has been identified as one of the best Business Schools by WSJ

1. “Our coffee is strong, so is our work ethic.” UseStrategiesas templates / blueprints for aligningITsystems to transform enterprise so meet MISchallenge (Dell) teams Wal-Mart (all about the team) P&G (team from day one) All the ingredients are necessary to solve the complex, ill-structured problems in the realworld CIO Cases Ingredients of success: “Work hard, work right, work together!” has been identified as one of the best Business Schools by WSJ 

2. Str-2.c iconoclast adopts adopts Everywhere All the Time External e-commerce strategy supported by strategy employs Not Before Not After (P&G) Internal e-commerce “sells directly from web site” achieve “electronic orders alliance partners” achieve TOB.5 VMM.61-62 TOB.2 “computer made expressly for you” provides “cut out the middleman” provides “just the way you want it” “in a few days… without lot of money in inventory” DD.1.A,1.3“low-cost, high-quality business model” TOB – Thinking Outside the Box (Bus. Week 22Nov04) VMM – Vanishing Mass Market (Bus. Week 12Jul04) DD – Driving Dell (Bus. Week 7Feb05) Next, examineconcepts (transformingideasTOB.1-2) that drove Dell’s strategy & present framework for developing an integrated strategic plan.

3. Concepts are Critical Your Focus In This Chapter Str-3.b Aims of Education and other Essays Alfred North Whitehead • Whatever the detail with which you cram your students, the chance of their meeting, in real life, exactly that detail is almost infinitesimal, and if they do meet it, they will probably have forgotten what you taught them about it. • The really useful training yields a comprehension of generalconcepts (Dell, TOB.1.1-2) with a thorough grounding in the way they applytoavarietyofconcretedetails(as in CIO cases) . • In subsequent practice (atworkinrealworld), they will have forgotten the particular details; but they will remember by an unconscious commonsense how to apply concepts to immediate circumstances. Robert K.

4. Rx for LearningTufts University Medical School Example Str-3.a Concepts are vital to guide practice. Michael Dell’s Market-transforming ideas “Number of biomedical terms medical students learn in their first year 10,000” TOB: 1.1-2 CIO 1 Feb 01

5. TransformingIdeas for Using ITS to Achieve Competitiveness Focus of this presentation Str-2.d BroadVision Sep01 Purdue 22Sep04 • Strategies and other concepts/ideas (Dell) are templates for decision making and action, as in Sports. Can’t build (do) it, if can’t think it. • Organizational Horsepower (OHP) to meet MIS challenge and renew competitive advantage • Quality- - the outcome of OHP and foundation of competitiveness • Total Quality Management- -a KPMG approach for finding the right IT – business mix • OHP Strategies - - the plans for using IT systems to meet MIS challenge and create OHP.

6. Str-4.a OrganizationalHorse Power • is derived form a unit for measuring the power of motors or engines, adopted by James Watt, from the power exerted by a horse in pulling. • HP equals the force required to raise 330 pounds at the rate (speed) of 100 feet per minute. • It was force & speed that also resulted in power in the market.

7. Organizational Horsepower Str-4.b is an organization’s market power and source of its competitiveness What is quality? IT strategies generate OHP that produces quality: 1. perfect service (force) 2. at the customer moment of value (speed) TOB.5 meet as many expectations as possible Dell’s strategiesproduce quality: 1. timeless / locationless(CIS) yields force & 2. JIT(IOS) yields speed so achieve perfect service @customer moment of value (quality) QUALITY Descriptive presentation Normative Implications OHP Strategies meet expectations quickly TOB.2 Webster’s Dictionary

8. Why identify& summarize IT Strategies? Str-7e • In order to help companies discuss and evaluatetheirneeds,BroadVision has partnered with consulting firm Surgency to provide a moreprecisevocabulary for the types of transformations e-business can effect within an organization or extended enterprise. • …to give business a startingpoint for exploring which strategicdirection would most effectively address their particular challenges and open up newopportunities. Creating Value through Business Transformation BroadVision1.1

