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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-1
Real World Cases
User’s Guide forUser’s Guide forPowerPoint Presentations PowerPoint Presentations
Mary Carole HollingsworthMary Carole HollingsworthGeorgia Perimeter CollegeGeorgia Perimeter College
• Major topics outline of chapter will appear here, hyperlinked to the page where the topic is covered. A click jumps to the appropriate page.
• Running the presentation should be executed normally by using the mouse buttons. The space bar or Page-Down advances beyond where the flow should end.
• Click around the presentation – All hyperlinks in place are underlined – Works like the Web!
Similar hyperlinks are used as control alternatives for the presentations – A click on “Key Terms” or “Real World Cases” jumps to the page where they are presented.
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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-2
Real World Cases
Foundations of Foundations of Information Information
Systems in BusinessSystems in Business
Module I – Foundation Concepts
Practice the Jumps AroundThe File by Using the LinksAt the Left…The Use of the Real World Cases is Optional and are Accessed Using theHyperlinked Arrows in the Presentationsor From the Cases Page Available at allTimes by a Click to the Navigation Box.
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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-3
Real World Cases
Learning ObjectivesLearning Objectives1. Importance of information systems
and five needed areas of knowledge
2. Examples of business applications of information systems that support a firm’s business processes, managerial decision-making, and strategies for competitive advantage
3. Provide examples of several major types of information systems from your experiences with business organizations in the real world
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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-4
Real World Cases
Learning ObjectivesLearning Objectives4. Identify challenges a business
manager might face in managing the successful and ethical development and use of information technology in a business
5. Components of real world information systems - the use of hardware, software, data, and networks to perform input, processing, output, storage, and control activities that transform data resources into information products
Explore and Enjoy Using theseComprehensive Presentations!
Feedback, Questions, or ProblemsCan Be Directed to:
Mary Carole [email protected]
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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-5
Real World Cases
Foundation Concepts: Foundation Concepts: Information Systems in BusinessInformation Systems in Business
Why Study IS and IT?An Essential Field of Study
in BusinessReal World of Information
SystemsReal World Case 1- Real World Case 1-
Amazon.Com Amazon.Com Click to go toCase 1
The Rest of this FileDuplicates Chapter 1 and is
Included for Practice Drills Only!When You Are Finished,
Go to the Chapters Directly. User’s Guide Ends Here
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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-6
Real World Cases
Information TechnologiesInformation Technologies
• Computer Hardware
• Computer Software
• Telecommunications Network
• Data Resource Management
What is an Information System?
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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-7
Real World Cases
Foundation Concepts
ManagementChallenges
Information TechnologiesBusiness ApplicationsDevelopment ProcessesManagement Challenges
InformationSystems
FoundationConcepts
InformationTechnologies
DevelopmentProcesses
BusinessApplications
InformationSystems
IS Framework for BusinessIS Framework for Business
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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-8
Real World Cases
Roles of IS in BusinessRoles of IS in Business
SupportBusiness Processes and Operations
SupportBusiness Decision
Making
SupportStrategies
for CompetitiveAdvantage
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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-9
Real World Cases
Roles of e-Business in BusinessRoles of e-Business in BusinessSuppliers and OtherBusiness Partners
The InternetThe Internet ExtranetsExtranetsCompanyBoundary
Consumers andBusiness Customers
ExtranetsExtranets
Supply chain management:Procurement, Distribution, and Logistics
Customer relationship management:Marketing Sales Customer Service
Engineering andResearch
Manufacturingand Production
Accounting andFinance
IntranetsIntranets
IntranetsIntranets
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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-10
Real World Cases
• Distributor of Electrical Products and Supplies– Over 6,000 Employees– 5 Distribution Centers – 360 Branches Worldwide– Over 100,000 Customers
• New E-Business Ordering System• Increased Sales and Cut Costs• Est. $12 million Savings Annually
WESCO InternationalE-Business Sales and Supplier System
Roles of e-Business in BusinessRoles of e-Business in Business
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-11
Real World Cases
Trends in Information SystemsTrends in Information Systems
Data Processing: 1950s – 1960sElectronic Data Processing Systems
Management Reporting: 1960s – 1970sManagement Information Systems
Decision Support: 1970s – 1980sDecision Support Systems
