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Strategic Information Systems

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Title: Strategic Information Systems


1
Strategic Information Systems
Vision
2
What Is A Vision?
  • It is a self image that reveals what the business
    wants to look like over the future.
  • Vision must be concrete and easily understood.

3
Why A Vision?
  • A C.E.O can do only a limited amount of things to
    sustain competitive success.
  • Important to draw a road map from where company
    is today to some imagined future.
  • Then reinforce this by explaining how to get
    there.
  • You want to motivate employees within the
    organization to buy into the new direction
    dictated by the vision.

4
Developing The Right Vision
  • 3 Steps
  • Define The Business Environment.
  • Build A Company Vision
  • Turn The Vision Into A Plan

5
Vision and Information Systems

  • Invest
  • Vision
  • Asset
    Save Money
  • Applications

  • Networks
  • Strategic
    Expense

  • Tools

Tactical
6
Jack F. Welch,Jr., Chairman and CEO
  • Grocery Store
  • Formalities are not very popular
  • Summer Sessions
  • Surprise

7
General Electric
  • Mission Vision
  • Mission To create intelligence throughout the
    business supply chains of our customers around
    the globe by combining Six Sigma process
    disciplines with innovative electronic commerce
    technologies.
  • Vision Be the world's largest provider of
    electronic commerce solutions that create
    intelligence for business supply chains.

8
Six Sigma Vision
  • Critical to Quality Attributes most important to
    the customer
  • Defect Failing to deliver what the customer
    wants
  • Process Capability What your process can deliver
  • Variation What the customer see and feels
  • Stable Operations Ensuring consistent,
    predictable processes to improve what the
    customer sees and feels
  • Design for Six Sigma Designing to meet customer
    needs and process capability

9
GEs e-Volution of 2000
  • MakeSee how the digitization of our internal
    processes helped GE gain key competitive
    advantages.
  • BuyLearn how GE applied e-Business strategies to
    dramatically improve sourcing operations and
    purchasing efforts.
  • SellExplore GE's success in digitizing online
    sales processes and transitioning customers to
    Web-based purchasing and service options.

10
e-Business Facts
  • Make-side Facts
  • Current implementation of the digitization of
    internal processes has helped us identify
    approximately 1.5 billion in potential cost-out
    savings for 2001.
  • Make-side activity encompasses more than 20
    billion in base costs.
  • GE has identified 20-30 cost-out opportunity
    using Make-side e-Enablement.
  • Buy-side Facts
  • Although GE businesses did only minimal online
    auctioning until mid-2000, we closed the year
    with more than 6 billion worth of goods and
    services auctioned online.
  • The close-of-auction price deflation for GE in
    2000 was approximately 16.
  • The close-of-transaction price was about 8
    (providing 480 million of annualized savings).
  • Targeting 30 of overall buying online in 2001.
  • Sell-Side Facts
  • Online transactions have grown from basically 0
    in 1998 to 1 billion in 1999 and over 7 billion
    in 2000. In 2001 we anticipate 15 of our total
    revenue will come from online sales.

11
http//aoltimewarner.com
A corporation made up of many entities that wants
to be the most valuable company in the world
12
TIMELINE TIME, WARNER, AOL
  • 1918 Time Magazine idea conceived
  • 1918 Brothers Warner open first West Coast
    studio
  • 1923 Times first issue published
  • 1927 Warner Bros. releases first synchronized
    talking movie
  • 1985 Steve Case Jim Kimsey conceive new co.
    Quantum Computer Services no WWWeb.
  • 1989 Time acquires Warner to form Time Warner
  • 1995 WB Network debuts
  • 1996 Time Warner Turner Broadcast Systems
    merge
  • 1998 AOL acquires Compuserve and ICQ
  • 2000 AOL reaches 27 million members
  • 2001 AOL Time Warner merge

