1. EMBA 610 Management Information Systems Dave Salisbury davesalisbury@mail.comdavesalisbury@mail.com (email) http://faculty.cob.ohiou.edu/salisbury/http://faculty.cob.ohiou.edu/salisbury/ (web site)

2. This Week’s Fun Stuff IT for Competitive Advantage Discussion of the Power of Virtual Integration Ford and Virtual Integration

3. Strategic Issues Strategic Advantage –If you’re first, a novel technology creates an advantage Strategic Necessity –Eventually, technology-based gains are lost because they are easily replicable

4. Information Resource Advantages What makes it valuable? Who gets the value? Is it equally distributed? Is it mobile? How quickly does it depreciate?

5. Sustainable Competitive Advantage The Environment –What happens “out there” Foundation Factors –Something unique to leverage Action & Strategy –What you do with the situation

6. Differentiation Low Cost Innovation Growth Alliance Supplier Customer Competitor Entrant Substitute Strategy Porter’s Forces

7. Value Chain Model Organization Human Resources Technology Purchasing Support Activities Primary Activities Inbound Logistics Materials Handling Delivery Operations Manufacturing Assembly Outbound Logistics Order Processing Shipping Marketing & Sales Product Pricing Promotion Place Service Customer Service Repair

8. Supply Chain Management Network of facilities and distribution options –Procurement –Transformation –Distribution IT is obviously heavily involved

9. Customer Resource Life Cycle Establish Requirements Specify Select Source Order Authorize/Pay for Acquire Test and Accept Integrate Monitor Upgrade Maintain Transfer/Dispose Account for

10. IT & Business Processes IT as an enabler of change Reengineering Total Quality Management

11. Breaking Business Barriers Time Barriers Geographic Barriers Cost Barriers Structural Barriers

12. Automation, Improvement, Reengineering Business Process Automation (BPA) –Simply automate the existing business process Business Process Improvement (BPI) –Business processes are changed in significant, yet incremental ways Business Process Reengineering –Business processes are radically changed

13. Existing Process BPA BPI BPR Potential Payoff, Risk, Change Redesign Continuum New Process

14. Processes v. Functions Functions –Marketing, Finance, etc. Processes –Things that get done –Tend to cross functional barriers

15. Processes Beginning and end Inputs and outputs Set of transformational tasks Cross functional boundaries Metrics to assess performance –cycle time –throughput

16. Reengineering Outcome Analysis Breaking Assumptions Technology Analysis Activity Elimination Proxy Benchmarking Process Simplification

17. Enterprise Information Systems SAP, PeopleSoft, etc. A means to pull together scattered and fragmented IS Modules for various operations activities –Manufacturing –Accounting –Human Resources –Sales

18. Enterprise Information Systems Require fundamental changes to business processes If you have no processes in place, no biggie If you do have existing processes, and they are a source of advantage, EIS are not appropriate When you are out of time, it’s a canned package that works

19. Change Management People Don’t Generally Like Change How to get it done? –revolutionary design –evolutionary implementation Perceived Characteristics of Innovating End User Involvement Work the Culture

20. Dell Direct business model Bypass the dealer channel Inventory velocity Technology navigator Virtual integration

21. Dell Partnerships and trust Affiliation with the customer Fast-cycle segmentation Trading inventory for information Using IT to stay close to the customer

22. Ford and Virtual Integration Radical business process redesign It works for Dell; will it work at Ford? What are the similarities between the two businesses? What are the differences between the supply chains at Dell and Ford?