Electronic Business & Commerce: 1990s – 2000sInternet-Based E-Business and E-
Commerce systemsStrategic and End User Support: 1980s – 1990sEnd User Computing SystemsExecutive Information SystemsExpert SystemsStrategic Information Systems
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-12
Real World Cases
Types of Information SystemsTypes of Information Systems
EnterpriseCollaboration
Systems
ManagementInformation
Systems
ProcessControlSystems
TransactionProcessing
Systems
DecisionSupportSystems
ExecutiveInformation
Systems
OperationsSupportSystems
ManagementSupportSystems
InformationSystems
ProcessingProcessingBusinessBusiness
TransactionsTransactions
ControlControlof Industrialof IndustrialProcessesProcesses
Team andTeam andWorkgroupWorkgroup
CollaborationCollaboration
PrespecifiedPrespecifiedReportingReporting
for Managersfor Managers
InteractiveInteractiveDecisionDecisionSupportSupport
InformationInformationTailored forTailored forExecutivesExecutives
Support of
Support of
Busines
s
Busines
s
Operat
ions
Operat
ions
Support of
Support ofManagerial
Managerial
Decision Making
Decision Making
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-13
Real World Cases
Other Information SystemsOther Information Systems
• Expert Systems (ES)
• Knowledge Management Systems
• Functional Business Systems
• Strategic Information Systems (SIS)
• Cross-Functional Information Systems
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-14
Real World Cases
Managerial Challenges of ITManagerial Challenges of IT
CustomerValue/BusinessValue
The Business Enterprise Strategies/ Processes/ Structure/ Culture
InformationInformationTechnologyTechnology
Business/ITBusiness/ITChallengesChallenges
Business/ITBusiness/ITDevelopmentsDevelopments
Business/ITBusiness/ITGoalsGoals
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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-15
Real World Cases
• Problems with ERP Software• $112 Million Project –
– Order Processing Problems– Multiple Vendor Applications
Being Installed Simultaneously
• Initial Problems to Implement• Recent Success with Upgrades
Hershey Foods:Failure and Success with IT
Managerial Challenges of ITManagerial Challenges of IT
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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-16
Real World Cases
Developing IS SolutionsDeveloping IS Solutions
InvestigateInvestigate
AnalyzeAnalyze
DesignDesign
ImplementImplement
MaintainMaintain
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-17
Real World Cases
The IS FunctionThe IS Function• A Major Functional Area of
Business – Important to Success
• Important Contributor to Operational Efficiency, Employee Productivity and Morale, and Customer Service and Satisfaction
• A Major Source of Information for Decision Making
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-18
Real World Cases
• New ERP Suite of Software– Loss of Business– Workers Didn’t Understand
System– Upgrade of Servers and
Databases– Redesigning Processes and
Training Customers• Now Reaping Benefits
A-DEC Inc.:Challenges in Systems Development
Developing IS SolutionsDeveloping IS Solutions
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-19
Real World Cases
Challenges of Ethics and ITChallenges of Ethics and IT• Ethical Responsibilities• Be a Responsible End-UserApplications
of ITPotential
HarmsPotential
RisksPossible
Responses
CustomerCustomerRelationshipRelationshipManagementManagement
HumanHumanResourcesResourcesManagementManagement
BusinessBusinessIntelligenceIntelligenceSystemsSystems
Infringe-Infringe-ments onments onPrivacyPrivacy
InaccurateInaccurateInformationInformation
CollusionCollusion
CustomerCustomerBoycottsBoycotts
WorkWorkStoppagesStoppages
GovernmentGovernmentInterventionIntervention
Codes ofCodes ofEthics Ethics
IncentivesIncentives
CertificationCertification
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-20
Real World Cases
Challenges of Ethics and ITChallenges of Ethics and IT• Protection from Crime and
Other Risks Link Staffing: Network Security and Ethical Use • E-Mail and Antivirus Filtering• Limits on Size and Types of
Attachments, Chatting Banned– Use of Secure VPN Service– Tough Employee Standards
• Termination for Violations
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-21
Real World Cases
Challenges of IT CareersChallenges of IT CareersAmazon.Com:
IT Career Challenges• Huge Demand for Systems
Professionals– On-line Customer Sales Support– Technology as a Means to an End
Where the End is the Customer or Just Have Technical Skills
• Hard to Find a Combination of Skills
• Functioning in Unexplored Territory
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-22
Real World Cases
The IS FunctionThe IS Function• Vital for Developing
Competitive Products and Services to Gain Strategic Advantage
• Dynamic, Rewarding, and Challenging Career Opportunities
• Key Component of the Resources, Infrastructure, and Capabilities of Networked Business Enterprises
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-23
Real World Cases
Foundation Concepts: The Foundation Concepts: The Components of Information SystemsComponents of Information Systems
• Technology• Applications• Development• ManagementReal World Case 2- Real World Case 2- Kodak, HP, and Kodak, HP, and Amersham BiosciencesAmersham Biosciences
Click to go toCase 2
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-24
Real World Cases
Systems Concepts: Systems Concepts: A FoundationA Foundation
What is a System?
