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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 Organizing MIS Resources: Strategy and Tactics 1. 2. 3. 4. 5. 6. 7. Market Definition and Segmentation Customer Supply Chain and Channels Increasing the Number of Contact Points Barriers to Entry and Exit Role of the Portal Danger of the "Downward Price Spiral" 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 Balanced Scorecard Implementation Strategies II Implementation Strategies I Business to Business Marketing Internet Marketing Web Design Infrastructure e-Business Strategy Business Intelligence 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 Technological Change Drivers Point of Purchase Displays Optical Character Readers Telecommunications Devices Networking Telecommunications Scanning Devices Organizational Factors can be Measured More Accurately o Cost, Revenue, Profit, Investment Center o Strategic Business Unit o Critical Success Factors o Core Competencies 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 Reasoning General Cases Inductive Specific Rules Deductive General Cases Transference Customer Value Chain What is Produced/ Provided To Me (inputs) Computer Hardware and Software Local Area Network Installations What I Do (process) Implement Technology to Accomplish Strategic Goals What I Produce (Outputs) Working Models Who I Produce It For (Customers) Practice Area Information C L I E N T Customer Value Chain Firm Infrastructure Human Resource Management Technology Development Procurement Inbound Logistics Outbound Operations Logistics Marketing & Sales Service Marketing Advertising Sales Sales Technical Promotion Force Admin. Management Force Literature Oper. Customer Value Chain Distribution Chain Grower Jobber $8.00 Wholesaler $12.00 Florist $24.00 Customer $60.00 Customer $54.00 Five Forces Model Potential Entrants Threat of new entrants Bargaining power of suppliers Industry Competitors Suppliers Bargaining power of buyers Buyers Rivalry Among Existing Firms Threat of substitute products or services Substitutes Competitive Strategy of Differentiation Competitive Advantage Lower Cost Broad Target 1. Cost Leadership Differentiation 2. Differentiation Competitive Scope Narrow Target 3A. Focus on Cost 3B. Focus on Differentiation Product-Process Change Matrix Mass Customization Invention Dynamic Product Change Mass Production Continuous Improvement Stable Stable Process Change Dynamic Integrate Silos Internet Development Continuum Transform S Publish T Interact A G Transact E Integrate S • Mass customization • Integrated Disease Management • “Brochurized” web site • Basic product/ plan information • Limited interactivity • No web site stickiness • 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 • EDI to iCommerce Transition • Prevention and health assessment tools • Self-service functionality • Community building • Web site stickiness • Business process • Automated vendor supply chain management • Call center replaced with contact center Leaders Majority Laggards • Automation: procurement, integrated directory Value Curve • Empowered consumers and self-directed care • Frictionless integration with providers, pharma & suppliers Back Office Buy Side Front Office Sell Side Business vs. IT Strategy Integrative Architecture Integrative Architecture Integrate EC Front and Legacy Back End Presentation Options Presentation on Legacy Database Current Membership Extract Account DB2 Tables (29) Provider DB2 Table DB2 Table DB2 Table DB2 Table DB2 DB2 Table DB2 Table DB2 Table DB2 Table Table DB2 DB2 Table DB2 Table DB2 Table Table DB2 Table DB2 DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table DB2 Table Table DB2 Table DB2 Table DB2 Table DB2 Table Account Maintenance CICS Screen Member Maintenance PowerBuilder Client Internet Screen MEMBER’S INQUIRY (Summary Window) Messaging Network INQ-SUB Current Membership INQ-MEMB INQ-SUB-MB Account INQ-SUB-CAT Provider History Claims Internet Denormalized DB2 Tables Extract DB2 Table Web Design _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ ____ Business Intelligence _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _ Balanced Scorecard e-Business Strategy ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ORGANIZATION STRATEGY ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ Implementation Strategies I Implementation Strategies II __________________________ __________________________ __________________________ ___________________________ ___________________________ ___________________________ ___________________________ ____ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ___________________________ ____ Business to Business Marketing _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ ____ Internet Marketing _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _____________________ _ Balanced Scorecard Implementation Strategies II Implementation Strategies I Business to Business Marketing Internet Marketing Web Design Infrastructure e-Business Strategy Business Intelligence References Business Models: – – – – Michael Porter James McKinney Warren McFarlan James Cash Technology Models: – Gartner Group – MetaGroup – Forrester Group