9. Creating Value through Business Transformation:Nine TransformationalStrategies Str-6.b OHP Strategies  Templates, models based on 2.2  Best Practices, observed in direct experiences with hundreds of clients 2.5  Benchmarking, concepts for developing IT strategy2.4  Complementary, support complementary business processes as in the Dell Case 2.1  Evolutionary, expand use over time as gain experience as in Drayer’s description of P&G relationship with Wal-Mart2.1BroadVision Assignment: submit notes in ppt. on “It All Began with Drayer” (in handout)

10. 7 IT-ENABLED OHP STRATEGIES Str-6.a Allstrategies have potential to contribute to both force and speed when supported by ITsystems (e.g. teams : WSS) QUALITY Organizational FORCE e v o l u t I o n a r y c o m p l e m e n t a r y Strategies transform organizations BroadVisionreal-world results 1.1 Organizational SPEED

11. Companies fail to find right IT - business mix Str-7 Read: Companies fail to find right IT, business mix • The former CIO “kept talking technology, he wasn’t focused on how thetechnology could serve the business.” • Total Quality Managementis a comprehensive & structured approach to continuous improvement by integrating IT with business strategy. • TQM can be applied for use in every type of organizationincluding manufacturing (Indian), hotel management (Harrah’s), churches (CSS) Computerworld @ ITworld.com KPMG model

12. with KPMG: a structured, comprehensive framework for finding the right IT-business mix (CIO)

13. KPMG.1 Final Report February 4, 2001 Process for Finding the Right IT - Business Mix      Environment (Information Age)  Vision (MIS Challenge)  Understanding IT Systems   Choice OHP Strategies & Models (integrate IT Systems)  Feedback (current IT review) KPMG

14. Str-7d Putting IT All Together Innovations Aug 07      align Legos Dell INFORMATION AGE VF & Levi’s P&G Stonyfield Framework for BUS205 & CIO.1  Information Age Idea Economy Bus.Week Sep08 Driving Dell Information Week Feb05

15. IT all began with Drayer CIO 1Aug02 February 1, 2007

16. What isJUST-IN-TIME (JIT)? IT Strategies Str-8.a producing or delivering a product or service when it is wanted, including either input to operations / departments or output to customer : 5th Ave. 33-34 Sst. To speed construction, the Empire State Building’s posts, beams, windows and window frames were made in factories and put together on the site. Because of thisJIT approach,the ESB was completed ahead of schedule and under budget. • Empire State Building (telephone) • Dell ComputerJIT based on IOS (input) with online ordering (CIS,output) increases force & speed • automotive industry includingIndian motorcycle • 10 Quick Wins, Supply Chain Mgmt Review 1May01 • GM saves in procurement, microsoft.com 31Jan02

17. How DoesJITAffect OHP? Strategies- JIT Str-8.c • JIT “is a powerful tool to meet emerging customer needs and wants”, and therefore to increase organizational force as well as speed by: • preventing overproducingandreducingunsoldinventory • reducesinventorycarrying costs • increases flexibility to produce what a customer wants • increases knowledge of customerDell & Indian

18. Evolutionary & Complementary Strategies- JIT Str-8.e • “What was the first collaborative process ... with Wal-Mart?” “Continuous replenishment (JIT). We (P&G) used it to build trust and demonstrate the value of information sharing and focusing on the ultimate consumer…, and it built the foundation for a bigger sharing.” Drayer.2.3 • “What were the major impediments…?” “The major impediments had little to do with the technology…. Nearly half (46%) of respondents said they had difficultychanging processes andpeople behavior.... • How should you structure these efforts so they are successful…? “Collaborative team-based relationship…” Drayer.6.1-7.2.3 Greasing the Gears Darwiwmag.com

19. Str-9.b Teams are important in “changing processes (inefficiencies) and people behavior.” MIS CLASS CIO TEAMS ≠ GROUP TEAM SHARED GOAL different perspectives, & skills conflict & stress TASK INTERDEPENDENCE strategy provides benchmark to focus effort strong leader work experience education, training