• Input
• Processing
• Output
• Feedback
• Control
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-25
Real World Cases
Systems ConceptsSystems Concepts• Environment• Subsystem• Interface• Open Systems• Adaptive System
Graphically…
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-26
Real World Cases
Information System ModelInformation System ModelStakeholders in the Business Environment
The CommunityThe Community CompetitorsCompetitors
Financial InstitutionsFinancial Institutions Labor UnionsLabor Unions
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Sto
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Management
Information Systems
InputInput ProcessingProcessing OutputOutput
ControlControl
FeedbackFeedback
EconomicResources
BusinessResources
Goods &Services
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-27
Real World Cases
Components of an IS Components of an IS 1. People Resources
- End Users - IS Specialists2. Hardware
- Machines - Media3. Software
- Programs - Procedures4. Data Resources
- Data and Knowledge Bases5. Network Resources
- Communications Media and Networks
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-28
Real World Cases
Software Resources- System Software- Application Software- Procedures
Data Resources- Data Bases - Knowledge Bases
Data vs. Information
Components of an IS Components of an IS
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-29
Real World Cases
Information System ActivitiesInformation System Activities
Input Data Resources- Source Document - User Interface
Processing Data into Information Products
Storage of Data Resources
Control of System Performance
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-30
Real World Cases
Recognizing Information Recognizing Information SystemsSystems
Analyzing Information Systems
Recognizing:
IS Resources
Information Products
IS Activities
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-31
Real World Cases
Recognizing Information Recognizing Information SystemsSystems
Analyzing Kodak and HP’s Information Systems
• IS Resources
• Information Products
• IS Activities
Chapter Conclusions…
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-32
Real World Cases
SummarySummary1. An IS Framework for Business
Professionals1) Foundation Concepts - Fundamental
Concepts of IS2) Information Technologies – Hardware,
Software, Data Management, and Networks
3) Business Applications – Processes, Operations, Decision Making, Strategic/Competitive Advantage
4) Development Processes – Develop and Implement Business/IT Solutions
5) Managerial Challenges – IT Uses for Top Performance and Business Value
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-33
Real World Cases
SummarySummary2. Business Roles of Info. Systems
1) Three Vital Roles of IS –a- Support Business Processesb- Business Decision Makingc- Strategic Competitive Advantage
2) Management Support Systems3) Management Information Systems4) Decision Support Systems5) Executive Information Systems6) Expert Systems7) Knowledge Management Systems8) Strategic Information Systems9) Functional and Cross-Functional
Information Systems
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-34
Real World Cases
SummarySummary3. Systems Concepts
1) Interrelated Components – Common objective
2) Inputs
3) Processing
4) Outputs
5) Feedback
6) Control
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-35
Real World Cases
SummarySummary4. An Information System
Model1)People2)Hardware3)Software4)Data5)Networks6)Storage
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-36
Real World Cases
SummarySummary5. IS Resources and Products
1)Hardware Resources2)Software Resources
-Programs-Procedures
3)People Resources-Systems Specialists-Users
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-37
Real World Cases
KEY TERMSKEY TERMSComputer-Based Information SystemControlDataData or Information ProcessingData ResourcesDeveloping Business/IT SolutionsE-BusinessE-Business Role in BusinessElectronic CommerceEnd UserEnterprise Collaboration Systems
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-38
Real World Cases
KEY TERMSKEY TERMSExtranetFeedbackHardware Resources - Machines – Media Information
