Types of Companies

1. 2.

Product Based Companies Service Based Companies

Types of Companies
Product Based Companies Companies that produce tangible products. Tangible Products Usable products that you can touch, taste, hear, smell, and see Examples:
Dell Computers, Nokia, Coke, Microsoft

Types of Companies
Graphical Model Product Based Company
Raw Materials Product

Supplier 1
Supplier 2 Product Based Company

Supplier 3

Types of Companies
Service Based Companies Companies that give services. Services Actions towards customers that make them happy and improve customers welfare. Examples:
Shangri-La Hotel, SMS Janitorial Services, Security Services

Types of Companies
Graphical Model Service Based Company
Raw Materials Welding Services

Supplier 1
Supplier 2 Service Based Company

Supplier 3

Types of Companies
Information System Product Based Company
Raw Materials Product Kulang Pa Ito!

Supplier 1
Supplier 2 Product Based Company

Supplier 3

2 Business Solution: TRACK THE ORDERS

3 Information System: Sales & Inventory System

1 Business Problem: LACK OF ORDERS

Types of Companies
Information System Service Based Company
Raw Materials Supplier 1 Supplier 2 Supplier 3 Service Based Company 2 Business Solution: CORRECT HIRING PROCEDURE 3 Information System: HRIS Welding Service

1 Business Problem: WRONG MANPOWER DEPLOYMENT

Types of Companies
The Wrong Way.

Wal-Mart (IS)
BUSINESS EFFECT Affordable Products Number 1 in US!!

K-Mart (IS)
Hired I2 Technologies IT Consulting Services Supply Chain Mgt System BUSINESS EFFECT Bankruptcy!!! Manufacturing Info System!

Types of Companies
Why did this happen?
THEY PROPOSED THE WRONG INFORMATION SYSTEM

Wal-Mart (IS)
BUSINESS EFFECT Affordable Products Number 1 in US!!

K-Mart (IS)
Hired I2 Technologies IT Consulting Services Supply Chain Mgt System BUSINESS EFFECT Bankruptcy!!!

FOR THE WR0NG TYPE OF COMPANY!!! DO NOT DO THIS!!

Manufacturing Info System!

Types of Companies
Product Based Company 1. Product is Tangible 2. It is Manufactured 3. Problems are discovered before receiving it 4. Can be stored
Source: http://www.bestbusinessinfo.com/1_4/tutorials/11405.htm#8

How Can You Tell the Difference?

Service Based Company 1. Service is Intangible 2. It is Rendered 3. Problems are discovered after rendering it. 4. Cannot be stored

Types of Companies
Product Based Company 4. Delivered in a Package 5. Can be delivered in any location 6. Does not require customer contact
Source: http://www.bestbusinessinfo.com/1_4/tutorials/11405.htm#8

How Can You Tell the Difference?

Service Based Company 4. Rendered during a Process 5. May require special location 6. Requires customer contact

Combo Product & Service Based Companies

P P P P S P P S S S

P
P

S
P

S
S

P
S S

EXAMPLE: STARBUCKS

EXAMPLE: GASOLINE STATION

To Figure Out the Answer The Right Question Must Be Asked WHAT IS THE CORE BUSINESS?

Types of Companies
Company Coca Cola Bottlers Sheraton Hotel Microsoft Accenture Ayala Life Proctor & Gamble

Tell Me Product or Service

Product or Service? Product Based Company Service Based Company Product Based Company Service Based Company Service Based Company Product Based Company

Source: http://www.bestbusinessinfo.com/1_4/tutorials/11405.htm#8

Company Vision Statement

It is a statement declaring. . where the company wants to go and .what it wants to be . In the future
Example: Defeat Yamaha! Example: Destroy Lotus 123 Example: To be the first nation to land on the moon within 10 Years

Company Mission Statement

It is a statement declaring. . The reason why the company .exists and . Its role to its customers

Example: Give Excellence in Teaching because each student is a Child of God

Types of Companies
Why do you need to know this?
So you can propose The Right Information System For the Right Type of Company.

Role of Information Systems (IS) Consultant:

Come up with Information Systems

To support the Vision Statement To support the Mission Statement

Role of Information Systems (IS) Consultant:

Come up with Information Systems
To solve product and service problems. To improve products and services.

Role of Information Systems (IS) Consultant:

YOUR COMPUTER APPLICATION SIDE

SOLVE A BUSINESS PROBLEM

YOUR BUSINESS ADMINISTRATION SIDE

INFORMATION SYSTEM

COMPANY MISSION

COMPANY VISION

IMPROVE PRODUCTS & SERVICES