END BACKNEXT Foundation Concepts IS Framework Information Technologies Roles of IS Roles of E- Business Trends in IS Types of IS Developing IS Solutions

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Foundation ConceptsIS FrameworkInformation TechnologiesRoles of ISRoles of E-BusinessTrends in ISTypes of ISDeveloping IS SolutionsEthics and ITSection IISystems ConceptsIS ModelComponents of an ISIS ActivitiesRecognizing IS

KEY TERMS

Copyright 2005, McGraw-Hill/Irwin, Inc. 1-1

Real World Cases

User’s Guide forUser’s Guide forPowerPoint Presentations PowerPoint Presentations

Mary Carole HollingsworthMary Carole HollingsworthGeorgia Perimeter CollegeGeorgia Perimeter College

• Major topics outline of chapter will appear here, hyperlinked to the page where the topic is covered. A click jumps to the appropriate page.

• Running the presentation should be executed normally by using the mouse buttons. The space bar or Page-Down advances beyond where the flow should end.

• Click around the presentation – All hyperlinks in place are underlined – Works like the Web!

Similar hyperlinks are used as control alternatives for the presentations – A click on “Key Terms” or “Real World Cases” jumps to the page where they are presented.

Be Patient to Allow Animations to Execute Be Patient to Allow Animations to Execute and Always, Only Advance With Mouse Clickand Always, Only Advance With Mouse Click

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Real World Cases

Foundations of Foundations of Information Information

Systems in BusinessSystems in Business

Module I – Foundation Concepts

Practice the Jumps AroundThe File by Using the LinksAt the Left…The Use of the Real World Cases is Optional and are Accessed Using theHyperlinked Arrows in the Presentationsor From the Cases Page Available at allTimes by a Click to the Navigation Box.

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Real World Cases

Learning ObjectivesLearning Objectives1. Importance of information systems

and five needed areas of knowledge

2. Examples of business applications of information systems that support a firm’s business processes, managerial decision-making, and strategies for competitive advantage

3. Provide examples of several major types of information systems from your experiences with business organizations in the real world

These PowerPoint Files AreReady for Use Now!

They Can Be Infinitely CustomizedTo Suit Your Needs and Wishes.Presentations Are Developed in

Version 2002 (XP) But Can Be Usedor Customized in Most Earlier Versions

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Real World Cases

Learning ObjectivesLearning Objectives4. Identify challenges a business

manager might face in managing the successful and ethical development and use of information technology in a business

5. Components of real world information systems - the use of hardware, software, data, and networks to perform input, processing, output, storage, and control activities that transform data resources into information products

Explore and Enjoy Using theseComprehensive Presentations!

Feedback, Questions, or ProblemsCan Be Directed to:

Mary Carole [email protected]

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Real World Cases

Foundation Concepts: Foundation Concepts: Information Systems in BusinessInformation Systems in Business

Why Study IS and IT?An Essential Field of Study

in BusinessReal World of Information

SystemsReal World Case 1- Real World Case 1-

Amazon.Com Amazon.Com Click to go toCase 1

The Rest of this FileDuplicates Chapter 1 and is

Included for Practice Drills Only!When You Are Finished,

Go to the Chapters Directly. User’s Guide Ends Here

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Real World Cases

Information TechnologiesInformation Technologies

• Computer Hardware

• Computer Software

• Telecommunications Network

• Data Resource Management

What is an Information System?

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Real World Cases

Foundation Concepts

ManagementChallenges

Information TechnologiesBusiness ApplicationsDevelopment ProcessesManagement Challenges

InformationSystems

FoundationConcepts

InformationTechnologies

DevelopmentProcesses

BusinessApplications

InformationSystems

IS Framework for BusinessIS Framework for Business

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Roles of IS in BusinessRoles of IS in Business

SupportBusiness Processes and Operations

SupportBusiness Decision

Making

SupportStrategies

for CompetitiveAdvantage

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Real World Cases

Roles of e-Business in BusinessRoles of e-Business in BusinessSuppliers and OtherBusiness Partners

