Description
The PPT describes on Management Information System
?
HBR article by Andrew McAfee and Erik Brynjolfsson, U.S companies. Introduction The link. ERP, CRM, ECM. Case: CVS (Retail Pharmacy chain). Competing on Digital Processes. Characteristics of IT enabled processes. Conclusion.
? ? ? ? ? ? ?
?
Relevant performance indicators(sales, earnings, profitability and capitalization). Greater gap between leaders and laggards.
?
?
Quality and quantity investments of IT in the
operating models using internet and enterprise software.
?
Why is it so important??
?
?
Uptil 1990: 1.4% growth for 20 years.
Impact of IT: doubled. Michael Sorell and Feng Zhue – 3 quantifiable indicators: Concentration, Turbulence & Performance Spread.
?
?
Three ways IT changes the game
? It changes industry structure. ? It creates competitive advantage: lowering cost, changing scope. ? It spawns whole new businesses
?
“Why do you (Procter & Gamble) have all those salesmen, making
me have a bunch of buyers? Why not just connect your computers to our computers?”
? Sam Walton to the CEO of P&G, November 1987
?
Information technology can play an important role in helping companies respond to this difficult and rapidly changing economic environment,” Karim Ramadan, Microsoft Egypt’s general manager, said.
?
If the global crisis poses a threat to certain sectors, the information and communication technology (ICT) domain, which has grown in 2008, will likely remain a solid contributor to the nation’s GDP, said sector insiders.
?
Today, Egypt’s emerging ICT sector contributes to one percent of GDP and employs about 50,000 people. Research conducted by economic and financial analysts Global Insight shows that Egypt is currently spending $9.8 billion on ICT and that figure is set to rise to $13.5 billion by 2011.
?
“Information technology is all about efficiency, and that’s exactly what companies need in downturns,” Rahim El-Kishky, CEO of Information Technology and Services Co. (ITSC), told Daily News Egypt.
?
ERP (Enterprise Resource Management)
It is an enterprise-wide information system designed to coordinate all the
resources, information, and activities needed to complete business processes such as order fulfillment or billing e.g : SAP , PeopleSoft
?
CRM(Customer Relationship Management)
consists of the processes a company uses to track and organize its contacts
with its current and prospective customers e.g: Siebel CRM, OneSiebel
?
ECM(Enterprise Content Management)
It is a set of technologies used to capture, store, preserve and deliver content and documents related to organizational processes e.g: Accusoft, EMC(Documentum)
? ? ?
Maintaining high level of customer service Declining customer satisfaction in 2002 Key problem : 17% of prescription orders were delayed due to insurance checks being done after drug safety review.
Solutions:
? ?
Moved insurance checks after the drug safety review The 2 step process change was embedded in information systems ensuring 100% compliance.
?
It used its enterprise IT to replicate this new processes across its
4000 + stores.
?
The redesigning protocol increased customer satisfaction from 86% -91% without compromising safety Without enterprise IT CVS could have implemented it with manual procedures but it would have been time consuming.
?
?
Propagating the new process digitally accelerated its competitive impact by increasing the consistency throughout.
?
Companies like CVS needs to innovate constantly and
propagate new ways of working.
•Deployment •Innovation •Propagation
Deployment: the management challenge:
Determining which components of the companies
operating model should be globally consistent and then
using technology to replicate them with high fidelity.
Eg. Cisco : ERP Implementation Problem faced: Multiple databases and fuzzy terms resulted in circulation of conflicting order status reports.
Innovation : IT-enabled
opportunities Important in propagating and generating new ideas. Eg. Tesco: Uses technology to track redemption rates and performing experiments. Benefit: Average redemption rate is 10 times the
industry average.
Propagation: top down and bottom up
Helpful for management to impose best practices and standardized procedures universally.
Role of decision rights: Decentralized decision making : Cisco and Otis Centralized decision making : Zara
? ? ? ? ? ?
They produce results immediately. They cover a wide span. They are precise. They are consistent. They make monitoring easy. They build in enforceability.
? ? ? ? ?
Identify top talent. Invest in training and education. Empowered roles linked with rewards. High cost Involved.
High payoff, if talent advantage is leveraged upon.
?
IT has sharpened differences among
companies.
Process Innovations important rather than mere implementation.
?
?
Competitive shake up brought on by IT may
not be complete.
?
http://www.newyorkfed.org/research/current_iss
ues/ci7-6/ci7-6.html.
?
http://dailystaregypt.com/article.aspx?ArticleID= 18626
Thank you.
doc_449904741.pptx
The PPT describes on Management Information System
?
