Strategic Information Systems

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Strategic Information Systems
Vision
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What Is A Vision?

• It is a self image that reveals what the business
  wants to look like over the future.
• Vision must be concrete and easily understood.

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Why A Vision?

• A C.E.O can do only a limited amount of things to
  sustain competitive success.
• Important to draw a road map from where company
  is today to some imagined future.
• Then reinforce this by explaining how to get
  there.
• You want to motivate employees within the
  organization to buy into the new direction
  dictated by the vision.

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Developing The Right Vision

• 3 Steps
• Define The Business Environment.
• Build A Company Vision
• Turn The Vision Into A Plan

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Vision and Information Systems

• 
  Invest
• Vision
• Asset
  Save Money
• Applications
• 
  Networks
• Strategic
  Expense
• 
  Tools

Tactical
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Jack F. Welch,Jr., Chairman and CEO

• Grocery Store
• Formalities are not very popular
• Summer Sessions
• Surprise

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General Electric

• Mission Vision
• Mission To create intelligence throughout the
  business supply chains of our customers around
  the globe by combining Six Sigma process
  disciplines with innovative electronic commerce
  technologies.
• Vision Be the world's largest provider of
  electronic commerce solutions that create
  intelligence for business supply chains.

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Six Sigma Vision

• Critical to Quality Attributes most important to
  the customer
• Defect Failing to deliver what the customer
  wants
• Process Capability What your process can deliver
• Variation What the customer see and feels
• Stable Operations Ensuring consistent,
  predictable processes to improve what the
  customer sees and feels
• Design for Six Sigma Designing to meet customer
  needs and process capability

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GEs e-Volution of 2000

• MakeSee how the digitization of our internal
  processes helped GE gain key competitive
  advantages.
• BuyLearn how GE applied e-Business strategies to
  dramatically improve sourcing operations and
  purchasing efforts.
• SellExplore GE's success in digitizing online
  sales processes and transitioning customers to
  Web-based purchasing and service options.

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e-Business Facts

• Make-side Facts
• Current implementation of the digitization of
  internal processes has helped us identify
  approximately 1.5 billion in potential cost-out
  savings for 2001.
• Make-side activity encompasses more than 20
  billion in base costs.
• GE has identified 20-30 cost-out opportunity
  using Make-side e-Enablement.
• Buy-side Facts
• Although GE businesses did only minimal online
  auctioning until mid-2000, we closed the year
  with more than 6 billion worth of goods and
  services auctioned online.
• The close-of-auction price deflation for GE in
  2000 was approximately 16.
• The close-of-transaction price was about 8
  (providing 480 million of annualized savings).
• Targeting 30 of overall buying online in 2001.
• Sell-Side Facts
• Online transactions have grown from basically 0
  in 1998 to 1 billion in 1999 and over 7 billion
  in 2000. In 2001 we anticipate 15 of our total
  revenue will come from online sales.

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http//aoltimewarner.com
A corporation made up of many entities that wants
to be the most valuable company in the world
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TIMELINE TIME, WARNER, AOL

• 1918 Time Magazine idea conceived
• 1918 Brothers Warner open first West Coast
  studio
• 1923 Times first issue published
• 1927 Warner Bros. releases first synchronized
  talking movie
• 1985 Steve Case Jim Kimsey conceive new co.
  Quantum Computer Services no WWWeb.
• 1989 Time acquires Warner to form Time Warner
• 1995 WB Network debuts
• 1996 Time Warner Turner Broadcast Systems
  merge
• 1998 AOL acquires Compuserve and ICQ
• 2000 AOL reaches 27 million members
• 2001 AOL Time Warner merge

2001 Merger
1989 Merger
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AOL Time Warner Corporate Executives (AND Forces
Behind The Merger)

• Gerald M. Levin
• Chief Executive Officer
• Graduate of U. of Pennsylvania Law School 1963
  Graduate of Haverford College in 1960
• Former Chairman and Chief Executive Officer of
  Time Warner Inc.
• Has been with the company since joining Time Inc.
  (HBO) in 1972
• Leading architect of the historic merger of AOL
  Time Warner in 2001
• Prime Mover of Time Inc, and Warner
  Communications merger in 1990
• Prime Mover of Time Warners merger with Tuner
  Broadcasting Systems 1996
• Recently resigned from primary duty of placing
  management structure regarding companys growth