The InternetThe Internet ExtranetsExtranetsCompanyBoundary

Consumers andBusiness Customers

ExtranetsExtranets

Supply chain management:Procurement, Distribution, and Logistics

Customer relationship management:Marketing Sales Customer Service

Engineering andResearch

Manufacturingand Production

Accounting andFinance

IntranetsIntranets

IntranetsIntranets

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Real World Cases

• Distributor of Electrical Products and Supplies– Over 6,000 Employees– 5 Distribution Centers – 360 Branches Worldwide– Over 100,000 Customers

• New E-Business Ordering System• Increased Sales and Cut Costs• Est. $12 million Savings Annually

WESCO InternationalE-Business Sales and Supplier System

Roles of e-Business in BusinessRoles of e-Business in Business

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Trends in Information SystemsTrends in Information Systems

Data Processing: 1950s – 1960sElectronic Data Processing Systems

Management Reporting: 1960s – 1970sManagement Information Systems

Decision Support: 1970s – 1980sDecision Support Systems

Electronic Business & Commerce: 1990s – 2000sInternet-Based E-Business and E-

Commerce systemsStrategic and End User Support: 1980s – 1990sEnd User Computing SystemsExecutive Information SystemsExpert SystemsStrategic Information Systems

Ex

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Types of Information SystemsTypes of Information Systems

EnterpriseCollaboration

Systems

ManagementInformation

Systems

ProcessControlSystems

TransactionProcessing

Systems

DecisionSupportSystems

ExecutiveInformation

Systems

OperationsSupportSystems

ManagementSupportSystems

InformationSystems

ProcessingProcessingBusinessBusiness

TransactionsTransactions

ControlControlof Industrialof IndustrialProcessesProcesses

Team andTeam andWorkgroupWorkgroup

CollaborationCollaboration

PrespecifiedPrespecifiedReportingReporting

for Managersfor Managers

InteractiveInteractiveDecisionDecisionSupportSupport

InformationInformationTailored forTailored forExecutivesExecutives

Support of

Support of

Busines

s

Busines

s

Operat

ions

Operat

ions

Support of

Support ofManagerial

Managerial

Decision Making

Decision Making

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Other Information SystemsOther Information Systems

• Expert Systems (ES)

• Knowledge Management Systems

• Functional Business Systems

• Strategic Information Systems (SIS)

• Cross-Functional Information Systems

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Managerial Challenges of ITManagerial Challenges of IT

CustomerValue/BusinessValue

The Business Enterprise Strategies/ Processes/ Structure/ Culture

InformationInformationTechnologyTechnology

Business/ITBusiness/ITChallengesChallenges

Business/ITBusiness/ITDevelopmentsDevelopments

Business/ITBusiness/ITGoalsGoals

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Real World Cases

• Problems with ERP Software• $112 Million Project –

– Order Processing Problems– Multiple Vendor Applications

Being Installed Simultaneously

• Initial Problems to Implement• Recent Success with Upgrades

Hershey Foods:Failure and Success with IT

Managerial Challenges of ITManagerial Challenges of IT

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Developing IS SolutionsDeveloping IS Solutions

InvestigateInvestigate

AnalyzeAnalyze

DesignDesign

ImplementImplement

MaintainMaintain

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The IS FunctionThe IS Function• A Major Functional Area of

Business – Important to Success

• Important Contributor to Operational Efficiency, Employee Productivity and Morale, and Customer Service and Satisfaction

• A Major Source of Information for Decision Making

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Real World Cases

• New ERP Suite of Software– Loss of Business– Workers Didn’t Understand

System– Upgrade of Servers and

Databases– Redesigning Processes and

Training Customers• Now Reaping Benefits

A-DEC Inc.:Challenges in Systems Development

Developing IS SolutionsDeveloping IS Solutions

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Real World Cases

Challenges of Ethics and ITChallenges of Ethics and IT• Ethical Responsibilities• Be a Responsible End-UserApplications

of ITPotential

HarmsPotential

RisksPossible

Responses

CustomerCustomerRelationshipRelationshipManagementManagement

HumanHumanResourcesResourcesManagementManagement

BusinessBusinessIntelligenceIntelligenceSystemsSystems

Infringe-Infringe-ments onments onPrivacyPrivacy

InaccurateInaccurateInformationInformation

CollusionCollusion

CustomerCustomerBoycottsBoycotts

WorkWorkStoppagesStoppages

GovernmentGovernmentInterventionIntervention

Codes ofCodes ofEthics Ethics

IncentivesIncentives

CertificationCertification

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Challenges of Ethics and ITChallenges of Ethics and IT• Protection from Crime and

