Using Information Systems to Compete: A Success Factor Profile Chapter 12

Chapter Objectives What you should get out of Chapter 12 Familiarize and be able to recognize ‘factors’ that lead companies to be highly successful You should then be able to apply the key Success Factors to any company you analyze

Figure 12-1 This chart lists key success factors that make up 150 different organizations.

Source:

Business Vision A documented picture into the future that takes into consideration logical & achievable goals that can be both understood and accepted throughout the organization.

Consider the Following... What will the business look like in 10 years? 20 years? The Future? What has to be done to ensure that the company remains highly viable into the future?

Culture The environment of the company. A senior-management, value-driven factor. A certain feeling your company or organization projects

Culture The ‘culture’ of the company should reflect the customer service level as well as the quality of products and services.

Risk Management Where should the organization take risks? Is the organization willing to take a risk in acquiring and marketing products? Risk assessment should include information systems exposure and impact on the business.

Plan Implementation Planning should be viewed as a process. The plan can and will change at any time. The organization should be aware of this as the dynamics of major business factors will make it logical to do so.

Information Systems Integral to the Business How integral is information systems to the business? If information systems stopped functioning, what would happen to the organization? What would be the answer to the above question 5 or 10 years from now? What happens to the products and service if information systems stops?

Information Systems Justification Process Save or Make Money? What does a company gain as they commit increasing funding for information systems? Financial Strategies of the organization in allotting capital to information systems.

Executive and Information Systems Management Partnership Senior Management & the Information Systems Manager working together have to gain an ongoing working relationship. Senior Management has to view information systems as an integral and viable part of the company’s success. It is also essential that information systems management understand the business and its philosophies.

Executive Information Systems Experience Do Senior Executives have experience in dealing with information systems? They often lack the respect of information systems and the integral part it plays.

Executive Information Systems Experience Executives must accept and understand the role of information systems. All business departments should understand each others department. For example: Accounting should understand the role of Human Resource. Management should understand the roll of information systems. Finance should understand the roll of sales, etc...

Operational Automation Opportunity! Operations is where emphasis has traditionally been placed by most companies. Is the current allotment of capital sufficient to support and grow information systems? Do these expenditures relate to the competitive advantages of the company?

Linkage to Suppliers and/ or Other Business Partners Just-in-Time Take a broad look at the value and use of more, better or more timely information in the entire spectrum of the business relationship with suppliers or other business partners.

Linkage to Customers Is it possible to redefine the value of products and services to the customer through more, better or more accessible information? Should the delivery process also be redefined? Will the delivery process be as important as the products themselves because of enhanced information content?

Linkage to Customer Service

Pervasive Computing Literacy Is the computer literacy of the people in the organization good enough to effectively utilize more advanced systems that have a competitive advantage objective? Knowledge Management,making it available Collecting and Maintaining it

Information Systems Architecture There is a need for both systems flexibility and a quicker response to business needs. Systems architecture is crucial to the infrastructure. Why?

Information Systems Architecture Architect: Someone who can understand the vision of the organization and put in place a logical, long-range plan that has high odds of being able to respond to future business requirements.

Information Systems Marketing It is crucial that the organization accept information systems within the organization. This is the only way to gain a sustainable competitive advantage though the use of these same systems. Provide a value-added resource Marketing effort should include all of the same factors that any marketing organization would address in dealing with and servicing a customer.

Information Systems and User Relations Continue to build and maintain an ongoing relationship between the information systems organization and users.

Too Many Factors... ??? Why so many factors? Is it clear as to why companies using these factors are successful? Differences in companies utilize different factors. Can you compare Wal-Mart to McKesson? Can you compare Target to Dillards? Can you compare Boeing to GM?

Examples of Companies

Federal Express Known for time-sensitive overnight delivery that you can truly count on! $8 billion in revenue in 1994 Over 2 million packages on average annually shipped thoughout all of the US and 186 different countries.

Federal Express Started the norm that other companies such as the US Postal service and UPS have had to use as a benchmark. Old day scenario: “three days and hope” based on the US Postal Service delivery schedules. Revolutionized the time factor!

Federal Express Company Vision: “absolutely, positively overnight service” Company Culture: Culture is very customer focused. The acceptance of the company vision & culture has resulted in the acceptance and use of information systems as a better way to achieve their customer service objectives.

Federal Express Executive & Information Systems Management Partnership: ongoing working relationship is an integral component of the entire Fed Ex distribution system. Fed Ex recognizes the fact that Information Systems needs to play an active and key role in the management structure to carry out the vision and even the daily operations of the company.

Federal Express Fed Ex has a reputation of reliable service because of its state-of-the-art information technology. It was used to develop an innovative distribution system. IT was utilized to automate the distribution process. Utilizing IT in this manner improved efficiency, effectiveness, and proved a competitive advantage to competitors.

Federal Express A Link to the Customer ability to pinpoint where a package is at any time in the shipping process this value add in has improved customer service while at the same time reducing costs for the company

British Airways Success Factor Profile largest international carrier in the world has consistently earned a profit for the last 10 years

British Airways Success Factor Profile Vision: Customer service drives the vision of British Airways. Vision was to build profitably the world’s premier global alliance, with a presence in all major world markets. Employees knew full well where the airline wanted to be in the future.

British Airways Culture Culture change! You have to be willing to change to survive and grow. “Putting People First” was implemented into the company to raise company morale. Business improved as service improved.

British Airways Information Systems Integral to the Business Information content is a huge factor in the airline business. For example: passenger reservation system yield management system flight operations system

British Airways Executive and Information Systems Management Partnership Many of the people employed at British Airways had experience in areas of information systems as well as business. Executives realized the need of IT and its role in the organization.

British Airways Information Systems Architecture To be a great company, executives know that a robust systems architecture had to be implemented. Anticipating future trends in technology is what keeps the company ahead.

Source: key3media.com

Conclusion The Success Factor Profile can be used as a planning vehicle to identify key factors that must be addressed for an organization to use information systems to gain a competitive advantage. Can also be very effective in terms of summarizing the reasons why a specific company was able to gain a competitive advantage through the use of information systems.

The End!