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ITStrategyFebruary24,2000CaseStudyofaRecentClientExperienceRobTrollinger,Principal,DallasChrisWisler,Manager,AlexandriaKimberlyBrown,Associate,AlexandriaITStrategyFebruary24,2000CaToday’sdiscussion…BackgroundofCompanyCompanyITOverviewCauseforActionITStrategyApproachApplicationArchitectureTechnicalArchitectureEstablishtheITProgramOfficeOrganizationalEffectivenessandITAlignmentSummaryToday’sdiscussion…BackgroundBackgroundofcompanyBackgroundofcompanyBeganin1909asapartnershipbetweenaninnovativechemistandabusinessmanPioneeringworkinleathertanningBestknownforexpertiseinacrylicchemistryEssentialcomponenttodetergents,diapers,cellphones,industrialcoatings,andmore50manufacturing,research,andtechnicalfacilitiesworldwideSalesin100countries,totaling$4billionannuallyCompanyACompanyBCompanyAannouncedtheirintendedmergerwithCompanyBin19991848,foundingLargestandmostrecognizedbusinessforaparticularconsumerproductMajorsupplierofbasicinorganicchemicalsderivedfromsaltEssentialingredientsinCDs,newspapers,magnetictapes,sportsequipment,andmore36miningandprocessingfacilities,68chemicalmanufacturing,research,andtechnicalfacilitiesworldwideSalestotal$2.5billionannuallyBeganin1909asapartnershipDrivetheshort-termvalueExceedthemarket’sexpectationsIntegratetheOrganizationsas

SeamlesslyasPossibleDevelopandcommunicateasharedstrategicagendaDefineorganizationstructures,keybusinessprocessesandtechnologyplatform/architectureSelectleadersandstaffpositionsDevelopmetricsandbudgetsIntegratethebusinessIntegrateday-to-dayoperationsPositionforthefuturegrowthAchieveBusinessValueGoals

asQuicklyasPossibleAchieve$200millionofsavingswithin

12-18months(runningrateby2001)EnsurecustomerretentionCorporateCenterrationalizationAdministrativeoverheadreductionSourcing/ProcurementsavingsProductlineandoperationsrationalizationManufacturingproductivityandsupplychainimprovementsReductionintechnologycostsThefocusoftheintegrationwastoquicklyachieveoperationalsynergieswhilecombiningtheorganizationstosupporttoplinerevenuegrowthA.T.Kearneywasaskedtostructure,driveandmanagetheentireintegrationprocessforwhatwouldbecomeoneofthelargestspecialtychemicalcompaniesDrivetheshort-termvalueInteLatinAmericaandAsia-PacificRegionOperations:10%ofsales20manufacturingfacilities10distributionsitesNorthAmericanRegionOperations60%ofsales60manufacturingfacilities230distributionsites(1)Whilethepotentialsourceofthesynergiesweresomewhatclear,smoothandtimelyintegrationofthetwocompanieswaslessassuredChallengesSomemanufacturingprocessesandtechnologieswereincompatiblebetweenthetwocompaniesCombiningtwocompanieswithbothdirectproductoverlapAcquiringcompanywasmoreofa“intermediatesproducer”andtheacquiredcompanywasmoreofa“formulator”SignificantfacilitiesconsolidationopportunitiesDistributionconsolidationandimprovementrequiredchangingthebusinessmodelandthemindsetStandardleadtimesStandardservicelevelsSignificantcustomeroverlapSignificantEH&Sissuesneededtobeaddressed,competingawayscarcecapitalresourcesEuropeanRegionOperations:30%ofsales40manufacturingfacilities60distributionsitesLatinAmericaandAsia-PacificAfteranacceleratedintegrationprogram,themergerwasdeemedasuccessbytheCEOaswellastheanalystcommunity“Bytheendof3Q,thenewcompanyhadachievedcostreductionsof$100MMonanannualizedbasis,threemonthsaheadofschedule.”