Other Risks Link Staffing: Network Security and Ethical Use • E-Mail and Antivirus Filtering• Limits on Size and Types of

Attachments, Chatting Banned– Use of Secure VPN Service– Tough Employee Standards

• Termination for Violations

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Challenges of IT CareersChallenges of IT CareersAmazon.Com:

IT Career Challenges• Huge Demand for Systems

Professionals– On-line Customer Sales Support– Technology as a Means to an End

Where the End is the Customer or Just Have Technical Skills

• Hard to Find a Combination of Skills

• Functioning in Unexplored Territory

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The IS FunctionThe IS Function• Vital for Developing

Competitive Products and Services to Gain Strategic Advantage

• Dynamic, Rewarding, and Challenging Career Opportunities

• Key Component of the Resources, Infrastructure, and Capabilities of Networked Business Enterprises

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Foundation Concepts: The Foundation Concepts: The Components of Information SystemsComponents of Information Systems

• Technology• Applications• Development• ManagementReal World Case 2- Real World Case 2- Kodak, HP, and Kodak, HP, and Amersham BiosciencesAmersham Biosciences

Click to go toCase 2

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Real World Cases

Systems Concepts: Systems Concepts: A FoundationA Foundation

What is a System?

• Input

• Processing

• Output

• Feedback

• Control

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Systems ConceptsSystems Concepts• Environment• Subsystem• Interface• Open Systems• Adaptive System

Graphically…

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Real World Cases

Information System ModelInformation System ModelStakeholders in the Business Environment

The CommunityThe Community CompetitorsCompetitors

Financial InstitutionsFinancial Institutions Labor UnionsLabor Unions

Go

ve

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Go

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Su

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us

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Sto

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Management

Information Systems

InputInput ProcessingProcessing OutputOutput

ControlControl

FeedbackFeedback

EconomicResources

BusinessResources

Goods &Services

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Components of an IS Components of an IS 1. People Resources

- End Users - IS Specialists2. Hardware

- Machines - Media3. Software

- Programs - Procedures4. Data Resources

- Data and Knowledge Bases5. Network Resources

- Communications Media and Networks

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Software Resources- System Software- Application Software- Procedures

Data Resources- Data Bases - Knowledge Bases

Data vs. Information

Components of an IS Components of an IS

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Information System ActivitiesInformation System Activities

Input Data Resources- Source Document - User Interface

Processing Data into Information Products

Storage of Data Resources

Control of System Performance

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Recognizing Information Recognizing Information SystemsSystems

Analyzing Information Systems

Recognizing:

IS Resources

Information Products

IS Activities

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Real World Cases

Recognizing Information Recognizing Information SystemsSystems

Analyzing Kodak and HP’s Information Systems

• IS Resources

• Information Products

• IS Activities

Chapter Conclusions…

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SummarySummary1. An IS Framework for Business

Professionals1) Foundation Concepts - Fundamental

Concepts of IS2) Information Technologies – Hardware,

Software, Data Management, and Networks

3) Business Applications – Processes, Operations, Decision Making, Strategic/Competitive Advantage

4) Development Processes – Develop and Implement Business/IT Solutions

5) Managerial Challenges – IT Uses for Top Performance and Business Value

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SummarySummary2. Business Roles of Info. Systems

1) Three Vital Roles of IS –a- Support Business Processesb- Business Decision Makingc- Strategic Competitive Advantage

2) Management Support Systems3) Management Information Systems4) Decision Support Systems5) Executive Information Systems6) Expert Systems7) Knowledge Management Systems8) Strategic Information Systems9) Functional and Cross-Functional

Information Systems

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SummarySummary3. Systems Concepts

1) Interrelated Components – Common objective

2) Inputs

3) Processing

4) Outputs

5) Feedback

6) Control

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SummarySummary4. An Information System

