Professional Documents
Culture Documents
for Management
Rahul Roy
Professor of MIS, IIM Calcutta
rahul@iimcal.ac.in
Agenda
Processes data
Stores information
Communicates information
Integrates functions
Spans boundary
Indian Railways - Computerised
Passenger Booking System
Indian Railways
6,853 stations, 63,028 kilometers of track, 37,840
passenger coaches and 222,147 freight cars.
Annually it carries some 4.83 billion passengers and
492 million tons of freight.
Of the 11 million passengers who climb aboard one
of 8,520 trains each day, about 550,000 have
reserved accommodations. Their journeys can start
in any part of India and end in any other part, with
travel times as long as 48 hours and distances up to
several thousand kilometers.
IMPRESS/CONCERT - Features
Primary activities
Inbound logistics
Operations
Outbound logistics
Marketing and sales
Service
Support activities
Firm infrastructure
Human resource management
Technology development
Procurement
Some features of the Value Chain
Interdependent activities linked together
Linkages create trade-offs in performing different
activities
Linkages require coordination
Value chain of a company is linked in a ‘Value
System’ to the value chains of the upstream
supplier and downstream channels
Company can gain by optimizing or coordinating
its links to the outside world
Reaping competitive advantage
Competitive advantage comes from
Lowering cost
Enhancing differentiation
The point within a value system where maximum economies
of scale and scope are created determines the market power
Economies of scale are achieved when a participant or a
network of participants is able to leverage capabilities and
infrastructure to increase revenues and profitability within a
single product line or market
Economies of scope are achieved when a participant or a
network of participants is able to leverage capabilities and
infrastructure to launch new product lines or businesses or
enter new markets
Where IT can have an impact?
Impact on core operations
Doing things more efficiently
Inventory management system, Production scheduling
system, Demand forecasting system, Sales force
management system, … …
IT development priorities are targeted toward incremental,
operational improvements that may improve company’s cost
profile but do little to change its position or power in the
industry
Impact on core strategies
Doing things differently
Going global, decentralizing, right sizing, being more
customer oriented, diversifying, … …
“If this works, it would change …”; impacts company’s
position or power
Impact of IT: the Strategic Grid
High
IT impact on core strategy
Factory Strategic
IT impact on core operations
Support Turnaround
Goal: Improve local Goal: Identify and launch new
performance ventures
Leadership: Local level Leadership: Venture
oversight incubation unit
Project Management: Project Management: New
Grassroots experimentation venture development
Low High
Organizational Structure & Culture