master in management program ppm - school of management dec 05 2009 - week i 0ct 11 2008 lecturer :...
TRANSCRIPT
MASTER IN MANAGEMENT PROGRAMPPM - School of Management
DEC 05 2009 - Week I
0CT 11 2008
Lecturer : JONATHAN SOFIAN LUSA
Reading materials : Applegate chapter 2
IT IMPACT ON BUSINESS MODELSession 02
Chapter Outline
The Search for Opportunity
Analyzing IT Impact
3333 GPA Case Study
2222
1111
ANALYZING IT IMPACTCASE STUDY : BORDERLESS MANUFACTURING AT LI & FUNG
AssemblyCHINA
ShellKOREA
LiningTAIWAN
FillerCHINA
ZipperJAPAN
Label, elastic,studs, toggle
and stringHONG KONG
Made in Hong Kong
by
LI & FUNG’S BUSINESS PARADIGM
Supply Chain ManagementSupply Chain Management
LocalForwarding
Consolidation
LocalForwarding
Consolidation
ConsumerConsumer
RetailerRetailer
WholesaleImporter
WholesaleImporter
ConsumerNeeds
ConsumerNeeds
ProductDesign
ProductDesign
FactorySourcingFactory
SourcingMfg
ControlMfg
ControlExport Docu-
mentationExport Docu-
mentationForwarder
ConsolidationForwarder
ConsolidationCustomsClearanceCustomsClearance
Raw MaterialSourcing
Raw MaterialSourcing
Supply Chain Financing
Raw MaterialMill
Raw MaterialMill
Supply Chain
FactoriesFactories
FinancingFinancing
ShippingAirlines
ShippingAirlines
FinancingFinancing FinancingFinancing FinancingFinancing
ProductDevelopm’t
ProductDevelopm’t
THE CHANGING ROLE OF THE TRADING COMPANY
Lev e
l of
Va l
ue A
dded
BuyingAgencyBuyingAgency
SourcingSourcing
BorderlessManufacturing
BorderlessManufacturing
VirtualManufacturing
VirtualManufacturing
Supply ChainManagementSupply ChainManagement
ANALYZING IT IMPACT
1. IT impact on strategy
• Determining product, market, business network, and boundary positioning
2. IT impact on capabilities.
• Building processes, infrastructure, people, partner, organization & culture, leadership, governance
ANALYZING IT IMPACTIBM Path to Business transformation
ANALYZING IT IMPACTIBM Path to Business transformation
• Goal: Use IT to improve local operating performance
• Business Sponsor: Local Manager, team, individuals.
• Business Value: Reduce cost & Improve local operating performance.
• Risk & Uncertainty: Low to moderate• Investment: Local Budgeting
• Goal: Use IT to improve end to end operating processes• Business Sponsor: Business Unit & Shared service Leaders
( suppliers, customer, partner)• Business Value: Reduce cost, decrease cycle time, improve
org or extended enterprise operating performance, improve total cost of IT Ownership.
• Risk & Uncertainty: moderate to high, business & tech complexity and volatility, org change, required integration.
• Investment: Corporate Budgeting, steering committee.
• Goal: Pursue opportunities that enable launch of new products / business, entry into new market
• Business Sponsor: Executive Committee, business unit leadership.
• Business Value: Grow Revenue, launch new product, enter high growth industries and market
• Risk & Uncertainty: High, new business model needed• Investment: Staged commitments and investments base on
milestones, base on business plan, new venture risk management
• Goal: Transform organization n industry, differentiate strategy, develop proprietary asset.
• Business Sponsor: BOD, strong project leadership.• Business Value: Enable sustained capital efficient profitable
growth, improve market share, deliver sustainable competitive advantage.
• Risk & Uncertainty: High, new business model needed, new tech needed, organizational change, integration of new business.
• Investment: Integrated with corporate strategy, Review by committee, change control process n system
BASIC QUESTIONS
Five key questions can be used to guide executives as they search for value creating opportunities to use IT to support and drive the business strategy
1. Can IT change the basis of competition?2. Can IT change the nature of relationship and the
balance of power among buyers and suppliers3. Can IT build or reduce barriers to entry?4. Can IT increase or decrease switching costs? 5. Can IT add value to existing products and services or
create new ones?
GROUP PURCHASING ALLIANCE
New concept for health care industry
CASE STUDY
Radiology Film
0
500000
1000000
1500000
2000000
18x24 1086100 228800 325000 528000 240000
24x30 904800 371360 569900 880000 400000
30x40 1534500 590920 895500 1467400 655000
35x35 1603300 641980 951250 1548800 705000
A B C D E
FACT
Disp Syringe
0
1000
2000
3000
4000
1 ml 1746 3146 905 1270 2100
2ml 1202 2227 951 660 1200
5ml 1730 2794 1121 836 1550
10ml 2003 3591 1550 1452 2100
A B C D E
FACT
350%
18 X 24 474%24 X 30 243%30 X 40 259%35 X 35 249%
D5W 138%D10W 164%SALINE 140%RINGERS 164%
1ml 347%2ml 337%5ml 334%10ml 247%
GLOVE
FILM
I.V.SOLNS
DISP SYRINGES
% COST DIFFERENCES% COST DIFFERENCES
SOLUTIONS ?
CONSEPT Infomediaries
GPA GPA ComponentsComponents
Hospitals: Power Force of GPA
Bank: Financial support
GML: Representer of Hospital
Distributor/Manufacturer: Product supplier
GPA GPA ComponentsComponents
Transaction Scheme
GMLGML
BENEFIT
HOSPITAL BANK GMLDISTRIBUTOR
OUR LEARNING POINTS FOR TODAY …
______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________ ______________________________
THANK YOU