Success or Failure Factors of IS
Succeed
Business
or
Survive
Technology
Service
speed
Improve
quality
innovation
Continuous
Change Management
Radical
Organization
Ethically Acceptable
Socially Responsible
Politically control
(Behavior)
Structure
attribute
decision-making
operation
Management
culture
(Human)
(Strategic Advantage)
uncertainty
Risks
Benefit
overcome
enhance
strategy
I S
A Digital Society
Ability & flexibility to compress
time and space and to expand
organizational knowledge and
then increase flexibility
1) choosing strategy
2) organizing the business
3) organizing the systems
management area
HUMAN ADAPTABILITY
culture
The Driver & Servant
[ organizational change]
------Radical Change
Success or Failure Factors of IS (Cont’d)
[ organizational change]
A FIRM/ORGANIZATION:
Efficiency
------Radical Change
Evolution of change
Effectiveness
(Automate)
Innovation
(Informate)
(Innovate)
[Doing the things right]
[Doing the right things]
- creativity
-Proper utilization of
resource
{Save Money}
-Attainment of goals
- property of culture
Restructuring
Competitive Advantage
{Make Money}
Re-engineering
Cooperative Advantage
Electronic Market: flatten the organizational hierarchical structure
“ Revolutionary significance lies in generality” e.g., steam engineers--triggered the first Industrial
Revolution Computers--Seem to be triggering a second one.
IT Yesterday, Today and
Tomorrow
Yesterday
Today
Tomorrow
Computer age
Computer proc.
Computing
Accuracy
Automation
Efficiency
Information age
People proc.
Communication
Perspective
Information
Effectiveness
“doing things
right”
“doing the right
things”
Knowledge age
Knowledge proc.
Connectivity
Reality
Innovation
Performance/
Innovation
“creativity”
Three Necessary Perspectives
•Business Environment
•Enterprises Environment
Business
•IT Environment
Success
Simultaneous Revolutions
New Competitors
New Rules of
Competition
Industry structure
Changes
New Political
Agendas
The
Business
New regulatory
Environment
New
Technology
New Employees
and New Value
Increasing Customer
Expectation
Business Drivers
Market
Technology
Regulation
Employees/
Work
Organization
Business Processes
Solution to Business Requirements
A Systematic Approach
Vision
Strategy
Tactics
Business Plan
Competitive Options
Roles,
Roles and Relationships
Redefine/ Define
Telecommunications as the Delivery Vehicle
Success Factor Profile
The Information Technology
Environment
Administrative
Framework
ERA I
Data
Processing
ERA II
End-User
Computing
ERA III
Strategic
Systems
Primary
Target
Justification/
Purpose
Regulated
Monopoly
Organizational
Productivity/
Efficiency
Free Market
Individual
Effectiveness
Regulated
Free Market
Business
Process
Competitive
Advantage
Competitiveness: A Link to
National Goals
Human
Resources
Capital
Technology
Trade
Policy
Improved
Domestic
Performance
New
Competition
Decreased
Budget
Deficit
Increased
Competitiveness
in World Market
Reduced
Trade Deficit
Stronger
National
Security
More and
Better Jobs
Increased
Standard
of Living
The Diamond of National Advantage
Chance
Firm Strategic,
Structure
and Rivalry
Factor
Conditions
Demand
Conditions
Related and
Supporting
Industries
Government
Figure 3-1: FIVE COMPETITIVE
FORCES MODEL
NEW
MARKET
ENTRANTS
THE FIRM
SUPPLIERS
SUBSTITUTE
PRODUCTS
& SERVICES
Threats
TRADITIONAL
COMPETITORS
Bargaining power
CUSTOMERS
N
Port Competitive Model
Figure 3-1
Potential
New Entrants
Bargaining
Power
of Supplier
Intraindustry Rivalry
Strategic Business Unit
Substitute
Products
and Services
Bargaining
Power
of Buyers
Wal-Mart and the Porter
Competitive Model
Figure 3-2
Foreign
General
Merchandisers or Discounts
Potential
New Entrants
Established
Retailer Shifting
Strategy to Discounting or
Megastores
Intraindustry Rivalry
Strategic Business Unit
Bargaining
Power
of Supplier
SBU: Wal-Mart
Rivals:Kmart, Target, Toys
R Us, Specialty Stores
U.S. Product Manufacture
Consumers
Foreign Manufacture
Local Government
Substitute
Products
and Services
IT Product and Service Suppliers
Mail
Order
Home Shopping
Network
Electronic
Bargaining
Power
of Buyers
in Small Town, U.S.A
Consumers in Metropolitan Areas in
the U.S.