20. How DoTEAMSAffect OHP? Strategies-Teams Str-9.d • generate organizational force (better meet more customer expectations) by enhancing the capacity to innovate and approach perfect service: • diverse perspectiveson problems (CIO Teams) • increases knowledge of customer (KPMG Vision Sessions) • create synergyof ideas for new ways to reach markets (What makes a Winner, CIO 1Feb01)

21. Strategies-Teams Str-9.e How TEAMSEnabled? • Potential to reduce organizationalspeedsorequiresWSSto facilitate group dynamics End-user devices capture Networks communicate  DBMS(Access) cradle & DSS(Excel) create convey

22. Information partnerships: evolutionary expansion of JIT Str-10.b • “What was the first collaborative process ... with Wal-Mart?” “Continuous replenishment (JIT). We (P&G) used it to build trust and demonstrate the value of information sharing and focusing on the ultimate consumer…, and it built the foundation (trust) for abigger sharing.” Drayer.2.3; 3.2 • “What other processes did this lead to?” “…The most exciting is Collaborative Planning, Forecasting and Replenishment (Information Partnership). It starts with joint business planningbetween the trading partners. That follows into promotion planning and various tactics leading to a sales forecast, leading to an order forecast…”Drayer.5.2-5 • “A company doing best practices today should be able to shareandexchangeforecasts and sales plans….” Global Logistics & Supply Chain Strategies, Sep02, p59

23. How do Information Partnerships affect OHP? Strategies-Partnerships Str-10.c • Agreements between organizations for sharing informationbeyond JIT to enhance each partner’s OHP: • Speed- doing what they already do faster by automating information flows • Vanity Fair & Walmart (then Levi’s) • Dock of a Bay (Navipact) • Building on IT (Buzzsaw) • Force - sharing strategic (market/product) information • P&G & Wal-Mart • Jackpot (Harrah’s) • DHS (CIA, FBI, ATF, INS, IRS….) Drayrer 4.2-4 & 3.4

24. How Are PARTNERSHIPS Enabled? Strategies-Partnerships Str-10.d • Information partnerships are an evolutionaryexpansion of JIT - TeamsDrayrer 5.5; 1.2 • Partnerships require same ITS to that are needed for JIT and TEAMS: • TPSincludingIOS tosupport electronic data interchange (EDI)--to capture and communicate information • DBMS & DSSto cradle data and support analytical processing that creates information/knowledge for decisions • WSS(MS Office) to permit inter-organizational teams overcome time, location & cultural cultural barriers to communicating • built on sameITcomponents with differencesin content(historicaldata : future plans) & knowledge worker access

25. What is a VIRTUAL ORGANIZATION? Strategies-Virtual Str-13.a • Most advanced collaboration between organizations in which they integrate their people and processes so well that organizational lines begin to blur.what is.com 1-4 • Organizations share responsibility for moving information and product with process owned by partner does it best Win-1 • The integration is like a husbandandwife who discuss parameters then share decision making responsibility. ” Win-3 • Examples:JC Penny & TAL (Hong Kong shirt manufacturer) , Homeland Security (CIA, FBI, ATF, INS), CSS, Jackpot, Building on IT (Buzzsaw, BuildPoint) 10 Quick Wins Supply Chain Management Review. 1May01

26. How Virtual Organizations Affect OHP? Strategies-Virtual Str-13.b • Magnifies both organizational speed and force: • provides relatively quick access to resources that provide opportunities to provide better service at the customer moment of value • accumulates a portfolio of knowledgeand skills that help develop tactics to penetrate markets more quickly and deeply Husband & Wife Quick Wins 1.3-5 Whatis.com 3-410 Quick Wins.2.2-3

27. How Are Virtual Organizations Enabled? Strategies-Partnerships Str-13.c • require IT similar to information partnerships to coordinateactivity so potential organizational speed and forceare realized Whatis.com 4, 1 • Virtual organizations & information partnerships require similar ITS to that needed for JIT and TEAMS: • IOSand TPSincludingdatabases tosupport electronic data interchange (EDI)by capturing, cradling, conveying, communicating information • DSSto support analytical processing that creates information/knowledge for decisions • WSS to permit interorganizational teams overcome time , location & cultural cultural barriers to communicating • built on same IT components as JIT with differencesin content, knowledge worker access and decisionmakinglocus 10 Wins 1.2 & 4, 2.1