—MorganStanleyDeanWitter“Already,thecompanyhasachieveda$100MMannualrunrateincostsavingsaheadofschedule…”—JanneyMontgomeryScott“Theintegrationprocessisrunningsmoothlyandinfactbetterthanexpectedachievinga$100MMlowerrunrate…”

—J.P.MorganSecurities“Theintegrationeffortscontinuetotrackaheadofplan…”

—DeutscheBancAlexBrown“Consideringthesteepincreaseinrawmaterialcosts,thenewcompanywasabletomeetexpectationswithitsrapidintegrationoftheacquiredcompany’soperations…”

—BrownBrothersHarriman

AfteranacceleratedintegratiPerspectiveExternalFocusInternalFocusIncrementalTransformingValue

Creation

(P/ERatio)NewBusinessModel

NewSegments

NewTechnologies

AcquisitionsShareGain

TechnologyImprovement

GeographicExpansion

PortfolioManagementWorkRedesign

SupplyChain

OperatingExcellence2-3%SalesGrowth4-5%SalesGrowth6-8%SalesGrowthFollowingtheintegration,theCEO’sAgendaistodoubletherateofgrowthwhilemaintaininghighlevelsofprofitabilityCostimprovement,customerserviceandretentionand

e-businesshavebeenidentifiedaskeyareasoffocusPerspectiveExternalFocusInterRapidassimilationofacquisitionswithlimitedadditionalfinancialstaffGlobalsharedservicesITprovidesastrategicadvantageinsupportofgrowthinitiativesTargetCapabilitiesGlobalprocessesandmetricsInteriminformationonsales,profitabilityandcostofoperationAutomationofroutineprocessesandtransactionsFinancialstaffisalignedwiththebusinessContinuouslaunchofserviceofferingsthatcannotbeeasilymatchedbycompetitorsQualitybuiltintoanautomatedprocessesHumansmanagetherelationshipnottransactionsIntegratedsupplychainnetwork(S&OPprocess)acrossmultipleenterprisesInventorycommitmentusingproduction,salesandbalancesAbilitytoreachcustomersgloballywithoutalocalpresenceGrowth/AgilityStrategicImperativeCostImprovementCustomerService&Retentione-BusinessNewCo’sbusinessstrategywillplaceadditionaldemandsontheentireorganizationRapidassimilationofacquisitCompanyITOverviewCompanyITOverviewFinance/BackOfficeDemandPlanningSupplyChain&CustomerServiceHumanResourcesClient/Server(WindowsNTorUnix)High-levelProcessesIntegratorSAPISGeneralLedgerOrderHistory(FocusDB)TransportationManagementRailmaxManufacturingPlanningTransportSafetyOrderingTeserac(HR)InfiniumHRFinancialReportingOtherHR/PayrollSystemsManufacturingQualitySystemsCurrenttransactionalsystemsarecomplex,resideonmultipleplatformsandareintegratedthroughanetworkofinterfacesAS/400MainframeFinance/BackOfficeDemandPlaIntrinsicmanualprocessesresultinahighcosteffortthatcannotsupportthespeedoftoday’s

e-businessenvironmentGrowth/AgilityStrategicImperativeLackofautomationprohibitsadditionalworkforceleverageSystemsarerunningoutofphysicalcapacityIncrementalimprovementmindsetlimitsstrategicdevelopmentObservedKeyThemeCostImprovementCustomerServiceandRetentione-BusinessFocusisonreconcilingbalancesandcorrectingerrorsandnotrootcauseerrorpreventionProcesses(especiallybilling)aremanuallyintensiveGlobalprocessesaredesirablebutdifficulttoimplementconsistentlyTransactionsystemsarebecomingincreasinglydifficulttomaintainSpecialcustomerrequirementsandservices(e.g.SOMI)areimplementedbutatarelativelyhighcostInspectionoferrorsprotects/masksthecustomerfromerrorsinherentinthesystemManualinterventionpresentsabarrierBusinessinformationisnoteasilyassimilatedQualityofglobalcustomerinformationissuspectIntrinsicmanualprocessesresRoughly72%oftheITbudgetisspentonmaintainingcurrentservicelevelsandinfrastructureTomaximizebusinessvalue,weneedtoshiftthespendingfrommaintenancetobusinessdevelopmentandlongterm