• Steven M. Case
• Chairman of The Board
• Graduate of Williams College with a degree in
  Political Science
• Former Chairman and Chief Executive Officer of
  America Online Inc.
• Co-founded AOL in 1985
• Prime force behind merger of AOL and Time Warner
  Inc., in 2001
• Currently, Actively involved in leading and
  building AOL Time Warner with particular focus on
  technological developments, policy initiatives
  and strategic investments that are driving the
  GLOBAL expansion of the interactive medium.
• Founded Case Foundation which has supported
  programs like PowerUp technology centers for
  young people in inner cities and rural areas
  designed to help expand digital opportunity

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Evolution of a Vision
AOLs Vision To build a global medium as
central to peoples lives as the telephone or
television and even more valuable.
Time Warners Vision To build a global medium
central to peoples lives that entertains and
allows for communication.
AOL/ TIME WARNERs VISION To transform how
people throughout the world acquire information,
are entertained, purchase a full range of goods
and services and communicate with each other
across international boundaries.
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AOL TIME WARNERS VISION

• To transform how people throughout the world
  acquire information, are entertained, purchase a
  full range of goods and services and communicate
  with each other across international boundaries.
• The Vision is anchored in two fundamental beliefs
  and anchored by a strong foundation
• Belief 1 - New deliver systems enabled by
  technology will alter consumer habits and
  relationships and, as a result, their business
  dramatically. Thus, boundaries between products,
  business, and services blur - CONVERGANCE
• Belief 2 - Putting all the pieces together that
  relate to this convergence of products and
  services will enable them not only to better
  manage, but to drive their own destiny.
• Anchor A foundation that begins with a unique
  combination of technology, content and an
  expanding relationship with consumers throughout
  the world.

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MISSION STATEMENT (7 Goals Needed To Achieve This
Vision)

• To become the worlds most respected and valued
  company by connecting, informing and entertaining
  people everywhere in innovative ways that will
  enrich their lives.
• Values
• Creativity We thrive on innovation and
  originality encouraging risk-taking and
  divergent voices.
• Customer Focus We value our customers putting
  their needs and interests at the center of
  everything we do. CUSTOMER SERVICE AS A DRIVER
• Agility We move quickly embracing change and
  seizing new opportunities.
• Teamwork We treat one another with respect
  creating value by working together within and
  across our business.
• Integrity We rigorously uphold editorial
  independence and artistic expression earning
  the trust of our readers, viewers, listeners,
  members and subscribers.
• Diversity We attract and develop the worlds
  best talent seeking to include the broadest
  range of people and perspectives.
• Responsibility We work t improve our
  communities taking pride in serving the public
  interest as well as the interests of our
  shareholders.

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CHALLENGES FACING AOL

• Creativity An abundance of creativity, but
  its not even flow. Employees are NOT taken
  seriously and allowed to become an integral part
  of the creative process.
• Customer Focus - Not a problem. AOL and Time
  Warner before the merger were all about customer
  service. Everything they respectively built,
  stated, created and affected was based upon the
  consumer.
• Agility Not a problem. AOL Time Warner is at
  the forefront because theyre the first ones in
  and the last ones out.
• Teamwork. Its not there yet. Too many
  divisions within the company. Covergence is only
  at its inception phase. Manager Top heavy. Too
  many walls and boundaries.
• Integrity -
• Diversity Not there yet. High turnover rate.
  
• Responsibility Right on! Foundations created
  for the community. They give back and do so in a
  big way Creates company consumer awareness

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INFORMATION TECHNOLOGY

• Need to create communication lines that are easy
  to use and capable of transmitting large amounts
  of information quickly and efficiently not only
  for the customers sake but within the company in
  an effort to converge
• Its essential that AOL constantly be on the
  cutting edge of Information Technological
  advances, products and services.
• Its the tool needed to move them towards their
  shared Vision plan.
• Competition is fierce and as the company expands
  into new markets both foreign and domestically,
  IT will play a much more important role within
  the company
• AOL is in its most critical stage new merger
• Look at other ways to break down communication
  problems with IT
• Currently AOLTW uses email as its main source
  of communication
• They expanded on that recently by converting all
  entities email programs to an AOLs email format
• Securitized passcode changes every minute
• In so doing, employees can now access their own
  and company related email from home and on the
  road without the need of a company laptop computer

