Week 1 - Information Systems Strategy TriangleBusiness Strateg.docx
- 1. Week 1 - Information Systems Strategy Triangle Business Strategy Elements Organizational Strategy Elements Information Strategy Elements Impacts between the elements: Industry Strategy Elements Industry Organizational Strategy Elements Industry Strategy Elements
- 2. Similarities and differences: : Recommended actions and decisions: Step 1: Create lists of case details that fit each side of the triangle. Step 2: Then look at each item and think about how that item affects the other sides of the triangle. Step 3: Take a look at the industry. Make a list of triangle attributes you find. Compare the industry items with the case company items. Information Strategy Organizational Strategy Business Strategy
- 3. Zara Case Situation You are a member of a Zara employee taskforce. The taskforce has been asked to make recommendations on selecting a new point-of-sale device for all of their retail locations. The team has narrowed the choices down to three products. The first product allows for access to the internet for both store use and sending sales transactions reporting, email, customer data collection and lookup, and full inventory functions (in-stock, location, reduction information). The second product has the same functions as the first but with limited in-store only inventory functions (search only). The third product has no inventory functions and access to the internet is limited to sales reporting to corporate. Based on your knowledge of Zara’s business and process management, explain which POS product you would recommend. Support your opinion with the case information. Step 4: How would evaluate the options? What criteria would you use? How do the triangle sides impact the options? Step 5: What decisions and actions would you recommend to the case company? What data supports your conclusions? Why should the case company take your advice? CMBA SuperStar Panther ID: 007
- 4. Information Systems Strategy Triangle Business Strategy Elements Organizational Strategy Elements Information Strategy Elements Differentiation focuses of Orders-of-magnitude improvements in logistics and services, reducing the cycle time and ensure consistent delivery of quality products and services. Improve visibility of the service business performance to management, enabling it to provide more effective quality service to customers. Centralized customer service systems to dispatch service mechanics. OTISLINE customer service centers. Goal to be a recognized leader in service excellence among all companies, streamlined manufacturing operations. OTISLINE produces “excess” callback reports for various levels of management. Information from multiple Otis data sources, rapid response as an important design element. Institutionalized customer service, standard of work, process flows, and metrics to govern every customer interaction and every internal activity. Involvement with district manager, regional vice president, and president of the regional business to better reduce maintenance contract cancellations. Elevator monitoring application enabled by a microprocessor- based elevator to monitor its control systems and log performance statics, directly onto a distant computer. Linked to the computers at headquarters Design for sourcing to manufacture new equipment, installation, and maintenance; needed to run with a customer-focused mind Restructuring the company by eliminating several layers of management and speeding communication between field
- 5. mechanics, customers and company management. SIMBA program, standard interface, modular –based architecture defining modules and subsystems, standard terminology. Regional driven product strategy to International market placement, streamline lead-time in the supply chain to manufacturing to the field on a global basis. SIP (Sales and Installation Process), subject matter experts in the areas of sales, field and order management and utilization of a steering committee. E*Logistics information transformation project, with CLC regional contract logistics centers and subsystems integrators (SSI), network technologies (intranets and the internet) UTC proprietary program, ACE Achieving Competitive Excellence, Impacts between the Elements OTIS used technology to change their business toward the customer service side. They implemented multiple technology programs to better align their business goals across all strategies. They were able to implement this change with the use of technology systems introduced that opened up the lines of communication. Managers, presidents, team leaders and customers were all able to talk to each other to provide the services needed. The strategies had in-depth reporting mechanisms in place to reach the customer. They focused on keeping up with the latest trends and evaluating such decision in customer service with the utilization of technology. All sides of the triangle are in line with their initial directive, where one side does not outweigh the other. Industry Business Strategy Elements Industry Organizational Strategy Elements Industry Technology Strategy Elements Integrated, centralized, and consolidated, steady demand, low barriers to entry and high profitability
- 6. Limited channel for communication, all working together instead of separate fragments. IT integration computation Multifunctional across geographical dispersed units and prioritized view of goals across the enterprise Emphasizing on the Enterprise not the System, by providing the best customer service and functionality Once Common Interface/decision making processor, all built in the same code, using the same technology Emphasis on value-chain, forecasting, having predictive powers, adaptable to best fit the customers’ needs Decision making process involving contractor, architect and building owner, property manager IT and IS Multifunctional systems in place to be utilized by multiple departments/users Build relationships between departments and different outlets to better interact and conduct business, relying on internal resources to reduce costs. Workflow, Demand Evaluation, Enterprise information system in place Cost of service major importance, discounting and bundling. Stable sales directly correlated with building cycles. Institutionalized Customer Service and developed metrics of govern customer interaction Similarities OTIS wanted to implement technology systems that provided increased customer service. It would be integrated and globally disperse so that all stakeholders are involved. Its main goal was to provide better customer service directives for the organization with the current behaviors of the industry
- 7. environment. Most of the things OTIS was doing were in line with the common practices of the industry. Most of the things listed above were taken into consideration and/or guided management to move their strategies in that direction. Differences: OTIS saw that they could use technology to their advantage for service excellence amongst the company. It was important for them to focus highly on implementing technology since service was historically accounted for as much higher portion of profits than new unit sales. In the industry you won’t see many companies switch directions as OTIS did (producer to servicer) due to the risks. By making these switches they were more profitable, without technology they may have not been as successful. The biggest difference compared to industry is that most companies would have not made this switch. Main Issues: OTIS regionally managed many of their processes which made redundancy, overall inefficiency and process complexity. Otis needed to implement integrated systems and reorganize its global functions. Otis had to figure out whether or not to produce components in its value chain and decide where/how to centralize their efforts. There was concern with organizing the supply chain to become the coordinators of multiple global suppliers located in various parts of the world. They needed to consolidate the investing and business priorities process; streamlining it into more efficient procedures. They needed to develop a system that reflected best practices and best means for their customers, by transforming the decision-making process and making it more transparent. Recommendation and Decisions: The company needed to focus on the customer and how they could best accommodate their needs. Once that is established they need to decide what IT processes need to be implemented to best fit those needs. The goal was to become the leader in
- 8. service excellence to do so by consolidation of technical elements and centralized the business strategy decisions. They need to make business decisions with that goal in mind and IT investment to support customer service successfully. As long as it is in line with the business and organizational strategies by benefiting the customers, they have made the correct decision. Business Strategy Information Strategy Organizational Strategy Step 1: Create lists of case details that fit each side of the triangle. Step 2: Then look at each item and think about how that item affects the other sides of the triangle. Step 3: Take a look at the industry. Make a list of triangle attributes you find. Compare the industry items with the case company items.