ITsupportandinfrastructurePercentofITSpendingbyCategoryITSupport&Infrastructure2%Maintenance72%BusinessDevelopment19%Non-discretionary7%Roughly72%oftheITbudgetiFunctionsCurrentLimitedPointSourceSolutionsPointSource

BestofBreedSuiteorLegacySystemsProposedAfuturevisionoftheenterprisearchitecturemustseamlesslyandefficientlyintegratecorebusinessprocessesinane-businessenvironmentEvolvingStrategy:AIM,MicrosoftIBMAS/400,NT,???CompaqCompaqDigital,IP,ExchangeSAPJDEPeopleSoftStandardized,LowCost,MixedaftermergerOracleProcessesofStrategicValueandCompetitiveAdvantageOperationsandTransactionProcesses(LowCost)InfrastructureData,MiddlewarePlanningISMOptimizationCRMHR/PayrollMainframeMid-range,Client/ServerDesktopsLaptopsVoice/Data,Networks,EmailApp.InterfaceDataMgmtCustomerFacing

e-BusinessSolutionsPRISM/SupplyChainSystemsProcurement

LogisticsManufacturingOperationsOrderBillingA/RA/PG/LReportingMiddlewareFunctionsCurrentLimitedPointCauseforActionCauseforActionInformation

Technology

StrategyExploitationofcurrentproduct&customerbasethroughgeographicexpansion,newservices&crosssellingExtensionofthetraditionalsupplychainbeyondcurrentcustomerandsupplierbaseFormationofpartnershipsandalliancesAdoptionofnewvaluechainmodelsexploitingtoday’stechnologyGlobalmanagementandmeasurementprocessesContinuouscostimprovementPossibleBusiness

UnitResponseAcquisitionsSharedServicesGlobalizatione-BusinessContinuedindustryconsolidationSupplyChain

ValueNetsBusinessModelRevolutionPaceof

TechnologyChangeKeyBusinessChangeDriversInformationtechnologymustreinventitselftodevelopcapabilitiesthatdeliversubstantialbusinessvalueatthepaceoftoday’sbusinessenvironmentAlignandSupportAnupdatedITstrategyisnecessarytoaligntheorganizationanditsserviceofferingstobusinessunitrequirementsandoperatingmodelsInformation

Technology

StratCorporateAgendaITStrategyAlignment6–8%RevenueGrowth11%ReturnonNetAssetsAssumeleadershiproleindesign&implementationofcustomerenabledprocessestopromotescalabilityLeveragee-businesstechnologiesDevelopdataminingtechniquestoleveragecustomerinformationleadingtoincreasedsalesInstituteaprogrammanagementapproachProfitable&SustainableGrowthOperationalExcellencePost-MergerIntegrationContinuousdesignofnewprocessesandserviceofferingstopromotecustomerintimacyandserviceexcellenceImplementlowcosthighavailabilityinfrastructureSimplifycompanyandcustomercompliancewithregulationsContinuemigrationtoCompanyA’sapplicationsRapiddeploymentofnewprocessesandtechnologiestoenablecostinitiativesRapidapplicationdevelopmentanddeploymentE-businessstrategyCorporate

ObjectivesLinkingthestrategytotheCEOagendareinforcesIT’scommitmenttobeahighvalueservicepartnerCorporateAgendaITStrategyAlBusinessStrategyITStrategyBusinessMissionScopeCompetenciesGovernanceITMissionArchitectureCompetenciesGovernanceAlignmentAligntheITorganizationtomeetbusinessunitrequirementsofthenewCompanyDevelopandcommunicatetheapplicationandtechnicalarchitecturedirectionReplacethecurrenttechnical“roadmap”withacomprehensiveandspecificdeploymentflightplandepictingtimingforreplacingapplicationsandtechnologiesandimplementingprocess/servicechangesImplementaprogrammanagementprocesstodetermineITinvestmentpriorities&setITdirectionTheITstrategyalignswithbusinessstrategiestodefinematchingpriorities,complementarycapabilities,andcompatibleorganizationdynamicsITStrategyOutcomesBusinessStrategyITStrategyBuITStrategyApproachITStrategyApproachTheITStrategyiscomprisedofanITvision,strategyanddeploymentplanthatwillenablerapiddeliveryofcosteffectiveITproductsandservicesGaptoCloseCompe-tenciesArchi-tectureGover-nanceIT-FutureStateCompe-tenciesArchi-tectureGover-nanceDeploymentPlanCompe-tenciesArchi-tectureGover-nanceBusinessStrategyStrategyDevelopmentProcessITStrategyDeliverableSynthesesIT

