IT - Competitive Advantage
PRESENTED BY K V BRAHMAM.MCA RVR&JCCE. CHOWDAVARAM. GUNTUR.
Managing
IT & Competitive Advantage
Use of Information Technology for improved centralized control and decentralized decision making Flexibility & responsiveness of a decentralized organization as well as integration and control of a centralized organization New technology is more powerful, more diverse, increasingly entwined with the organizations’ critical business processes Enable persons with complementary skills to work together even though geographically dispersed
Real - Time Organizations
Time to Market Just in time manufacturing Customer response time Decisions based on timely information
Key Determinant of Business Success
Ability to understand customer needs better than competition Ability to envision customer needs even before they are articulated
Innovation
Flexibility to change direction rapidly
Re-engineering of operations
Selection of segments with favorable market structures
Computer as a Management Support Tool
Technology, different skills and process are
Traditional computer scientists have not been able to fulfill needs of Managers Involvement of user managers essential Process of design different. Usage of prototyping rather than traditional system life cycle approach
IT Directions
Internet / Intranet
ERP
e-commerce Data warehousing / Data Marts Object modeling / Client Server Relational Database Management Systems Networking - WANs / LANs
Integrate IT with Business strategy
Draw IT leaders into the company’s elite decision making circle Improve communications between CIO’s and CEO’s. CIO’s should drop the jargon and talk about revenue- producing initiatives CEO’s must listen Consider appointing an IT head with with a business background. Someone with engineering knowledge alone may not be able to think strategically
Evolving Technology
Automate back office Automate Front office
Automate customers
What can be done?
We cannot afford to do “nothing”. The survival of business at stake We must be willing to take (responsible) risk with new technology We must re-educate and re-motivate our staff Users must change the choice of technology used to support their business
Usage of Internet
Class of problem situation Difficult to store/access paper based files Business Benefits
Cross platform information interchange problems Multi-site/crossfunctional communications problems
Lower operating costs Greater accessibility on demand Single standard (TCP/IP) Standard e-mail communications On demand access to information / “Selfservice” Real time
Usage of Internet (contd..)
Eliminate
Class of problem Situation Time delays in distribution of Information to customers Lack of digital, 2-way communications with customers Access or cost problems
Create Business Benefits
Lower cost of production/distribution Lower customer service costs
Real time customer service feedback
Revenue growth Expanding market to other geographic locations New accounts
Internet / Intranet
Communications Marketing/sales Broadcast / media Engineering R&D Information
Self service for
customers Global e-mail
sharing
Collaboration
Internet / Intranet
Growth / globalization New media/branding Faster, lower cost service Customer focussed Database driven Productivity Cost efficiency Self service Globalization / reengineering Manufacturing High-tech