Information Technology for Strategic Management by ghostface

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									            Information Technology
                       for
             Strategic Management
                 Mahmoud Anbar
                 Executive Director
                       NOSSTIA

2005-11-7          SEBC - Management & Marketing Club:   1
                           manbar@scs-net.org
                The problem


   There is a huge gap between the vision and
      strategy developed at the top and the
    things people down in the organization, at
              the frontline, are doing.




2005-11-7         SEBC - Management & Marketing Club:   2
                          manbar@scs-net.org
        Global business environment
► Natural selection
► Survival of the fittest
► c-commerce ( Collaborative commerce)
► Interoperability (applications, business
  processes, and data )
► Demand identified is demand realized, in a
  matter of nanoseconds

2005-11-7        SEBC - Management & Marketing Club:   3
                         manbar@scs-net.org
            Business and technology

►Technology       is considered to be
     an integral part of an
     organization’s core-competency
     and a key evaluation factor
     used by investors and industry
     analysts
2005-11-7          SEBC - Management & Marketing Club:   4
                           manbar@scs-net.org
            Information or industry view

a company may acquire a
 competitive edge by viewing
 itself as an information business
 instead of taking the traditional
 industry—or vertical—view

2005-11-7            SEBC - Management & Marketing Club:   5
                             manbar@scs-net.org
                    Supermarket chain
 a
►ِ          business that sells food
or
► is   it a business that exploits knowledge
     about
           Customer preferences
           Geographical biases
           Supply chain logistics
           Product lifecycle
           competitive sales information to optimize its delivery,
            Inventory, pricing, and product placement
             as a way to increase margin for each item sold
2005-11-7                    SEBC - Management & Marketing Club:      6
                                     manbar@scs-net.org
            Strategic decisions
► Acquire  another company
► Enter a new geographic area.
► Launch or discontinue a product line.
► How do we optimally allocate resources to
  ensure profitability and growth targets?
► What factors or combinations of factors are
  directly impacting marketing campaigns?

2005-11-7       SEBC - Management & Marketing Club:   7
                        manbar@scs-net.org
            Tactical decisions
► Should  we extend credit to a particular
  customer?
► Which customers are likely to become
  profitable, when and to what extent?
► Who are our best suppliers or most
  profitable customers?
► Close someone's credit card account due to
  suspected fraudulent activity.
2005-11-7       SEBC - Management & Marketing Club:   8
                        manbar@scs-net.org
            Data management and
                profitability
“Companies that manage their data as a
  strategic resource and invest in its quality
  are already pulling ahead in terms of
  reputation and profitability.”

              PricewaterhouseCoopers



2005-11-7          SEBC - Management & Marketing Club:   9
                           manbar@scs-net.org
            Information Strategy

The part of the business strategy
 that describes how the firm will
 leverage information to create
 value in a dynamic business
 environment.

2005-11-7        SEBC - Management & Marketing Club:   10
                         manbar@scs-net.org
            IT Strategy




2005-11-7    SEBC - Management & Marketing Club:   11
                     manbar@scs-net.org
             IT Strategic role
► Strategy  and execution are the ultimate
  drivers of business performance.
► While technology does not actually deliver
  business strategy, it enables alignment and
  solid execution.




2005-11-7       SEBC - Management & Marketing Club:   12
                        manbar@scs-net.org
            Operational data usage
Data is the “fuel” driving the automation of
 a business operation.
Without the operational use of information a
 business could not survive




2005-11-7         SEBC - Management & Marketing Club:   13
                          manbar@scs-net.org
            Strategic Data usage
Strategic (forward-looking view )
► How   to improve the business
► Strategic knowledge is embedded in the
  collection of a company’s data and that
  extracting actionable knowledge will help a
  company improve its business.



2005-11-7        SEBC - Management & Marketing Club:   14
                         manbar@scs-net.org
            Key Management Tools
► ERP   : Enterprise Resource Planning
► SCM: Supply Chain Management
► CRM : Customer Relationship Management
  ----------------------------------------------------
► BPM : Business Process Management
► BI : Business Intelligence
► PM : Performance Management

2005-11-7           SEBC - Management & Marketing Club:   15
                            manbar@scs-net.org
               Agile enterprises
► If   you cannot change a plan, you
     cannot effectively manage
     performance.
► Performance-oriented       enterprise planning
     activities require a degree of flexibility that
     enables an organization to be responsive to
     changes in customer demand, competitors’
     new offerings, margin-friendly supply
     opportunities, or other important shifts that
     occur during the course of business.
2005-11-7            SEBC - Management & Marketing Club:   16
                             manbar@scs-net.org
            Agile control mechanism
► understanding     what is happening within
     your organisation, at a detailed level, and
     having an agile control mechanism that
     allows you to constantly improve these
     processes, and when necessary, change or
     advance your strategy to keep one step
     ahead of the competition


2005-11-7           SEBC - Management & Marketing Club:   17
                            manbar@scs-net.org
            The Management Cycle




2005-11-7         SEBC - Management & Marketing Club:   18
                          manbar@scs-net.org
            Business analytics software
► Enables  organizations to monitor, capture
  and analyze the vast amounts of data
  generated by transaction-processing
  systems (ERP, CRM, SCM )
► provide management and staff at all levels
  with tools necessary to optimize these
  processes through strategic and tactical
  decisions.

