Description
The PPT explains about topics like dave perry's view,linking strategy to execution to results,approach to valuation,score-card,comparison of IT evolution during 3 eras,benefits of investments in infrastructure.
In the early 1900s, Ford Motor Company executives demonstrated that industrial technologies and management principles could enable the company to dramatically lower the cost and increase the output of cars in its assembly plants.
Source: Applegate, L.M; Austin, R. D; McFarlan, F. W; Corporate Information Strategy and Management, 6 th Edition, Irwin McGraw Hill, 2002
Because of the specialized nature of the technology and processes used, Ford Motor Company executives found that economies of scope were limited. The decision to introduce new products, like trucks, required that new plants be built. In fact, assembly plants were closed for several weeks each summer to enable new models of cars or trucks to be built in existing plants.
Source: Applegate, L.M; Austin, R. D; McFarlan, F. W; Corporate Information Strategy and Management, 6 th Edition, Irwin McGraw Hill, 2002
Source: Applegate, L.M; Austin, R. D; McFarlan, F. W; Corporate Information Strategy and Management, 6 th Edition, Irwin McGraw Hill, 2002
Dave Perry’s View of How Network Economies E n able Market Makers to Create Value
Market Maker Value -Added
Market makers are spending money, but not yet generating significant value.
Market makers must capture 80% or more of a market to begin to generate value
0%
20%
40%
60%
80%
100%
% of Buyers/Sellers Involved in Market
Source: Applegate, Lynda M., Rober t D. Austin, and F. War ren McFa rlan, Corporate I nformation Strategy and M anagement. Bur r Ridge, IL: McGr aw-Hill/Irwin, 2002.
Chapter 4 Figure 4-3
Step 1: Define the purpose for the value assessment Step 2: Pick a point in the future when you expect your business strategy to deliver value Step 3: Analyze the business concept and strategy and forecast market size, your share, and revenues. Step 4: Analyze the capabilities and resources required to reach the future state and forecast the cost of building those capabilities and acquiring resources. Step 5: Based on this analysis, construct estimates of financial performance and market value that reflect the "most likely" assumptions.
Source: Applegate, L.M; Austin, R. D; McFarlan, F. W; Corporate Information Strategy and Management, 6 th Edition, Irwin McGraw Hill, 2002
•Step 6: Factor in the uncertainty in your assumptions by developing several scenarios that represent upper and lower bounds on key variables in your forecasts. Step 7: When appropriate, validate your model by using alternative approaches, such as Discounted Cash Flow and Comparable Company Analysis. Step 8: Discuss the value analysis scenarios you have constructed with others and critique the findings and assumptions—not just once—but on a regular basis.
Source: Applegate, L.M; Austin, R. D; McFarlan, F. W; Corporate Information Strategy and Management, 6 th Edition, Irwin McGraw Hill, 2002
Categories of Benefits
Goals and Measures Internal External
Type I: Benefits from Investments in a Networked IT Infrastructure
Functionality and Flexibility
Improve infrastructure performance; increase the functionality and range of strategic options that can be pursued Sample Measures: Decrease the cost / improve the performance of internal IT operations; new IT applications to be created at lower cost, in less time, and with less risk; expand the range of internal IT initiatives
Create an efficient, flexible online/offline platform for doing business with customers, suppliers, and partners Sample Measures: Decrease the cost / improve the performance of doing business online; decrease the time, cost and risk of launching new online business initiatives;
Categories of Benefits
Goals and Measures Internal External
Commerce
Improve internal operating efficiency and quality Sample Measures: Internal process performance and work flow improvements; cost savings or cost avoidance; increased quality; decreased cycle time
Streamline and integrate channels to market, create new channels, and integrate multiple online/offline channels Sample Measures: Supply chain or distribution channel performance improvements; cost savings or cost avoidance for the organization and its customers, suppliers, or partners; decrease time to market or just-in-time order replenishment; enable new channels to market and/or extend the reach and range of existing channels
Categories of Benefits
Goals and Measures Internal External
Content / Knowl edge