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VISION ACHIEVEMENTS IN 2001

• Strengthened and expanded on their single most
  important asset their direct relationship with
  the consumer.
• On the creative side, they developed
  extraordinary new movie franchises, and the music
  business was able to increase its market share
• They extended the penetration of their broadband
  and digital technologies and set the stage for an
  increasingly wide array of new offerings like
  high-speed Internet services and Video on demand
• They expanded in key overseas markets,
  particularly Europe
• Acquired IPC media, one of the leading publishers
  in Europe
• Undertook a a broad spectrum of successful
  cross-divisional marketing initiatives.
• Movie releases are promoted via the internet on
  AOL, HBO sites are created to enhance and promote
  special and coming attractions, Warner Music
  promotes HBO programming like REVERB
• Networks extended their leadership, but their
  response to the events of September 11th
  demonstrated the increasing importance of our
  corporate mission to inform and connect.
• Millions of people tuned into CNN and our local
  news channels.
• Magazines
• Internet
• Companies financial results for 2001 were strong
  given the current environment

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Federal Express Vision

• Created by visionary
• Frederick W. Smith

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Federal Express Early History

• Product concept introduced in 1965 by Smith in a
  term paper at Yale as a necessity for an
  airfreight system of delivery to accommodate
  time-sensitive shipments such as medicine,
  computer parts and electronics.
• Incorporated in 1971 and began operations on
  April 17,1973 with 14 small aircraft from Memphis
  International Airport.
• Deregulation of air cargo in 1977 brought bigger
  planes such as Boeing 727 and MD DC10s to the
  fleet
• Federal Express makes first profit in 1975

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Federal Express andThe Vision Process
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Step OneDefine the Business Environment

• Smiths genius came in the ability to position
  himself in an already established market of
  carriers using passenger routes
• Smith was determined to make his system more
  economical and faster using a fleet of aircraft
  dedicated to the transport of packages only

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Step Two Build a Company Vision

• Become the most economical and fastest airfreight
  distribution system
• Be the industry leader in cost and product
  innovations using information technology
• Make Federal Express a global
  organization

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Step Three Turn Vision Into PlanInternational
Expansion

• Acquisition of Tiger International Inc in Feb.
  1989 made them the worlds largest full-service
  all-cargo airline
• Tiger International acquisition positioned Fed Ex
  in 21 countries, including facilities-wise and
  flying routes
• In 1995 acquired Evergreen International Airlines
  for sole US cargo carrier rights to routes in
  China
• Today Fed Ex serves more than 200 countries in
  Africa, Asia, Australia, Europe, North and South
  America.

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Vision into PlanFed Ex and IT

• April 2000FedEx introduces real-time packing
  tracking with wireless LAN equipment, NORCOM
  satellite network BellSouth wireless networks and
  bar code scanners
• Fall 2001 FedEx begins using Clarify CRM from
  Nor-tel Networks to build and maintain customer
  profiles and route calls to the best customer
  service rep for their particular problem
• Jan 2002 Using Deploy Solutions, Fed Ex reduced
  candidate application time by over 50 with an
  online application via Web-based browser kiosks,
  which were interfaced with the companys main
  HRIS (PRISM)

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FedEx Awardsin Information Technology

• Logistics Management and Distribution Report
  Quest for Quality Award Best Air Carrier
  (2000)
• Wal-Mart Stores,Inc. Carrier of the Year
  (1999,2000)
• Fortune 100 Best Companies to Work for in
  America (1998,1999,2000)
• Fortune 50 Best Companies for Asians, Blacks,
  and Hispanics (1998,1999)
• Working Woman 100 Best Companies for Working
  Mothers (1998)
• Compaq Computer International Supplier of the
  Year (2000)

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FedEx FactsDid You Know?

• FedEx handles approximately 3.3 million packages
  and documents each night
• In a 24-hour period, FedEx planes travel almost
  one-half million miles
• FedEx couriers log 2.5 million miles a day (the
  equivalent of 100 trips around the earth)
• FedEx has a fleet of 642 aircraft and more than
  45,000 vehicles
• In 1994 Federal Express changed their name to
  FedEx
• In 2000, it extended itself to include FedEx
  Express,FedEx Ground, FedEx Freight, FedEx Custom
  Critical and FedEx Trade Networks