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Explore how Corning Inc. utilizes "rings of defense" in its IT department to navigate economic challenges, highlighting strategies like workforce adjustments and project alignment with business goals. Learn the advantages and disadvantages of this approach.
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IM426A_Case7 (3A) Corning Inc.：Business/IT Planning Strategies in Challenging Times s951636 陳佑昇 s951642江中強s951660 黃梅奇 s951745黃彥霖s951615 陳緯育 s951643董昌儒s951649 陳喻農 s951627蔡宗霖
What is Richard Fishburn’s strategy on defended Corning’s IT department from an economic downturn? • Create “rings of defense” Divides into three types： Core IT employees on the inside ring Contract service providers at the middle ring Contract employees on the outermost ring
What’s “rings of defense”? The “rings of defense” is the Corning’s strategy to confront from economic downturn. It’s including to Close the factory and Simplification human resource. At the beginning they implement the moderate decision, but if the situation get deterioration, they will have the more stricter measures.
What’s “rings of defense”? (cont.) • First To control capital outlay, removed nonessential spends and stop to recruit the staff. • SecondSome factories stop production the manufacturesand fire the part-time workers. • ThirdTo lay off employees or allow them to get no-pay leave, to merge the factories.
Prototype of “rings of defense” Contract employees Contract service providers Core IT employees
The Definiteaction • With 25 percent of IT workers on contract and another 25 percent of work performed by shared-services contractors. • Let the IT employees to be talking with the business team. • Not face about an IT project, facing on what have a set of joint objectives with the business team. • Implementing a major project in the financial area, and has stayed on the radar screen and continue to have support.
What thing happen or will be happen in Corning after Richard Fishburn implement the strategy? • Has saved as many jobs as Corning has had to reduce. • The business projects can easy combine with the IT. • They can planning the projects to be quickly. Advantage：
What thing happen or will be happen in Corning after Richard Fishburn implement the strategy? (cont.) • That IT people discuss business rather than technology issues is difficult. • The IT knowledge develop easy to be stagnate. Disadvantage：
Example In the late 1990s, manufacturing operations at Corning company display technologies division were aligned with customers on a regional level. But when customers wanted more computer displays than ever, the business model wasn’t scaling.
Discuss the example • The existing model can’t combine. • The worker didn’t have enough experience. Why the Corning company’s business model wasn’t scaling?
Conclusion Do you agree with how CIO Richard Fishburn has defended Corning’s IT department from an economic downturn? Why or why not? • Save the human resource cost. • Combine the business and IT systems. • Improvement the work efficiency. I agree with!! Because…：
Why is aligning IT projects with business objectives a good business/IT strategy in challenging economic times? And in good times? s951660 黃梅奇
Reason Aligning IT projects with business can let the entire team understands : 1.How the business works 2.Know where your business is going 3.Decide what the corporation will need to do measure their progress along the way
Reason(cont) 4.Discover how the team can help to get there 5.Realize what the team will have to do differently in the future 6.Let the team learn how they can use IT to do things better 7.Make better informed business and technology decision
Why IT must align with Business Strategy?
Reason Information Technology Has become a key business function for almost every organization and most, have great expectations of their investment in IT for the benefits to the business- expectations.
1.Reduce cost 2.Standardise processes 3.Enhance productivity 4.Improve workflow and communications 5.Sustain repeatable service levels IT align with Business enable the business to:
IT align with Business enable the business to: 6.Implement new business strategies 7.Facilitate organic and acquisition-driven growth 8.Gain competitive advantage by exploiting new technology
Conclusion： Aligning IT projects with business objectives is good business/IT strategy in challenging times as well as good economic times.
Does Corning’s business/IT planning process for its new supply chain system prove the value of aligning IT with business goals? Why or why not? s951615 陳緯育
Does it prove the value of aligning IT with business goals? Yes, I believe that Corning’s process for its new supply chain system does prove the value of aligning IT with business goals.
Why? • Corning set about improving supply chain efficiency • Corning was a pioneer in putting business processes first in evaluating a business/IT project • Corning improved production planning efficiency
Corning set about improving supply chain efficiency when brainstorming better models… They first focused on what the operational people were saying, the opportunities were then defined. After that they looked at business benefits, mechanisms to determine if goals were met and finally technology was the last aspect considered.
Corning was a pioneer in putting business processes first in evaluating a business/IT project Rather than following the classic enterprise resource planning (ERP) philosophy of making business fit the technology. Only then was assigned to solve the problem in this case: A supply chain module was added to Corning’s PeopleSoft Inc. ERP software.
