Information Technology and Business Minder Chen, PH.D

E-Business:
Information Technology and Business

Minder Chen, Ph.D.
Associate Professor Decision Sciences and MIS Area Coordinator School of Management George Mason University Email: mchen@gmu.edu Sept. 22, 2004
for
Hunan University EMBA Student
Outline Information Hierarchy Extended Enterprise & Enterprise Resource Planning (ERP) Information Architecture and Enabling Technologies Business Process Reengineering / Management Electronic Commerce Conclusions
Minder Chen, 1996-2004
E-Business - 2
Information Life Cycle
Information
Data
Decision
Intelligence Design Choice
Action
Minder Chen, 1996-2004 E-Business - 3
Even the Caveman Needs Knowledge to Survive
The information-knowledge-wisdom hierarchy. The caveman has lots of information; he selects and organizes useful information into knowledge, but he does not achieve wisdom until he has integrated his knowledge into a whole that is more than useful than the sum of its parts.
Source: Harlan Cleveland, "Information as a Resource," The Futurist, December 1982, 34-39. E-Business - 4 Minder Chen, 1996-2004
Information Hierarchy
Wisdom
Knowledge
Learning: Integration into strategic policy through experience
Information
Analysis: Application to decision
making
Data
Observation: Description of events
Event
Nolan

Micro
DP Mainframe/Mini
1960
1980
1995
2010

E-Business - 6
E-Business and E-Commerce
E-Business E-Commerce
Commerce
Internet Commerce
E-Business - 7
The Extended Enterprise

Buy
Suppliers
Make/Add Value
Back Office Front Office
Sell
Customers
E-Business: Virtual and Dynamic Enterprise

Manufacturing Finance Engineering Sales Support/Service Marketing
Supply Chain
Back Office Integration
Demand Chain
Supply Chain Management Customer Relationship Management Enterprise Resource Planning

Minder Chen, 2001-2002 Minder Chen, 1996-2004 E-Business - 8
A Federation of Information Systems
E-Business - 9
ERP

E-Business - 10
R/3 Logistics Process Flow
PP :
MRP
ERS
LI S
E-Business - 11
Information Systems Triad

Operational Database Informational Database
Enterprise Workflow OLTP
Business Process Workflow DSS EIS Data
Information
Messaging Systems
Knowledge
Workgroup Workflow
E-Business - 12
Information System Applications
E-Business - 13
Information Needs
E-Business - 14
Architecture of Data Warehouse

Information Warehouse
Corporate Operational Database Data Bridging Summarized Derived
Business Event Information
End User Access Tools
Detailed Past
Current
Projected
Data Bridging/ Transformation

Data extraction Data filtering Table joining Translation Re-Formatting
EIS DSS Report Writers Spreadsheets
E-Business - 15
Dimensional Model
Product
Name Description Size Price
Product Market Promotion Time
Market Region
Description District Region Demographics
Time
Weekday Holiday Fiscal
Promotion
Description Discount Media Dollars Units Price Cost
Region
Product
Time
E-Business - 16
Pivot Table in Excel
E-Business - 17
Team Work & Groupware

Same Time Different Time
Project/team rooms Shared offices
Same Place
Multi-media presentation systems Key-pad based voting tools Facilitated meetings using a PC Networked PCs based GDSS
Different Place
Screen sharing Audio/video conferencing
E-mail Data & file sharing Group authoring tools Computer conferencing Work flow management systems
E-Business - 18
Generic Problem-Solving Process and TeamSpirit

TeamSpirit is a Web-based group decision support system / creative group problem solving system. Every user can create and facilitate meetings. TeamSpirit Meeting Management Tool Generic Problem Solving Process Idea generation
TeamSpirit Toolbox Share information Discussion forum Structured brainstorming Brainstorming Idea consolidation Rate alternative Rank alternatives Select alternatives Multicriteria evaluation
E-Business - 19
Idea Organization
Alternative Evaluation
Select a Meeting Agenda to Participate
E-Business - 20
Multi-Aspect Brainstorming
E-Business - 21
Rate Alternatives
E-Business - 22
E-Business - 23
Multicriteria Evaluation Tool
E-Business - 24
Enterprise Portal Strategy