- Products - QualityInformation SystemInformation System Activities
- Input - Processing - Output- Storage - Control
Information System modelInformation Technology (IT)Intranet
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-39
Real World Cases
KEY TERMSKEY TERMSIS Knowledge Needed by Business
ProfessionalsKnowledge WorkersManagement Challenges of IS
- Ethics and IT- IT Career Challenges- IT Success and Failure
Network ResourcesPeople Resources
- IS Specialists - End Users
Roles of IS Applications in Business- Support of Business Processes and Operations
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-40
Real World Cases
KEY TERMSKEY TERMS- Support of Business Decision Making- Support of Strategies for Competitive Advantage
Software Resources- Programs - Procedures
SystemTrends in Information SystemsTypes of Information Systems
- Cross-Functional Systems- Management Support Systems- Operations Support Systems
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-41
Real World Cases
Real World Case 1 Amazon.Com
Click to go toCase 1
Real World Case 2 Kodak, HP, and Amersham Biosciences
Click to go toCase 2
Optional Case StudiesOptional Case Studies
Real World Case 3 Aviall, Inc.
Real World Case 4 Pacific Gas & Electric, Inc.
Click to go toCase 3
Click to go toCase 4
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-42
Real World Cases
Competing with Information Technology
Chapter 2
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-43
Real World Cases
Amazon.ComAmazon.Com
• Fundamental Roles of IS Including: – Support of Operations, Decision
Making and Strategic Competitive Advantages
• Use of E-Business Environment – Usage of Internet, Intranet and
Extranet Technologies• Management Style of Decision
Making• Dependence on IT for
Competitive Strategies
1- Could Amazon.com achieve business 1- Could Amazon.com achieve business success without information technology? success without information technology?
Why or why not?Why or why not?
Return toCases Page
Return toChapter 1
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-44
Real World Cases
•IT Plays a Vital and Expanding Role in all Businesses
•Planning and Using IT Should be a Key Component of all Efforts by a Business to Remain Competitive in a Global Environment
•Expanding Roles of the Business Applications of IS
•Classification of IS that Describe the Role of Each in the Support of Business Operations and Managerial Decision Making
Amazon.ComAmazon.Com2- Can any business today succeed 2- Can any business today succeed without information technology? without information technology?
Why or why not?Why or why not?
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-45
Real World Cases
Return toCases Page
Amazon.ComAmazon.Com3- Jeff Bezos says that: “The 3- Jeff Bezos says that: “The
trouble with most corporations is trouble with most corporations is that they make judgment-based that they make judgment-based
decisions, when data-based decisions, when data-based decisions could be made.” Do you decisions could be made.” Do you
agree or not? Explain.agree or not? Explain.
Return toChapter 1
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-46
Real World Cases
• Major Roles of IS in a Business
Return toCases Page
Amazon.ComAmazon.Com3- Jeff Bezos says that: “The 3- Jeff Bezos says that: “The
trouble with most corporations is trouble with most corporations is that they make judgment-based that they make judgment-based
decisions, when data-based decisions, when data-based decisions could be made.” Do you decisions could be made.” Do you
agree or not? Explain.agree or not? Explain.
Return toChapter 1
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KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-47
Real World Cases
• Major Roles of IS in a Business• Trends in IS that Depict the
Changing Role of IS to Support Managerial Decision Making
Return toCases Page
Amazon.ComAmazon.Com3- Jeff Bezos says that: “The 3- Jeff Bezos says that: “The
trouble with most corporations is trouble with most corporations is that they make judgment-based that they make judgment-based
decisions, when data-based decisions, when data-based decisions could be made.” Do you decisions could be made.” Do you
agree or not? Explain.agree or not? Explain.
