has been identified as one of the best Business Schools

by WSJ

“Work hard, work right, work together!”

CIOCases

Use Strategies as templates / blueprints for aligning IT systemsto transform enterprise so meet MIS challenge (Dell )

teamsWal-Mart (all about the team)P&G (team from day one)

“Our coffe

e is str

ong, so

is our w

ork ethic.”

Ingredients of success:

All the ingredients are necessary to

solve the complex, ill-structured problems

in the real world

Str-2.c

TOB – Thinking Outside the Box (Bus. Week 22Nov04)VMM – Vanishing Mass Market (Bus. Week 12Jul04)DD – Driving Dell (Bus. Week 7Feb05)

TOB.5VMM.61-62

TOB.2

DD.2.2 “low-cost, high-quality business model”

achieve

strategy supported by

strategy employs

provides provides

External e-commerce

Internal e-commerce

EverywhereAll the Time

Not BeforeNot After

(P&G)

Next, examine concepts (transforming ideas TOB.1-2) drove Dell’s strategy & present framework (KPMG) for developing an integrated strategic plan.

adopts adopts

“just the way you want it D.2.2”customer controlled innovation

“in a few days… without lot of money in inventory D.2.10”

achieve“electronic orders alliance partners D.2.2”

“sells directly from web site D.2.1”

“computer made expressly for you D.2.9” “cut out the

middleman”

iconoclast

DD.3 “revenue $30b to $50b in just 2 years”

D.2.2 &1 6 “changed definition of innovation & defined terms of

competition”

Concepts are Critical

Whatever the detail with which you cram your students, the chance of their meeting, in real life, exactly that detail is almost infinitesimal, and if they do meet it, they will probably have forgotten what you taught them about it.

The really useful training yields a comprehension of general concepts (Dell, TOB.1.1-2) with a thorough grounding in the way they apply to a variety of concrete details (as in CIO cases) .

In subsequent practice (at work in real world), they will have forgotten the particular details; but they will remember by an unconscious common sense how to apply concepts to immediate circumstances. Robert K. @ Preferred Sands

Your Focus In This ChapterStr-3.b

Aims of Education and other EssaysAlfred North Whitehead

Rx for LearningTufts University Medical School

“Number of

biomedical terms

medical students

learn in their

first year

10,000”

Str-3.a Example

Concepts are vital to guide practice.

TOB: 1.1-2CIO 1 Feb 01

Michael Dell’s Market-

transforming ideas

TOB.1.10 , 2.16

Transforming Ideas for Using ITS to Achieve Competitiveness

Strategies and other ideas (Dell) are templates for decision making and action, as in Sports. Can’t build (do) it, if can’t think it.

Organizational Horsepower (OHP) to meet MIS challenge and renew competitive advantage

Quality- - the outcome of OHP and foundation of competitiveness

Total Quality Management- -a KPMG approach for finding the right IT – business mix

OHP Strategies - - the plans for using IT systems to meet MIS challenge and create OHP.

Focus of this presentation

Str-2.d

BroadVision Sep01Purdue 22Sep04

OrganizationalHorse Power

is derived form a unit for measuring the power of motors or engines, adopted by James Watt, from the power exerted by a horse in pulling.

HP equals the force required to raise 330 pounds at the rate (speed) of 100 feet per minute.

It was force & speed that also resulted in power in the market for Dell.

Str-4.a

Organizational Horsepower

Descriptive presentation

Normative Implications

Str-4.b

What is quality?

QUALITY

Webster’s Dictionary

meet expectations quickly

mee

t as

man

y ex

pec

tati

ons

as p

ossi

ble

Dell’s strategies produce quality: 1. timeless / locationless (CIS) yields force & 2. JIT (IOS) yields speed so achieve perfect service @customer moment of value (quality)

IT strategies generate OHP that produces quality: 1. perfect service (force) 2. at the customer moment of value (speed)

TOB.5

TOB.2

is an organization’s market power and source of its competitiveness

OHP Strateg

ies

In order to help companies discuss and evaluate their needs, BroadVision has partnered with consulting firm Surgency to provide a more precise vocabulary for the types of transformations e-business can effect within an organization or extended enterprise.

…to give business a starting point for exploring which strategic direction would most effectively address their particular challenges and open up new opportunities.

Why identify & summarize IT Strategies?