Canadian and Mexican consumers
Other Foreign Consumers
Telemarketing
Buying
Clubs
Door-to-door Sales
FIVE COMPETITIVE FORCES MODEL
NEW
MARKET
ENTRANTS
THE FIRM
SUPPLIERS
SUBSTITUTE
PRODUCTS
& SERVICES
Threats
TRADITIONAL
COMPETITORS
Bargaining power
CUSTOMERS
N
Activities of Value Chain
Support Activities
Administrative and Other
Indirect Value Added
Inbound
Logistics
Operations
Outbound
Logistics
Primary Activities
Marketing
and
Sales
Services
The Value Chain
(Value)
Manufacturing Industry Value
Chain Product and Service Flow
Figure 3-5
Research and
Development
Production
Engineering
and
Manufacturing
Sales and
Marketing
Administrative and Other
Indirect Value Added
Distributiion
Service
Examples of the Value Chain
N
Dr. Chen, The Trends of the Information Systems Technology
TM -18
Generic Value Chain
Figure 3-7
Firm
Infrastructure
Human
Resource
Management
Technology
Development
Financial
Policy
Regulatory Compliance
Legal
Accounting
Actuary Training Claims
Training
Product
Claims
Development
Training
 Market Research
Actuary Training
Actuarial Methods
Investment Practice

IT
Communication
Procurement
Policy
Rating
Underwriting
Independent
Policy
Investment
Agent Network
Policy
Billing
Renewal
and
Collections
Sales
Claims
Settlement
Loss
Control
Agent
Management
Advertising
Inbound
Logistics
Operations
Outbound
Logistics
Marketing
and Sales
Service
Generic Value Chain
Figure 3-8
Firm
Information Systems Technology Planning and Budgeting Technology Office Technology
Infrastructure
Human
Training Technology Motivation Technology Information Technology
Resource
Management
Product Technology Computer-Aided
Software Development Tools Information
Technology
Systems Technology
Development Technology Pilot Plant Technology
Procurement
Information System Technology Communication Technology Transportation System Technology
Transportation
Technology
Material
Handling
Storage and
Preservation
Technology
Communication
System
Technology
Information
Technology
Inbound
Logistics
Basic
Technology
Materials
Handling
Machine Tool
Technology
Material
Handling
Technology
Packaging
Technology
Information
Technology
Operations
Transportation
Multimedia
Technology
Communication
System
Technology
Information
Technology
Diagnostic
Outbound
Marketing
and Sales
Service
Technology
Material
Handling
Technology
Packaging
Technology
Communication
System
Technology
Information
Technology
Logistics
and
Testing
Communication
System
Technology
Information
Technology
Porter’s Competitive Model
Figure 4-2
Aircraft Manufactures Aircraft
Potential
New Entrants
Leasing Companies

Labor Unions
Food Service Companies
Airport
Local Transportation Service
FAA (Air Traffic Controllers0
Hotels
Foreign
Carriers
Regional Carrier Start-ups
Cargo Carrier Business
Strategy Change
Intraindustry Rivalry
SBU: American Airlines
Rivals: United, Delta,
USAir Northwest,
Southwest
Bargaining
Power
of Supplier
Bargaining
Power
of Buyers
Travel Agents
 Alternate Travel Services
Fast Trains
Boats
Private Transportation
Videoconferencing
Substitute
Products
and Services
Business Travelers
Pleasure Travels
Charter Service
U.S.