StrategyITVisionCoreCompetenciesApplication&Tech.ArchitectureDirectionSelfFundingInvestmentPlanGovernanceProcessesDeploymentStrategyandTimingFilter/PrioritizeCorporateStrategyBusinessUnitStrategiesBoundariesfromExecutiveCouncilAnewCIOwasbroughtintochampiontheeffortwhile

becomingtheITChangeAgentIT-CurrentStateTheITStrategyiscomprisedoAsetofguidingprincipleswillallowusto“rethink”thecurrentwayofdoingbusinessasweprogressourstrategydevelopmentprocessTheapplicationsandtechnicalinfrastructuremustbealignedwithbusinessstrategiesandcreatesubstantialshareholdervalueITwillfocusitsenergyoncompetenciesthatareresultsdrivenandaddsignificantbusinessvalueOurgoalshouldbetodeliverprojectresultsinhalfthetimeandhalfthecost(timetomarketisessential)ITbudgetwillbeownedanddrivenbythebusinessfordiscretionaryprojectsTheorganizationwilladoptavirtualandcollaborativeapproachtoaddressbusinessproblemsThefuturestatewilldriveourstrategydesign;howwedothingstodaymayinfluenceourfuture—buttherearenosacredcowsWemustprovidesignificantgrowthopportunitiesforourpeopletoattractandretainahighlyskilledandmotivatedstaffWewillshareclear,unifiedcommunicationsateverylevelledbyITLeadershipTeamAsetofguidingprincipleswiFourparallelworkstreamswillcontributetodevelopmentoftheITvision,strategyanddeploymentplanOrganizationalEffectivenessandITAlignmentEstablishtheITProgramOfficeApplicationArchitectureTechnicalArchitectureHowshouldtheorganizationbealignedtothebusinesses?Whatcompetenciesshouldbedevelopedtomeetthechallengesoftoday’sbusinessclimate?Whatspecificapplicationsuitewillbestmeettransactionprocessingrequirements?Whatplatform(s)ismosteffectiveforthechosenapplicationsuite?Howshouldwesupportthecompany’se-businessrequirements?WhatprocessisrequiredtoprioritizeandmanagetheITportfolio?HowshouldITbestinvolveseniormanagementandthebroaderorganizationintheITprocess?ITStrategyProjectFourparallelworkstreamswillApplicationArchitectureApplicationArchitectureTheapplicationsarchitecturewillresultinanERP“backbone”vendorselectionandprovideguidanceanddirectionforallotherapplicationsAllApplications

C

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t

o

m

e

r

s

S

u

p

p

l

i

e

r

sPackageselectedImpactassessmentDirection/valuepropositionDefineNeedsOverallguidingprinciples

/rulesapplyTechnicalDecision

SupportCustomerRelationshipManagementEnterpriseResourcePlanning(ERP)SupplyChainCollaborative