Str-7e

Creating Value through Business Transformation

BroadVision 1.1.A & B

Creating Value through Business Transformation:How to use Transformational Strategies

Templates, models based on 2.2

Best Practices, observed in direct experiences with hundreds of clients 2.5

Benchmarks for developing IT strategy 2.4

Complementary, support complementary business processes as in the Dell Case 2.1

Evolutionary, expand use over time as gain experience as in Drayer’s description of P&G relationship with Wal-Mart 2.1

BroadVision

Str-6.b OHP Strategies

Assignment: submit notes in ppt. on “It All Began with Drayer” (in handout)

7 IT-ENABLED OHP STRATEGIES

Organizational SPEED

QUALITY

OHP

Str-6.a

4.a

All strategies have potential to contribute to both force and speed when supported by IT systems (e.g. TEAMS : WSS)

Org

aniz

atio

nal

FO

RC

E

Strategies transform

organizationsBroadVision real-world

results 1.1.C

Companies fail to find The right IT - business mix

read Computerworld article

The former CIO “kept talking technology,

he wasn’t focused on how the technology could serve

the business.” par.2

Total Quality Management is a comprehensive & structured

approach to continuous improvement by integrating IT systems in

any organization Whatis.com CSS : KPMG

with KPMG: a structured,

comprehensive frameworkfor finding the right

IT-business mix (CIO)

Process for Finding the Right IT - Business Mix

Environment (Information Age) Vision (MIS Challenge) Understanding IT Systems choose OHP Strategies & Models (integrate IT Systems) Feedback (current IT review)

Final Report February 4, 2001

KPMG

KPMG.1

Str-7d

Information AgeIdea EconomyBus.Week Sep08

Framework for BUS205 &

CIO.1

VF & Levi’s

Dell

Stonyfield

Driving Dell Information Week Feb05

Putting IT All Together

Innovations CIO Insight

align

INFO

RMATIO

N A

GE

P&GLegos5 Cs

SWO

T

IT all began with

DrayerCIO 1Aug02

1.5, 1.0, sl.7e, sl.6b

(Transform: Strategy)

Creating Value through Transformational Strategies:BroadVision Principles

Templates, models based on

Best Practices, observed in direct experiences with hundreds of clients

Benchmarking concepts for developing IT strategy

Complementary, support complementary business processes as in the Dell case and P&G

Evolutionary, expand use over time as gain experience as in Drayer’s description of P&G relationship with Wal-Mart

Str-6.b OHP Strategies

D.1.3-4K-Mart not understand strategic concept mis-used IT systems

D.1.2 begin simply then broaden goalsD.3.1 What is JIT? Str.8a

Str-8.a IT Strategies

Tospeedconstruction,the Empire State Building’s posts, beams, windows and window frames were made in factories and put together on the site. Because of this JIT approach, the ESB was completed ahead of schedule and under budget.

What is JUST-IN-TIME (JIT)?producing or delivering a product or service when it is wanted, including either input to operations / departments or output to customer : Empire State Building (telephone)

Dell Computer JIT based on IOS (input) with online ordering (CIS, output) increases force & speed

automotive industry including Indian motorcycle

10 Quick Wins, Supply Chain Mgmt Review 1May01GM saves in procurement, microsoft.com 31Jan02

5th Ave. 33-34 Sst.

CIO 15Jul03assignment

What IT Systems are needed to implement JIT?

The strategy “ …was built on the backbone of a fully integrated system with all the elements (5Cs) needed to provide the right kind of information at

right time to make the right kind of decisions.” O’Connell, CEO Indian Motorcycle

How Does JIT Affect OHP?

JIT “is a powerful tool to meet emerging customer needs and wants”, and therefore to increase organizational force as well as speed by:

preventing overproducing and reducing unsold inventory

reduces inventory carrying costs

increases flexibility to produce what a customer wants

increases knowledge of customer Dell & Indian

Str-8.c “incredible results in improved service levels (force & speed) and reduced inventory” D.3.1

Teams: Complementary Strategy

“Who invented this stuff (JIT)?”“Now that every company on the planet is trying to automate the relationship between suppliers and customers (JIT), it’s worth remembering who invented this stuff….Specifically, teams (complementary) of business and IT people D.1.1

“What were the major impediments…?”“The major impediments had little to do with the technology…. Nearly half (46%) of respondents said they had difficulty changing processes and people behavior....

¨ How should you structure these efforts so they are successful…?

“Collaborative team-based relationship…” Drayer.6.1-7.3

Strategies- JITStr-8.e

Greasing the GearsDarwiwmag.com

Team : Group

Str-9.b

GROUP TEAM

SHARED GOAL+

TASK INTERDEPENDENCE

≠

CIOTEAMS

MISCLASS

different perspectives,

& skills

education, training

work experience

conflict &

stress

strong leader

strategy provides

benchmark to focus effort

Teams are important in “changing processes (inefficiencies) and people behavior,”

contributing to OHP

How Do TEAMS Affect OHP?

generate organizational force (better meet more customer expectations) by enhancing the capacity to innovate and approach perfect service:

diverse perspectives on problems (CIO Teams)

increases knowledge of customer (KPMG Vision Sessions)

create synergy of ideas for new ways to reach markets (What makes a Winner,

CIO)

Str-9.d Strategies-Teams

Str-9.eStrategies-Teams

Networks

How TEAMS Enabled?