Military
Cargo and Mail
Generic Value Chain
Figure 4-3
Firm
Financial
Regulatory
Accounting
Infrastructure
Policy
Compliance
Flight,
Route
and
Human
Pilot Training
Baggage Handling
Yield Analyst
Resource
Training
Safety Training
Training
Management Computer Reservation System, Inflight System
Technology
Flight Scheduling System, Yield Management
Development System
Procurement
Community
Affairs
Legal
Agent Training
Inflight
Training
Product Development Baggage
Market Research
Tracking System
Information Technology
Communication
Route
Selection
Passenger
Service System
Yield
Management
System(Pricing)
Fuel
Flight Scheduling
Crew Scheduling
Facilities
Planning
Aircraft
Acquisition
Inbound
Logistics
Ticket
Counter
Operation
Gate
Operation
Aircraft
Operations
Onbord
Service
Baggage
Ticket
Baggage
Flight
System
Connection
Rental
Car an d
Hotel Reservation
System
Advertising
Advantage
Program
Lost
Baggage
Service
Complaint
up
Travel Agent
Programs
Handling
Group
Offices
Operations
Promotion
Outbound
Logistics
Sales
Marketing
and Sales
Service
Follow-
Interorganizational Systems
Figure 5-1
Customers
Vendors
Your Company
Support Services
Business Partners
Industry Forces
Government
Association Info
Sources
Competitors
Payment Process Industry
Figure 5-2
Merchants
Member
Banks
Visa International
or Mastercard
Card Holders
Individuals
Businesses
EDI Applications
Figure 5-3
Purchase
Orders
Invoices
Freight
Bills
Advance
Shipping
Notices
Electronic
Data
Interchange
Inventory/
Sales Data
EDI System Obstacles
Figure 5-4
Data
Communication
Application
Company data versus standards
Cross-industry standards
Standards administration
Time zones and windows
Communication protocols
Telecommunications equipment
Service cost and balance
Integration
Features and function supported
Interface
Electronic Data Interchange (EDI)
Through the Use of a Van
Figure 5-5
Electronic
Mailbox
Vendor Systems:
Mainframes
Customer order
Time
Schedule
Time Zone
Data Format
Communication
Protocols
Data Transmission
Speed
Minicomputers
Microprocessors
No Computer
Conversion/
Translation
Figure 5 -- extra
Mission
Values
Beliefs
Principles
Vision
Culture
Goals
Strategies
Objectives and
Measurements
Tactics
Business Plan
Authority and
Responsibility
The Vision -to-Action Process
Implementation
(Action)
Agreement and
Commitment
Tactics and
Business Plan
Strategy
Vision
Sensing
Opportunity
Feedback
Pyramid of Excellence
Stakeholder Value
Figure 6-4 Reprint
with permission of
Whirlpool Corporate
Where
Vision
Way
What
How
Value -Creating
Objectives
Worldwide
Excellence
System
Vision and Information Systems
Figure 6-6
Vision
Save
Money
Asset
Application
Networks
Expense
Strategic
Tactical
Invest
Tools
The Three Components of a New Strategy
Vision
External
Assessment
Internal
Assessment
A New Strategy
Figure 7-1
Strategic Management Process
Environmental Analysis
General Environment
Operating Environment
Competitive Positioning
Directions for Development
Company
Vision
Company
Strategic
History
Current
Strategy
Company Analysis
Figure 7-2
Structure
Value/ Culture
Competitive Positioning
Resources
Stakeholder
Analysis
Vision &
Strategy
Chosen
Strategy
Realized
Strategy
Strategy Implementation
Senior Management
Vision
and MacroStrategies
Empowered Implementors
Company Culture
Risks to be Avoided
Critical Performance Factors
Key Enterprise
Business Processes
Figure 7-3
MicroStrategies
and
Tactics
Business Uncertainties
Managing for Results
Objectives
Authority
Responsibility
Training
Motivation
Performance
Results
Reward
Figure 7-4
Control
Management Information Needs
Senior Management
Emerging Opportunities and Threats
External Impact of Strategies and Tactics
Internal Impact of Strategies and Tactics
Performance Measurements
Enpowered Implementors
Figure 7-5
IT-Based Strategies
Significant
Structure
Change
Traditional
Products
and Processes
Figure 7-6
Marketplace
Operation
Federal Express
USA Today
Charts Schwab
Whirlpool
Xerox
USAA
L.L.Bean
McKesson
Banc One
Boeing
Frito-Lay
Wal-Mart
Company Infrastructure
Data Management
User Applications
Voice Management
Network Management
Planning Process
Financial Strategy
Organization
Figure 7-7
Strategy Option Generator
Target
Customer
Thrust
Supplier
Differentiation Cost Innovation
Competitor
Growth Alliance
Mode
Offensive
Defensive
Direction
Use
Provide
Execution
Figure 8-1
Strategic Advantage
Strategy Option Generator
Target
Customer
Thrust
Supplier
Differentiation Cost Innovation
Competitor
Growth Alliance
Mode
Offensive
Defensive
Direction
Use
Provide
Execution
Figure 8-2
Strategic Advantage
Roles, Roles and Relationships
Senior Management
Users
Functional
Management
Figure 9-1
Informational Systems
Organization
Using IS to Compete
IT
Users
Senior
Management
Leadership
Information
Systems
Organization
Figure 9-2
Technology Transfer Through
Organizational Learning
Information
Technology
Applications
Organization
Figure 9-3
Using IS to Compete: Primary
Responsibilities
Senior
Management
Functional
Management
IS
Management
Figure 9-4
Direction
Conceptual
Approach
Specific
Approach
7
2
1
2
5
4
1
3
5
10
10
10
Making It Happen!