ComputingTheapplicationsarchitectureApplicationOptionsVendor1Vendor2Vendor3Vendor4Vendor5Vendor6TechnicalOptionsDatabasex,y,zOpSystemComputerConsensuswithteamPublishapplicationarchitecturesolutionsetPublishimpactanalysisAlternativesDecision/ResultTheapplicationarchitectureteamisfollowingastructuredanalysisprocessthattestvendorsolutionsagainstourdecisioncriteriaEvaluationCriteria1Hypotheses/CriteriaTestQuestions2Analysis“Leverage/Synergy”3EvaluationandDecisionMaking4CompileevaluationcriteriaDefine“mustmeet”criteriaAssigncriteriaweightingsDeveloptestquestionsandhypothesesPerformoptionanalysisDevelopdecisiontreeDevelopfactbasetotesthypothesesEvaluateresultsagainstcriteriaanddecisionframeworksAgreedecisionProjectStageGatesKeyProjectCheckPointsApplicationOptionsConsensuswThevendorswillbeevaluatedagainstfourpre-defineddimensions,eachofwhichwillbeweightedbybusinessstakeholdersInvestment/ViabilitySoftwareandhardwarecostsBolt-onandinterfacescostsImplementationandconversioncostsTrainingcostsFinancialstatusOrganizationalstrengthVendorcommitmentEmbeddedbase/ReferencesMarketpositionCustomersupportTrainingCulturalfitImplementationresourcesImplementationRiskFunctionalRequirementsSupportsprocessmanufacturingOrdertocashFinancialReportingProcessingsequenceEaseofuseStrategicGrowth,agilityCustomerserviceandretentionE-businessCostcontainmentVendorandproductstrategyTechnicalEnvironmentTechnicalarchitectureAdministrationservicesInterfacesDocumentationandvendorsupportThevendorswillbeevaluatedTechnicalArchitectureTechnicalArchitectureThetechnicalarchitectureworkstreamwilldevelopacomprehensiveenvironmenttotakeadvantageofnewtechnologiesandvalueaddedapplications…OrderToCashFinancialHRTransactionalPlanningForecastingOptimizationSupplyChainManufacturingQualityControlSystemManufacturingEH&SLegacyDecisionSupportRailmaxWindowsLocal

PCsIntranetDevicesInternetDevicesCustomerDevicesOperatingEnvironmentsDatabasesMiddlewarePresentationPayrollexpensesOrdersInventoryTBDTBDNumerousOrdersInventoryReceiptsATPTransferOrdersOrdersInventoryTransactionsCarriersOrdersInventoryOrdersAccountsReceivablesDB2VendorSQLServerAdaptersforERP&

LegacySystems

(DataManagement)MessageManagementProductsApplicationProgrammingInterfaces;RemoteProcedureCalls;RequestBrokersOperationalDataStoresOrdersInventoryReferencedataJournalentriesThetechnicalarchitecturewor…tomaximizetheinformationexchangeinternallyandexternallyWhatisthemostviabletechnicalplatform(s)forthenewApplicationportfolio?Whatistheoptimalmiddlewaresolution:ERPvendor-supplied,thirdpartyorboth?HowmuchdoERPandmiddlewaresolutionsminimizetheeffortofdeveloping/maintaininginterfaces?Doesthenewtechnicaldirectionadequatelyaddressstandardizationofdataacrosstheenterprise?Willthenewtechnicaldirectionalignwithexistingdecisionsupportandemerginge-businessstrategies?Whatimpactdothesearchitecturedecisionshaveoncurrenttechnicalskillsandcompetencies?Whatnewdevelopertoolsandplatformswillberequiredtosupportthistechnicalstrategy?DeliverablesERPTechnicalArchitectureRoadmapOutlinesthehardwareoperatingsystemanddatabaseplatformselectedforimplementingERPsolutionsMiddlewareToolStrategyDefinestheconceptualmiddlewaresolutionanddetailsthemiddlewareproduct(s)requiredtoimplementthestrategyDecisionSupportStrategyDefinesthetechnicalsolutionrequiredtosatisfybusinessrequirementsandleveragenewrelatedtechnologiesandthecompany'sITstrategyCostSavingOpportunitiesDetailscostsavingsinITinfrastructurecostsanddefinestheimpactonthestructureofITInfrastructureandSupportKeyIssues…tomaximizetheinformationEstablishtheITProgramOfficeEstablishtheITProgramOfficObjectiveAreasofFocusComponentsProgramandProjectManagementCommunicationInvolvebusinessrepresentativesPerformday-to-dayresourceallocationProgramandprojectmanagementIntegratewithcapitalplanningandannualbudgetingDevelopVisionStatementDevelopcriticalrulesofengagementwithrolesandresponsibilitiestogovernITDefinecommunicationaudiencesandwhattheyneedtoknowDetermineaudiences,communicationvehicles,timingDevelopaplanDevelopaprogramtoexpandexecutiveawarenessofITinitiativesandissuesCommunicatetoallareasandgeographiesCreateaframeworkformanagingandallocatingfundsandresourcesDefineanddeployacommonportfoliomanagementframeworkDevelopmetricsfortheITportfolioDevelopaprocedureforfundsandresourceallocationIntegrateprojectapprovalprocedureswithGovernanceRevise2000budgetCreate“workbooks”thatoutlineProjectandProgrammanagementprocessesDefinemetricsReviewandadopttoolsEstablishqualityreviewsManagerisk,scopeandbudgetManageissuesTrackbenefitsDevelopframeworksandchecklistsGovernancePortfolioManagementTheprogramofficeworkstreamwillestablishprocessesforportfoliomanagement,governance,communicationsandprogram/projectmanagementObjectiveAreasofFocusComponeTheportfoliomanagementprocessstartswiththeoverallcorporategoalstranslatingintoportfoliosofprogramsCorporateGoalsRevenueGrowthRONALowerOperatingRateHigh-levelITspendtarget(CFO)Unit1GoalsUnit2GoalsUnit3GoalsGoals

