Important Reminder Section III of the Analysis Term Paper must include a focus on the Internet strategy and implications to your company.

Section IV of ATP What have key business strategies and IS support meant to the company to date and have they postured the company for success in dealing with the challenges of the future? Receives a separate grade.

Reengineering Hammer Definition: Reengineering is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performance, such as cost, quality, service and speed. Key words are fundamental, radical, dramatic and processes.

Michael Hammer Videotape The father of reengineering. At least the term.

Chapter 10 Summary The Redefine and/or Define Concept and Change Management

Important Chapter Topics 1. Redefine/Define Concept – a key concept of the structured analysis approach. 2. The Value to Customer Model 3. Change Management: A major management challenge

The Redefine and/or Define Concept The ultimate goal is to provide value to customers Redefine -> Change Define -> Clarify

The Redefine and/or Define Concept Three options are available to achieve the value-to-customer goal:  Redefine and/or Define the Business  Redefine and/or Define Products and/or Services  Redefine and/or Define Business Processes

The Product and Service Delivery Process Value-Add Process What the Customer Buys Product/Service Delivery Process Product/Service Value to Customer Figure 10-1

Stock, Bond and Mutual Fund Trades Financial Product Options Competitive Fees Timely Execution of Trades and Money Transfer Personal Service Confidence in Financial Custodial Responsibility Charles Schwab & Co. Computer Based Trades Client Broker Service Street Smart Telebroker Equalizer OneSource Electronic Transfers Trade Risk Analysis Value to Customer Product/Service Delivery Process Brokerage Service What the Customer BuysValue-add Process Figure 10-2 Value to Customer Analysis

Challenges to Change Management Four Challenging Factors: The pace and time pressures of change. The pace and time pressures of change. Financial controls may not allow an increase in the number of employees despite company growth. Financial controls may not allow an increase in the number of employees despite company growth. Shifting of productivity and other operational objectives to IT. Shifting of productivity and other operational objectives to IT. Dramatic improvements in IT price, performance, and functions. Dramatic improvements in IT price, performance, and functions.

Conclusions Information system can change the business processes, products and/or services, and the nature of the business. Information system can change the business processes, products and/or services, and the nature of the business. Employees and business managers must understand and accept the need for rapid and sometimes frequent change. Employees and business managers must understand and accept the need for rapid and sometimes frequent change.

Possible Exam Questions 1. Explain the redefine and/or define concept and provide a specific and different company example that fits the concept. 2. Identify and explain three things that would probably be included in a change management approach where a major new information system must be installed with a fast implementation schedule.

Chapter 11 Telecommunications as as the Delivery Vehicle

My 1996 Predictions 1. Growth and significance of the Internet. 2. Growth and significance of Groupware. 3. Growth and significance of integrated voice-data applications.

Networks Plus Data No Field In the World Offers More Promise Than the Twin Technologies of Computers and Telecommunications.

What Are Telecom Networks? A Critical Business Resource. An Increasing Number of Voice and Data Products and Services. A Large and Important Industry.

Opens Up Entirely New Ways of Thinking About: Products Customers Markets Competition Productivity Service Organization Telecom Networks

Linking Users to Information within Applications on Networks BUSINESS ENTERPRISE Traditional Data Text Images Information Graphics Voice Video Multi-media Applications Functions Organizational Processes Personal Users Enterprise Organization Department Individual Network LANs WANs Public Private Wired Wireless Figure 11-2

Telecom Network Challenges Connectivity and Compatibility. Performance (Processors, Bandwidth, Storage) Cost. Control (Management). Ease of Use.

Client Server Computing “ The Best of Both Worlds!?” Better Performance Shared Data Easier to Use Sense of Ownership Good Modularity (expand and contract) Applications Implemented Faster More Cost Effective

1. Ease of use for the end-user through seamless access to data and computer resources made possible by multi-vendor, multi-platform interfaces. 2. Adding capacity in a modular form. 3. Enabling applications to become scaleable. 4. Enabling the information systems organization to respond quickly to business change. 5. Maintaining an emphasis on data integrity and concurrency through time stamped copies. 6. Minimizing communication transmission volumes. Client-Server Computing Benefits

Data Management Process 1. Data Capture 2. Indexing and Defining the Data 3. Compression 4. Storage 5. Access and Retrieval 6. Transport 7. Data Presentation

Open Systems Environment Software Software Applications Applications 5. Software Development Tools Other Services 1. Operating System System 2. Communication 2. Communication Services Services 6. Systems Management Services Services 3. Database 4. User Interface Interface Figure 11-4

IS Architecture A blueprint that depicts how future systems will be designed and built. The various systems components are explicitly defined so that multiple people can build systems around the same base line.

