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

Vision Strategy Tactics Business Plan Competitive Options Roles, Roles and Relationships Redefine and/or Define Telecommunications as the Delivery Vehicle Success Factor Profile A Systematic Approach

Chapter Objective Examines the factors that were the major contributors to companies’ successful use of information systems to compete.

What is the Success Factor Profile? The Success Factor Profile is a complication of the strengths of more than 150 organizations The goal was to gain a better understanding of strategic use of information systems.

Success Factor Profile Can be used in three ways at three different points in time: 1. 1.Basis for an initial planning process 2. 2.An assessment of the progress 3. 3.An audit list for mature systems

Success Factors Profile Business Vision Culture Risk Management Plan Implementation IS Integral to the Business IS Justification Mgmt. Process Executive-IS Mgr. Partnership Executive IS Experience Operational Automation Linkage to Suppliers Linkage to Customers Linkage to Customer Service Pervasive Computing Literacy IS Architecture IS Marketing IS User Relations There are 16 factors included in the profile:

Success Factors Three questions should be addressed in relation to the Success Factor Profile: » »How important are each of these factors as they relate to gaining a competitive advantage? » »Who should play a key role? » »Where are the current strengths and what areas must be improved?

Why So Many Factors? Different business in different industries have different areas where IS is their strengths Key is not to streamline the list, but to understand the multiple factors and chose the ones that are truly strengths of successful companies

Success Factor Profiles There are examples of two companies and what could be described as their Success Factor Profile in the textbook: Federal Express and British Airways

Use of the Success Factor Profile in the Analysis Term Papers Select between four and six factors that apply to the company that is being evaluated. Do not include factors that are not on this list. Do not introduce new material but highlight information presented earlier in Section III of the paper. Present them in a summary format with sub-titles for the factors.

Conclusions The Success Factor Profile is the fifth and final part of the structured analysis process It could be used as a planning vehicle to identify key factors that must be addressed for an organization to use information systems to gain competitive advantage It is effective in summarizing the reasons why a certain companies secured a competitive advantage though the use of information systems.

Chapter 12 Using Information Systems to Compete: Success Factor Profile

Federal Express Success Factor Profile 1. Vision 2. Culture 3. Executive and Information Systems Management Partnership 4. IS Integral to the Business

British Airways Success Factor Profile 1. Vision 2. Culture 3. Information Systems Integral to the Business 4. Executive and IS Management Partnership 5. Information Systems Architecture

Organizational Improvement Processes Tools Culture Three Essential Elements Which one is most important?

The ability to change the culture of a company is both necessary and sufficient since it is the beginning, the middle and the end to making change. Culture

Culture Importance! Corporate culture is amorphous but crucial, hard to nail down and harder still to change. There is also a fear that too much change risks killing the best a company offers or what made them successful. Corporate culture is not unlike a human body when faced with a transplant. Whether it needs help or not, the immune system is set up to fight—and sometimes reject what is foreign.

Company Cultures Southwest Airlines’ culture is spirited and customer oriented. Microsoft’s culture is brilliant and ruthless. Gannett’s culture is take no prisoners and only the fittest survive.

Harley-Davidson Culture Elements 1. Ethics and honesty. 2. Have fun! 3. Renewal, not survival. 4. Total experience. 5. Commitment, not compliance. 6. Community. Richard Teerlink

Company Culture or Marketing Slogans? DuPont: Better things for better living through chemistry. Federal Express: Absolutely and positively overnight delivery. Allstate Insurance: You’re in good hands with Allstate. Frito-Lay: There is no such thing as doing too much for a customer.

Risks and Pitfalls of Cultures A strong culture can become a deterrent to necessary change. It can cause inconsistency if you can’t adhere faithfully and consistently to the values it intends to promote. It can cause organizational obsolescence.

A good leader must understand cultural values at a particular point in time.