Competitive
Crisis
Management
Action
Initiators
Figure 9-5
Process
Improvement
Executive
Power
Suppliers
Board of Directors
A Business
Products/Services
Competitors
Figure 9-6
Suppliers
Board of Directors
Information
Systems
Organization
Competitors
Figure 9-7
Steering Committee
Suppliers
Opportunities
IT Needs
Real Dollars
Products
People
Direction
Information
Systems
Organization
Products & Services
Constraints Costs
Competitors
Figure 9-8
Wants & Needs
Justification
Real Dollars?
Value to Customer Chart
Product/Service
Value-Added
Process
What the
Customer Buys
Value to Customer
Figure 10-1
Value to Customer Analysis
Charles Schwab & Co.
Product/Service
Stock,
Computer-based
Trades
Client-broker Service
Street Smart
Telebroker
Equalizer
OneSource
•Electronic Transfers
•Trade Risk Analysis
Value-Added Process
Figure 10-2
Bond and
Mutual Fund Trades
Financial Product Options
Competetive Fees
Timely Execution of
Trades and Money
Transfer
Personal Service
Confidence in Financial
Custodial Responsibilty
What the Customer Buys
Value to Customer
Value to Customer Analysis
Mervyn’s
Product/Service
Point-of-Sale(POS)
System:
Ticketed Merchandise
UPC Scanning
Price Look-up
Credit Card Approval
Wireless Portable POS
Warehouse Management
EDI System with Vendors
Infobot Voice Response
System
Value-Added Process
Figure 10-3
Qualify Apparel/Home
Fashions
Competitive Prices
High Merchandise
Availability
Personal Service
Fast, Accurate Check-out
Fast Credit Approval
Access to Credit
Information
What the Customer Buys
Value to Customer
Value to Customer Analysis
Boeing Commercial Airplane Group
Product/Service
CAD
Design System and
Review Process
Customer Input Through
Network
Co-Design Process WITH
Customer
Quality Control System
Vendor EDI System
Value-Added Process
Figure 10-4
Aircraft
Designed for
Passenger,Comfort,
Operational Efficiency
and Safety
Flexible Design
Configuration
Competitive Price
Logical Support
What the Customer Buys
Value to Customer
Telecommunications Models
People
People
Figure 11-1
Communication
Machines
Machines
Linking Users to Information Within
Application
on
Networks
Enterprise
Department
Organization
Individual
Users
LAN
WAN
Public
Business
Enterprise
Network
Private
Application
Functions
Wired
Organizational
Wireless
Processes
Personal
Information
Figure 11-2
Traditional
Graphics
Data
Text
Images
Video
Voice
Multimedia
Information Systems Support of
Business Requirements
Business and Information
Technology Dynamics
Multi-Vendor/ Multi-Products
Information System Architecture
Open Systems
Standards
Vendor Hardware Software
Products and Services
Figure 11-3
User Organization
Application Function
Ease Of Use
Seamless and Transparent
Open Systems Environment
Other
Service
3.Database
1.Operating
Systems
Software
Application
5. Software Development Tools
4. User Interface
Figure 11-4
6. Systems
Management
Services
2. Communication
Service
A Telecommunications Perspective
Objective
Voice
Data
Efficiency
Voice Message
Volumes
Transmission
Volumes
Competitive
Advantage
Voice Applications
Plus Linkage
PCs and Application
Packages
Integrated Voice /Data Application
Figure 11-5
Success Factor Profile
Management
Business Vision
Culture
Risk Management
Plan Implement
IS Integral to the Business
IS Justification Mgmt. Process
Executive-IS Mgr. Partnership
Executive IS Experience
Operational Automation
Linkage to Suppliers
Linkage to Customers
Linkage to Customers Service
Pervasive Computing Literacy
IS Architecture
IS Marketing
IS User Relations
Figure 12-1
Importance
Responsibility
Assessment
Information Systems Organization
IS Vice-President
Finance &
Administration
Planning
Development &
Maintenance
Project
Management
System
Analysis
Systems
Support
Database
Administration
Computer
Operations
Network
Management
Systems
Programming
Programmers
Development
Center
Figure 13-1
Information
Center
Future IS Organization?