Potential to reduce organizational speed so requires WSS to facilitate group dynamics

DBMS (Access) cradle & DSS (Excel) create

communicate

End-user devicescapture

convey

Information partnerships: evolutionary expansion of JIT

“What was the first collaborative process ... with Wal-Mart?”“Continuous replenishment (JIT). We (PG & Wal-Mart) used it to

build trust and demonstrate the value of information sharing and focusing on the ultimate consumer…, and (with Teams of business & IT people D.1.1) it built the foundation for a bigger sharing.” D:2.3;2.1-2; 3.2

“What other processes did this lead to?”“…The most exciting is Collaborative Planning, Forecasting and

Replenishment (Information Partnership). It starts with joint business planning between the trading partners. That follows into promotion planning and various tactics leading to a sales forecast, leading to an order forecast…” D:5.2-5

Str-10.b

Information partnerships: evolutionary expansion of JIT

Str-10.b

K-Mart didn’t understand BroadVision’s principles. For K-Mart, continuous replenishment (JIT) wasn’t a strategic project. It was always just a system run by the distribution people. It didn’t become the foundation for fundamental (evolutionary) change. D.3.4

The challenge is to overcome skepticism through reeducation and rethinking how IT strategies can be used to align IT systems to achieve speed, force and the MIS challenge. Apply to CIO cases

D.4.2-4

HISTORICAL

TRANSACTIONS

EVOLUTIO

NARY

PLANNING & FORECASTING

What makes a Winner!

TRUST

How do Information Partnerships affect OHP?

Information partnerships enhance both force and speed

beyond JIT because evolve from reacting to historical

transactions data to proactively sharing future plans and

forecasts that supports collaborative planning, forecasting

and replenishment (CPFR) Strategy Flowchart

A company doing best practices today should be able to

share and exchange forecasts and sales plans….”

Str-10.c Strategies-Partnerships

Global Logistics & Supply Chain Strategies, Sep02, p59

How Are PARTNERSHIPS Enabled?

Partnerships require same ITS as are needed for JIT and TEAMS: TPS including IOS to support electronic data interchange

(EDI) -- to capture and communicate information DBMS & DSS to cradle data and support analytical

processing that creates information/knowledge for decisions WSS (MS Office) to permit inter-organizational teams

overcome time & location barriers to communicating

built on same IT components with differences in content (historical data : future information) & knowledge worker access

Str-10.d Strategies-Partnerships

What is a VIRTUAL ORGANIZATION? Most advanced collaboration between organizations where people

and processes are so well integrated that organizational lines begin to blur appearing to others to be a single, unified organization. Appearing to what is.com 1-4 Organizations share responsibility for moving information and

product with process owned by partner does it best Win-1.2B

The integration is like a husband and wife who discuss parameters then share decision making responsibility. Win-3

“basic principles can be applied in “…virtually any business sector.” for example: 10W.1.1, 2.3

Homeland Security (CIA, FBI, ATF, INS), Jackpot (WINet), Building on IT (Buzzsaw, BuildPoint), CSS

Str-13.a Strategies-Virtual

10 Quick WinsSupply Chain

Management Review

How Virtual Organizations Affect OHP?

Magnifies both organizational speed and force:

accumulates a portfolio of knowledge and skills that help develop tactics to penetrate markets more quickly and deeply

provides relatively quick access to resources that provide opportunities to provide better service at the customer moment of value

Str-13.b Strategies-Virtual

Whatis.com 3 10 Quick Wins.2.1-3

Husband & Wifemeet MIS challenge

Quick Wins 1.5

How Are Virtual Organizations Enabled?

Virtual organizations & information partnerships require similar ITS to that needed for JIT and TEAMS: IOS and TPS including databases to support electronic data

interchange (EDI) by capturing, cradling, conveying, communicating information

DSS to support analytical processing that creates information/knowledge for decisions

WSS to permit interorganizational teams overcome time , location & cultural barriers to communicating

built on same IT components as JIT with differences in content, knowledge worker access and decision making locus

Str-13.c Strategies-Partnerships

10 Wins 1.2&4, 2.1

What is a LEARNING ORGANIZATION ?

people are continually discovering how to learn together and changing organization as a result of what they learn to serve its customers better and faster Senge

offering more perfect service (force) at the customer moment of value (speed).

