Strategic Information Systems Strategic Information Systems

Vision

What Is A Vision?What Is A Vision?

It is a self image that reveals what the It is a self image that reveals what the business wants to look like over the future.business wants to look like over the future.

Vision must be concrete and easily Vision must be concrete and easily understood.understood.

Why A Vision?Why A Vision?

• A C.E.O can do only a limited amount of things to A C.E.O can do only a limited amount of things to sustain competitive success.sustain competitive success.

• Important to draw a road map from where company Important to draw a road map from where company is today to some imagined future.is today to some imagined future.

• Then reinforce this by explaining how to get there.Then reinforce this by explaining how to get there.• You want to motivate employees within the You want to motivate employees within the

organization to buy into the new direction dictated organization to buy into the new direction dictated by the vision.by the vision.

Developing The Right VisionDeveloping The Right Vision

3 Steps3 Steps

1.1. Define The Business Environment.Define The Business Environment.

2.2. Build A Company VisionBuild A Company Vision

3.3. Turn The Vision Into A PlanTurn The Vision Into A Plan

Vision and Information SystemsVision and Information Systems InvestInvest

VisionVision

Asset Save Money Asset Save Money

ApplicationsApplications

NetworksNetworks

Strategic ExpenseStrategic Expense

ToolsTools

TacticalTactical

Jack F. Welch,Jr., Jack F. Welch,Jr., Chairman and Chairman and CEOCEO

““Grocery Store”Grocery Store”

Formalities are not Formalities are not very popularvery popular

Summer SessionsSummer Sessions

SurpriseSurprise

General ElectricGeneral Electric Mission & VisionMission & Vision

Mission:Mission: To create intelligence throughout the To create intelligence throughout the business supply chains of our customers around business supply chains of our customers around the globe by combining Six Sigma process the globe by combining Six Sigma process disciplines with innovative electronic commerce disciplines with innovative electronic commerce technologies.technologies.

Vision:Vision: Be the world's largest provider of Be the world's largest provider of electronic commerce solutions that create electronic commerce solutions that create intelligence for business supply chains.intelligence for business supply chains.

Six Sigma VisionSix Sigma Vision Critical to QualityCritical to Quality: Attributes most important to the : Attributes most important to the

customercustomer DefectDefect: Failing to deliver what the customer wants: Failing to deliver what the customer wants Process CapabilityProcess Capability: What your process can deliver: What your process can deliver VariationVariation: What the customer see and feels: What the customer see and feels Stable OperationsStable Operations: Ensuring consistent, : Ensuring consistent,

predictable processes to improve what the customer predictable processes to improve what the customer sees and feelssees and feels

Design for Six SigmaDesign for Six Sigma: Designing to meet customer : Designing to meet customer needs and process capabilityneeds and process capability

GE’s e-Volution of 2000GE’s e-Volution of 2000 MakeMake

See how the digitization of our internal processes helped GE See how the digitization of our internal processes helped GE gain key competitive advantages.gain key competitive advantages.

BuyBuyLearn how GE applied e-Business strategies to dramatically Learn how GE applied e-Business strategies to dramatically improve sourcing operations and purchasing efforts.improve sourcing operations and purchasing efforts.

SellSellExplore GE's success in digitizing online sales processes and Explore GE's success in digitizing online sales processes and transitioning customers to Web-based purchasing and service transitioning customers to Web-based purchasing and service options.options.

e-Business Factse-Business Facts Make-side FactsMake-side Facts

Current implementation of the digitization of internal processes has helped us Current implementation of the digitization of internal processes has helped us identify approximately $1.5 billion in potential cost-out savings for 2001. identify approximately $1.5 billion in potential cost-out savings for 2001. Make-side activity encompasses more than $20 billion in base costs. Make-side activity encompasses more than $20 billion in base costs. GE has identified 20%-30% cost-out opportunity using Make-side e-Enablement.GE has identified 20%-30% cost-out opportunity using Make-side e-Enablement.

Buy-side FactsBuy-side Facts Although GE businesses did only minimal online auctioning until mid-2000, we Although GE businesses did only minimal online auctioning until mid-2000, we closed the year with more than $6 billion worth of goods and services auctioned closed the year with more than $6 billion worth of goods and services auctioned online. online.

