Management Information Systems: Solving Business Problems with Information Technology

1. Management Information Systems: Solving Business Problems with Information Technology Part Four: Organizing Businesses and Systems Chapter Thirteen: Organizing MIS Resources Prof. Gerald V. Post Prof. David L. Anderson

3. Organizing MIS Resources: Strategy and Tactics • 1. Market Definition and Segmentation • 2. Customer Supply Chain and Channels • 3. Increasing the Number of Contact Points • 4. Barriers to Entry and Exit • 5. Role of the Portal • 6. Danger of the "Downward Price Spiral" • 7. Process: Content/Context/Interaction/Channel • Masters/Management Complexities • 8. Seller-controlled, buyer-controlled, and • dynamic supply and demand models • 9. Market place of one • 10. Web Portal/Forward/Reverse • Auctions/Exchanges • Yahoo/E-Bay/Priceline/CDNow • 11. Value-Added Communities • Globalization • Industry-Focused or Vertical • Cross-Industry or Horizontal

4. Balanced Scorecard Implementation Strategies II ImplementationStrategies I Business to Business Marketing Internet Marketing Web Design Business Intelligence Infrastructure e-Business Strategy

5. The Four Phases of Implementing MIS Resources One: Selling the Vision Two: Building the Company Three: Advertising the Business Four: Implementing the Business Five: Moving into the Future

6. Technological Change Drivers Point of Purchase Displays Optical Character Readers Telecommunications Devices Networking Telecommunications Scanning Devices

9. Organizational Factors can be Measured More Accurately o Cost, Revenue, Profit, Investment Center o Strategic Business Unit o Critical Success Factors o Core Competencies

10. MIS Trends More Pronounced o Standardization o Leverage o Mass Customization o Franchise o Methodology o Modularization o Liquid vs. Fixed Assets o Client/Server o Knowledge, Information, or Expertise Driven

11. Reasoning General Cases Inductive Specific Rules Deductive General Cases Transference

12. Customer Value Chain What is Produced/ Provided To Me (inputs) What I Do (process) What I Produce (Outputs) Who I Produce It For (Customers) CLIENT Computer Hardware and Software Local Area Network Installations Implement Technology to Accomplish Strategic Goals Information Working Models Practice Area

13. Customer Value Chain Firm Infrastructure Human Resource Management Technology Development Margin Procurement Inbound Logistics Outbound Logistics Marketing & Sales Margin Service Operations Sales Force Admin. Marketing Management Sales Force Oper. Technical Literature Advertising Promotion

14. Customer Value Chain

15. Distribution Chain Florist Customer Grower Wholesaler Jobber $24.00 $60.00 $12.00 $8.00 Customer $54.00

16. Five Forces Model Potential Entrants Threat of new entrants Bargaining power of suppliers Industry Competitors Bargaining power of buyers Suppliers Buyers Rivalry Among Existing Firms Threat of substitute products or services Substitutes

17. Competitive Strategy of Differentiation Competitive Advantage Lower Cost Differentiation Broad Target 1. Cost Leadership 2. Differentiation Competitive Scope 3B. Focus on Differentiation 3A. Focus on Cost Narrow Target

18. Product-Process Change Matrix Mass Customization Invention Dynamic Product Change Mass Production Continuous Improvement Stable Stable Dynamic Process Change

19. Integrate Silos

20. Internet Development Continuum S T A G E S • Mass customization • Integrated Disease Management • Empowered consumers and self-directed care • Frictionless integration with providers, pharma & suppliers Publish Interact Transact Integrate Transform • Physician and facility locators, services information • Searchable and customized health content • How-to-contact us communications • Very early community building • Member-focused portal: loyalty building • Prevention and health assessment tools • Community building • Web site stickiness • Business process • Automation: procurement, integrated directory • EDI to iCommerce Transition • Self-service functionality • Automated vendor supply chain management • Call center replaced with contact center • “Brochurized” web site • Basic product/ plan information • Limited interactivity • No web site stickiness Value Curve Laggards Majority Leaders

21. Back Office Buy Side Front Office Sell Side

22. Business vs. IT Strategy

28. Integrative Architecture

29. Integrative Architecture

30. Integrate EC Front and Legacy Back End

33. Presentation Options

34. Presentation on Legacy Database Current Membership Extract Account DB2 Tables (29) Provider DB2 Table DB2 Table Account Maintenance DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table CICS Screen DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table Member Maintenance DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table PowerBuilder Client Internet Screen Messaging MEMBER’S INQUIRY (Summary Window) Network Denormalized DB2 Tables INQ-SUB Current Membership INQ-MEMB Account INQ-SUB-MB Provider INQ-SUB-CAT Claims History Extract Internet

35. Balanced Scorecard ________________________________________________________ ____________________________ ________________________________________________________________________________________________________________ e-Business Strategy ________________________________________________________ ____________________________ ________________________________________________________________________________________________________________ Implementation Strategies I ____________________________________________________ __________________________ ________________________________________________________________________________________________________________ Implementation Strategies II ______________________________________________________ ___________________________ ________________________________________________________________________________________________________________ Web Design __________________________________________ _____________________ __________________________________________________________________________________________________________________________________ Business Intelligence __________________________________________ _____________________ _______________________________________________________________________________________________________________________________ Business to Business Marketing _____________________ _____________________ __________________________________________________________________________________________________________________________________ Internet Marketing __________________________________________ _____________________ _______________________________________________________________________________________________________________________________ ORGANIZATION STRATEGY ____________________________ ________________________________________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________

36. Balanced Scorecard Implementation Strategies II ImplementationStrategies I Business to Business Marketing Internet Marketing Web Design Business Intelligence Infrastructure e-Business Strategy

37. Business Models: Michael Porter James McKinney Warren McFarlan James Cash Technology Models: Gartner Group MetaGroup Forrester Group References