Resembles an husband & wife relationship that has evolved to a strategy of continuous quality improvement

Casinos (Jackpot: Harrah’s, Modern Marvels: Casino Technology, )

Healthcare Institutions Intelligence Community N-Site

Str-14.a Strategies-Learning

¨ the learning organization is an ideal, ‘towards which organizations must evolve in order to be able to respond to the various pressures [they face]

¨ “What Makes a Winner” ► Imagination► Innovation► Fundamental change

Leaning Organization:The Strategic Ideal

Finger and Brand 1999: 136

Enterprise Value AwardsCIO 1Feb01: 140

How are Learning Organizations Enabled?

IT systems to support the vision that “Success is never final. Failure is never fatal.” Winston Churchill

Intra/inter organizational networks that overcome barriers of organizational structures to information flow and creativity including:

TPS, CIS & IOS MIS & EIS

WSS, DSS (AI) including DBMS that enhance capacity to cradle & create information and knowledge

AHP and Access projects

Str-14.b Strategies-Learning

capture, communicate & convey

N-Site

INFO.PART.

TRANS-

NATIONAL

LEARNINGORGAN.

VIRTUALORGAN.

TEAMS

P&G

DELL

GreaseGears

husband-wifetwo act as one

boundaries blur share decision making

historical transactions

N-Site

future plans & forecasts

CPFR

BroadVision : IT Strategies► transforming best practices► benchmark► begin simply ► complementary► evolutionary

JITTPS (CIS), IOS, DSS

WSS

Evolutionary strategies use same systems with different information content & KW

access

T&L

anywhereany time

CIS (TPS)

work together to build,

builds trust 10 Winswhatis.com

continually learning &

changing the organization

globally coordinated cooperation everywhere

any time

N-Site

DIVINE DISCONTENT: Never be satisfied

where you are, you can always improve.

Core Belief, Kevin Turner, CIO Walmart

“Inside the World’s Biggest Company”

DICSCIPLINE &EXECUTION :

As a company, we’re big on execution. You can’t name a great

team that wasn’t good at discipline. Execution and discipline are not

the enemies of enthusiasm.

Core Belief, Kevin Turner, CIO Walmart

“Inside the World’s Biggest Company”

What are Timeless / Locationless operations?

Timeless organizations operate without regard to time and serve customers, whenever (24 * 7 ) customers want.

Locationless organizations operate without regard to location and serve customers wherever the customers want.

Sears Catalogue Order University Faculty & (old technology) distance learning

Dell

Str-11.b Strategies-T&L

Str-11.d

What is a TRANSNATIONAL FIRM? Can you give examples?

from your work experience? in your major? in your CIO case?

How do TRANSNATIONAL FIRMS affect OHP? How does JIT contribute to providing perfect service at the

customer moment of value (quality)? Does it contribute to organizational speed? Does JIT contribute to organizational force?

How are TRANSNATIONAL FIRMS IT-enabled? What IT systems are needed to implement a transnational firm?

What is a TRANSNATIONAL FIRM?Str-12.a

reacted to the Second Wave of Globalization

In the 1990s, governments and societies were becoming more protective of their cultures

responded by realigning its organization to think locally and act locally Slide7.5.a

In addition to the transnational strategy, Atlanta developed the ITS that provided the global infrastructure to coordinate global activities, for example:

virtual innovation centers were supported to give people around the world the power to be innovative & creative (achieving force & speed) generating competitive advantage

Beta Gamma Sigma, 3 May00

Str-12.c Strategies-Transnational

How organizations create an environment

supporting IT innovation?

CEO attitude toward IT

It is essential that CEO and strategic management team understand MIS challenge and view IT as a critical resource

A CIO in the strategic management team is a sign

Bridging the gap between business and technical people

designing information systems requires fusion of the business problem and IT systems (ITS)

the CEO’s attitude, the CIO and the SDLC (system development life cycle) with its project teams are critical piers in bridging the gap

Str-15.a

Supporting IT Innovation

Taking a user focus building a useful information system begins with a user

focus as the basis for identifying what is relevant slides

1.191.20

Demanding creative solutions begins with user needs focusing a process (SDLC) that

brings business and IT people together in planning, developing & implementing ITS H.54.4 55.2

Str-15.a

Supporting IT Innovation

Thinking beyond boundaries of the organization’s (outside the box) Strategies that provide prefect service at the customer

moment of value (MIS challenge) achieve efficiencies and innovation by bringing knowledge workers and organizations together in new ways

JIT (Dell) Teams (Information Sciences Institute @ LSU) Timeless & locationless (CHS) Information Partnerships (Dock of Bay, Jackpot) Virtual organizations (Building On IT)

Flowchart IT Strategies

Str-15.c