ch 6 - vision - home course web pages jack baskin school ch 6视觉-家居课程网页杰克巴斯学校

Whats Happening?!,Fixing Social Security!,Fixing Social Security,President Franklin D. Roosevelt established social security 70 years ago to help lift seniors out of poverty. There was no up-front funding. The current average annual check is $14,000. 2/3 of 36 million seniors count this as half of their income. A financial solvency problem looms as baby boomers reach retirement age Can the stock market help fix the problem?,Private Accounts,Workers would have 1/3 of their payroll taxes put into an individual account.Social Security returns about 2% a year.Like PERS workers would select from various investment options.The premise is that higher risk investments will produce higher returns and result in more retirement income.Could also encourage additional savings through added incentives. i.e. workers under 55 could divert 4% of theirs earnings up to $1,000 to a private account.The private account approach would require the federal government to borrow about $160 billion for the first two or three years.,Alternative to Private Accounts,Raise the current 6.2% rate or increase the taxable amount from first $90,000 to maybe $150,000.Eliminate the current inheritance tax that expires in 2010.Raise the retirement age from the current 67 for those born after 1960 to 70.Reduce the payment rate.,So what is going to happen?,Continue to contend that the $3.7 trillion financial shortfall wont happen if there is decent economic and population growth.Politics will play a major role in determining if anything will be done.,Who is paying federal taxes?,To be in the top 25% of all tax payers you need to earn:,$52,965.,To be in the top 50% of all tax payers you need to earn:,$26,415,Who is paying federal taxes?,Percentiles Share of AGI % of Fed. Taxes PaidTop 1%19.5%36.2%Top 5%34.0%55.5%Top 10%44.9%66.5%Top 25%66.5%83.5%Top 50%86.8%96.0%Bottom 50%13.2% 4.0%,Course Schedule,Section I and II of ATP is due a week from today, Feb. 1.,Midterm exam is a week later on Feb. 8. Midterm exam clinic on Wednesday, Feb. 2 at 4 to 5 PM.,Paper Objective,The battle between digital and analog continues. Actually it is not much of a battle since digital always wins because of accuracy and the fact that it is more cost effective. This was the case with telecommunications and is becoming the norm for an increasing number of consumer products. Media is becoming digital such as cameras, DVDs, music and television. For this reason the traditional distinction between computers and consumer products is gone. This results in a competitive battlefield between computer companies like Apple, HP and Dell and consumer product companies like Sony, Phillips and Matsushita.,Their goal is to maximize their role in providing a wide range of digital capabilities. It is the intent of this paper to evaluate this competition with a specific focus on Apple Computer. There is not an established industry term to identify this new competition, digital hub industry will be used throughout the paper.To accomplish this analysis section I will describe the industry and the major competitors. Section II will . . .,Digital Hub Industry,The personal computer is transforming itself into the hub of peoples digital lives. The PC industry is pursuing growth on a broader consumer front while the consumer product industry is recognizing the disappearance of the distinction between their products and computers and its related potential.So they are meeting somewhere in between. The key to market opportunity is to figure out how to make the technology easy to use by the average consumer and not just computer gurus.,Digital Hub,Personal Computer. Internet Access. Video Recorder. DVD video player. MP3 music server. Advanced telephone and fax machine. Digital photography and video hub. Video chat via the TV screen.,Major Competitors,Traditional computer companies:AppleDellHewlett-PackardGatewayMicrosoft,Traditional Consumer Product Companies: Sony Matsushita Electric Phillips Numerous smaller niche companies,Digital Hub Industry,Traditional Computer Service Companies:AOLYahooService organizations of computer companies.,Potential New Entrants:Media companies Substitutes:Services versus equipment,Chapter 5 Summary,Information Systems Can Redefine Competitive Boundaries,Major Chapter Messages,Network-based systems (interorganizational sytems) are providing the vehicle to create alliances between multiple companies to strengthen their competitive positions.This approach frequently dictates the need for on-going communication that is possible through the network links.Extranets through the use of Internet technology have become the preferred way for new efforts.EDI systems remain unless company needs or priorities change.Dell Computer is the role model for these types of systems because of their success with the direct business model.,How does this chapter fit within the bigger scheme of things?,Networks are the delivery vehicle for business communication traffic.Representative of the companies we are evaluating: Dell Direct business model.Intel Rosettanet link with customers.Knight-Ridder Links for news article between 31 newspapers.Plantronics Links with distributors.,Better customer service:We are available.We are interested in you.We are responsive.You can count on us.We want to earn your trust and respect.,Interorganizational Systems,Why?Tough for a company to face the challenges of a global market by itselfEnables a company to build combined capabilities to make it a stronger competitorCreation of an extended enterprise: Us Versus Them,Strategic Alliances,Figure 5-1,Interorganizational Systems,Industry Forces,Company,Customers,Vendors,Support Services,Business Partners,Competitors,Providing