Improve the performance of Improve the performance of knowledge knowledge workers and workers in customer, supplier, and enhance organizational partner organizations; add learning “information value” to existing Sample Measures: products and services; create new Enable individuals to information-based products and services achieve and exceed personal performance Sample Measures: goals; increase the Provide information to customers, speed and effectiveness suppliers, and partners that enables of decision making; better decision-making; charge a increase the ability of price premium for products and the organization to services based on information valuerespond quickly to added; launch new information-based threats and opportunities products and services; increase revenue per users and add new revenue streams
Categories of Benefits
Goals and Measures Internal External
Community
Attract and retain top Attract and retain high quality talent; increase customers, suppliers, partners, and satisfaction, investors; increase external engagement, and stakeholders satisfaction, loyalty; create a culture engagement, and loyalty of involvement, motivation, trust, and Sample Measures: Customer, shared purpose supplier, partner satisfaction and Sample Measures: lifetime value; average revenues Length of time to fill per customer and trend over time; key positions; attrition level of personalization available and % that use it; churn rate rate, trends in hiring and retaining top talent (over time, by industry, by region)
Timeframe
Mainframe Era 1950s to 1970s
Microcomputer Era 1980s & Early 1990s Stand-alone microcomputer and enduser tools (e.g., word processing, spreadsheets) “Information Management” Entrepreneurial Organization “Decentralized Intelligence” Provide information and tools to improve decision making and knowledge worker performance
Network Era 1990s to present
Dominant Technology
Mainframe, stand-alone applications, databases
Client-server, Internet, browser and hypertext
“Knowledge Management” Networked Business Community “Shared Intelligence” Transform organizations and markets to create business value
“Data Management” Hierarchy “Centralized Intelligence” Automate back-office activities
Organization Metaphor
Primary IT Role
Timeframe
Mainframe Era 1950s to 1970s IT specialists Computer room
Microcomputer Era 1980s & Early 1990s
Network Era 1990s to present Everyone Everywhere Business development and strategic planning
Typical User Location of Use Planning Process
IT literate business analysts
Desktop
Yearly budgeting
Individual expense
Justification
Cost savings
Increased decision quality and personal performance Ad-hoc
Business value
Implementation
Independent projects
Strategic initiatives
Benefits of Investments in Infrastructure
$(+)
Return on Investment
Decreased initial investments
0
$(-)
Increased cumulative benefit from IT portfolio
Time
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 4 Figure 4-5
doc_983437877.ppt
The PPT explains about topics like dave perry's view,linking strategy to execution to results,approach to valuation,score-card,comparison of IT evolution during 3 eras,benefits of investments in infrastructure.
In the early 1900s, Ford Motor Company executives demonstrated that industrial technologies and management principles could enable the company to dramatically lower the cost and increase the output of cars in its assembly plants.
Source: Applegate, L.M; Austin, R. D; McFarlan, F. W; Corporate Information Strategy and Management, 6 th Edition, Irwin McGraw Hill, 2002
Because of the specialized nature of the technology and processes used, Ford Motor Company executives found that economies of scope were limited. The decision to introduce new products, like trucks, required that new plants be built. In fact, assembly plants were closed for several weeks each summer to enable new models of cars or trucks to be built in existing plants.
Source: Applegate, L.M; Austin, R. D; McFarlan, F. W; Corporate Information Strategy and Management, 6 th Edition, Irwin McGraw Hill, 2002
Source: Applegate, L.M; Austin, R. D; McFarlan, F. W; Corporate Information Strategy and Management, 6 th Edition, Irwin McGraw Hill, 2002
Dave Perry’s View of How Network Economies E n able Market Makers to Create Value
Market Maker Value -Added
Market makers are spending money, but not yet generating significant value.
Market makers must capture 80% or more of a market to begin to generate value
0%
20%
40%
60%
80%
100%
% of Buyers/Sellers Involved in Market
Source: Applegate, Lynda M., Rober t D. Austin, and F. War ren McFa rlan, Corporate I nformation Strategy and M anagement. Bur r Ridge, IL: McGr aw-Hill/Irwin, 2002.
Chapter 4 Figure 4-3
Step 1: Define the purpose for the value assessment Step 2: Pick a point in the future when you expect your business strategy to deliver value Step 3: Analyze the business concept and strategy and forecast market size, your share, and revenues. Step 4: Analyze the capabilities and resources required to reach the future state and forecast the cost of building those capabilities and acquiring resources. Step 5: Based on this analysis, construct estimates of financial performance and market value that reflect the "most likely" assumptions.