HBR article by Andrew McAfee and Erik Brynjolfsson, U.S companies. Introduction The link. ERP, CRM, ECM. Case: CVS (Retail Pharmacy chain). Competing on Digital Processes. Characteristics of IT enabled processes. Conclusion.
? ? ? ? ? ? ?
?
Relevant performance indicators(sales, earnings, profitability and capitalization). Greater gap between leaders and laggards.
?
?
Quality and quantity investments of IT in the
operating models using internet and enterprise software.
?
Why is it so important??
?
?
Uptil 1990: 1.4% growth for 20 years.
Impact of IT: doubled. Michael Sorell and Feng Zhue – 3 quantifiable indicators: Concentration, Turbulence & Performance Spread.
?
?
Three ways IT changes the game
? It changes industry structure. ? It creates competitive advantage: lowering cost, changing scope. ? It spawns whole new businesses
?
“Why do you (Procter & Gamble) have all those salesmen, making
me have a bunch of buyers? Why not just connect your computers to our computers?”
? Sam Walton to the CEO of P&G, November 1987
?
Information technology can play an important role in helping companies respond to this difficult and rapidly changing economic environment,” Karim Ramadan, Microsoft Egypt’s general manager, said.
?
If the global crisis poses a threat to certain sectors, the information and communication technology (ICT) domain, which has grown in 2008, will likely remain a solid contributor to the nation’s GDP, said sector insiders.
?
Today, Egypt’s emerging ICT sector contributes to one percent of GDP and employs about 50,000 people. Research conducted by economic and financial analysts Global Insight shows that Egypt is currently spending $9.8 billion on ICT and that figure is set to rise to $13.5 billion by 2011.
?
“Information technology is all about efficiency, and that’s exactly what companies need in downturns,” Rahim El-Kishky, CEO of Information Technology and Services Co. (ITSC), told Daily News Egypt.
?
ERP (Enterprise Resource Management)
It is an enterprise-wide information system designed to coordinate all the
resources, information, and activities needed to complete business processes such as order fulfillment or billing e.g : SAP , PeopleSoft
?
CRM(Customer Relationship Management)
consists of the processes a company uses to track and organize its contacts
with its current and prospective customers e.g: Siebel CRM, OneSiebel
?
ECM(Enterprise Content Management)
It is a set of technologies used to capture, store, preserve and deliver content and documents related to organizational processes e.g: Accusoft, EMC(Documentum)
? ? ?
Maintaining high level of customer service Declining customer satisfaction in 2002 Key problem : 17% of prescription orders were delayed due to insurance checks being done after drug safety review.
Solutions:
? ?
Moved insurance checks after the drug safety review The 2 step process change was embedded in information systems ensuring 100% compliance.
?
It used its enterprise IT to replicate this new processes across its
4000 + stores.
?
The redesigning protocol increased customer satisfaction from 86% -91% without compromising safety Without enterprise IT CVS could have implemented it with manual procedures but it would have been time consuming.
?
?
Propagating the new process digitally accelerated its competitive impact by increasing the consistency throughout.
?
Companies like CVS needs to innovate constantly and
propagate new ways of working.
•Deployment •Innovation •Propagation
Deployment: the management challenge:
Determining which components of the companies
operating model should be globally consistent and then
using technology to replicate them with high fidelity.
Eg. Cisco : ERP Implementation Problem faced: Multiple databases and fuzzy terms resulted in circulation of conflicting order status reports.
Innovation : IT-enabled
opportunities Important in propagating and generating new ideas. Eg. Tesco: Uses technology to track redemption rates and performing experiments. Benefit: Average redemption rate is 10 times the
industry average.
Propagation: top down and bottom up
Helpful for management to impose best practices and standardized procedures universally.
Role of decision rights: Decentralized decision making : Cisco and Otis Centralized decision making : Zara
? ? ? ? ? ?
They produce results immediately. They cover a wide span. They are precise. They are consistent. They make monitoring easy. They build in enforceability.
? ? ? ? ?
Identify top talent. Invest in training and education. Empowered roles linked with rewards. High cost Involved.
High payoff, if talent advantage is leveraged upon.
?
IT has sharpened differences among
companies.
Process Innovations important rather than mere implementation.
?
?
Competitive shake up brought on by IT may
not be complete.
?
http://www.newyorkfed.org/research/current_iss
ues/ci7-6/ci7-6.html.
?
http://dailystaregypt.com/article.aspx?ArticleID= 18626
Thank you.
doc_449904741.pptx