28. What is a LEARNING ORGANIZATION? Strategies-Learning Str-14.a • people are continually discovering how to learntogetherand changing organization as a result of what they learn • to serve its customers better and fasterHaag 109.1.3 • offering more perfect service (force) • at the customer moment of value (speed). • Resembles an informationpartnership(husband & wife) that has evolved to a strategy of total / continuous quality improvement • Examples: • Casinos (Casino Technology, Jackpot: Harrah’s) • Healthcare Institutions • Intelligence Community

29. How are Learning Organizations Enabled? Strategies-Learning Str-14.b  capture, communicate & convey • IT systems to support the vision that “Success is never final. Failure is never fatal.”Winston Churchill • Intra/inter organizational networks that overcome barriers of organizational structures to information flow and creativity including: • TPS, CIS & IOS • MIS & EIS • WSS, DSS (AI) including DBMS that enhance capacity to cradle & create information and knowledge • AHP and Access projects N-Site

30. DIVINE DISCONTENT: Never be satisfied where you are, you can always improve. Core Belief, Kevin Turner, CIO Walmart “Inside the World’s Biggest Company”

31. DICSCIPLINE &EXECUTION :As a company, we’re big on execution. You can’t name a great team that wasn’t good at discipline. Execution and discipline are not the enemies of enthusiasm. Core Belief, Kevin Turner, CIO Walmart “Inside the World’s Biggest Company”

32. What are Timeless / Locationless operations? Strategies-T&L Str-11.b • Timeless organizations operate without regard to time and serve customers, whenever (24 * 7 ) customers want. • Locationless organizations operate without regard to location and serve customers wherever the customers want. • Sears Catalogue Order University Faculty & (old technology) distance learning • Dell

33. Str-11.d

34. Str-12.a What is a TRANSNATIONAL FIRM? • What is a TRANSNATIONAL FIRM? • Can you give examples? • from your work experience? • in your major? • in your CIO case? • How do TRANSNATIONAL FIRMS affect OHP? • How does JIT contribute to providing perfect service at the customer moment of value (quality)? • Does it contribute to organizational speed? • Does JIT contribute to organizational force? • How are TRANSNATIONAL FIRMS IT-enabled? • What IT systems are needed to implement a transnational firm?

35. reacted to the Second Wave of Globalization Strategies-Transnational Str-12.c • In the 1990s, governments and societies were becoming more protective of their cultures • responded by realigning its organization to think locally and act locallySlide7.5.a • In addition to the transnational strategy, Atlanta developed the ITS that provided the global infrastructure to coordinate global activities, for example: • virtual innovationcenters were supported to give people around the world the power to be innovative & creative (achieving force & speed) generating competitive advantage Beta Gamma Sigma, 3 May00

36. How organizations create an environment supporting IT innovation? Str-15.a • CEO attitude toward IT • It is essential that CEO and strategic management team understand MIS challenge and view IT as a critical resource • A CIO in the strategic management team is a sign • Bridging the gap between business and technical people • designing information systems requires fusion of the business problem and IT systems (ITS) • the CEO’s attitude, the CIO and the SDLC (system development life cycle) with its project teams are critical piers in bridging the gap

37. Supporting IT Innovation Str-15.a • Taking a user focus • building a useful information system begins with a user focus as the basis for identifying what is relevantslides 1.191.20 • Demanding creative solutions • begins with user needs focusing a process (SDLC) that brings business and IT people together in planning, developing & implementing ITS H.54.4  55.2

38. Supporting IT Innovation Str-15.c • Thinking beyond boundaries of the organization’s (outside the box) • Strategies that provide prefect service at the customer moment of value (MIS challenge) achieve efficiencies and innovation by bringing knowledge workers and organizations together in new ways • JIT (Dell) • Teams (Information Sciences Institute @ LSU) • Timeless & locationless (CHS) • Information Partnerships (Dock of Bay, Jackpot) • Virtual organizations (Building On IT) Flowchart IT Strategies