access to a new product or geographic marketSignificantly improving a position in an existing marketAccelerating the time to bring new products to marketDramatically changing product cost structure,Strategic Alliance Objectives,Alliances Provide Growth Opportunities,Considerations when going global:Who are your customers?Can you tailor your products to specific markets?How do you deal with foreign competitors?Do you have the skills and resources necessary to compete outside of your home market?,EDI and/or Extranets,More of a business than technical issueCan improve relationships between a firm and its partnersImplementation obstacles along the lines of:DataCommunicationsApplicationsBusiness Processes,Conclusions,Three ways to extend the capabilities of an enterprise through the use of IT:,Interorganizational systemsMultiple forms of strategic alliances3)Business process changes involving customers and suppliers,Possible Exam Questions,Explain the term extended enterprise and the possible benefits for a company in attempting to establish a better competitive position.Explain and contrast the current extranet emphasis with the more traditional EDI approach.,Chapter 6 Introduction,Business Vision,Chapter Goal,The intent of this chapter is to position vision as the starting point in directing, posturing, and running a business.,Chapter Specifics,Define and understand visionTwo successful company examplesUSAAWhirlpoolConclude with the importance of vision,What is a Vision?,A vision is a photograph of what the company wants to be look like in the future. A vision is realistic, credible, and attractive. Not a dream, but something achievable. Must be concrete and easy to understand.,The Uncertainties of a Vision,The dynamics of the market (customers),Rapidly changing technologies that frequently offer new product life cycles,The logic and need to address changing employee values and traditional ways that work is done,The shift from the old to new regulatory practices in many industries,The Vision-to-Action Process,Sensing Opportunity,Vision,Strategy,Tactic and Business Plan,Agreement and Commitment,Implementation (Action),Figure 6-1,USAA and Whirlpool,Two organizations that successfully implemented a vision process,A Leader With a Vision,General Robert F. McDermott, CEO of USAA, and his vision:,“To become a company that provides the best possible customer service. Our goal is to become a paperless insurance company. We may never get there, but that is where we are going.”,Customer Service and Employees,Customers keep the company runningCustomer service is the vision driver Service comes before either profits or growthThe Golden Rule: to serve others as you would want to be servedEmployees make the vision happenQuality service comes from employees satisfaction with the company and work place.,New CEO, David Whitwam in 1987, first initiated his vision in 1988 to become the global leader in the large appliance industry.,The Worlds,Manufacturer and Marketer of Major Home Appliances,Largest,Whirlpool Corporation,The Whirlpool Global Vision:,“Whirlpool, in its chosen lines of business, will grow with new opportunities and be the leader in an ever-changing global market. We will be driven by our commitment to continuous quality improvement and to exceeding all of our customers expectations. We will gain competitive advantage through this, and by building on our existing strengths and developing new competencies. We will be market driven, efficient and profitable. Our success will make Whirlpool a company that worldwide customers, employees and other stakeholders can depend on.”,Whirlpool 1993 Annual report.,“Think Global But Act Local”,In Conclusion,As General McDermott said, “How do you know what you should be doing today, if you dont know where you are going?”,Chapter 6,Business Vision,CEO Job Description,The primary job of a CEO is deal with the long-term viability of the business.,Leaders combine vision with communication that leads to a shared purpose.,A leader sets the vision which is different from being a visionary.,The essence of competitiveness isvision, leadership and a hunger to succeed.,P. R. VagelosChairman and CEOMerck,A Business Vision,A vision is a photograph of the future. It is a self-image that deals with what the business wants to look like over the long range future. Business visions are realistic, credible and attractive to people within the organization.,Jack Welch Vision for GE,His vision was for GE to become the most competitive enterprise on earth.,He wanted to create a small company spirit in a big company, to build an organization out of an old line industrial company that would be high spirited, more adaptable, and more agile than companies one-fiftieth the size.,He wanted GE to be a company where people dared to try new thingswhere people felt assured in knowing that only the limits of creativity and drive, their own standards of personal excellence, would be the ceiling on how far and how fast they move.,Larry Ellison Vision for Oracle,To be the world leader in providing software applications over a network and hardware designed and priced to serve those needs.,Ellison suggests that the software industry as we know it today will vanish and be replaced by a service industry.,Microsoft Vision,Empower people through great software, anyplace, any time and on any device.,ValuesBeliefsPrinciples,Vision,Mission Goals,Culture,Objectives andMeasurements,Strategies,Tactics,Authorityand Responsibility,BusinessPlan,George Bush: The Vision Thing,His inability to grasp the vision thing was an important part of George Bushs undoing in the 92 election; but hes not the only one to have a hard time articulating wishes and dreams for the future. Organizations are frequently