2005-11-7            SEBC - Management & Marketing Club:   19
                             manbar@scs-net.org
            Performance Indicators
► plans      and strategies can be defined and
     communicated as a set of interconnected
     performance indicators that are presented
     as dynamic scorecards that people can
     “drill into” to analyze what’s behind a result
     that’s not performing as it should be.



2005-11-7            SEBC - Management & Marketing Club:   20
                             manbar@scs-net.org
            The Intelligence Dashboard
► provide  a visualization dashboard that
  reflects those KPI measurements, presented
  in a form for management review
► It provides visibility into what needs to be
  fixed




2005-11-7           SEBC - Management & Marketing Club:   21
                            manbar@scs-net.org
            Balanced Scorecard
► You cannot control what you cannot
  measure.
► A technique in strategic management,
  provides a comprehensive set of measures
  used to communicate and evaluate
  achievement of an organization’s mission
  and strategy


2005-11-7       SEBC - Management & Marketing Club:   22
                        manbar@scs-net.org
            BSC- concept




2005-11-7     SEBC - Management & Marketing Club:   23
                      manbar@scs-net.org
            Performance control
► The Balanced Scorecard complements
 financial measures of past performance with
 measures of the drivers of future
 performance.
► Balanced Scorecard is a new concept
 mainly designed to translate a company's
 vision and actions into a consistent set of
 measures

2005-11-7        SEBC - Management & Marketing Club:   24
                         manbar@scs-net.org
            From Strategy to execution
►A   Scorecard is essentially a carefully selected set
  of measures derived from an organization's
  strategy.
► It's a tool for leaders to communicate to
  employees and external stakeholders the
  outcomes and performance drivers by which the
  organization will achieve its strategic objectives.
► The Scorecard provides the link that translates
  strategy into action across the enterprise, aligning
  long-term strategy with coordinated, cohesive
  business activities.
2005-11-7           SEBC - Management & Marketing Club:   25
                            manbar@scs-net.org
              BSC measures
► FinancialPerspective
► Customer Perspective
► Internal Business Process
► Learning Process and Growth Perspective




2005-11-7       SEBC - Management & Marketing Club:   26
                        manbar@scs-net.org
                     BSC




2005-11-7   SEBC - Management & Marketing Club:   27
                    manbar@scs-net.org
                Practical case
► Vision:
     “Incorporating our core VALUES we will be
     the acknowledged industry leader for the
     supply of INNOVATIVE custom-engineered
     products of EXCEPTIONAL value.”
► Mission:
     “To create value by DELIGHTING our
     customers by ENHANCING the capabilities
     of the entire company.”
2005-11-7          SEBC - Management & Marketing Club:   28
                           manbar@scs-net.org
                 Core Values:

► “We     are a manufacturing company with the
     following core values:

     uncompromising INTEGRITY,
     exceptional customer SERVICE,
     continuous IMPROVEMENT in all we do, and
     recognize the contributions of our
     employees.”

2005-11-7          SEBC - Management & Marketing Club:   29
                           manbar@scs-net.org
                Key words
► Values
►  Innovative
► Exceptional
► Delighting
► Enhancing
► Integrity
► Service
► Improvement

2005-11-7       SEBC - Management & Marketing Club:   30
                        manbar@scs-net.org
2005-11-7   SEBC - Management & Marketing Club:   31
                    manbar@scs-net.org
            From output to outcome




2005-11-7         SEBC - Management & Marketing Club:   32
                          manbar@scs-net.org
2005-11-7   SEBC - Management & Marketing Club:   33
                    manbar@scs-net.org
            Linking Scorecard Components




2005-11-7             SEBC - Management & Marketing Club:   34
                              manbar@scs-net.org
                     Balanced Scorecard
                  Financial
                  “To succeed financially,
                  how should we appear to
                  our shareholders?”

Customer                                                        Internal Business Process
“To achieve our                         Vision                  “To satisfy our
vision, how                                                     shareholders and
                                         and
should we                                                       customers, what
appear to our                          Strategy                 business processes
customers?”                                                     must we excel at?”


                  Learning and Growth
                  “To achieve our vision,
                  how will we sustain our
                  ability to change and
                  improve?”
  2005-11-7                   SEBC - Management & Marketing Club:                           35
                                      manbar@scs-net.org
          Balanced
       Scorecard makes
               strategy
            everyone’s job
2005-11-7       SEBC - Management & Marketing Club:   36
                        manbar@scs-net.org

								
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