BPMN 6053  MANAGEMENT INFORMATION SYSTEM“INFORMATION SYSTEM STRATEGY         AT STRATEX”        Project Members:   Norsami...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                   .     ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                 .       ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                         ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                               .         ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                 .       ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                    .    ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                   .     ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                   .     ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                  .      ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                 .       ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                  .      ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                  .      ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                   .     ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                   .     ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                   .     ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                   .     ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                                         ...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                  Q9- What recommendation can you give to...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                  Q9- What recommendation can you give to...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                Q10- Compare and contrast...
BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET                                                Q10- Compare and contrast...
THE END OF PRESENTATION….BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET
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Case Study MIS- Stratex

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Case Study MIS- Stratex

  1. 1. BPMN 6053 MANAGEMENT INFORMATION SYSTEM“INFORMATION SYSTEM STRATEGY AT STRATEX” Project Members: Norsamita Shamsuddin 805493 Aliahza Binti Mokri 806668 Juliana Shastri 807406 Noor Ulfah Muhamad Zin 808504 Prepared for : Dr. Thi Lip SamPresentation Date: 12 November 2011
  2. 2. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q1- What is Stratex IS strategy (ISS) Awareness about Information systems (IS) is fairly high within Stratex, partly due to the role of computers as components of the product manufactured and marketed IS function has been historically decentralized within the business units. Each individual business unit has its own internal IS group which reports to the business unit management In 1990, the structure was changed to include a corporate IS group The position of CIO was created and John Gates was hired from outside the company, had a strong technology background with 15 years in the IS function with different organization across Europe, the last two of them as a CIO with a major British trading group The structure of IS organization within Stratex as changed to allow for dotted line reporting between business unit IS group and the corporate IS unit
  3. 3. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q1- What is Stratex IS strategy (ISS) John Gates CIO Nancy Bailey Bob Patterson MichaelNativel Telecommunic Technology New ation Strategy Strategy Technologies Manager Manager Manager Benjamin Jim Goel Pierre Dubois Gilani Ronald Bush Group Business Manager George Jackson Group IS Manager Figure 1: Corporate Information System Group (Dotted line)
  4. 4. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q1- What is Stratex IS strategy (ISS) Bill Young Chairman & CEO Mark Mason John Gates VP of Finance VP of Information (CFO) Systems (CIO) Business Unit Business Unit Business Unit Business Unit Bill: Main issue is how to effectively manage information within the company as the time value of information is very high today and information system can be a valuable tool for increasing and sustaining this value Mark: How to get maximum benefits from our investment in information technology
  5. 5. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q1- What is Stratex IS strategy (ISS) John: Need to manage the evolving information technology infrastructure of the organization. New technology development such as open system, CASE tools to client and client server architecture are hitting every day. It is a challenge pace with this developments Need for keeping control of costs. Many IS organization going through several round of data centre consolidation, outsourcing and downsizing. Each of these options has it own merit and demerit and demand careful study. It is important to control cost and yet keep renewing the technology infrastructure Need to create a pull for the technology in the business. New technology development are providing new opportunities and changing the way business operates. It is important to manage the seeding of this technology in the various business units
  6. 6. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q2-Define strategic information system (SIS) Introduced in 1982 by Dr. Charles Wiseman. A Strategic Information System (SIS) is a system that helps companies change or otherwise alter their business strategy and/or structure. It is typically utilized to streamline and quicken the reaction time to environmental changes and aid it in achieving a competitive advantage Key features of the Strategic Information Systems are the following: Decision support systems that enable to develop a strategic approach to align Information Systems (IS) or Information Technologies (IT) with an organizations business strategies Primarily Enterprise resource planning solutions that integrate/link the business processes to meet the enterprise objectives for the optimization of the enterprise resources Database systems with the "data mining" capabilities to make the best use of available corporate information for marketing, production, promotion and innovation. The SIS systems also facilitate identification of the data collection strategies to help optimize database marketing opportunities. The real-time information Systems that intend to maintain a rapid-response and the quality indicators.