brought to crisis by conflicts over basic issues of mission, values, and vision. Without these basic agreements in place, no organization is truly viable.Mission, values, and vision are the glue that holds an organization together.,Gerstners Lack of Vision for IBM,Lou Gerstner caused a stir at his first major press conference when he declared that the last thing IBM needed was to proclaim a grand vision.,Executive Vision,If a company has restructured, where do they turn for business performance and financial improvement?,A broad grounding in a particular industry is a often a necessary prerequisite to successful direction setting.,Visionaries can draw a conceptual roadmap to some imagined future.,The most important thing that I have learned is that the time for a business to go from chump to champ to chump used to be two to three decades and now it is five to seven years.,Bill McGowanFormer CEO of MCI,VisionStrategyTacticsBusiness Plan,Competitive Options Roles, Roles and Relationships Redefine and/or Define Telecommunications as the Delivery Vehicle Success Factor Profile,Figure 1-4,A Systematic Approach,A Shared Vision Positions IT,1. Achieves Strategic Synergy.2. Puts the Onus on the Owners.3. Leverages Learning.4. Extends Externally.5. Chucks the Organization Chart.6. Indulges in Information.7. Makes a Bee-line for Benefits.,“The Vision Trap”,Grand, abstract visions can be too inspirational. The company may wind up making more poetry than products.,Gerard H. LangelerPresident, Mentor Graphics,Sensing Opportunity,Vision,Strategy,Tactics and Business Plan,Agreement &Commitment,Implementation(Action),Feedback,The Vision to ActionProcess,Figure 6-1,Vision Examples,Robert McDermott at USAADavid Whitwam at WhirlpoolPeter Lewis at Progressive Corp.,If Starting Today,Charles Schwab, Charles Schwab & Co.Jeff Bezos, AMeg Whitman, eBayMichael Dell, Dell ComputerFred Smith, Federal ExpressLouis Gerstner, IBM Sam Walton, Wal-Mart Stores Lee Kuan Yew, Singapore, Inc.Morita, SonyPeter Lewis, Progressive Corp.,USAA,Financial Services Company. Headquartered in San Antonio, Texas. A member owned association. Started by Army officers who had difficulty getting insurance. Historically managed by former military officers. Top-rated for customer service and financial performance.,Information systems are strategic weapons, not cost centers.Robert F. McDermott, Former USAA CEO,Increased assets from $207 million to $8.5 billion. Grew customer base from 650,000 to 2.4 million. Significantly increased the level of customer service. Broadened the product base. Decreased the high annual employee turnover rate. Redefined the business from a property and casualty insurance company to a financial services organization.,McDermott Leadership,USAA Vision 2000,An Events Oriented Organization,Needs,Wants,Member (Customer),Key Points Security Quality Asset of Life Management,Supporting Insurance Consumer FinancialSystems Products Services Services Products Products,Figure 6-2,USAAs ultimate goal is to manage its customer relationships and not its individual products.,How does this relate to information systems?,USAA Products and Services,So integrated that members lose something if they go elsewhere.,1. Customer Convenient2. Operator Efficient3. Cost Effective,USAA Business and IS Goals,Information Systems Strategies,Executive PartnershipStrategic ArchitecturesTechnology ExperimentationExternal Resource LeverageTechnology AssimilationHorizontal Integration,IT at USAA,28,000 workstations for 22,709 employees.7 mainframe computers.750 client server systems.Own and operate a communications company.4,300 AT&T Trunk Lines: 94 million annual telephone calls representing 90% of business transactions.1,300 Information Systems people. (ITCo),12/31/99,USAA Image Processing,Direct AccessStorage Drive,Document DatabaseDirect AccessStorage Drive,Token Ring LAN,StorageManager,FolderManagementApplication,A PI,AP I,InnerServer,API,On-line Optical Disks,Service Representatives,Mailroom,Scanner,Image Workstation,Application Workstation,Image Workstation,ApplicationWorkstation,Optical StorageLibrary(Not On-line),Mainframe Computer,Figure 6-3,1. Provides quality service.2. Attracts, trains, retains and motivates employees.3. Aggressively and successfully uses information technology.4. Provides products and services to address the changing needs of its customers.5. Maintains one of the lowest operating expense ratios in the industry.6. Achieves financial results that warrant excellent to superior ratings.7. Makes business, organizational and management changes on a timely basis.8. Had an outstanding CEO in General McDermott.,USAA Success Conclusions,Traditionally, a successful, well-managed company. A new CEO in 1987 who initiated a global vision in 1988. A global strategy that emphasized:- Product TechnologyProcurement Promoted a theme of “Thinking global but acting local.”,Whirlpool Corporation,Whirlpool Corp.,Manufactures in 13 countries, has nearly 50 product technology centers and markets products under 13 brands in 170 countries. Has the patience to allow the global strategy to evolve. Is the only company with a presence in four of the five global markets. Has realized impressive growth in revenue but not profits. Has become a new Whirlpool.,Financial Performance,1991 - $6.5 billion in global sales2002 - $11 billion in global sales.2003 - $11.8 billion in global sales.,1991 - $353 million in operating profit,2002 - $262 million in operating profit,2003 - $709 million in operating profit,Stock Performance,Whitwam Statement,We entered 2003 with continuing economic uncertainty in most of the global markets we serve. We took the appropriate cost and productivity actions to deal with that uncertainty.,We believe that Whirlpools global