Source: Applegate, L.M; Austin, R. D; McFarlan, F. W; Corporate Information Strategy and Management, 6 th Edition, Irwin McGraw Hill, 2002
•Step 6: Factor in the uncertainty in your assumptions by developing several scenarios that represent upper and lower bounds on key variables in your forecasts. Step 7: When appropriate, validate your model by using alternative approaches, such as Discounted Cash Flow and Comparable Company Analysis. Step 8: Discuss the value analysis scenarios you have constructed with others and critique the findings and assumptions—not just once—but on a regular basis.
Source: Applegate, L.M; Austin, R. D; McFarlan, F. W; Corporate Information Strategy and Management, 6 th Edition, Irwin McGraw Hill, 2002
Categories of Benefits
Goals and Measures Internal External
Type I: Benefits from Investments in a Networked IT Infrastructure
Functionality and Flexibility
Improve infrastructure performance; increase the functionality and range of strategic options that can be pursued Sample Measures: Decrease the cost / improve the performance of internal IT operations; new IT applications to be created at lower cost, in less time, and with less risk; expand the range of internal IT initiatives
Create an efficient, flexible online/offline platform for doing business with customers, suppliers, and partners Sample Measures: Decrease the cost / improve the performance of doing business online; decrease the time, cost and risk of launching new online business initiatives;
Categories of Benefits
Goals and Measures Internal External
Commerce
Improve internal operating efficiency and quality Sample Measures: Internal process performance and work flow improvements; cost savings or cost avoidance; increased quality; decreased cycle time
Streamline and integrate channels to market, create new channels, and integrate multiple online/offline channels Sample Measures: Supply chain or distribution channel performance improvements; cost savings or cost avoidance for the organization and its customers, suppliers, or partners; decrease time to market or just-in-time order replenishment; enable new channels to market and/or extend the reach and range of existing channels
Categories of Benefits
Goals and Measures Internal External
Content / Knowl edge
Improve the performance of Improve the performance of knowledge knowledge workers and workers in customer, supplier, and enhance organizational partner organizations; add learning “information value” to existing Sample Measures: products and services; create new Enable individuals to information-based products and services achieve and exceed personal performance Sample Measures: goals; increase the Provide information to customers, speed and effectiveness suppliers, and partners that enables of decision making; better decision-making; charge a increase the ability of price premium for products and the organization to services based on information valuerespond quickly to added; launch new information-based threats and opportunities products and services; increase revenue per users and add new revenue streams
Categories of Benefits
Goals and Measures Internal External
Community
Attract and retain top Attract and retain high quality talent; increase customers, suppliers, partners, and satisfaction, investors; increase external engagement, and stakeholders satisfaction, loyalty; create a culture engagement, and loyalty of involvement, motivation, trust, and Sample Measures: Customer, shared purpose supplier, partner satisfaction and Sample Measures: lifetime value; average revenues Length of time to fill per customer and trend over time; key positions; attrition level of personalization available and % that use it; churn rate rate, trends in hiring and retaining top talent (over time, by industry, by region)
Timeframe
Mainframe Era 1950s to 1970s
Microcomputer Era 1980s & Early 1990s Stand-alone microcomputer and enduser tools (e.g., word processing, spreadsheets) “Information Management” Entrepreneurial Organization “Decentralized Intelligence” Provide information and tools to improve decision making and knowledge worker performance
Network Era 1990s to present
Dominant Technology
Mainframe, stand-alone applications, databases
Client-server, Internet, browser and hypertext
“Knowledge Management” Networked Business Community “Shared Intelligence” Transform organizations and markets to create business value
“Data Management” Hierarchy “Centralized Intelligence” Automate back-office activities
Organization Metaphor
Primary IT Role
Timeframe
Mainframe Era 1950s to 1970s IT specialists Computer room
Microcomputer Era 1980s & Early 1990s
Network Era 1990s to present Everyone Everywhere Business development and strategic planning
Typical User Location of Use Planning Process
IT literate business analysts
Desktop
Yearly budgeting
Individual expense
Justification
Cost savings
Increased decision quality and personal performance Ad-hoc
Business value
Implementation
Independent projects
Strategic initiatives
Benefits of Investments in Infrastructure
$(+)
Return on Investment
Decreased initial investments
0
$(-)
Increased cumulative benefit from IT portfolio
Time
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 4 Figure 4-5
doc_983437877.ppt