2001 Merger
1989 Merger
13
AOL Time Warner Corporate Executives (AND Forces
Behind The Merger)
  • Gerald M. Levin
  • Chief Executive Officer
  • Graduate of U. of Pennsylvania Law School 1963
    Graduate of Haverford College in 1960
  • Former Chairman and Chief Executive Officer of
    Time Warner Inc.
  • Has been with the company since joining Time Inc.
    (HBO) in 1972
  • Leading architect of the historic merger of AOL
    Time Warner in 2001
  • Prime Mover of Time Inc, and Warner
    Communications merger in 1990
  • Prime Mover of Time Warners merger with Tuner
    Broadcasting Systems 1996
  • Recently resigned from primary duty of placing
    management structure regarding companys growth
  • Steven M. Case
  • Chairman of The Board
  • Graduate of Williams College with a degree in
    Political Science
  • Former Chairman and Chief Executive Officer of
    America Online Inc.
  • Co-founded AOL in 1985
  • Prime force behind merger of AOL and Time Warner
    Inc., in 2001
  • Currently, Actively involved in leading and
    building AOL Time Warner with particular focus on
    technological developments, policy initiatives
    and strategic investments that are driving the
    GLOBAL expansion of the interactive medium.
  • Founded Case Foundation which has supported
    programs like PowerUp technology centers for
    young people in inner cities and rural areas
    designed to help expand digital opportunity

14
Evolution of a Vision
AOLs Vision To build a global medium as
central to peoples lives as the telephone or
television and even more valuable.
Time Warners Vision To build a global medium
central to peoples lives that entertains and
allows for communication.
AOL/ TIME WARNERs VISION To transform how
people throughout the world acquire information,
are entertained, purchase a full range of goods
and services and communicate with each other
across international boundaries.
15
AOL TIME WARNERS VISION
  • To transform how people throughout the world
    acquire information, are entertained, purchase a
    full range of goods and services and communicate
    with each other across international boundaries.
  • The Vision is anchored in two fundamental beliefs
    and anchored by a strong foundation
  • Belief 1 - New deliver systems enabled by
    technology will alter consumer habits and
    relationships and, as a result, their business
    dramatically. Thus, boundaries between products,
    business, and services blur - CONVERGANCE
  • Belief 2 - Putting all the pieces together that
    relate to this convergence of products and
    services will enable them not only to better
    manage, but to drive their own destiny.
  • Anchor A foundation that begins with a unique
    combination of technology, content and an
    expanding relationship with consumers throughout
    the world.

16
MISSION STATEMENT (7 Goals Needed To Achieve This
Vision)
  • To become the worlds most respected and valued
    company by connecting, informing and entertaining
    people everywhere in innovative ways that will
    enrich their lives.
  • Values
  • Creativity We thrive on innovation and
    originality encouraging risk-taking and
    divergent voices.
  • Customer Focus We value our customers putting
    their needs and interests at the center of
    everything we do. CUSTOMER SERVICE AS A DRIVER
  • Agility We move quickly embracing change and
    seizing new opportunities.
  • Teamwork We treat one another with respect
    creating value by working together within and
    across our business.
  • Integrity We rigorously uphold editorial
    independence and artistic expression earning
    the trust of our readers, viewers, listeners,
    members and subscribers.
  • Diversity We attract and develop the worlds
    best talent seeking to include the broadest
    range of people and perspectives.
  • Responsibility We work t improve our
    communities taking pride in serving the public
    interest as well as the interests of our
    shareholders.

17
CHALLENGES FACING AOL
  • Creativity An abundance of creativity, but
    its not even flow. Employees are NOT taken
    seriously and allowed to become an integral part
    of the creative process.
  • Customer Focus - Not a problem. AOL and Time
    Warner before the merger were all about customer
    service. Everything they respectively built,
    stated, created and affected was based upon the
    consumer.
  • Agility Not a problem. AOL Time Warner is at
    the forefront because theyre the first ones in
    and the last ones out.
  • Teamwork. Its not there yet. Too many
    divisions within the company. Covergence is only
    at its inception phase. Manager Top heavy. Too
    many walls and boundaries.
  • Integrity -
  • Diversity Not there yet. High turnover rate.
  • Responsibility Right on! Foundations created
    for the community. They give back and do so in a
    big way Creates company consumer awareness

18
INFORMATION TECHNOLOGY
  • Need to create communication lines that are easy
    to use and capable of transmitting large amounts
    of information quickly and efficiently not only
    for the customers sake but within the company in
    an effort to converge
  • Its essential that AOL constantly be on the
    cutting edge of Information Technological
    advances, products and services.
  • Its the tool needed to move them towards their
    shared Vision plan.
  • Competition is fierce and as the company expands
    into new markets both foreign and domestically,
    IT will play a much more important role within
    the company
  • AOL is in its most critical stage new merger
  • Look at other ways to break down communication
    problems with IT
  • Currently AOLTW uses email as its main source
    of communication
  • They expanded on that recently by converting all
    entities email programs to an AOLs email format
  • Securitized passcode changes every minute
  • In so doing, employees can now access their own
    and company related email from home and on the
    road without the need of a company laptop computer

