Management Information Systems: Solving Business Problems with Information Technology Part Four: Organizing Businesses and Systems Chapter Thirteen: Organizing.

Management Information Systems:

Solving Business Problems with Information Technology

Part Four:Organizing Businesses and SystemsChapter Thirteen:Organizing MIS Resources

Prof. Gerald V. PostProf. David L. Anderson

1. Market Definition and Segmentation 2. Customer Supply Chain and Channels 3. Increasing the Number of Contact Points 4. Barriers to Entry and Exit 5. Role of the Portal 6. Danger of the "Downward Price Spiral" 7. Process: Content/Context/Interaction/Channel Masters/Management Complexities 8. Seller-controlled, buyer-controlled, and dynamic supply and demand models 9. Market place of one 10. Web Portal/Forward/Reverse Auctions/Exchanges Yahoo/E-Bay/Priceline/CDNow 11. Value-Added Communities Globalization Industry-Focused or Vertical Cross-Industry or Horizontal

Organizing MIS Resources: Strategy and TacticsOrganizing MIS Resources: Strategy and Tactics

e-Business Strategy

Infrastructure

WebDesign

Businessto BusinessMarketing

InternetMarketing

BusinessIntelligence

Implementation Strategies I

Implementation Strategies II

Balanced Scorecard

The Four Phases of The Four Phases of Implementing MIS ResourcesImplementing MIS Resources

One: Sellingthe Vision

Two: Buildingthe Company

Three: Advertisingthe Business

Four: Implementingthe Business

Five: Moving into the Future

Technological Change DriversTechnological Change Drivers

Point of Purchase Displays

Scanning Devices

Networking Telecommunications

OpticalCharacterReaders

TelecommunicationsDevices

Organizational Factors can be Organizational Factors can be Measured More AccuratelyMeasured More Accurately

o Cost, Revenue, Profit, Investment Centero Strategic Business Unito Critical Success Factorso Core Competencies

MIS Trends More PronouncedMIS Trends More Pronounced

o Standardizationo Leverageo Mass Customizationo Franchiseo Methodologyo Modularizationo Liquid vs. Fixed Assetso Client/Servero Knowledge, Information, or Expertise Driven

Inductive

Deductive

General Cases

Specific Rules

General CasesTransference

ReasoningReasoning

CLIENT

Customer Value Chain

What is Produced/ Provided To Me (inputs)

What I Do (process)

What I Produce (Outputs)

Who I Produce It For (Customers)

Computer Hardware and Software Local Area Network Installations

Implement Technology to Accomplish Strategic Goals

Working Models

Practice AreaInformation

Margin

Margin

Firm Infrastructure

Human Resource Management

Technology Development

Procurement

Inbound Logistics Operations

Outbound Logistics

Marketing & Sales

Marketing Management

AdvertisingSales Force Admin.

Sales Force Oper.

Promotion

Service

Technical Literature

Customer Value Chain

Customer Value Chain

Grower Jobber$8.00

Wholesaler$12.00

Florist$24.00

Customer

$60.00

Customer

$54.00

Distribution ChainDistribution Chain

Potential Entrants

Suppliers

Industry Competitors

Rivalry Among Existing Firms

Buyers

Substitutes

Bargaining power of suppliers

Threat of new entrants

Bargaining power of buyers

Threat of substitute products or services

Five Forces Model

Competitive Strategy of Differentiation

Competitive Advantage

Competitive Scope

Broad Target

Narrow Target

Lower Cost Differentiation

1. Cost Leadership

2. Differentiation

3A. Focus on Cost

3B. Focus on Differentiation

ProductChange

Process Change

Dynamic

Stable

Stable Dynamic

Mass Customization Invention

Mass Production Continuous Improvement

Product-Process Change Matrix

Integrate Silos

• “Brochurized” web site

• Basic product/ plan information

• Limited interactivity

• No web site stickiness

Publish

• Physician and facility locators, services information

• Searchable and customized health content

• How-to-contact us communications

• Very early community building

Interact Transact

• Member-focused portal: loyalty building

• Prevention and health assessment tools

• Community building

• Web site stickiness

• Business process

• Automation: procurement, integrated directory

Integrate

• EDI to iCommerce Transition

• Self-service functionality

• Automated vendor supply chain management

• Call center replaced with contact center

Transform

• Mass customization

• Integrated Disease Management

• Empowered consumers and self-directed care

• Frictionless integration with providers, pharma & suppliers

S T A G E S

Value Curve

Lag

gard

s

Maj

orit

y

Lea

der

s

Internet Development Continuum

Front OfficeSell Side

Back OfficeBuy Side

Business vs. IT Strategy

Integrative Architecture

Integrative Architecture

Integrate EC Front and Legacy Back End

Presentation Options

DenormalizedDB2

Tables

Messaging

AccountMaintenance

MemberMaintenance

INQ-SUB

INQ-MEMB

INQ-SUB-MB

INQ-SUB-CAT

Network

MEMBER’SINQUIRY

(Summary Window)

PowerBuilder Client

Current Membership

Account

Provider

History

Extract

Claims

Internet

DB2 Tables(29)

DB2Table DB2

Table DB2Table DB2

Table DB2Table DB2

TableDB2TableDB2

TableDB2Table DB2

Table

DB2Table DB2

TableDB2

Table DB2Table DB2

Table DB2Table DB2

Table DB2TableDB2

TableDB2

Table

DB2Table DB2

TableDB2Table DB2

Table DB2TableDB2

TableDB2TableDB2

Table DB2Table

Extract

Current Membership

Account

Provider

Internet Screen

CICS Screen

Presentation on Legacy Database

Balanced Scorecard____________________________________________________________________________________________________________________________________________________________________________________________________

e-Business Strategy____________________________________________________________________________________________________________________________________________________________________________________________________

Implementation Strategies I__________________________________________________________________________________________________________________________________________________________________________________________

____

Implementation Strategies II_____________________________________________________________________________________________________________________________________________________________________________________________

____

Web Design_____________________________________________________________________________________________________________________________________________________________________________________________

____

Business Intelligence_____________________________________________________________________________________________________________________________________________________________________________________________

_

Business to BusinessMarketing

________________________________________________________________________________________________________________________________________________________________________

____Internet Marketing

_____________________________________________________________________________________________________________________________________________________________________________________________

_

ORGANIZATION STRATEGY

________________________________________________________________________________________________________________________________________________________________________________________________________________________________

e-Business Strategy

Infrastructure

WebDesign

Businessto BusinessMarketing

InternetMarketing

BusinessIntelligence

Implementation Strategies I

Implementation Strategies II

Balanced Scorecard

ReferencesReferences

Business Models:– Michael Porter– James McKinney– Warren McFarlan– James Cash

Technology Models:– Gartner Group– MetaGroup– Forrester Group