The close-of-auction price deflation for GE in 2000 was approximately 16%. The close-of-auction price deflation for GE in 2000 was approximately 16%. The close-of-transaction price was about 8% (providing $480 million of The close-of-transaction price was about 8% (providing $480 million of annualized savings). annualized savings).

Targeting 30% of overall buying online in 2001.Targeting 30% of overall buying online in 2001. Sell-Side FactsSell-Side Facts

Online transactions have grown from basically $0 in 1998 to $1 billion in 1999 Online transactions have grown from basically $0 in 1998 to $1 billion in 1999 and over $7 billion in 2000. In 2001 we anticipate 15% of our total revenue will and over $7 billion in 2000. In 2001 we anticipate 15% of our total revenue will come from online sales. come from online sales.

A corporation made up of many entities that wants “… to be the

most valuable company in the world”

http://aoltimewarner.com

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1918 1950 1982 1994 2001Time Warner AOL Warner Brothers

2001 Merger

1918 – Time Magazine idea conceived

1918 – Brothers Warner open first West Coast studio

1923 – Time’s first issue published

1927 – Warner Bros. releases first synchronized talking movie

1985 – Steve Case & Jim Kimsey conceive new co. Quantum Computer Services – no WWWeb.

1989 – Time acquires Warner to form Time Warner

1995 – WB Network debuts

1996 – Time Warner & Turner Broadcast Systems merge

1998 – AOL acquires Compuserve and ICQ

2000 – AOL reaches 27 million members

2001 – AOL & Time Warner merge

1989 Merger

TIMELINE: TIME, WARNER, AOL

AOL Time Warner Corporate Executives (AND Forces Behind The Merger)

Steven M. Case

Chairman of The Board

Graduate of Williams College with a degree in Political Science

Former Chairman and Chief Executive Officer of America Online Inc.

Co-founded AOL in 1985

Prime force behind merger of AOL and Time Warner Inc., in 2001

Currently, Actively involved in leading and building AOL Time Warner with particular focus on technological developments, policy initiatives and strategic investments that are driving the GLOBAL expansion of the interactive medium.

Founded Case Foundation which has supported programs like “PowerUp” – technology centers for young people in inner cities and rural areas designed to help expand digital opportunity

Gerald M. Levin

Chief Executive Officer

Graduate of U. of Pennsylvania Law School 1963 & Graduate of Haverford College in 1960

Former Chairman and Chief Executive Officer of Time Warner Inc.

Has been with the company since joining Time Inc. (HBO) in 1972

Leading architect of the historic merger of AOL Time Warner in 2001

Prime Mover of Time Inc, and Warner Communications merger in 1990

Prime Mover of Time Warner’s merger with Tuner Broadcasting Systems 1996

Recently resigned from primary duty of placing management structure regarding company’s growth

AOL’s Vision

“To build a global medium as central to people’s lives as the telephone or television – and even more valuable.”

Time Warner’s Vision

To build a global medium central to people’s lives that entertains and allows for communication.

Evolution of a Vision

AOL/ TIME WARNER’s VISION

“To transform how people throughout the world acquire information, are entertained, purchase a full range of goods

and services and communicate with each other across international boundaries.”

AOL TIME WARNERS VISION

“To transform how people throughout the world acquire information, are entertained, purchase a full range of goods and services and communicate with each other across international boundaries.”

The Vision is anchored in two fundamental beliefs and anchored by a strong foundation:

Belief #1 - New deliver systems enabled by technology will alter consumer habits and relationships and, as a result, their business dramatically. Thus, boundaries between products, business, and services blur - CONVERGANCE

Belief #2 - Putting all the pieces together that relate to this convergence of products and services will enable them not only to better manage, but to drive their own destiny.

Anchor – A foundation that begins with a unique combination of technology, content and an expanding relationship with consumers throughout the world.

To become the world’s most respected and valued company by connecting, informing and entertaining people everywhere in innovative ways that will enrich their lives.

Values:

Creativity – We thrive on innovation and originality – encouraging risk-taking and divergent voices.

Customer Focus – We value our customers – putting their needs and interests at the center of everything we do. CUSTOMER SERVICE AS A DRIVER

Agility – We move quickly – embracing change and seizing new opportunities.

Teamwork – We treat one another with respect – creating value by working together within and across our business.

Integrity – We rigorously uphold editorial independence and artistic expression – earning the trust of our readers, viewers, listeners, members and subscribers.