Return toChapter 1
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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS
KEY TERMS
Copyright 2005, McGraw-Hill/Irwin, Inc. 1-48
Real World Cases
Kodak, HP, andKodak, HP, andAmersham BiosciencesAmersham Biosciences
What is the business challenge What is the business challenge facing companies like Kodak and facing companies like Kodak and HP in supporting their global HP in supporting their global sales forces? How successfully is sales forces? How successfully is the Eloquent software tool the Eloquent software tool helping these two companies meet helping these two companies meet this challenge? Explain.this challenge? Explain.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-49
Real World Cases
Kodak, HP, andKodak, HP, andAmersham BiosciencesAmersham Biosciences
• Silo syndrome - The Cost of Employee Time Spent on Research, Preparing Reports and Developing Support for the Sales Staff Without an Easy Way to Access the Information
• Data is Being Collected, but Kodak and HP are not Good at Sharing and Updating the Data
• Unused Valuable Marketing Information and Other Intellectual Property
Challenges would include:Challenges would include:
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-50
Real World Cases
Kodak, HP, andKodak, HP, andAmersham BiosciencesAmersham Biosciences
• Ability to Deliver a Full Range of Product Information – Includes Text, Synchronized Video,
Graphics, Audio and Search Capabilities to Globally Dispersed Sales Organizations
• Allowing People to get More Done and Spend More Face Time with Customers as Opposed to Calling on the Phone to Kodak
How successful is the Eloquent How successful is the Eloquent software tool is described by software tool is described by Kodak and HP:Kodak and HP:
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-51
Real World Cases
Kodak, HP, andKodak, HP, andAmersham BiosciencesAmersham Biosciences
• HP’s Ability to “Close the Loop on Sales Readiness” with the Eloquent Software’s Capability to Track and Report on Usage and Measurement of Learning Led to a Tenfold Return on Investment for the Company
How successful is the Eloquent How successful is the Eloquent software tool is described by software tool is described by Kodak and HP:Kodak and HP:
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Real World Cases
Kodak, HP, andKodak, HP, andAmersham BiosciencesAmersham Biosciences
Why was Amersham Biosciences’ Why was Amersham Biosciences’ Excel-based system a business Excel-based system a business and IT failure? How successfully and IT failure? How successfully is the Synygy software solving the is the Synygy software solving the business and IT problems business and IT problems involved? Explain. involved? Explain.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-53
Real World Cases
Kodak, HP, andKodak, HP, andAmersham BiosciencesAmersham Biosciences
• A Highly Manual Process• A Very Labor Intensive Task• A Process that was Fraught
with Error• Lack of Confidence in the Sales
Staff about the Accuracy of the Excel-Based System
• High Level of Error Correction
Amersham Biosciences” Excel-Amersham Biosciences” Excel-based system was a business and based system was a business and IT failure due to:IT failure due to:
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-54
Real World Cases
Kodak, HP, andKodak, HP, andAmersham BiosciencesAmersham Biosciences
• Reduced Department’s Head Count by One Full Time Worker
• The Existing Four Week Period Required to Fix Problems was Reduced to Less than a Week
• Sales Staff have Confidence in the New Software
How successfully is the Synygy How successfully is the Synygy software solving the business and software solving the business and IT problems involved?IT problems involved?
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-55
Real World Cases
Kodak, HP, andKodak, HP, andAmersham BiosciencesAmersham Biosciences
• Refocusing the Sales Staff’s Time Toward Customer Contact Rather than Toward Report Preparation, Error Correction, and Information Gathering
• Enabling the Sales Staff to Learn about New Product Information and Services Quickly so Promotional Efforts can be Better Directed
How else could IT be used to How else could IT be used to support a global sales force? Give support a global sales force? Give several examples.several examples.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-56
Real World Cases
Kodak, HP, andKodak, HP, andAmersham BiosciencesAmersham Biosciences
• Measuring the Learning about New Products and Services to Improve the Expertise of the Sales Staff to Seal Sales and Boost Company Sales
How else could IT be used to How else could IT be used to support a global sales force? Give support a global sales force? Give several examples.several examples.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-57
Real World Cases
Kodak, HP, andKodak, HP, andAmersham BiosciencesAmersham Biosciences
• Measuring the Learning about New Products and Services to Improve the Expertise of the Sales Staff to Seal Sales and Boost Company Sales
• Improve the Accuracy of the Compensation Packages for the Sales Staff by Being Able to More Correctly Evaluate their Efforts
How else could IT be used to How else could IT be used to support a global sales force? Give support a global sales force? Give several examples.several examples.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-58
Real World Cases
1- Why do you think that 1- Why do you think that Aviall failed in their Aviall failed in their implementation of an implementation of an enterprise resource enterprise resource planning system? planning system?