Spectrum of sites centralized in large scale farms or standalone Rich out-of-box solution for collaboration and portals Consistent user, developer and admin experience
Enterprise
Division
Teams
Individual
Business Processes People-to-people connections
E-Business - 25
Information Aggregation
Employee or partner site aggregating information and applications
Capabilities
Customizable presentation & personalization Content and Document management and publishing Business Intelligence Information aggregation and search Taxonomy Enterprise Application Integration
E-Business - 26
Types of Processes
Dimensions & Type
Organization Entity Interorganizational Interfunctinal Interpersonal
Examples
Order from a supplier Develop a new product Approve a bank loan
IT Enabling Effects
Lower transaction costs Eliminate intermediaries Work across geography Greater concurrency Integrate role and task
Objects Physical
Informational
Manufacture a product
Increase outcome flexibility Control process Routinize complex decision
Prepare a proposal
Activities Operational Managerial
Fill a customer order Develop a budget
Reduce time and costs Increase output quality Improve analysis Increase participation
Adapted from: Davenport, T. H. and Short, J. E., "The New Industrial Engineering: Information Technology and Business Process Redesign," Sloan Management Minder Chen, 1996-2004 Review, Summer 1990, p. 17.
E-Business - 27
IT Capability and Their Organizational Impacts

Capability Transactional Geographical Automational Analytical Informational Parallel Organizational Impact and Benefit Transform unstructured processes into routinized transactions Transfer information across long distances easily to make processes independent of geographical areas Reduce or reduce human labor in a process Bring complex analytical methods to bear in a process Analyze and present vast amount of detailed information about a process Change sequential tasks in a process into parallel ones
Knowledge Mgmt.
Tracking Disintermediation
Capture and disseminate expertise to amplify human cognition Allow real-time and detailed tracking of tasks status, and inputs and outputs of a process Remove intermediaries and connect two parties in a process directly
Adapted from: Davenport, T. H. and Short, J. E., "The New Industrial Engineering: Information Technology and Business Process Redesign," Sloan Management Review, Summer 1990, p. 17.
E-Business - 28
New Thinking
Old Assumption
Field operations are on their own Only specialists can perform complex work Managerial hierarchy is required for control & supervision Product development is a sequential activity
Enabling Technology
High bandwidth networks, remote access, wireless network Knowledge base systems, expert systems
New Thinking
Simultaneous centralization and decentralization Case managers handle a case with no handoff
Accessible data & analytic tools, exception monitoring

Common CAD/CAM systems
Self-managed teams
Concurrent engineering Target marketing, customerized & personalized services Predictive order processing
E-Business - 29
We treat all customers alike

We don't know what's in the order until we receive it
Comprehensive customer data base
Modeling and forecasting and inter-organizational IS
Process Classification Scheme: AA Global Best Practice KB Operating processes

Understand market & customer Develop vision & strategy Design products & services Market & sell Produce & deliver for product organization
Invoice & service customers
Produce & deliver for service organization
Management & support processes
Develop & manage human resources Manage information/knowledge Manage financial & physical resources Execute environmental management program Manage external relationships
Manage improvement and change

E-Business - 30 Source: A Note Minder Chen, 1996-2004on Knowledge Management, Harvard Business School 9-398-031, 1997.
New Life Insurance Policy Application Process at Mutual Benefits Life Before Reengineering*
Department A Step 1 Department A Step 2
....
Issuance Application
Department E Step 19
Issuance Policy
30 steps, 5 departments, 19 persons Issuance application processing cycle time: 24 hours minimum; average 22 days only 17 minutes in actually processing the application
*Source: Adapted from Rethinking the Corporate Workplace: Case Manager at Mutual Benefit Life, Harvard Business School case 9-492-015, 1991.
E-Business - 31
The New Life Insurance Policy Application Process Handled by Case Managers
Mainframe
Underwriter
Physician
Case Manager
PC Workstation