19
VISION ACHIEVEMENTS IN 2001
  • Strengthened and expanded on their single most
    important asset their direct relationship with
    the consumer.
  • On the creative side, they developed
    extraordinary new movie franchises, and the music
    business was able to increase its market share
  • They extended the penetration of their broadband
    and digital technologies and set the stage for an
    increasingly wide array of new offerings like
    high-speed Internet services and Video on demand
  • They expanded in key overseas markets,
    particularly Europe
  • Acquired IPC media, one of the leading publishers
    in Europe
  • Undertook a a broad spectrum of successful
    cross-divisional marketing initiatives.
  • Movie releases are promoted via the internet on
    AOL, HBO sites are created to enhance and promote
    special and coming attractions, Warner Music
    promotes HBO programming like REVERB
  • Networks extended their leadership, but their
    response to the events of September 11th
    demonstrated the increasing importance of our
    corporate mission to inform and connect.
  • Millions of people tuned into CNN and our local
    news channels.
  • Magazines
  • Internet
  • Companies financial results for 2001 were strong
    given the current environment

20
Federal Express Vision
  • Created by visionary
  • Frederick W. Smith

21
Federal Express Early History
  • Product concept introduced in 1965 by Smith in a
    term paper at Yale as a necessity for an
    airfreight system of delivery to accommodate
    time-sensitive shipments such as medicine,
    computer parts and electronics.
  • Incorporated in 1971 and began operations on
    April 17,1973 with 14 small aircraft from Memphis
    International Airport.
  • Deregulation of air cargo in 1977 brought bigger
    planes such as Boeing 727 and MD DC10s to the
    fleet
  • Federal Express makes first profit in 1975

22
Federal Express andThe Vision Process
23
Step OneDefine the Business Environment
  • Smiths genius came in the ability to position
    himself in an already established market of
    carriers using passenger routes
  • Smith was determined to make his system more
    economical and faster using a fleet of aircraft
    dedicated to the transport of packages only

24
Step Two Build a Company Vision
  • Become the most economical and fastest airfreight
    distribution system
  • Be the industry leader in cost and product
    innovations using information technology
  • Make Federal Express a global
    organization

25
Step Three Turn Vision Into PlanInternational
Expansion
  • Acquisition of Tiger International Inc in Feb.
    1989 made them the worlds largest full-service
    all-cargo airline
  • Tiger International acquisition positioned Fed Ex
    in 21 countries, including facilities-wise and
    flying routes
  • In 1995 acquired Evergreen International Airlines
    for sole US cargo carrier rights to routes in
    China
  • Today Fed Ex serves more than 200 countries in
    Africa, Asia, Australia, Europe, North and South
    America.

26
Vision into PlanFed Ex and IT
  • April 2000FedEx introduces real-time packing
    tracking with wireless LAN equipment, NORCOM
    satellite network BellSouth wireless networks and
    bar code scanners
  • Fall 2001 FedEx begins using Clarify CRM from
    Nor-tel Networks to build and maintain customer
    profiles and route calls to the best customer
    service rep for their particular problem
  • Jan 2002 Using Deploy Solutions, Fed Ex reduced
    candidate application time by over 50 with an
    online application via Web-based browser kiosks,
    which were interfaced with the companys main
    HRIS (PRISM)

27
FedEx Awardsin Information Technology
  • Logistics Management and Distribution Report
    Quest for Quality Award Best Air Carrier
    (2000)
  • Wal-Mart Stores,Inc. Carrier of the Year
    (1999,2000)
  • Fortune 100 Best Companies to Work for in
    America (1998,1999,2000)
  • Fortune 50 Best Companies for Asians, Blacks,
    and Hispanics (1998,1999)
  • Working Woman 100 Best Companies for Working
    Mothers (1998)
  • Compaq Computer International Supplier of the
    Year (2000)

28
FedEx FactsDid You Know?
  • FedEx handles approximately 3.3 million packages
    and documents each night
  • In a 24-hour period, FedEx planes travel almost
    one-half million miles
  • FedEx couriers log 2.5 million miles a day (the
    equivalent of 100 trips around the earth)
  • FedEx has a fleet of 642 aircraft and more than
    45,000 vehicles
  • In 1994 Federal Express changed their name to
    FedEx
  • In 2000, it extended itself to include FedEx
    Express,FedEx Ground, FedEx Freight, FedEx Custom
    Critical and FedEx Trade Networks
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