1 / 13

Strategic Uses of Information Technology

Strategic Uses of Information Technology. Topic 2. What is a “Strategic IT System”?. IT Evolution. Innovate. Knowledge?. Re-engineer, Learn. Value. Informate. Information. Analyse. Automate. Data. Cost Substitution. Time. Some Examples of Strategic IT Systems.

abba
Télécharger la présentation

Strategic Uses of Information Technology

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Strategic Uses of Information Technology Topic 2. What is a “Strategic IT System”?

  2. IT Evolution Innovate Knowledge? Re-engineer, Learn Value Informate Information Analyse Automate Data Cost Substitution Time © R. Barnes, 1999

  3. Some Examples of Strategic IT Systems • American Airlines (Sabre) • Fedex • Dell Computer • Baycorp What makes their systems “Strategic”? © R. Barnes, 1999

  4. American Airlines (Sabre) • Pioneer in Electronic Reservations (1963) • Pioneer in hosting other airlines • Pioneer in related reservations • Hotel, rental car, etc Now separate company, earning (2000) $US200M on revenues of $2600M. American Airlines is one of world’s 10 largest airlines Pan American no longer exists 2.1 © R. Barnes, 1999

  5. Federal Express • Fedex - became #1 courier company, • 50% of market • largest freight airline in the world by focussing on quality • on-time delivery (undamaged of course) • Key IT system - track packages • Quality monitoring so detailed, customer is often unaware of quality failures! 2.2 © R. Barnes, 1999

  6. Direct Marketing.Case Study, Dell Computers • Creating a $US12Bn company in 13 years • Dell’s Model • Build on order • Close integration (virtual company) with customer and supplier. • Velocity, low inventory. • Web sales • Within a year, $US2m per day. 1999 $US18M/daynow 50$ of sales - $32bn annually ($43M/day) 2.3 © R. Barnes, 1999

  7. Baycorp • 1974 Creditman-Dun almost had a monopoly on credit information • Cooperatively owned, Profitable • Saw an opportunity to save costs through IT • but abandoned system when costs escalated • In the meantime, small Hawkes Bay company developed minicomputer system • saw it as a strategic opportunity • Today Baycorp is dominant, C-D a distant memory. © R. Barnes, 1999

  8. Characteristics of Strategic Systems - 1 • All of these IT systems were FUNDAMENTAL to the business strategy • IT strategy = Business Strategy • They changed the dynamics of their industry • competitors forced to follow • Often pushing the state of the art, either technically or in business © R. Barnes, 1999

  9. Characteristics of Strategic Systems - 2 • Data is centred on Customers, interactions with customers, not on finance and transactions • Projects instigated by sales, marketing, or customer-service departments • Requirements depend on what customers want and on competitor’s response • Example: world-class customer service © R. Barnes, 1999

  10. Organizational Change and Information Systems • Introducing a strategic system will lead to a culture change • Some elements of existing culture elements will help, some will hinder. Which? • Understanding culture clash/reinforcement is important for strategic success • Tool - Matrix of Change Brynjolfsson et al - “The Matrix of Change”, Sloan Management Review, Winter 1997, p1997 2.4 © R. Barnes, 1999

  11. Old metrics don’t apply Top Software Talent Scarce Legacy Code is a Major Risk Trends in Corporate Software Innovate Knowledge? Re-engineer, Learn Value Informate Information Analyse Automate Data Cost Substitution Time © R. Barnes, 1999

  12. Corporate Software Performance Metrics • Old metrics • System response, utilisation, availability • ROI, pay-back time • Applications backlog • Saving Money • New Metrics • Achieving business objectives, • “Alignment” • Responsiveness to Business Changes • Making Money © R. Barnes, 1999

  13. If we need new metrics - • What are our present metrics? • What should we use? • Topic 3 - “The Business Case”, • but first: - © R. Barnes, 1999

More Related