Chapter 12 Introduction

1. Chapter 12 Introduction Using Information Systems to Compete: A Success Factor Profile

2. Success Factor Profile to Understand Successful Use of IS • Initial Planning Process: to focus information systems on competitive issues. • Assessment of the Progress: assessment of new systems and how they are meeting competitive objectives. • Audit Device for Mature Systems: to make sure the company has not missed a shift in the dynamics of the organization’s competitive environment.

3. Business Vision:A documented outlook addressing logical and achievable goals that can be both understood and accepted throughout the organization. Culture:“the way we do things around here.” Risk Management:Financial factors, risks that the company is willing to take in running the business. Plan Implementation:Must be viewed as a process and not a document driven by calendar dates. Information Systems Integral to the Business:What would happen to the business if the information systems suddenly stopped working? Important Factors Included in the Profile

4. Important Factors includes in the Profile • Information Systems Justification Process:Financial strategies specific to IS and an ability to articulate the value of information systems to the business. • Executive and Information Systems Management Partnership:Senior management and information systems managers developing an open dialogue and an ongoing working relationship. • Executive Information Systems Experience: Senior executives that truly understand the key factors relative to the effective use of information systems.

5. Operational Automation:Internal operations is one of the major opportunity areas for the effective use of information systems. Linkage to Suppliers and/or Other Business Partners: Strong alliances and information systems use to build a stronger competitive position. Linkage to Customers: Major value to customer realized with customers through electronic links. Important Factors Included in the Profile

6. Linkage to Customer Service: This is the services part of the value chain. It deals with linking the customer for on-line diagnostics and in some cases actual repair. Pervasive Computing Literacy:Is the computer literacy of the people in the organization good enough to effectively utilize more advanced systems that have a competitive advantage objective? Important Factors includes in the Profile

7. Information Systems Architecture: A major factor in the success of the company based on identifying an architecture on how to design and build future systems. Information Systems Marketing:The information systems organization had a pro-active effort to market and sell possible new information systems. Information Systems and User Relations: A good, ongoing relationship between the information systems organization and users. Important Factors includes in the Profile

8. Evaluating Profile Factors in Section III of the ATP • Identify five or six key factors. • How important were each of these factors as they related to gaining a competitive advantage? • Who played a key role in making them key success factors: senior management, functional management or information systems management.

9. Conclusions The Success Factor Profile is: • The fifth and final part of the structured analysis process. • It can be used as a planning vehicle to identify key factors that must be addressed for an organization to use information systems to gain competitive advantage. • It can also be very effective in summarizing the reasons why a specific company was able to gain competitive advantage through the use of information systems. • This last approach is how it will be used in our papers.

10. Possible Exam Questions • Is there a single factor that dominates the explanation for the successful use of information systems to gain a competitive advantage? • In what three modes (time frames) can the Success Factor Profile be used?

11. Chapter 12 Using Information Systems to Compete: Success Factor Profile

12. Success Factor Profile

13. Federal Express Success Factor Profile 1. Vision 2. Culture 3. Executive and Information Systems Management Partnership 4. IS Integral to the Business

14. British AirwaysSuccess Factor Profile 1. Vision 2. Culture 3. Information Systems Integral to the Business 4. Executive and IS Management Partnership 5. Information Systems Architecture

15. Organizational Improvement Three Essential Elements Tools Which one is most important? Culture Processes

16. Culture The ability to change the culture of a company is both necessary and sufficient since it is the beginning, the middle and the end to making change.

17. Culture Importance! Corporate culture is amorphous but crucial, hard to nail down and harder still to change. There is also a fear that too much change risks killing the best a company offers or what made them successful. Corporate culture is not unlike a human body when faced with a transplant. Whether it needs help or not, the immune system is set up to fight—and sometimes reject what is foreign.

18. Company Cultures Southwest Airlines’ culture is spirited and customer oriented. Microsoft’s culture is brilliant and ruthless. Gannett’s culture is only the fittest survive. “When USA Today turns a profit we will release the prisoners.” Alan Neuharth

19. Harley-Davidson Culture 1. Ethics and honesty. 2. Have fun! 3. Renewal, not survival. 4. Total experience. 5. Commitment, not compliance. 6. Community. Richard Teerlink

20. Company Culture or Marketing Slogans? • DuPont: Better things for better living through chemistry. • Federal Express: Absolutely and positively overnight delivery. • Allstate Insurance: You’re in good hands with Allstate. • Frito-Lay: There is no such thing as doing too much for a customer.

21. Risks and Pitfalls of Cultures • A strong culture can become a deterrent to necessary change. • It can cause inconsistency if you can’t adhere faithfully and consistently to the values it intends to promote. • It can cause organizational obsolescence.

22. Chapter 13 IS Organization and Personnel Considerations

23. Information Systems Management Issues IS Organization and Personnel Considerations IS Value and Financial Strategies Roles, Roles and Relationships Integrating Business and IS Planning TQM and Information Systems

24. A Successful Enterprise • Based on a Clear and Simple Theory of Business. • Clearly Understood Objectives.

25. Information Systems Organization IS Vice President Data Base Administration Administrative Staff Data Base Administration Office Systems Planning Development & Maintenance Systems Support Computer Operations Network Operations Project Managers Systems Programming Systems Analysts Programmers Figure 13-1 Development Center Information Center

26. Scope of IS Organization DP Dept. MIS Organization Corporate Information Systems Office Systems End User Computing Tele- communications ?