LAN Server
application processing cycle time: 4 hours minimum; 2-5 days average Application handling capacity double Cut 100 field office positions
E-Business - 32
Reengineering Example
Cash Lane No more than 10 items
Which line is shorter and faster?
E-Business - 33
Reengineered Process
Key Concept:
One queue for multiple service points Multiple services workstation
E-Business - 34
Empowered Customer-Focus Processes
Manager as Coach
Teamwork
Customer-facing Process
Empowered Font-line worker

Values and Quality delivered to Customers timely
E-Business - 35
Boss-Focus Processes
Aiming the wrong target
De-powerment
Customer
Front-line Worker
Out on a limb
Tug of War
E-Business - 36
Customers
Obsess over your customers Remember that the Web is an infant
What do you have to offer that the physical world cannot in order to attract customers?
If you make one customer unhappy, he won't tell five friends -- he'll tell 5,000 on newsgroups, list servers, and so on.
"Word of mouth" factor gets amplified on the Net

The shifts of balance of power away from business and toward customer. - Jeff Bezos
MOT Analysis Example

Prio to MOT
Recognition Information gathering Comparison Applying for Credit Card Receiving Credit Card Using Credit Card Providing Information Changing and Upgrading Gifts giving Emergency Assisting No usage follow-up Stop membership follow-up
E-Business - 38
MOT
After MOT
End-to-End Processes
Customer
Account Receivable Marketing/ Sales
Shipping
Manufacturing
Inventory Mgmt.
E-Business - 39
Think from the Customer Back

The Customer Define Outcomes
Redesign Outputs
Activities/Tasks Functions/Processes Organization

Management
* Adapted from The Price Waterhouse Change Integration Team, Better Change, Irwin, 1995, p. 163.
Determine Activities
Define Job Responsibilities
Develop Organization Structure

E-Business - 40
Reengineering & Customers*

Paradigm Shift:
Make and sell Mass marketing Transaction marketing Sense and service Micro-marketing Relationship marketing
IT Enablers
Multimedia: e-Learning Communication networks: Internet and intranet Scanning technologies: RFID Electronics commerce Customer databases: CRM Mobile computing
Source: James I. Cash, Jr., "Listen To Your Customers", Information Week, Feb. 27, 1995, p. 108. Minder Chen, 1996-2004 E-Business - 41
Travelocity Microsoft expedia Priceline.com
Is EC Appropriate for You?
Industries who set up virtual storefronts

EC Strategies: 4 Cs
Customers
Your competitor is just one-click away
Commerce
Content Community
Virtual Communities
Money
Content
Demographics
Virtual Community
Content Hard goods Games Services
Users
Advertising Advertisers
Providers
Other Websites
E-Business - 45
EC and Business Processes

Seller
Send info Provide Info Data sheets, catalogs, demos Get customer Web site Newsgroups Web surfing Web searches, web ads Find source Phone, fax, e-mail
Customer
Request info Identify need
Corporate Databases
Provide info
Demos, reviews Fulfill order P.O.s
Net communities
Evaluate offerings
Web site
Credit cards, e-cash
Purchase
EDI
Deliver soft goods electronically Operate, Maintain, Repair
Support
Web site, phone, fax, e-mail, emailing list
E-Business - 46
Business Models Based on the Value Chain in the Market Place

Raw material producer
Independent market operators Consortia
Exchange
Manufacturer
Distributor
C2B
New Middleman
Examples: B2B: alibaba.com B2C: Amazon.com C2B: Priceline.com C2C: eBay.com
Retailer
B2C
C2C
Consumer
Service Providers: Logistics Financial
B2C
E-Business - 47
E-Business Integration Imperatives
Internet / Virtual Private Network

Trading Partners Suppliers Distributors Business Partners
B2C
Consumers
B2B Integration
REQUIREMENTS
EAI Standards based integration Configurable across applications Heterogeneous Platforms Business process oriented ERP Application Packages Loosely coupled Proprietary Applications Supports an incremental approach Legacy Applications Scaleable, available, secure, manageable
The B2C Business Models Bricks, Clicks, Revolution and Evolution