Diversity – We attract and develop the world’s best talent – seeking to include the broadest range of people and perspectives.

Responsibility – We work t improve our communities – taking pride in serving the public interest as well as the interests of our shareholders.

MISSION STATEMENT(7 Goals Needed To Achieve This Vision)

CHALLENGES FACING AOL

Creativity – An abundance of creativity, but it’s not even flow. Employees are NOT taken seriously and allowed to become an integral part of the creative process.

Customer Focus - Not a problem. AOL and Time Warner before the merger were all about customer service. Everything they respectively built, stated, created and affected was based upon the consumer.

Agility – Not a problem. AOL Time Warner is at the forefront because they’re the first ones in and the last ones out.

Teamwork. – It’s not there yet. Too many divisions within the company. Covergence is only at it’s inception phase. Manager Top heavy. Too many walls and boundaries.

Integrity -

Diversity – Not there yet. High turnover rate.

Responsibility – Right on! Foundations created for the community. They give back and do so in a big way… Creates company consumer awareness

INFORMATION TECHNOLOGY Need to create communication lines that are easy to use and capable of transmitting large amounts of information quickly and efficiently not only for the customers sake but within the company in an effort to “converge”

Its essential that AOL constantly be on the cutting edge of Information Technological advances, products and services.

It’s the tool needed to move them towards their shared Vision plan.

Competition is fierce and as the company expands into new markets both foreign and domestically, IT will play a much more important role within the company

AOL is in it’s most critical stage – new merger

Look at other ways to break down communication problems with IT

Currently AOLTW uses email as it’s main source of communication

They expanded on that recently by converting all entities email programs to an AOL’s email format

Securitized – passcode changes every minute

In so doing, employees can now access their own and company related email from home and on the road without the need of a company laptop computer

Strengthened and expanded on their single most important asset – their direct relationship with the consumer.

On the creative side, they developed extraordinary new movie franchises, and the music business was able to increase it’s market share

They extended the penetration of their broadband and digital technologies and set the stage for an increasingly wide array of new offerings like high-speed Internet services and Video on demand

They expanded in key overseas markets, particularly Europe

Acquired IPC media, one of the leading publishers in Europe

Undertook a a broad spectrum of successful cross-divisional marketing initiatives.

Movie releases are promoted via the internet on AOL, HBO sites are created to enhance and promote special and coming attractions, Warner Music promotes HBO programming like REVERB

Networks extended their leadership, but their response to the events of September 11 th demonstrated the increasing importance of our corporate mission to inform and connect.

Millions of people tuned into CNN and our local news channels.

Magazines

Internet

Companies financial results for 2001 were strong given the current environment

VISION ACHIEVEMENTS IN 2001

Federal Express’ VisionFederal Express’ Vision

Created by visionary Created by visionary

Frederick W. SmithFrederick W. Smith

Federal Express Early HistoryFederal Express Early History

Product concept introduced in 1965 by Smith in a term Product concept introduced in 1965 by Smith in a term paper at Yale as a necessity for an airfreight system of paper at Yale as a necessity for an airfreight system of delivery to accommodate time-sensitive shipments such delivery to accommodate time-sensitive shipments such as medicine, computer parts and electronics.as medicine, computer parts and electronics.

Incorporated in 1971 and began operations on April Incorporated in 1971 and began operations on April 17,1973 with 14 small aircraft from Memphis 17,1973 with 14 small aircraft from Memphis International Airport.International Airport.

Deregulation of air cargo in 1977 brought bigger planes Deregulation of air cargo in 1977 brought bigger planes such as Boeing 727 and MD DC10s to the fleetsuch as Boeing 727 and MD DC10s to the fleet

Federal Express makes first profit in 1975 Federal Express makes first profit in 1975

Federal Express andFederal Express andThe Vision ProcessThe Vision Process

Step One:Step One:Define the Business Define the Business EnvironmentEnvironment

Smith’s genius came in the ability to Smith’s genius came in the ability to position himself in an already established position himself in an already established market of carriers using passenger routesmarket of carriers using passenger routes

Smith was determined to make his system Smith was determined to make his system more economical and faster using a fleet more economical and faster using a fleet of aircraft dedicated to the transport of of aircraft dedicated to the transport of packages onlypackages only