Information Systems Focus Information Systems has become enterprise-wide through a logical, broad scope systems analysis. 1.Driven by the needs of those that run businesses. 2.Made possible through improved IT price/performance. 3.Made possible through the ability to conceptualize an enterprise-wide system.

BUSINESS AND INFORMATION TECHNOLOGY DYNAMICS INFORMATION SYSTEMS ARCHITECTURE OPEN SYSTEMS STANDARDS MULTI-VENDOR / MULTI-PRODUCTS USER ORGANIZATIONS APPLICATION FUNCTION EASE OF USE SEAMLESS AND TRANSPARENT VENDOR HARDWARE AND SOFTWARE PRODUCTS AND/OR SERVICES Figure 11-3

1. Proprietary and Closed. 2. Proprietary and Published. 3. Open and Published. Possible Standards Scenarios

The Internet is a global web of networks and servers. It connects people to people, businesses to people and businesses to businesses. Intel Internet Definition

The Internet is a network of networks. It is a good example of how agreed upon standards can truly work in a network- based, inter-organizational information systems world. Jack Callon’s Definition

Ways to Win on the Web Selling to Businesses (B2B) – Intel Corp. Corporate Intranet – Sun Microsystems Streamlining the Supply Chain – Dell Computer Direct Marketing – Dell Computer Selling to Consumers - Amazon.com Customer Service - Federal Express and UPS Coordinating Finances - Cisco Systems Selling Education – University of Phoenix

The Internet Is it time for optimism or pessimism? We have had periods of both regarding the Internet.

Internet Market Opportunities Market Segments (Access Points) Browser Companies Internet Service Providers Content Providers Internet Solution Providers Enterprise Intranet Intranet Extranet Extranet Medium Company Intranet, Extranet Intranet, Extranet Small Company Internet Access Internet Access Extranet ExtranetConsumer Internet Access Internet AccessMicrosoftMozillaNetscapeAOLEtc.Movie Producers ProducersYahooNewspapersOther Publishers PublishersConsultantsSystems Integrators Integrators Software Co Book Publishers. Publishers.

A Logical Thought Process Doing business with the right vision, strategy, tactics and business plan. Doing business with the right vision, strategy, tactics and business plan and utilizing the Internet. Conducting business on the Internet.

Internet Myths 1. The Internet is free! 2. The Internet is free because the federal government subsidizes the backbone. 3. The Internet is the only major national and international network. 4. Electronic commerce is a new innovation made possible by the Internet. 5. Little retailers based on the Internet will drive their big rivals out of business.

Making Money on the Internet 1. Sell things for money. 2. Charging customers a fee—subscription or membership. 3. Selling advertising on your web page. Not to be confused with saving money on the Internet and/or using it as a way to communicate to a wide range of people.

Callon’s List of Important Business Issues Direct Business Model ( E-Business) Supply Chain Management (SCM) Customer Relationship Management (CRM) Enterprise-wide Information Systems (Integrated Systems) Outsourcing Business Processes Reengineering (BPR) Managing Change

Ready for E-Business? What kind of E-Business architecture--vision, strategy, cross-functional business processes, integrated applications and IT infrastructure--is needed to support new ways of doing business?

B-To-B Commerce to Reach $6.3 Trillion in 2005 Jupiter Research is predicting that B-to-B commerce will grow to $6.3 trillion in What makes the next generation of E-Commerce so different is the connection of entire supply chains to the same network. The degree to which business-to-consumer transactions have moved online will pale in comparison to the number of transactions that include companies and their partners, suppliers, and customers.

B2B Readiness 1.Business Strategy 2.B2B Infrastructure 3.Business Processes 4.Application Development

Secondary Readiness 1.B2B External Initiative 2.Trading Partners 3.Solution Provider 4.Legal 5.Security 6.Auditing

Intranet Issues Identifying how to use an Intranet to meet business goals? Determining how an Intranet will impact the current network? Deciding if existing technologies can be reused. Determining the requirements for content management? Integrating existing applications and legacy data? Protecting the Intranet from outsider entry?

Intranet Issues Determining what centralized functions will be required? Deciding how to support an Intranet? Determining the operational requirements (additional MIS staff and organizational structure)?

A Telecom Network Perspective VoiceData Efficiency Effectiveness Competitive Advantage Voice Applications PCs and App. Packages Voice Applications plus linkage Systems Linkage Integrated Voice/Data Applications Objective Transmission Volumes Voice Message Volumes Figure 11-5

Telecom Network Conclusion Telecom is an IT tool but an increasingly important resource that directly impacts the efficiency, effectiveness and competitiveness of a company.

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?

Culture 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 Difficult to change so need to: 1. Create conditions for transformation. 2. Provide incentives to change. 3. Define market place realities and goals. 4. Promote feeling of trust.

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.

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

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