Model1)People2)Hardware3)Software4)Data5)Networks6)Storage

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SummarySummary5. IS Resources and Products

1)Hardware Resources2)Software Resources

-Programs-Procedures

3)People Resources-Systems Specialists-Users

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Real World Cases

KEY TERMSKEY TERMSComputer-Based Information SystemControlDataData or Information ProcessingData ResourcesDeveloping Business/IT SolutionsE-BusinessE-Business Role in BusinessElectronic CommerceEnd UserEnterprise Collaboration Systems

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Real World Cases

KEY TERMSKEY TERMSExtranetFeedbackHardware Resources - Machines – Media Information

- Products - QualityInformation SystemInformation System Activities

- Input - Processing - Output- Storage - Control

Information System modelInformation Technology (IT)Intranet

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KEY TERMSKEY TERMSIS Knowledge Needed by Business

ProfessionalsKnowledge WorkersManagement Challenges of IS

- Ethics and IT- IT Career Challenges- IT Success and Failure

Network ResourcesPeople Resources

- IS Specialists - End Users

Roles of IS Applications in Business- Support of Business Processes and Operations

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KEY TERMSKEY TERMS- Support of Business Decision Making- Support of Strategies for Competitive Advantage

Software Resources- Programs - Procedures

SystemTrends in Information SystemsTypes of Information Systems

- Cross-Functional Systems- Management Support Systems- Operations Support Systems

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Real World Cases

Real World Case 1 Amazon.Com


Real World Case 2 Kodak, HP, and Amersham Biosciences


Optional Case StudiesOptional Case Studies

Real World Case 3 Aviall, Inc.

Real World Case 4 Pacific Gas & Electric, Inc.



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Competing with Information Technology

Chapter 2

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Amazon.ComAmazon.Com

• Fundamental Roles of IS Including: – Support of Operations, Decision

Making and Strategic Competitive Advantages

• Use of E-Business Environment – Usage of Internet, Intranet and

Extranet Technologies• Management Style of Decision

Making• Dependence on IT for

Competitive Strategies

1- Could Amazon.com achieve business 1- Could Amazon.com achieve business success without information technology? success without information technology?

Why or why not?Why or why not?

Return toCases Page

Return toChapter 1

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•IT Plays a Vital and Expanding Role in all Businesses

•Planning and Using IT Should be a Key Component of all Efforts by a Business to Remain Competitive in a Global Environment

•Expanding Roles of the Business Applications of IS

•Classification of IS that Describe the Role of Each in the Support of Business Operations and Managerial Decision Making

Amazon.ComAmazon.Com2- Can any business today succeed 2- Can any business today succeed without information technology? without information technology?

Why or why not?Why or why not?

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Real World Cases

Return toCases Page

Amazon.ComAmazon.Com3- Jeff Bezos says that: “The 3- Jeff Bezos says that: “The

trouble with most corporations is trouble with most corporations is that they make judgment-based that they make judgment-based

decisions, when data-based decisions, when data-based decisions could be made.” Do you decisions could be made.” Do you

agree or not? Explain.agree or not? Explain.

Return toChapter 1

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Real World Cases

• Major Roles of IS in a Business

Return toCases Page





Return toChapter 1

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Real World Cases

• Major Roles of IS in a Business• Trends in IS that Depict the

Changing Role of IS to Support Managerial Decision Making

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Real World Cases

Kodak, HP, andKodak, HP, andAmersham BiosciencesAmersham Biosciences

What is the business challenge What is the business challenge facing companies like Kodak and facing companies like Kodak and HP in supporting their global HP in supporting their global sales forces? How successfully is sales forces? How successfully is the Eloquent software tool the Eloquent software tool helping these two companies meet helping these two companies meet this challenge? Explain.this challenge? Explain.