(Targets)CorporateStrategiesUnit1StrategiesUnit2StrategiesUnit3StrategiesStrategies

(Initiatives)PortfoliosofProgramsExecutiveCouncil/CFO;LastYear’sSpend;CIO/GuidanceTeamAdjustments

StartingPointsforITSpendbyUnitCorporatePortfolioUnit1StrategiesUnit2StrategiesUnit3StrategiesTheportfoliomanagementproceThentheportfoliosareassessedbycorporate,unitandguidanceteamDevelop“Proposals”PortfolioMgmt./DiscussionDraftPortfolioProgramProposalOneProgramProposalTwoProgramProposalThreeCorporate(Mandated)LevelPortfolioProcessesUnitLevelPortfolioProcessesProgramstopursue“Rationalize”Portfolios-Lookfor:SynergiesTimingResource/CostConstraintsCorporateUnit2Unit1UnitLeadershipCIO,ITLTOverallPortfolioGuidanceTeamPortfolioswillbereassessedquarterlyProgramstoholdDevelop“Proposals”PortfolioMgmt./DiscussionDraftPortfolioProgramProposalOneProgramProposalTwoProgramProposalThreeProgramstopursueProgramstoholdThentheportfoliosareassessMD1WorkplanActivityTask1Task1Task1Task1Q1Q2Q3Q4Onceportfoliodecisionsaremade,detailedprogramplanningandtrackingprocesseswillfollowProgramRiskManagementTop10ProgramRisksasof06/24OrganizationannouncementtimingstillunclearITrequirementsnotfullyunderstoodNoplanstoaddressculturalmisalignmentSuccessofcommunicationnotcurrentlyplannedtobemeasuredIllustrativeInitiativeStatusManagementSize=$Saved61218GreenYellowRedRiskTimetoCompleteImplementationInitiativeCurrentQuarterCum.Qrtly.BreakdownJan.Feb.Mar.4Q971Q982Q98ProgramAchievementImplementationCommunicationWorkplanMD1WorkplanActivityTask1TasOrganizationalEffectivenessandITAlignmentOrganizationalEffectivenessaLeadingPracticeAssessmentCapabilityAssessmentFutureStateOrganizationDesignAvalue-basedorganizationisdesignedaroundcorecompetencies,whichconsistofprocessesandcapabilitiesthatdelivervaluetothebusinessSupportanddesigncosteffectiveandvalueaddingbusinessprocessesProvidetoolsandtechnologiesthatgivethebusinessacompetitiveedge(e.g.E-businessofferings)Deliverbusinesssolutionsrapidly-halfthetimeathalfthecostProvideinformationandtoolsforbetterandfasterdecisionmakingManagecosteffectiveinfrastructureservicethatmatchtheneedsofbusinessesITCoreCompetency/ValueAddedDevelopVisionandStrategyDesignProductsManageImprovement&ChangeManageHRandRelationshipsAdministrationSupportApplicationsDevelopmentCommunicationsClient/EndUserSupportDataManagementElectronicCollaborationOutput&DistributionMgmt.PackagedSolutionsPre-deliveryPlanning&AlignmentSystemsManagementManageFinancial&PhysicalResourcesCapabilitiesStrategyandValueRealizationGovernance&ProgramManagementITAlignmentandOrganizationEffectivenessProjectManagementBUServiceandSupportPortfolioManagementDataManagementTechnicalInfrastructureVendorRelationshipsPerformanceMetricsFinancialManagementProcessesLeadingPracticeAssessmentCapTheITorganizationmodelrepresentsthemeansfordeliveringservicesandsolutionsCustomerRelationshipsDemandManagementOrderFulfillmentManufacturingProcurementBusinessUnitAEnterprise-wideProcessesBusinessUnitBBusinessUnitCBusinessUnitDTheITorganizationmodelreprSummarySummaryIncreaserevenuefromexistingandnewcustomersQuickerrealizationofReturnonInvestmentforfutureacquisitionsTangibleBenefitsReducefunctionalandbusinesscostsDecreaseITsupportcostsIncreaseaccuracyofinvoicesImprovecustomerretentionCustomizedserviceAccurateandup-to-dateorderinformationDecreaseordercycletimesDecreaseadministrationcostsduetoselfservicenatureofweb-basedsystemsStrategicImperativeImplementationoftheITplanwillprovidesubstantialbottomlinebenefitswhileenablingthecompanytoachieveitsstrategicimperativesLowerincrementalcosttoservethenextcustomerProductreleaseswillincreasescalabilityandtechnicalinnovationIntangibleBenefitsImplementClassAMRPIIpracticesmorerapidlyandwithreducedinfrastructurecostsAccesstoglobalcustomerinformationformoreeffectivepricingSupportanintegratedCustomerRelationshipManagementstrategyProvideaninfrastructurefordeployingthecompany’s