IS Executive
CIO
Client Interface
General and
Administration
IS Utility
Competitive
Systems
Administration
Data
Center
Data
Network
Professional
and Technical
Support
Finance
Performance
and Planning
Voice
Systems
Client Systems
Groups
Equipment
Development
Center
Figure 13-2
Telecommunications
Information Systems Value
Company/Enterprise
Function/Development
Personal/Individual
Figure 14-1
Infrastructure
Application
Personal Applications
and Tools
Evolution of Financial Strategy
Initiation
Expansion
Control
Maturity
I
II
III
IV
Organization
Application Single Area Proliferation Containment Strategy
People
Cost
Motivation Displacement Avoidance
Financial
Justification
Budget
Business Case
Installation
Audit
DP Planning
Little
Reactive
Organization
Finance
Dept.
Multiple
Dept.
Figure 14-2
DP
Efficiency
Competitive
Advantage
Charge-Out
System
Management
Process
Directed
Proactive
Centralized
Centralized Decentralized
Distributed
Management Process
Management Incentive
Eliminate
Simply
Automate
Business Case Process
IS Development Discipline
Interlock Management
Benefit Measurement
Figure 14-3
New Markets,
Opportunities
and
Competitors
Employee
Empowerment
Quality Circles
Teams
Figure 15-1
Organization
Downsizing
Outsourcing
Business Partnering
Corp. Alliance
Process
Reengineering
Redefining
Organizational
Responses to
Business Drives
Product
Customization
Markets
Customers
Global Standards
TQM
Time,
Flexibility and
Responsiveness
as Competitive
Factors
Traditional Roles in Planning
Vision
Strategic
Tactical
Traditional IS Role
Figure 15-2
Strategic Planning Model
Environment
(External)
Opportunities
Treats
Mission
Vision
Strategy Plan
Goals
Objectives
Enterprise
(internal)
Strengths
Weaknesses
Strategies
Positioning
Culture
(Explicit/Implicit)
Figure 15-3
Tactical Plan
Business Unit
Functional
Programs
Major Project
Business Plan
Detailed
Projects
Resources:
Headcount,
Capital and
Expense
Budgets
What to Plan
Strategic Enterprise
Planning
Strategic Information
Planning
Architecture
Planning
Tactical
Planning
Implementation
Planning
Figure 15-4
Enterprise Strategies
Information Strategies
Architecture
Time Oriented Objectives
Project Plans
Barriers to Aligning IS with Business Objectives
Business Plan
IS Track Record
and Credibility?
Communication of
Business Plan?
Senior Management
Perception of IS?
Executive Skills of
IS Executive
Clear IS Role?
Effective IS
Management?
Is keeping IS
aligned with the
business objectives
someone’s highpriority objective?
IS Organization?
IS Policies?
IS Skills and
Capabilities?
A problem with
IS Capacity?
Does IS Organization
Have a
User/Business Focus?
Figure 15-5
Managing IS to
Business Objectives?
Business-IS Planning
Business
Strategy
Dictates
Determines
Benefits
Information
Technology
Figure 15-6
IS Strategy
Business-IS Planning
Corporate
Vision
Business
Strategy
Opportunities
Dictates
IS
Strategy
1. Strategic Capability
2. Technology-driven
Business Change
Information
Technology
Figure 15-7
Technology
Environment
Enterprise-wide Information Systems
Strategic Planning Process
Business Domain
Strategic Plan
Business Processes
and Organization
Figure 15-8
Information Technology
Domain
Impact
Alignment
Information Technology
Opportunities
Information Systems
Architecture and
Organization
Xerox History
Continuous
Improvement
1959
Figure 16-1
1972 1979 1980
1983
1989
1990s
Important Supporting Elements
Recognition
and Reward
Tools and
Processes
Transition
Team
Xerox is a
Total Quality
Company
Training
Figure 16-3
Communication
Senior
Management
Behavior
A Win-Win Proposition
Delighted Customers
Satisfied
Stockholders
Enhanced
Community
Figure 16-5
Proud
Employees
Successful
Partners
Organizational Response to
Business Drivers
IS Significance
High Medium Low
New
Markets, Opportunities and
Competitors
Time,
Flexibility and Responsiveness as
Competitive Factors
Product
Customization
Process
Reengineering, Redefining and TQM
Employee
Empowerment and
Cross-Functional Teams
Organization Downsizing,
Outsourcing, Business Partnering
and Alliances
Figure 17-1
Organizational Response
Business Success Factors
IS Role
Mandatory Necessary Marginal
Business
Fitting
Leadership
Pieces into the Big Picture
Organizational
Responsiveness and Resilience
Realizing
that Solving Customer Problems
Requires a Team Approach
A Strong Company
Ability and Willingness to
Innovate, Change and Take Risks
Accomplishing All of These Factors While
Maintaining Necessary Balance
Good
Communication Throughout the Entire
Organization
Figure 17-2
Porter Competitive Model for the
Commercial Aircraft Industry
Tupolev,
Engine Manufactures
Electronics, Semiconductors, etc.