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Return toChapter 1

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• Silo syndrome - The Cost of Employee Time Spent on Research, Preparing Reports and Developing Support for the Sales Staff Without an Easy Way to Access the Information

• Data is Being Collected, but Kodak and HP are not Good at Sharing and Updating the Data

• Unused Valuable Marketing Information and Other Intellectual Property

Challenges would include:Challenges would include:

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• Ability to Deliver a Full Range of Product Information – Includes Text, Synchronized Video,

Graphics, Audio and Search Capabilities to Globally Dispersed Sales Organizations

• Allowing People to get More Done and Spend More Face Time with Customers as Opposed to Calling on the Phone to Kodak

How successful is the Eloquent How successful is the Eloquent software tool is described by software tool is described by Kodak and HP:Kodak and HP:

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• HP’s Ability to “Close the Loop on Sales Readiness” with the Eloquent Software’s Capability to Track and Report on Usage and Measurement of Learning Led to a Tenfold Return on Investment for the Company

How successful is the Eloquent How successful is the Eloquent software tool is described by software tool is described by Kodak and HP:Kodak and HP:

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Why was Amersham Biosciences’ Why was Amersham Biosciences’ Excel-based system a business Excel-based system a business and IT failure? How successfully and IT failure? How successfully is the Synygy software solving the is the Synygy software solving the business and IT problems business and IT problems involved? Explain. involved? Explain.

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• A Highly Manual Process• A Very Labor Intensive Task• A Process that was Fraught

with Error• Lack of Confidence in the Sales

Staff about the Accuracy of the Excel-Based System

• High Level of Error Correction

Amersham Biosciences” Excel-Amersham Biosciences” Excel-based system was a business and based system was a business and IT failure due to:IT failure due to:

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• Reduced Department’s Head Count by One Full Time Worker

• The Existing Four Week Period Required to Fix Problems was Reduced to Less than a Week

• Sales Staff have Confidence in the New Software

How successfully is the Synygy How successfully is the Synygy software solving the business and software solving the business and IT problems involved?IT problems involved?

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• Refocusing the Sales Staff’s Time Toward Customer Contact Rather than Toward Report Preparation, Error Correction, and Information Gathering

• Enabling the Sales Staff to Learn about New Product Information and Services Quickly so Promotional Efforts can be Better Directed

How else could IT be used to How else could IT be used to support a global sales force? Give support a global sales force? Give several examples.several examples.

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• Measuring the Learning about New Products and Services to Improve the Expertise of the Sales Staff to Seal Sales and Boost Company Sales


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Return toChapter 1

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• Measuring the Learning about New Products and Services to Improve the Expertise of the Sales Staff to Seal Sales and Boost Company Sales

• Improve the Accuracy of the Compensation Packages for the Sales Staff by Being Able to More Correctly Evaluate their Efforts


Return toCases Page

Return toChapter 1

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Real World Cases

1- Why do you think that 1- Why do you think that Aviall failed in their Aviall failed in their implementation of an implementation of an enterprise resource enterprise resource planning system? planning system?

What could they What could they have done differently? have done differently?

Aviall Inc.Aviall Inc.

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• ERP System Did Not Support Adequately Aviall’s Business Strategies

• The ERP Did Not Improve the Basic Operational Support System Needed to Provide Supply Chain Management

• The ERP System Project Did Not Adequately Address the Issue of Systems Integration

• Implementation of the ERP Failed Due to Inadequate Consideration of the Magnitude of the Project

Reasons why Aviall failed would Reasons why Aviall failed would include:include:


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• Project Planning Through the Use of Some Form of a Systematic Development Process

• Analysis of the Business Requirements Prior to Making Decisions about the Software to Acquire for the ERP System

• Project Management Should Have Been a Higher Consideration of Aviall

What Aviall could have done What Aviall could have done differently would include the differently would include the following:following:


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2- How has information 2- How has information technology brought new technology brought new business success to Aviall? business success to Aviall? How did IT change How did IT change Aviall’s business model?Aviall’s business model?


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• System Integrated by Using Common Business Databases Managed by Database Software from Sybase, Inc.

