Developing Capabilities to Use Information Strategically

1
Developing Capabilities to Use Information
Strategically

• Group 5
• Kelly Worges
• Jennifer Ortmayer
• Erick Kepfer

2
Article Overview

• Primary argument Can businesses utilize IT as a
  means to achieve an advantage over the
  competition?
• Study
• Conducted by 5 experienced IT consultants
• 11 industries used
• Direct interviews

3
Article Overview, cont.

• Type 1 or Traditional
• IT supports operations but is not strategy
  related
• Type 2 or Evolving
• IT supports strategy however companies create
  strategies without considering IT as a
  competitive tool
• Type 3 or Integrated
• IT is integral to strategy

4
Proposal Overview

• Choose 3 companies, 2 Type 2 and 1 Type 3 back in
  1988, and see how their IT has evolved to 2003
• Evaluate the companies IT to determine if they
  are using it strategically as a competitive
  advantage

5
FedEx Type 2 Company

• - FedEx is a Type 2 company according to the
  results of the study conducted in our Article.
• FedExs strategy is to deliver packages in an
  efficient and timely manner.
• This is accomplished by implementing the latest
  cutting edge information technology

6
History and Background

• Incorporated in 1973 by Frederick Smith
• Idea evolved from a class
• Prior to 1973 air mail was delivered as
  cargo via commercial airliners

7
Facts and Figures

• Headquarters located in Memphis, TN
• Worlds 1 air service delivery provider
• Approx. 3 million packages are delivered
  daily
• Services over 210 countries
• Operates over 650 aircraft and 50,000
  courier vehicles

8
Services Provided
9
Internal Information Technology

• - COSMOS (Customer Operations Service Master
  Online System) - 1979
• DADs (Digitally assisted dispatch computer
  system) - 1980
• Super Tracker 1986

10
Benefits Information Technology

• Control - Allows service representatives to
  retrieve immediate information about the package
  location, expected time of delivery
• - Commitment to timely delivery
• 1. if a package is not delivered with one
  minute of the established time, the
  shipment is free
• 2. if a customer does not receive
  information of the packages location with
  30 minutes, the shipment is free

11
External Information Technology

• Customer can tract information about a package 3
  ways
• Powership Terminals
• Internet www.fedex.com
• FedEx Ship software

12
Interview
Mark Antimucci Q Do you feel as though FedEx
has a competitive advantage over the competition
(UPS, DHL) because of its technology? Why? Q
What are the companys pitfalls relating to
IT? Q Do you think that the company spends too
much money in IT? Q If the company did not
continually upgrade their IT, do you think the
competition would surpass FedEx? Q Are there
often mistakes in the timeliness and accuracy of
delivering packages
13
FedEx - Conclusion
- FedEx is the worlds largest provider for air
service delivery - FedEx prides itself on its
cutting-edge information technology - Information
technology enables FedEx to deliver packages in a
timely manner, thus having a competitive
advantage over the competition
14
Food Products Industry

• During 80s and early 90s
• Type II industry
• Used state of the art data recovery systems
• POS
• Did not completely communicate through the entire
  VAC

15
Food Products Industry

• 2003 Case Study
• Marks Spencer
• Large UK retailer
• Offer wide range of products
• Food Products
• New Information Technology

16
Food Products Industry

• Marks Spencer
• New Information Technology
• Returnable Plastic trays
• Replace old UPC barcode labels
• Electronic Product Code (EPC)
• Radio Frequency Identification (RFID)
• Allows complete communication between all members
  of the value chain

17
Food Products Industry

• Marks Spencer
• Benefits
• Improve efficiency
• Reduce labor and printing costs
• Build customer loyalty and satisfaction
• Overall
• better and more complete product information and
  communication between all members of the value
  chain

18
Financial Institution Type 3

• 1988
• Software
• Open new accounts
• Change address
• Research account information
• Generate daily reports

19
Financial Institution Type 3

• First Federal Savings Bank of Lake County (FFLC)
• 950 million in assets
• 14 branches
• 1934
• Fiserv VISION

20
Financial Institution Type 3

• Fiserv
• leading provider of information management
  services for the financial industry
• VISION
• Combines teller and sales modules
• Easy-to-follow set of screens
• Real-time
• Leads to efficiency

21
Financial Institution Type 3

• Features of Fiserv
• Electronic monthly statements
• Pull method
• Push method
• Cost savings
• Interested, but concerned

22
Financial Institution Type 3

• Features of Fiserv
• FraudGuard
• Check fraud detection system
• FFLC can minimize it losses
• Ensures integrity and positive reputation of FFLC

23
Financial Institution Type 3

• FFLCs website
• www.1stfederal.com
• Account balances
• Account transactions
• Bill pay
• Ex. BellSouth
• Change address
• Access local community information

24
Downsides of Technology

• No customer contact
• Security issues
• Unreliable system

25
Conclusion

• Industries have evolved
• Companies may not be represent the entire
  industry
• Strategic use of IT does lead to a competitive
  advantage