communication

Stores Keeping

Performance Reporting

Production Supervision

Time Keeping

Methods Development

Quality Testing

Customer Complaints

Salvage Sales

Interconnectivity =

Logistics/Customer ServiceThe Web Based Portal Project Management

…instant multiple project communication at less cost!



Project Management Cost Savings Using IT

Project Manager

Project Receptionist Site Administrator

Site Superintendent

Project Scheduler

Project Engineer

Site Safety Inspector

Estimated Project Team Salary Costs = $455,000*

$90,000

$60,000

$60,000

$30,000

$70,000 $95,000 $50,000

* Estimates courtesy of MJ Architects. Costs do not include employment insurance and related benefits.

Increasing Project Management Capacity from a 1:2 ration to a 1:8 ration would generate a $3,185,000 savings for the company!



NJEDA:NJEDA:• “E-BMC Model”• Building/financing• Small business

support• Tech Grant

Recipients• Performance

monitoring• Applicant pre

qualification• Application

processing

NJSCC:NJSCC:• School Districts• Grant compliance

reporting• Performance

monitoring• Applicant pre-

qualification• Applicant Processing

IT Increases Communication Efficiency with Government Regulators, Business Contacts and Markets

Business Partners, Vendors, Suppliers,

Contractors

Customer School Districts, Boards of Education and

Administrators

Changes in the Market and New Business

Opportunities

Construction Company Compliance

and Market Communication

Company PR & Communication ServicesCompany PR & Communication Services



Steps Required to Integrate IT:

Adoption of Corporate Policy: Escalating IT decision making from the tactical/technical

level managed by IT professionals to the strategic business level managed by P&L level business executives.

Integrating IT decision making into the strategic business plan based on standards applied across the enterprise guided by management by objectives (MBO) and return on investment (ROI) criteria.



Policy Change Escalating of IT Management to the Strategic Business Level

IT regarded as a tactical asset and managed at the tactical/ technical

level by IT Managers.

IT integrated into the strategic business plan and managed at the

P&L Executive level.



The Need for a Methodology to Guide IT Integration

Adoption of a Methodology to Assess IT Needs and to Guide the Integration of IT into the Strategic Business Plan:

The making of IT decisions, investments and deployment based on the strategic business plan within the context of standard strategic planning and budgeting processes.

The Routine Identification and Initiation of IT Projects Based on MBO and ROI Value:



Phase I -

Phase II -

Phase III -

Phase IV -

Phase V -

Baseline Company Audit to Identify IT Integration Status:

Business Policy Status Technology/User Status Technology Asset Status

IT Integration Plan (ITIP) Development and Targeting of IT

Integration Priorities

Prescription of Priority IT Integration Targets Projects

Priority IT Integration Project Implementation & Formative

Evaluation

Priority Project Completion, Summative Evaluation and Status

Re-assessment

Discovery of IT Integration Status, Discrepancy Analysis and Needs

Assessment

Diagnosis of Status, FIGCP Development & Priority Targeting

Priority IT Integration Project Identification Within Key Business Functions & Across the Enterprise

Implementation of Priority Projects, Formative Evaluation to Document

Progress based on the ITIP

Completion of Priority IT Integration Projects, Summative Evaluation and

Documentation

Note: The process is continuous and integrated into the strategic planning and budgeting process!

The E-BMC Model Guides the Integration of ITThe E-BMC Model Guides the Integration of IT



The Primary Force Driving the Integration of IT Resources into the Strategic Business Plan



The Goal: Optimizing Performance and Profits for the Construction Company

Based on a E-BMC Partnership!



Interested in more information…Contact

Dr. John T. Whiting at:

[email protected]

973-764-0375

15 Village Way – Suite F-6

Vernon, NJ 07462

2004 © Dr. John T. Whiting All Rights Reserved Slide 1 The Rationale for Integrating IT Assets into...

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