• Designing the New Combined System to Properly Access and Deal with Customized Pricing Charts for 17,000 Customers Who Receive Various Types of Discounts, and with an Inventory of 380,000 Different Aerospace Parts

• Developing Aviall.com to Reduce the Cost Per Order from $9 per Transaction to 39 Cents

How IT brought new business How IT brought new business success for Aviall would include:success for Aviall would include:


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• Customers are Able to Transfer their Orders from an Excel Spreadsheet Directly to the Web Site

• Customers have Access to Price and Availability Information in Less Than Five Seconds – A Real Time Feature

• Sales Force Spends More Time Developing Customer Relationships than Processing Routine Orders

• Aviall Can Better Match Production to Demand from the IT Improvements

How IT brought new business How IT brought new business success for Aviall would include:success for Aviall would include:


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• Changed Aviall from a Catalog Business to Full-Scale Logistics Business

• Aviall Became a Provider of Supply Chain Management Services through the Integration of a Range of Web-Enabled E-Business Software Systems

How IT changed Aviall’s business How IT changed Aviall’s business model would include:model would include:


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3-3- How could other companies How could other companies use Aviall’s approach to the use Aviall’s approach to the use of IT to improve their use of IT to improve their business success. Give business success. Give several examples. several examples.


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• Reposition a Firm as a Supply Chain Management Services Provider Through Web-Enabled E-Business Software Systems

Examples would include:Examples would include:


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• Reposition a Firm as a Supply Chain Management Services Provider Through Web-Enabled E-Business Software Systems

• Redesign the Customer Relationship Management System to Minimize the Routine Order Processing and Permit the Sales Force to Focus on Product and Service Development Efforts that will Grow Revenue

Examples would include:Examples would include:


Return toCases Page

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Real World Cases

Pacific Gas & Electric Co.: Pacific Gas & Electric Co.: Developing Customer Service Developing Customer Service

Information Systems Information Systems 1-1- Why has deregulation of Why has deregulation of

the electric power industry the electric power industry increased the need for new increased the need for new approaches to provide better approaches to provide better customer service and customer service and management by management by utility companies?utility companies?

Return toCases Page

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Information Systems Information Systems

• Deregulation Allowed Entry of New Competitors into the Industry

• Increased Competition in a Deregulated Industry Demands a New Up-To-Date Customer Relationship Management System

• Deregulation Resulted in the Establishment of Some of the Most Complex Formats in North America for Setting the Billing Rates that Different Utility Customers are Charged

Considerations would include:Considerations would include:

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Information Systems Information Systems 2-2- What are the business benefits What are the business benefits

and costs of PG&E’s new and costs of PG&E’s new customer information system? customer information system? Also, visit the PG&E website Also, visit the PG&E website and evaluate how well it helps and evaluate how well it helps them provide better customer them provide better customer service.service.

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• The Legacy CIS was 37 Years Old and had Exhausted its Useful Life and was No Longer Flexible. The New System is More Feature-Rich

• Information in the System is Automatically Updated Rather than Updated After a Few Days Following the Batch Processing of Jobs by the Old System

Business benefits and costs would Business benefits and costs would include:include:

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• Total Investment was $204 Million• PG&E have the Largest Off-The-

Shelf CIS Software Installation to Date

• Eliminated the Lack of Integration Between the Old Mainframe System and other Applications; Thus Reducing Lag Time for Customer Service Workers

Business benefits and costs would Business benefits and costs would include:include:

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3-3- How can new customer How can new customer information systems like information systems like CorDaptix help companies like CorDaptix help companies like PG&E compete in their new PG&E compete in their new de-regulated markets? Visit de-regulated markets? Visit the SPL World Group Website the SPL World Group Website and evaluate their claims for and evaluate their claims for companies that use CorDaptix.companies that use CorDaptix.

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• Customer Service Workers Can Access Updated Information in a Real-Time Environment as Compared to a Several Day Delay Under the Older Batch Processing Environment

The new CIS can assist companies The new CIS can assist companies such as PG&E by:such as PG&E by:

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• The Newer Better Integrated CIS Makes Data More Readily Available to Customer Service Workers


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• The Newer Better Integrated CIS Makes Data More Readily Available to Customer Service Workers

• The New CIS Added Additional Features that Allow the Company to Operate in a Highly Competitive Market after Deregulation


Return toCases Page

Documents

END BACKNEXT Foundation Concepts IS Framework Information Technologies Roles of IS Roles of E- Business Trends in IS Types of IS Developing IS Solutions