Management Information Systems: Solving Business Problems with Information Technology Part Four: Organizing Businesses and Systems Chapter Thirteen: Organizing MIS Resources Prof. Gerald V. Post Prof. David L. Anderson

Organizing MIS Resources: Strategy and Tactics 1. Market Definition and Segmentation 2. Customer Supply Chain and Channels 3. Increasing the Number of Contact Points 4. Barriers to Entry and Exit 5. Role of the Portal 6. Danger of the "Downward Price Spiral" 7. Process: Content/Context/Interaction/Channel Masters/Management Complexities 8. Seller-controlled, buyer-controlled, and dynamic supply and demand models 9. Market place of one 10. Web Portal/Forward/Reverse Auctions/Exchanges Yahoo/E-Bay/Priceline/CDNow 11. Value-Added Communities Globalization Industry-Focused or Vertical Cross-Industry or Horizontal Organizing MIS Resources: Strategy and Tactics

Implementation Strategies II Balanced Scorecard Implementation Strategies II Implementation Strategies I Business to Business Marketing Internet Marketing Web Design Business Intelligence Infrastructure e-Business Strategy

The Four Phases of Implementing MIS Resources One: Selling the Vision Two: Building the Company Three: Advertising the Business Four: Implementing the Business Five: Moving into the Future

Technological Change Drivers Point of Purchase Displays Optical Character Readers Telecommunications Devices Networking Telecommunications Scanning Devices

Organizational Factors can be Measured More Accurately o Cost, Revenue, Profit, Investment Center o Strategic Business Unit o Critical Success Factors o Core Competencies

MIS Trends More Pronounced o Standardization o Leverage o Mass Customization o Franchise o Methodology o Modularization o Liquid vs. Fixed Assets o Client/Server o Knowledge, Information, or Expertise Driven

Reasoning General Cases Inductive Specific Rules Deductive Transference Reasoning

Customer Value Chain CLIENT What is Produced/ Provided To Me (inputs) What I Do (process) What I Produce (Outputs) Who I Produce It For (Customers) Computer Hardware and Software Local Area Network Installations Implement Technology to Accomplish Strategic Goals Working Models Practice Area Information

Customer Value Chain Margin Firm Infrastructure Human Resource Management Technology Development Procurement Inbound Logistics Operations Outbound Logistics Marketing & Sales Marketing Management Advertising Sales Force Admin. Sales Force Oper. Promotion Service Technical Literature Customer Value Chain

Customer Value Chain

Distribution Chain Florist Customer Grower Wholesaler Jobber $24.00 $8.00 Wholesaler $12.00 Florist $24.00 Customer $60.00 $54.00 Distribution Chain

Rivalry Among Existing Firms Potential Entrants Suppliers Industry Competitors Rivalry Among Existing Firms Buyers Substitutes Bargaining power of suppliers Threat of new entrants Bargaining power of buyers Threat of substitute products or services Five Forces Model

Competitive Strategy of Differentiation Competitive Advantage Competitive Scope Broad Target Narrow Target Lower Cost Differentiation 1. Cost Leadership 2. Differentiation 3A. Focus on Cost 3B. Focus on Differentiation

Product-Process Change Matrix Dynamic Stable Mass Customization Invention Mass Production Continuous Improvement Product-Process Change Matrix

Integrate Silos

Internet Development Continuum “Brochurized” web site Basic product/ plan information Limited interactivity No web site stickiness Publish Physician and facility locators, services information Searchable and customized health content How-to-contact us communications Very early community building Interact Transact Member-focused portal: loyalty building Prevention and health assessment tools Community building Web site stickiness Business process Automation: procurement, integrated directory Integrate EDI to iCommerce Transition Self-service functionality Automated vendor supply chain management Call center replaced with contact center Transform Mass customization Integrated Disease Management Empowered consumers and self-directed care Frictionless integration with providers, pharma & suppliers S T A G E S Value Curve Laggards Majority Leaders Internet Development Continuum

Front Office Sell Side Back Office Buy Side

Business vs. IT Strategy

Integrative Architecture

Integrative Architecture

Integrate EC Front and Legacy Back End

Presentation Options

Presentation on Legacy Database Denormalized DB2 Tables Messaging Account Maintenance Member INQ-SUB INQ-MEMB INQ-SUB-MB INQ-SUB-CAT Network MEMBER’S INQUIRY (Summary Window) PowerBuilder Client Current Membership Provider History Extract Claims Internet DB2 Tables (29) Table Internet Screen CICS Screen Presentation on Legacy Database

_____________________ Balanced Scorecard ____________________________ ____________________________ ____________________________ ________________________________________________________________________________________________________________ e-Business Strategy ____________________________ ____________________________ ____________________________ ________________________________________________________________________________________________________________ Web Design _____________________ _____________________ _____________________ __________________________________________________________________________________________________________________________________ Business to Business Marketing _____________________ __________________________________________________________________________________________________________________________________ ORGANIZATION STRATEGY ____________________________ ____________________________ ____________________________ Business Intelligence _____________________ _____________________ _____________________ _______________________________________________________________________________________________________________________________ Internet Marketing _____________________ _____________________ _____________________ _______________________________________________________________________________________________________________________________ Implementation Strategies I __________________________ __________________________ __________________________ ________________________________________________________________________________________________________________ Implementation Strategies II ___________________________ ___________________________ ___________________________ ________________________________________________________________________________________________________________

Implementation Strategies II Balanced Scorecard Implementation Strategies II Implementation Strategies I Business to Business Marketing Internet Marketing Web Design Business Intelligence Infrastructure e-Business Strategy

References Business Models: Technology Models: Michael Porter James McKinney Warren McFarlan James Cash Technology Models: Gartner Group MetaGroup Forrester Group