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E-Everything Age: Competing With Information Technology
E-Everything Age: Competing With Information Technology
Chapter Objectives
• Identify competitive strategies of
information technologies.
• Give examples of how business process
reengineering frequently involves the
strategic use of e-business technologies.
• Identify the business value of using e-
business technologies
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
3
The Age of Networked Intelligence
8
Home Depot
Online Design Tools
9
Organization Structure
11
Organization Structure
Division of Labor
Who does what?
Division of Decision Rights
Who should make which decision?
Coordination Mechanisms
Organizational Boundaries
Informal Structures
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James A. O’Brien Introduction to Information Systems Eleventh Edition 13
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Strategic Information Systems
Cost leadership
Differentiation
Supports strategic changes – like
reengineering
Growth
Innovation
Provide business intelligence by
collecting and analyzing information
Improve internal efficiency
Customer-oriented approaches
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James A. O’Brien Introduction to Information Systems Eleventh Edition 15
Opportunity
for Lower
Maintain Valuable
Increase
Advantage Cost Margins
Customers and
Market Share Relationships
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James A. O’Brien Introduction to Information Systems Eleventh Edition 16
Customer-Focused e-Business
Let customers
place orders
directly
Let customers
check order history
and delivery status Let customers
place orders thru
Build a distribution
community partners
of customers,
employees,
and partners Customer Transaction
Database Database
Link Employees
Give all and distribution
employees a partners
complete view
of customers
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
Customer Service on the Web
17
Tools for Customer Service
Chat Rooms
Troubleshooting
Tools
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James A. O’Brien Introduction to Information Systems Eleventh Edition 19
Written - 1993
Michael Hammer
One of 1996 most influential people in the
U.S.
Time Magazine
July 17,1996
James Champy
21
What is Reengineering?
“the fundamental rethinking and radical
redesign of business
processes to achieve dramatic
improvements in critical,
contemporary measures or
performance, such as cost,
quality, service, and speed”
p. 32
22
24
Impacts
Company Customers Employees
Increase Teams
Benefit from
product by an better product Less Workers
order of - More Work
Needs are
magnitude Empowered
met
Examine Layoffs
Tendency to
process
return
Vision
Loyalty
Increase
Profits 25
To reengineer a company is to take a
journey from the familiar into the
unknown. The journey has to begin
somewhere and with someone. Where
and with whom?
P. 101
26
Business Process Reengineering
Initially,
attention was given to a complete
restructuring of organizations.
Later, the concept was changed due to
failures of BPR projects and the emergence
of Web-based applications.
Today, BPR can focus on anything from the
complete restructuring of an organization to
the redesigning of individual processes.
Major objective of BPR = Information
Integration.
27
Bell Atlantic’s Experience
28
BPR
29
Process Innovation
Encompasses the envisioning of new
work strategies, the actual process
design activity, and the implementation of
the change in all its complex
technological, human, and organizational
dimensions – order-of-magnitude
improvements
Davenport (1993)
30
James A. O’Brien Introduction to Information Systems Eleventh Edition 31
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James A. O’Brien Introduction to Information Systems Eleventh Edition 32
Chapter Summary
• Information systems can play several
strategic roles in business.
• Using the Internet, intranets, extranets,
and other Internet-based technologies as
a strategic competitive advantage for e-
business and e-commerce
• Build the an e-business model by making
customer value its strategic focus.
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.
James A. O’Brien Introduction to Information Systems Eleventh Edition 33
Irwin/McGraw-Hill Copyright © 2002, The McGraw-Hill Companies, Inc. All rights reserved.