e-businessstrategyImproveaccesstoe-communitiesandglobalcustomersGrowth/AgilityCostImprovementCustomerServiceandRetentionE-businessIncreaserevenuefromexistingITStrategyFebruary24,2000CaseStudyofaRecentClientExperienceRobTrollinger,Principal,DallasChrisWisler,Manager,AlexandriaKimberlyBrown,Associate,AlexandriaITStrategyFebruary24,2000CaToday’sdiscussion…BackgroundofCompanyCompanyITOverviewCauseforActionITStrategyApproachApplicationArchitectureTechnicalArchitectureEstablishtheITProgramOfficeOrganizationalEffectivenessandITAlignmentSummaryToday’sdiscussion…BackgroundBackgroundofcompanyBackgroundofcompanyBeganin1909asapartnershipbetweenaninnovativechemistandabusinessmanPioneeringworkinleathertanningBestknownforexpertiseinacrylicchemistryEssentialcomponenttodetergents,diapers,cellphones,industrialcoatings,andmore50manufacturing,research,andtechnicalfacilitiesworldwideSalesin100countries,totaling$4billionannuallyCompanyACompanyBCompanyAannouncedtheirintendedmergerwithCompanyBin19991848,foundingLargestandmostrecognizedbusinessforaparticularconsumerproductMajorsupplierofbasicinorganicchemicalsderivedfromsaltEssentialingredientsinCDs,newspapers,magnetictapes,sportsequipment,andmore36miningandprocessingfacilities,68chemicalmanufacturing,research,andtechnicalfacilitiesworldwideSalestotal$2.5billionannuallyBeganin1909asapartnershipDrivetheshort-termvalueExceedthemarket’sexpectationsIntegratetheOrganizationsas

SeamlesslyasPossibleDevelopandcommunicateasharedstrategicagendaDefineorganizationstructures,keybusinessprocessesandtechnologyplatform/architectureSelectleadersandstaffpositionsDevelopmetricsandbudgetsIntegratethebusinessIntegrateday-to-dayoperationsPositionforthefuturegrowthAchieveBusinessValueGoals

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