Clicks Bricks organizations set up separate click organizations to give the required freedom to operate in the fast moving Click environment or Clicks organizations were created through VC capital Bricks & Clicks
Bricks
Gap, Safeway, Wallmart
eBay, Amazon, Webvan, Wingspan Bank, Yahoo
Sat on the sidelines for the explosion Evolved to online commerce Online services are incremental Not huge differentiators for clients Source of convenience Took advantage of lessons learned Assets CHEAP from Click failures
Mergers or sales of assets to Bricks Folding bricks ventures into portfolio Narrow focus of offerings
Wells Fargo, Safeway, Barnes and Noble E-Business - 49
IT Technology Driven vs. Business Pulled

Business Vision & Strategy
Business-pulled
How can business strategies be changed business processes be transformed using IT?
Business Reengineering
How can IT support business strategies and business processes?
Technology-driven
Information Technology
E-Business - 50
The Zachman Framework for Enterprise Architecture

What
Data
How
Function
Where
Network
Who
People
When
Time
Where
Motivation
E-Business - 51

Business environments Market demands Technology development Social trends

Geographic distribution Localization
E-Business - 52
Man, Market, Money, Method, Machine, Material, Message
Message: Information
Man: Human Resource, Employees Market: Customers
$$$ Money: Accounting Finance Investment
Method: Technique Process Project Task

Machine: Property Facility Technology Material: Raw material Product

E-Business - 53


Information Technology and Business Minder Chen, PH.D

Încărcat de

Informații document

Descriere originală:

Titlu original

Drepturi de autor

Formate disponibile

Partajați acest document

Partajați sau inserați document

Opțiuni de partajare

Vi se pare util acest document?

Este necorespunzător acest conținut?

Drepturi de autor:

Formate disponibile

Information Technology and Business Minder Chen, PH.D

Încărcat de

Drepturi de autor:

Formate disponibile

E-Business:

Information Technology and Business

Minder Chen, 1996-2004

Information Life Cycle

Even the Caveman Needs Knowledge to Survive

Minder Chen, 1996-2004

E-Business and E-Commerce

Minder Chen, 1996-2004

The Extended Enterprise

E-Business: Virtual and Dynamic Enterprise

Back Office Integration

Supply Chain Management Customer Relationship Management Enterprise Resource Planning

A Federation of Information Systems

Minder Chen, 1996-2004

Minder Chen, 1996-2004

R/3 Logistics Process Flow

Minder Chen, 1996-2004

Information Systems Triad

Enterprise Workflow OLTP

Business Process Workflow DSS EIS Data

Information System Applications

Minder Chen, 1996-2004

Minder Chen, 1996-2004

Architecture of Data Warehouse

End User Access Tools

Data Bridging/ Transformation

Data extraction Data filtering Table joining Translation Re-Formatting

EIS DSS Report Writers Spreadsheets

Product Market Promotion Time

Minder Chen, 1996-2004

Pivot Table in Excel

Minder Chen, 1996-2004

Team Work & Groupware

Minder Chen, 1996-2004

Generic Problem-Solving Process and TeamSpirit

Minder Chen, 1996-2004

Select a Meeting Agenda to Participate

Minder Chen, 1996-2004

Minder Chen, 1996-2004

Minder Chen, 1996-2004

Minder Chen, 1996-2004

Multicriteria Evaluation Tool

Minder Chen, 1996-2004

Enterprise Portal Strategy

Business Processes People-to-people connections

Minder Chen, 1996-2004

Minder Chen, 1996-2004

Increase outcome flexibility Control process Routinize complex decision

Activities Operational Managerial

Fill a customer order Develop a budget

IT Capability and Their Organizational Impacts

Minder Chen, 1996-2004

Accessible data & analytic tools, exception monitoring

We treat all customers alike

Comprehensive customer data base

Modeling and forecasting and inter-organizational IS

Process Classification Scheme: AA Global Best Practice KB Operating processes

Invoice & service customers

Produce & deliver for service organization

Management & support processes

Manage improvement and change

Minder Chen, 1996-2004