Transcript General Electric - University of Texas at El Paso

Strategic Information Systems
Vision
What Is A Vision?
 It
is a self image that reveals what the
business wants to look like over the future.
 Vision
must be concrete and easily
understood.
Why A Vision?
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A C.E.O can do only a limited amount of things to
sustain competitive success.
Important to draw a road map from where company
is today to some imagined future.
Then reinforce this by explaining how to get there.
You want to motivate employees within the
organization to buy into the new direction dictated
by the vision.
Developing The Right Vision
3 Steps
1.
2.
3.
Define The Business Environment.
Build A Company Vision
Turn The Vision Into A Plan
Vision and Information Systems
Invest
Vision
Asset
Save Money
Applications
Networks
Strategic
Expense
Tools
Tactical
Jack F. Welch,Jr., Chairman and
CEO
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“Grocery Store”
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Formalities are not
very popular

Summer Sessions

Surprise
General Electric
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Mission & Vision
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Mission: To create intelligence throughout the
business supply chains of our customers around
the globe by combining Six Sigma process
disciplines with innovative electronic commerce
technologies.
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Vision: Be the world's largest provider of
electronic commerce solutions that create
intelligence for business supply chains.
Six Sigma Vision
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Critical to Quality: Attributes most important to the
customer
Defect: Failing to deliver what the customer wants
Process Capability: What your process can deliver
Variation: What the customer see and feels
Stable Operations: Ensuring consistent, predictable
processes to improve what the customer sees and
feels
Design for Six Sigma: Designing to meet customer
needs and process capability
GE’s e-Volution of 2000

Make
See how the digitization of our internal processes helped GE
gain key competitive advantages.

Buy
Learn how GE applied e-Business strategies to dramatically
improve sourcing operations and purchasing efforts.

Sell
Explore GE's success in digitizing online sales processes and
transitioning customers to Web-based purchasing and service
options.
e-Business Facts

Make-side Facts
Current implementation of the digitization of internal processes has helped us
identify approximately $1.5 billion in potential cost-out savings for 2001.
Make-side activity encompasses more than $20 billion in base costs.
GE has identified 20%-30% cost-out opportunity using Make-side e-Enablement.
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Buy-side Facts
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
online.
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
annualized savings).
Targeting 30% of overall buying online in 2001.
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Sell-Side Facts
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
come from online sales.
http://aoltimewarner.com
A corporation made up of many entities
that wants “… to be the most valuable
company in the world”
TIMELINE: TIME, WARNER, AOL
1918 – Time Magazine idea
conceived
2001 Merger
100
1989 Merger
1918 – Brothers Warner open
first West Coast studio
1923 – Time’s first issue published
80
1927 – Warner Bros. releases first
synchronized talking movie
60
1985 – Steve Case & Jim Kimsey
conceive new co. Quantum
Computer Services – no WWWeb.
40
1989 – Time acquires Warner to
form Time Warner
20
1995 – WB Network debuts
0
1918
1996 – Time Warner & Turner
Broadcast Systems merge
1950
Time Warner
1982
AOL
1994
2001
Warner Brothers
1998 – AOL acquires Compuserve
and ICQ
2000 – AOL reaches 27 million
members
2001 – AOL & Time Warner
merge
AOL Time Warner Corporate Executives
(AND Forces Behind The Merger)
Steven M. Case
Chairman of The Board
Gerald M. Levin
Chief Executive Officer
 Graduate of Williams College with a
degree in Political Science
 Graduate of U. of Pennsylvania Law
School 1963 & Graduate of Haverford
College in 1960
 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
 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
Evolution of a Vision
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.
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:
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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.
MISSION STATEMENT
(7 Goals Needed To Achieve This Vision)
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.
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
VISION ACHIEVEMENTS IN 2001
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 11th 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
Federal Express’ Vision
Created by visionary
Frederick W. Smith
Federal Express Early History
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Product concept introduced in 1965 by Smith in a term
paper at Yale as a necessity for an airfreight system of
delivery to accommodate time-sensitive shipments such
as medicine, computer parts and electronics.
Incorporated in 1971 and began operations on April
17,1973 with 14 small aircraft from Memphis
International Airport.
Deregulation of air cargo in 1977 brought bigger planes
such as Boeing 727 and MD DC10s to the fleet
Federal Express makes first profit in 1975
Federal Express and
The Vision Process
Step One:
Define the Business
Environment
 Smith’s
genius came in the ability to
position himself in an already established
market of carriers using passenger routes
 Smith was determined to make his system
more economical and faster using a fleet
of aircraft dedicated to the transport of
packages only
Step Two: Build a Company
Vision
 Become
the most economical and
fastest airfreight distribution system
 Be the industry leader in cost and
product innovations using information
technology
 Make Federal Express a global
organization
Step Three: Turn Vision Into Plan
International Expansion
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Acquisition of Tiger International Inc in Feb.
1989 made them the world’s largest full-service
all-cargo airline
 Tiger International acquisition positioned Fed Ex
in 21 countries, including facilities-wise and
flying routes
 In 1995 acquired Evergreen International
Airlines for sole US cargo carrier rights to routes
in China
 Today Fed Ex serves more than 200 countries in
Africa, Asia, Australia, Europe, North and South
America.
Vision into Plan
Fed Ex and IT
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April 2000:FedEx introduces real-time packing tracking
with wireless LAN equipment, NORCOM satellite
network BellSouth wireless networks and bar code
scanners
Fall 2001: FedEx begins using Clarify CRM from Nor-tel
Networks to build and maintain customer profiles and
route calls to the best customer service rep for their
particular problem
Jan 2002: Using Deploy Solutions, Fed Ex reduced
candidate application time by over 50% with an online
application via Web-based browser kiosks, which were
interfaced with the company’s main HRIS (PRISM)
FedEx Awards
in Information Technology
Logistics Management and Distribution Report “Quest for
Quality” Award: Best Air Carrier (2000)
 Wal-Mart Stores,Inc. “Carrier of the Year” (1999,2000)
 Fortune: “100 Best Companies to Work for in America”
(1998,1999,2000)
 Fortune: “50 Best Companies for Asians, Blacks, and
Hispanics (1998,1999)
 Working Woman: “100 Best Companies for Working
Mothers” (1998)
 Compaq Computer “International Supplier of the Year”
(2000)
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FedEx Facts
Did You Know?

FedEx handles approximately 3.3 million packages and
documents each night
 In a 24-hour period, FedEx planes travel almost one-half
million miles
 FedEx couriers log 2.5 million miles a day (the
equivalent of 100 trips around the earth)
 FedEx has a fleet of 642 aircraft and more than 45,000
vehicles
 In 1994 Federal Express changed their name to FedEx
 In 2000, it extended itself to include FedEx
Express,FedEx Ground, FedEx Freight, FedEx Custom
Critical and FedEx Trade Networks