27. IS Organization and Personnel 1. What is the logical skill profile for the person that heads the information systems organization? 2. How difficult is the information systems manager job compared to other major functions within a company? 3. To whom should the information systems manager report? 4. Is there something unique about information systems that there is really a need for a steering committee that spans the organization? 5. Is there a logical alternative to having a steering committee?

28. IS Organization and Personnel 6. If the information systems manager reported to you, what major factors would you like to review with her on a regular basis to assure yourself that the information systems organization is being well managed? 7. It is not unusual to find people who feel that information systems employees are different from other employees. Is this actually the case? If so, how would you suggest that they be treated and managed? 8. What will the information systems organization look like in the future? What are the primary reasons that it is changing?

29. IS Organization and Personnel 9. Are there major issues to be addressed in establishing the information systems organization of the future? 10. Does the current information systems environment call for the creation of newly structured jobs and skill profiles?

30. IS Organization and Personnel • What is the logical skill profile for the person that heads the information systems organization?

31. IS Manager Profile • Business Knowledge • Management Experience • People and Organizational Skills • Politically Astute • . . . On an IT Knowledge Base

32. A Non-IT Background Information Systems Manager Short Changes Both Company Management and Users.

33. IS Organization and Personnel • How difficult is the information systems manager job compared to other major functions within a company?

34. Difficulty of IS Manager Job • Largest Staff Function • A Dual Personality Job • Provides Both Products and Services • Must Interface with Multiple Groups • Frequently Deal with Uniformed Publics • Function in an Area of Rapid Change • Under Frequent Financial Scrutiny

35. IS Organization and Personnel • To whom should the information systems • manager report?

36. The IS Executive Should Report To? • CEO, President or General Manager • Chief Financial Officer • VP of Operations • None of the Above What criteria should be used to make this decision?

37. IS Organization and Personnel • If the information systems manager • reported to you, what major factors • would you like to review with her on a • regular basis to assure yourself that the • information systems organization is • being well managed?

38. If the IS Executive Reported to You 1. Status of major projects. 2. Future capacity projections. 3. Assessment of support to key users. 4. Productivity improvements within the I/S organization. 5. Contribution to the competitiveness of the business.

39. Successful Information Systems A Product of Good Working Relationships • Senior Management Who Run the Entire Business. • Functional Management Who Run Major Parts of the Business. • Actual Users of Information Systems on a Day-to-day Basis.

40. Working Relationships • Information Systems Steering Committees • Functional Interface Managers • Functional End-user Coordinators • Service Level Agreements • User Training and Education • Application and Technical Consultation • Joint R&D Projects • The Working and Personal Relationship of the I/S Manager Within the Company

41. IS Organization and Personnel • Is there something unique about information • systems that there is really a need for a steering • committee that spans the organization? • Is there a logical alternative to having a • steering committee?

42. IS Steering Committees • Frequently do not work the first time that an • organization uses this approach. • Should function as a true “Board of Directors” • for the IS organization. • Major benefit is often visibility of IS within • the organization and communication regarding • major activities.

43. IS Organization and Personnel • It is not unusual to find people who feel that information systems employees are different from other employees. • Is this actually the case? • If so, how would you suggest that they be treated and managed?

44. IS Personnel 1. Does the organization have enough qualified people? 2. Do their skills address both current and future needs? 3. Does a migrant worker mentality exist among the information systems professionals? 4. Is the best way to grow a strong information systems organization by hiring and developing your own people?

45. IS Personnel • 5. Can an information systems organization • promote long term career growth? • 6. What is the relationship between the satisfaction of IS employees and the success of the business? • Are the above questions out-dated and is the • right future information systems organization a small core of people with the rest sub-contracted to outside companies?

46. IS Personnel 1. Treat new hires for information systems the same as any new employee within the company. 2. During their first five years emphasize the value of different experiences by not allowing an employee to stay with the same manager for longer than eighteen months. 3. Work to establish parity in the perspective of information systems employees towards jobs in operations, applications development and systems design/support.

47. IS Personnel 4. Promote information systems people into other jobs within the company. At a later date bring them back into the information systems organization with another promotion. 5. Spend more time on identifying and developing management potential people within the information systems organization. 6. Work to eliminate a mentality that job "burn-out" is inevitable with information systems employees.

48. IS Personnel 7. Make sure that the work environment is as good as that of the rest of the company. 8. Pay special attention to excessive overtime. 9. Recognize and reward those that make major contributions. 10. Have fun within the information systems organization. No one ever said that IS jobs are supposed to be dull and completely stressful.

49. IS Personnel 11. The old “employment contract” between employee and employer was: Do a good job and you can expect lifetime employment. What is the new “employment contract?”

50. Customer Service Organization Executive Review Board Operations Customer Service Organization Application Development Users Technical Support IS Management and Administration