  7. 7. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q3- Is Stratex IS/IT strategy aligned with its business strategy BEFORE JOHN’S ENTRY… NO… AFTER JOHN’S ENTRY… YES Competitive pressure were driving Aim of building an enterprise-wide product prices and profit margins down telecommunication network Revenue was growing at less than 10 Giving sales people direct access to percent annually, expenditure on IS the product specifications, inventory was increasing steadily at a rate of levels & other relevant information close to 15% Make decision directly, currently 60-75% of the effort in most IS group made in the regional & national sales was being on maintenance of old office, equipped with handheld systems computers and wireless modem, even access information & make decisions in the field Operational efficiency of the system still needs improvement Information access is valuable given the increasing overlap between the Several redundancies in the function products marketed by different performed by the IS groups of the business units different units for Eronic
  8. 8. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q3- Is Stratex IS/IT strategy aligned with its business strategy BEFORE JOHN’S ENTRY….NO… AFTER JOHN’S ENTRY…YES… Communications across business units, Facilitation of communications across there are local networks within different European countries. Help to Stratex but no organization-wide serve the European constituency network better Increasing overlap between the Proposed the next major corporate products marketed by different wide projects, Integrate Project (the business units expert system) Communication across country divisions is slow, error-prone, and hampered by different work cultures (caused partly by rapid growth via acquisitions) Developing system more slowly than demanded by the business. Average IS planning cycle is two to three years
  9. 9. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q4- Is the expert system a strategic information system in Stratex Yes … WHY? Expert System is a good example of a critical technology which has not been looked into at Stratex Lagging in utilizing and capitalizing on important new technology The network project given a highway for communicating business information across different functional groups in the business unit. Expert system helps to design intelligent means for packaging and distributing knowledge on this highway communication. Expert system helps Sales Personnel to make the right choice Due to large variety of products which can be configured and combined in many ways sales people always find difficulties in selling the right configuration of products to customers. Expert systems helps to generate valuable incremental sales By capturing knowledge about the related product (manufactured by other business units)
  10. 10. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q4- Is the expert system a strategic information system in Stratex Built to help perform task more effectively Design engineers have problems in configuring and scheduling the manufacture of products. By linking the expert system of sales and design by using the capabilities of the network project, design engineers tend to become sensitive to customer needs and desires Knowledge pathways within Stratex Build not just information networks, but knowledge pathways within Stratex
  11. 11. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q5- Should Stratex implement expert system as proposed by John? Provide justification No. WHY? Incompatibilities in the data and management schemas across business units are not resolved on Network projects Complaints from business managers over the Network Project. There is some resentment about the disturbance in the projects which were delayed or shelved to pay for the Network Project Problems on Network Projects not resolved, moving to another project Expert System? Major hurdles of resources and business commitment Fairly expensive to build the set of linked expert systems- $3m with practically no quantifiable benefits
  12. 12. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q5- Should Stratex implement expert system as proposed by John? Provide justification Significant time and commitment from the business were also required for knowledge engineering the expert system Inexperience of the Internal IS group with expert system technology, an external partner would be needed for leading and driving the project The bottom up approach was not used, hence the acceptance of the user is not identified. John use top bottom concept leaving no options for the users
  13. 13. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q6- What are some other alternatives to expert system? Outsourcing Resources & business commitment - Cost, time, commitment, external partner needed to as inexperience of the Internal IS group at STRATEX Reduce operational & recruitment cost Human Expert Expert Systems (ES) are computer programs that try to replicate knowledge and skills of human experts in some area, and then solve problems in this area (the way human experts would). Human can do it as well. Simplest & least expensive-non computer method. Training provided to staff Data Based Management System (DBMS) This software might better fit the problem than an expert system. DBMS letting you store an significant amount of information and excess it conveniently. Because data are integrated into a single database, complex requests can be handled much more rapidly then if the data were located in separate, non- integrated files. The ability of the computer to reason may not be necessary. Conventional software solutions A straightforward algorithmic solution might be better than a symbolic or AI solution.
  14. 14. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q7- Apart from costs, identify and discusses other possible reason for the rejection of Expert System by top management of Stratex? The Knowledge Engineering Bottleneck The enormous time and efforts required extracting the experts knowledge and translating it into IF/THEN rules upon which an expert system is based. Transferring expertise to the Expert System is sometimes difficult because experts cannot always explain how they know what they know. Often experts are not aware of their complete reasoning process. Experience has given them a feel for the problem, and they just "know“ The Programming Bottleneck Programming the system and maintaining the code is very difficult. Even if the expert can explain the whole reasoning process, automating that process may be impossible. The process may be too complex, requiring an excessive number of rules, or it may be too vague or imprecise Maintenance An important part of expert system development is ongoing maintenance, updating the system with new knowledge, removing knowledge that is no longer applicable, and otherwise fine tuning the system to keep it fully current and applicable to the problem
  15. 15. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q7- Apart from costs, identify and discusses other possible reason for the rejection of Expert System by top management of Stratex? The Learning Problem The Expert System is unable to incorporate the changing relationships in the decision environment. While using an Expert System, keep in mind that it can solve only the problems for which it was designed. It cant deal with inconsistency or a newly encountered problem situation. An Expert System cant learn from previous experience and cant apply previously acquired expertise to new problems the way human can Judgment Problem Expert Systems cannot apply the judgment and intuition, which is an Important ingredient for problem solving. An Expert System has no common sense or judgment. There is no doubt that-curing the next few years effective Expert Systems will continue to -be successfully applied. However, the accomplishment will not come easily. Among all of the possible application domains, the one that are selected will be the ones that best meet the firms overall objectives in terms of maximizing payoff and minimizing risk of failure