What could they What could they have done differently? have done differently?
Aviall Inc.Aviall Inc.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-59
Real World Cases
• ERP System Did Not Support Adequately Aviall’s Business Strategies
• The ERP Did Not Improve the Basic Operational Support System Needed to Provide Supply Chain Management
• The ERP System Project Did Not Adequately Address the Issue of Systems Integration
• Implementation of the ERP Failed Due to Inadequate Consideration of the Magnitude of the Project
Reasons why Aviall failed would Reasons why Aviall failed would include:include:
Aviall Inc.Aviall Inc.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-60
Real World Cases
• Project Planning Through the Use of Some Form of a Systematic Development Process
• Analysis of the Business Requirements Prior to Making Decisions about the Software to Acquire for the ERP System
• Project Management Should Have Been a Higher Consideration of Aviall
What Aviall could have done What Aviall could have done differently would include the differently would include the following:following:
Aviall Inc.Aviall Inc.
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Real World Cases
2- How has information 2- How has information technology brought new technology brought new business success to Aviall? business success to Aviall? How did IT change How did IT change Aviall’s business model?Aviall’s business model?
Aviall Inc.Aviall Inc.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-62
Real World Cases
• System Integrated by Using Common Business Databases Managed by Database Software from Sybase, Inc.
• Designing the New Combined System to Properly Access and Deal with Customized Pricing Charts for 17,000 Customers Who Receive Various Types of Discounts, and with an Inventory of 380,000 Different Aerospace Parts
• Developing Aviall.com to Reduce the Cost Per Order from $9 per Transaction to 39 Cents
How IT brought new business How IT brought new business success for Aviall would include:success for Aviall would include:
Aviall Inc.Aviall Inc.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-63
Real World Cases
• Customers are Able to Transfer their Orders from an Excel Spreadsheet Directly to the Web Site
• Customers have Access to Price and Availability Information in Less Than Five Seconds – A Real Time Feature
• Sales Force Spends More Time Developing Customer Relationships than Processing Routine Orders
• Aviall Can Better Match Production to Demand from the IT Improvements
How IT brought new business How IT brought new business success for Aviall would include:success for Aviall would include:
Aviall Inc.Aviall Inc.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-64
Real World Cases
• Changed Aviall from a Catalog Business to Full-Scale Logistics Business
• Aviall Became a Provider of Supply Chain Management Services through the Integration of a Range of Web-Enabled E-Business Software Systems
How IT changed Aviall’s business How IT changed Aviall’s business model would include:model would include:
Aviall Inc.Aviall Inc.
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Real World Cases
3-3- How could other companies How could other companies use Aviall’s approach to the use Aviall’s approach to the use of IT to improve their use of IT to improve their business success. Give business success. Give several examples. several examples.
Aviall Inc.Aviall Inc.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-66
Real World Cases
• Reposition a Firm as a Supply Chain Management Services Provider Through Web-Enabled E-Business Software Systems
Examples would include:Examples would include:
Aviall Inc.Aviall Inc.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-67
Real World Cases
• Reposition a Firm as a Supply Chain Management Services Provider Through Web-Enabled E-Business Software Systems
• Redesign the Customer Relationship Management System to Minimize the Routine Order Processing and Permit the Sales Force to Focus on Product and Service Development Efforts that will Grow Revenue
Examples would include:Examples would include:
Aviall Inc.Aviall Inc.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-68
Real World Cases
Pacific Gas & Electric Co.: Pacific Gas & Electric Co.: Developing Customer Service Developing Customer Service
Information Systems Information Systems 1-1- Why has deregulation of Why has deregulation of
the electric power industry the electric power industry increased the need for new increased the need for new approaches to provide better approaches to provide better customer service and customer service and management by management by utility companies?utility companies?
