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Innovation as a Response to Change in Market and Technology. Technological Opportunities. Advances in Technology. EFFICINCY. EFFECTIVENESS. INNOVATION. INNOVATION. New Products and Services. Market Needs. Socio-political Changes. Market. Time.

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slide1

Innovation as a Response to Change in

Market and Technology

Technological Opportunities

Advances in Technology

EFFICINCY

EFFECTIVENESS

INNOVATION

INNOVATION

New Products and Services

Market Needs

Socio-political

Changes

Market

Time

slide2

Figure 3-6 Reengineered Accounts Payable Process (from Hammer[1])

Before

Copy of Purchase Order

Purchasing

Purchase Order

Payment

Accounts

Payable

Vendor

Invoice

Goods

Receiving Document

Receiving

slide3

Figure 3-6 Reengineered Accounts Payable Process (from Hammer[1])

After

Purchasing

Purchase Order

Payment

Accounts

Payable

Database

Vendor

Goods

Receiving

slide4

The Information Age vs.

the Computer Age

The Computer Age Time-sharing Computer 1960’s

Interactive Computing

Mini/Micro provide user with computer power (as of Mainframe) but with little cost

Advances in telecommunications(link terminals/PC mainframe)

End of the computer age

Beginning of the information age

Software advances in application packages (e.g. , DBMS, spreadsheet

PC as DSS tool to access information stored in the center computer files to support management decision-making process.

slide5

Firm Infrastructure (general management,

accounting, finance, strategic planning

Human Resource Management

(recruiting , training , development)

Technology Development

(R&D, product and process improvement)

Profit

Margin

Procurement

(purchasing of raw materials, machines, supplies)

Outbound Logistics (warehousing

and distribution of finished product)

Marketing and Sales (advertising, promotion, pricing, channel relations)

Service

(installation, repair, parts)

Operations

(machining, assembling, testing)

Inbound Logistics

(raw materials handling and warehousing)

Primary Activities

THE GENERIC VALUE CHAIN

Support

Activities

slide6

Information Engineering

PLANNING

ANALYSIS

DESIGN

CONSTRUCTION

what is information engineering
What is Information Engineering
  • The application of an interlocking set of formal techniques for the planning, analysis, design and construction of IS, applied ton an enterprise-wide basis or across a major sector of an enterprise.
  • An enterprise-wide set of automated disciplines for getting the right information to the right people with the right form at the right time.
slide8

SDLC

ANALYAIS

DESIGN

IMPLEMENTATION

MAINTENANCE

BUSINESS ENVIRONMENT

IS PROFESSIONALS

MANAGERS

ENVISION

DESIGN

BUILD

OPERATE

BUSINESS ENVIRONMENT IS CHANGING RAPIDLY RADICALLY AND PERPLEXINGLY

MANAGMENT

IS DEVELOPMENT

REENGINEERING

INFLUENCE CAPABILITY

LEADERSHIP

CONTROL

slide9

BUSINESS ENVIRONMENT IS CHANGING RAPIDLY RADICALLY AND PERPLEXINGLY

IS PROFESSIONALS

MANAGERS

ENVISION

DESIGN

BUILD

OPERATE

SDLC

ANALYAIS

DESIGN

IMPLEMENTATION

MAINTENANCE

MANAGMENT

IS DEVELOPMENT

REENGINEERING

INFLUENCE CAPABILITY

LEADERSHIP

CONTROL

slide10

Figure: Relationship and linkage of proposed system projects with strategic factors and the business plan

Objective

Proposal

Business Plan

Strategic Factors

System Project

  • Decrease direct labor and overhead by 20%
  • Increase our customer order-filing rate to 95%
  • Produce timely tracking and sales information for inventory
  • managers
  • Increase labor productivity
  • Improve service differentiation
  • Provide managers with better information
  • A standard cost accounting system that provides online labor rate and efficiency variances
  • An inventory management system that provides recorder points, EOQ’s, quantity on hand, and sales by item and salesperson.

Supports

Supports

slide11

Enablers

Inhibitors

  • Technological
  • Increase connectivity capabilities
  • Favorable cost-per-formance trends
  • Vendor push-system solutions
  • Organizational
  • Strategic vision for integration through an IT platform
  • Centrality of IT to the strategic context
  • Technological
  • Uncertainty
  • Cost of integration
  • Organizational
  • Lack of strategic vision for integration
  • Organizational inertia
  • Centralization -decentralization conflict

Internal Integration: Enablers and Inhibitors

IT-induced

reconfiguration:

Level Two

slide12

Enablers

Inhibitors

  • Electronic filing initiative by IRS
  • IT-based value-added services
  • Perceived benefits of an integrated platform
  • IT-based strategic advantages
  • Inability to view IT in strategic terms
  • Low economies of scale for integration
  • Inexperience with IT and IT-based applications
  • Mismatch with market needs
IT-industry business reconfiguration in level 2: Enables and Inhibitors in the tax return preparation business

IT-induced

reconfiguration:tax

return preparation

business

slide13

Enablers

Inhibitors

  • Ability to specify and/or create standards for integration
  • Identification of value-added services
  • Recognition of mutual benefits
  • Lack of standards
  • Lack of vision and understanding
  • Lack of commitment to integration
  • Possible erosion of market positions

Business network redesign: Enablers and inhibitors

IT-induced

reconfiguration:

Level Four

slide14

Strategic options for business network redesign

Tightly

coupled

Business

Network

redesign

Collaborative

advantage

Business Governance

Electric

infrastructure

Competitive

advantage

Loosely

coupled

Common role

Unique role

Information Technology Governance

business scope redefinition shifting the business domain using it
Business Scope Redefinition: Shifting the business domain using IT

Traditional business scope

Products

Products

Markets

Markets

Increased role for information technology in operations

Technology

Technology

Traditional operating technology

Before

After

most likely quadrant to quadrant movement
Most likely quadrant-to-quadrant movement

HIGH

Preemptive Penetration

Chaotic Proliferation

Interrelatedness

L

O

w

Barroom Brawl

Clash of the Titans

LOW

HIGH

Exploitability

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