  16. 16. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q8- In your opinion, did John portray Leadership competencies for technology and innovation as CIO of YES... Stratex? Visioning and Strategic Thinking John: There are many examples of companies which have actively and cleverly leveraged new technologies, such as expert system. I think if we do not adopt new technologies into our business rapidly, we will no longer be among the top few companies in our business. If we get stuck on attaching unrealistic numbers on benefits which are inherently unquantifiable, we will end up with lot of unsatisfied, and perhaps out of work, people”. John brought in Network Project and proposed the expert system Drive for results John: My role vis-à-vis the IS group of the business units is also not simple. I have to walk the fine line between advocacy and audit. I have to provide leadership and help them serve their business units better, but at the same time I have to control them to see that valuable resources are not wasted. In cooperation with the line IS group, I have initiated some performance measures such as the average down time per week and average cost per transaction. My task is to motivate them to stick to the figures
  17. 17. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q8- In your opinion, did John portray Leadership competencies for technology and innovation as CIO of Stratex? “My relationship with the business unit managers are also critical. While I have tried to be good term with them, I do face problems in convincing them about the benefits of our projects-such as network-initiated at the Corporate level. There is also some tension about the degree and extend of my influence on the resources of the local IS group Adaptability and Change Management John: I found that 60—75% of the effort in the most IS group was being spent on the maintenance of old system. We sat down together and made a list of obsolete hardware items (which could be disposed off) and software projects (which were non-essential and could be stopped) John: I knew that significant personnel and cost savings could be realized by options such as consolidating common data processing functions across business units, out sourcing and down sizing. However there was considerable opposition to these ideas and I hesitated to impose them as I needed cooperation of the different IS units to perform my job John: “Related to the above issues, there is the important question of which IS functions to centralize and which to keep decentralized. I think that the individual business units will have to play an active role in deciding this
  18. 18. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET . Q8- In your opinion, did John portray Leadership competencies for technology and innovation as CIO of Stratex? Team Leadership Competency John: “I really pushed the business IS unit into cooperating with the external vendor and with each other. I was very proud when we had the telecommunications network installed on time and within budget in mid- 1992. The different functional groups within business units had the capability to exchange information electronically for the first time in the history of Stratex-no mean achievement” Trust and delegate John recruited his staff from within the IS Groups, and divided them into divisions John Gates CIO Nancy Bailey Bob Patterson MichaelNativel Telecommunic Technology New ation Strategy Strategy Technologies Manager Manager Manager Benjamin Jim Goel Pierre Dubois Gilani
  19. 19. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET Q9- What recommendation can you give to John to . reduce Stratex top management resistance to change (rejection of expert system)? Project proposals Documents designed to present a plan of action, outline the reasons why the action is necessary, and convince the top management to agree with and approve the implementation of the actions recommended in the body of the document. Proof on how the expert system is going to increase our sales, or cut cost is needed to ensure that top management, put in figures to support Involvement Ask for suggestions and incorporating their ideas. If top management are involved in change and understand the reasons for it they become supportive of the whole idea and the change process. John did not ask for any in the case study The Past John should make statement that honor his work and contributions being spend 15 years in the IS Function with different organization across Europe, and as a CIO with a major British Trading Group to convince the top management. Action speaks louder than words
  20. 20. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET Q9- What recommendation can you give to John to . reduce Stratex top management resistance to change (rejection of expert system)? Include Back-out plan Another basic part of any sensible change control process is the inclusion of a back-out or fallback plan. With any proposed change to a controlled IT environment, there is always a chance that some unforeseen circumstance may prevent the successful implementation of the change, whether it be large or small. A clear statement of how to return the environment to its original, pre- change state is a critical component of every well-planned change Include evidence of successful testing Another vital requirement of a well-managed change system is that all change requests must include associated and relevant testing evidence. Change to a controlled environment should not ever be made “on faith.” There are, of course, situations where the exact actions that will occur in the controlled environment cannot be performed in the test environment (like sending money to a client), but all changes should be simulated to the utmost degree possible to reduce the likelihood of errors in the controlled system Feedback of staff / business units on Network Project Implementation to give strong message to the top management that 1st project was a success
  21. 21. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET Q10- Compare and contrast the benefits and . disadvantages of outsourcing and developing IS in house? ADVANTAGES OF OUTSOURCING DISADVANTAGES OF OUTSOURCING Swiftness and Expertise Risk of exposing confidential data Tasks are outsourced to vendors who Risk if exposing confidential company specialize in their field with specific information to a 3rd party equipment and technical expertise. Tasks can be completed fast & better quality Synchronizing the deliverables Problem areas include stretched delivery time frames, sub-standard quality output Concentrating on core process rather than and inappropriate categorization of the supporting ones responsibilities Organization has more time to strengthen their core business process Hidden costs Legal cost incurred -signing a contract Risk-sharing between companies. Spend a lot of time and effort in getting the contract signed Outsourcing certain components of your business process helps the organization to shift certain responsibilities to the outsourced Lack of customer focus vendor Vendors may lack complete focus on your organization’s tasks due to catering expertise needs of multiple organizations Reduced Operational and Recruitment costs
  22. 22. BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET Q10- Compare and contrast the benefits and . disadvantages of outsourcing and developing IS in house? ADVANTAGES OF IN-HOUSE IS DISADVANTAGES OF IN-HOUSE IS Best fit with the company Required more IT personnel requirements High overhead cost Have control over software improvements Time consuming Have all of the required features Problem with usability of the system Main core competencies and maintain High switching cost level of quality service Difficult to update to newer Make a distinction with other technology companies
  23. 23. THE END OF PRESENTATION….BPMN 6053 MANAGEMENT INFORMATION SYSTEM ON TARGET

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