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Real World Cases
Pacific Gas & Electric Co.: Pacific Gas & Electric Co.: Developing Customer Service Developing Customer Service
Information Systems Information Systems
• Deregulation Allowed Entry of New Competitors into the Industry
• Increased Competition in a Deregulated Industry Demands a New Up-To-Date Customer Relationship Management System
• Deregulation Resulted in the Establishment of Some of the Most Complex Formats in North America for Setting the Billing Rates that Different Utility Customers are Charged
Considerations would include:Considerations would include:
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Real World Cases
Pacific Gas & Electric Co.: Pacific Gas & Electric Co.: Developing Customer Service Developing Customer Service
Information Systems Information Systems 2-2- What are the business benefits What are the business benefits
and costs of PG&E’s new and costs of PG&E’s new customer information system? customer information system? Also, visit the PG&E website Also, visit the PG&E website and evaluate how well it helps and evaluate how well it helps them provide better customer them provide better customer service.service.
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Real World Cases
Pacific Gas & Electric Co.: Pacific Gas & Electric Co.: Developing Customer Service Developing Customer Service
Information Systems Information Systems
• The Legacy CIS was 37 Years Old and had Exhausted its Useful Life and was No Longer Flexible. The New System is More Feature-Rich
• Information in the System is Automatically Updated Rather than Updated After a Few Days Following the Batch Processing of Jobs by the Old System
Business benefits and costs would Business benefits and costs would include:include:
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Real World Cases
Pacific Gas & Electric Co.: Pacific Gas & Electric Co.: Developing Customer Service Developing Customer Service
Information Systems Information Systems
• Total Investment was $204 Million• PG&E have the Largest Off-The-
Shelf CIS Software Installation to Date
• Eliminated the Lack of Integration Between the Old Mainframe System and other Applications; Thus Reducing Lag Time for Customer Service Workers
Business benefits and costs would Business benefits and costs would include:include:
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Real World Cases
Pacific Gas & Electric Co.: Pacific Gas & Electric Co.: Developing Customer Service Developing Customer Service
Information Systems Information Systems
3-3- How can new customer How can new customer information systems like information systems like CorDaptix help companies like CorDaptix help companies like PG&E compete in their new PG&E compete in their new de-regulated markets? Visit de-regulated markets? Visit the SPL World Group Website the SPL World Group Website and evaluate their claims for and evaluate their claims for companies that use CorDaptix.companies that use CorDaptix.
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Copyright 2005, McGraw-Hill/Irwin, Inc. 1-74
Real World Cases
Pacific Gas & Electric Co.: Pacific Gas & Electric Co.: Developing Customer Service Developing Customer Service
Information Systems Information Systems
• Customer Service Workers Can Access Updated Information in a Real-Time Environment as Compared to a Several Day Delay Under the Older Batch Processing Environment
The new CIS can assist companies The new CIS can assist companies such as PG&E by:such as PG&E by:
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Real World Cases
Pacific Gas & Electric Co.: Pacific Gas & Electric Co.: Developing Customer Service Developing Customer Service
Information Systems Information Systems
• The Newer Better Integrated CIS Makes Data More Readily Available to Customer Service Workers
The new CIS can assist companies The new CIS can assist companies such as PG&E by:such as PG&E by:
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Real World Cases
Pacific Gas & Electric Co.: Pacific Gas & Electric Co.: Developing Customer Service Developing Customer Service
Information Systems Information Systems
• The Newer Better Integrated CIS Makes Data More Readily Available to Customer Service Workers
• The New CIS Added Additional Features that Allow the Company to Operate in a Highly Competitive Market after Deregulation
The new CIS can assist companies The new CIS can assist companies such as PG&E by:such as PG&E by:
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