Step Two: Build a Company Step Two: Build a Company Vision Vision

Become the most economical and Become the most economical and fastest airfreight distribution system fastest airfreight distribution system

Be the industry leader in cost and Be the industry leader in cost and product innovations using information product innovations using information technologytechnology

Make Federal Express a global Make Federal Express a global organization organization

Step Three: Turn Vision Into PlanStep Three: Turn Vision Into PlanInternational ExpansionInternational Expansion

Acquisition of Tiger International Inc in Feb. 1989 Acquisition of Tiger International Inc in Feb. 1989 made them the world’s largest full-service all-made them the world’s largest full-service all-cargo airlinecargo airline

Tiger International acquisition positioned Fed Ex Tiger International acquisition positioned Fed Ex in 21 countries, including facilities-wise and flying in 21 countries, including facilities-wise and flying routesroutes

In 1995 acquired Evergreen International Airlines In 1995 acquired Evergreen International Airlines for sole US cargo carrier rights to routes in Chinafor sole US cargo carrier rights to routes in China

Today Fed Ex serves more than 200 countries in Today Fed Ex serves more than 200 countries in Africa, Asia, Australia, Europe, North and South Africa, Asia, Australia, Europe, North and South America.America.

Vision into PlanVision into PlanFed Ex and ITFed Ex and IT

April 2000:FedEx introduces real-time packing tracking April 2000:FedEx introduces real-time packing tracking with wireless LAN equipment, NORCOM satellite with wireless LAN equipment, NORCOM satellite network BellSouth wireless networks and bar code network BellSouth wireless networks and bar code scanners scanners

Fall 2001: FedEx begins using Clarify CRM from Nor-tel Fall 2001: FedEx begins using Clarify CRM from Nor-tel Networks to build and maintain customer profiles and Networks to build and maintain customer profiles and route calls to the best customer service rep for their route calls to the best customer service rep for their particular problemparticular problem

Jan 2002: Using Deploy Solutions, Fed Ex reduced Jan 2002: Using Deploy Solutions, Fed Ex reduced candidate application time by over 50% with an online candidate application time by over 50% with an online application via Web-based browser kiosks, which were application via Web-based browser kiosks, which were interfaced with the company’s main HRIS (PRISM)interfaced with the company’s main HRIS (PRISM)

FedEx AwardsFedEx Awardsin Information Technologyin Information Technology

Logistics Management and Distribution Report “Quest for Logistics Management and Distribution Report “Quest for Quality” Award: Best Air Carrier (2000)Quality” Award: Best Air Carrier (2000)

Wal-Mart Stores,Inc. “Carrier of the Year” (1999,2000)Wal-Mart Stores,Inc. “Carrier of the Year” (1999,2000) Fortune: “100 Best Companies to Work for in America” Fortune: “100 Best Companies to Work for in America”

(1998,1999,2000)(1998,1999,2000) Fortune: “50 Best Companies for Asians, Blacks, and Fortune: “50 Best Companies for Asians, Blacks, and

Hispanics (1998,1999)Hispanics (1998,1999) Working Woman: “100 Best Companies for Working Working Woman: “100 Best Companies for Working

Mothers” (1998)Mothers” (1998) Compaq Computer “International Supplier of the Year” Compaq Computer “International Supplier of the Year”

(2000)(2000)

FedEx FactsFedEx FactsDid You Know?Did You Know?

FedEx handles approximately 3.3 million packages and FedEx handles approximately 3.3 million packages and documents each nightdocuments each night

In a 24-hour period, FedEx planes travel almost one-half In a 24-hour period, FedEx planes travel almost one-half million milesmillion miles

FedEx couriers log 2.5 million miles a day (the equivalent FedEx couriers log 2.5 million miles a day (the equivalent of 100 trips around the earth)of 100 trips around the earth)

FedEx has a fleet of 642 aircraft and more than 45,000 FedEx has a fleet of 642 aircraft and more than 45,000 vehiclesvehicles

In 1994 Federal Express changed their name to FedExIn 1994 Federal Express changed their name to FedEx In 2000, it extended itself to include FedEx In 2000, it extended itself to include FedEx

Express,FedEx Ground, FedEx Freight, FedEx Custom Express,FedEx Ground, FedEx Freight, FedEx Custom Critical and FedEx Trade NetworksCritical and FedEx Trade Networks