Corning improved production planning efficiency Benefit: • didn’t have to build excess capacity • fewer orders have to be rushed to reach customers on time.
The example of improvement production planning efficiency Ex: It used to take us five days to do the planning for tomorrow’s production. Now we can do it in an hour, Fishburn says.
Describe what the IS/ IT in the real case is all about? s951649 陳喻農
Corning use the ERP(Enterprise Resource Planning) What is ERP (Enterprise Resource Planning)? Is a cross-functional enterprise system An integrated suite of software modules Supports basic internal business processes Facilitates business, supplier, and customer information flows
ERP delivers a single database that contains all data for the software modules Included Manufacturing Is the use of machines, tools and labor to make things for use or sale Logistics Is the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption in order to meet the requirements of consumers Distribution Is the process of moving product from Manufacturing to customers
ERP delivers a single database that contains all data for the software modules (con.) Included Accounting The communication is generally in the form of financial statements that show in money terms that show the economic resources under the control of management. Finance refers to the concepts of time, money and risk and how they are interrelated. Human resources To manage anything about employee, including training, salary etc. SCM( Supply chain management ) CRM( Customer relationship management )
What is the SCM system? Is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers
What can SCM do? It can make company to provide the Right Product in ,the Right time ,with Right Quantity, Right Quality, Right Status to the Right Place, and make lowest cost.
What is CRM system? Consists of the processes a company uses to track and organize its contacts with its current and prospective customers
What can CRM do ? • Typical CRM goals are to improve services provided to customers, and to use customer contact information for targeted marketing. • Have three kind of CRM system • Operational CRM • Analytical CRM • Communicational CRM
s951642江中強 What are the advantages and disadvantages of the “ERP System”?
Advantages Integration Integration among different functional areas to ensure proper communication, productivity and efficiency. ConvenienceERP uses single database, so data can be loaded and used at anyplace in the enterprise. Centralize storage ERP gathers and integrates data from different departments in enterprise, and it improves the consistenceand the accuracy of data.
Improved QualityERP greatly aids management in finding ways to improve their business operations and the end product or service it delivers to the end customer. Efficient Use of ResourcesThe system will aid in discovering unneeded labor and misuse of the organization's resources. It will help optimize the businesses processes. Flexibility The modulize design makes a more agile and adaptive organization and workforce that can more easily capitalize on new business opportunities. Advantages (cont.)
High training costSystems can be difficult to use. In order to make sure employees can operate ERP system efficiently, It is necessary to arrange training course. High data conversion cost Converting data from previous legacy systems to the new cross-functional ERP system is another major category of ERP implementation cost. High implementing cost Including software, hardware and counselor cost etc. It will need a lot of capital. Disadvantages
Safety issues In order to meet the needs of E-commerce , some ERP system already have some ability on Internet. So strengthen ERP system’s safety abiility will be necessary . Hard to customize 1.Very few companies can effectively use ERP right out of the box. It must be modified to suit their needs, and this process can be both expensive and tedious. 2.Some customization may involve changing of the ERP software structure which is usually not allowed Disadvantages (cont.)
Besides those mentioned in the case, what other ways can a business realize more business benefits from the IS / IT? s951745 黃彥霖
Raise benefits of cost control • By the fully integrated data procedure, ERP business even to compute concrete certain product's cost quickly and accurately, then provide strong support for cost control.
Trace contracts and orders all the way • Hold quality and quantity then delivery at time. • Relevant people can check the history purchase price data at any time, chase the status of whole purchase order and shorten the purchase cycle substantially.
Automation and transparency on the place of production • The processes have been integrated, so those actions which were work done by hand now we can let the system to do, the business can avoid unnecessary errors and economize the use of input repetition. • Use the internet contract meta tag to power and speed customer reply substantially.
Facilitate Day-to-Day Management • Nurture the establishment of backbone data warehouses. • Offer better accessibility to data so that management can have up-to-the-minute access to information for decision making and managerial control.
Promote business's competitive advantage • By the effective integration, business can achieve shorten produce time, lower cost, increase elasticity, actuate business to meet customers' needs timely to rise products' and services' standard and help business operators to make the best strategy in the shortest time.
Support Strategic Planning • Part of ERP software systems is designed to support resource planning portion of strategic planning. • In reality, resource planning has been the weakest link in ERP practice due to the complexity of strategic planning and lack of adequate integration with Decision Support Systems (DSS).
How does the IS / IT change the way new business operate now?s951643 董昌儒
With major IT-enabled process changes, involve ERP, CRM, and SCM projects, the efficiency of performance is better than the period they didn’t change the way to use IT. The change of IT