Other Material Suppliers,
Potential
New Entrants
Specialty Metals, Composite
Materials, etc.
Government Institutions
Bargaining
Power
of Supplier
Heavy Industries in Japan
Taiwan Aerospace,
Other Emerging
Industrial Power
Small-Aircraft Manufactures or
Aerospace, Military Companies:
Dassault, ATR, Lockheed
Intralndustry Rivalry
SBU: Boeing Airbus
McDonnell Douglas
Bargaining
Power
of Buyers
Airlines
Substitute
Products
and Services
Advances
Figure 2
Mitsubishi
Other
Capital Sources, banks,
investors
FAA, IATA, EPA
Other Regulating Bodies
IT Vendors
from Former Soviet Union
Leasing
Companies
Government Institutions
FAA, IATA, EPA
Other Regulating Bodies
in Small, Short-Haul,
Turboprop Technology
Advances in Automotive Industry and
Infrastructure
Fast Train for Distances Less than
400 Miles
Advances in Telecommunications,
Videoconferencing, etc.
Porter Value Chain for Boeing
Firm
Information Systems Technology Planning and Budgeting Technology Office Technology
Infrastructure
Human
Procurement training
Training for
Hiring & training of
People familiar with national &
Managing
relationship
competitiveness
engineers,
test
pilots,
international economics and politics
Resource
with suppliers
company-wide
skilled workers
Management Qualification of
R&D, Partnerships
Product development
Technology
suppliers New
Defense contracts
Market research
Development materials Partners
Regulation & Policies
Procurement
IS inventory
management JIT,
production forecast
CAD/CAM systems
Assembly of planes &
parts tracking
Material
Concurrent
qualification
Engine selection
Partners & joint
programs
Electronics, etc.
Inbound
Figure 3 Logistics
engineering
Flexible & modular
manufacture
Wide choice in
capacity with “family”
concept
Fly-by-wire
technology
Short development
cycles
Quick to market with
short manufacturing
cycles
Operations
Customer relationships
Tracking of issues
Worldwide
presence
Outbound
Logistics
Early
involvement of
customers in product
definition
Promotion,
advertising
Lobbying U.S. and
foreign governments
Seeking powerful
partners
Facilitation of
financing
Trade shows
Marketing
and Sales
Repair,
spare parts
service
Inspection & test
Upgrades
Training facilities for
customers
Maintenance
Service
Relationships Between Senior
Executives at Boeing
Frank Shrontz
CEO
Create the Vision
John Warner
Information Service
Group Implements the
Information Systems
Figure 5
Phil Condit President
Runs the Day-to-Day
Buisness
Ron Woodard Commercial
Airplane Group
Runs the Airplane Business
Dale Hougardy Head of
the 777 Program
Develops the 777
Jerry King Defense&
Space Group
Runs the Defense Business
Boeing Value to Customer Chart
Boeing Aircraft
Product/Service
An
aircraft designed for passenger
comfort, operational efficiency
and safe
Flexible design configuration
Competitive price
On-time delivery
Logistical support, training,
maintenance ----Peace of mind
CAD/CAM
system, review,
process, concurrent engineering
Customer and partner/supplier
through the network
Co-design with customer
Qualify control system
Vender EDI system
Value-Add Process
Figure 6
Value to Customer
What the Customer Buys
Organizational Response
Business Success Factors
IS Role
Mandatory Necessary Marginal
Business
Fitting
Leadership
Pieces into the Big Picture
Organizational
Responsiveness and Resilience
Realizing
that Solving Customer Problems
Requires a Team Approach
A Strong Company
Ability and Willingness to
Innovate, Change and Take Risks
Accomplishing All of These Factors While
Maintaining Necessary Balance
Good
Communication Throughout the Entire
Organization
Figure 17-2