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?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 Vision3 Steps

Define The Business Environment.Build A Company VisionTurn 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

Grocery Store

Formalities are not very popular

Summer Sessions

Surprise

General ElectricMission & Vision

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.

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

Six Sigma VisionCritical to Quality: Attributes most important to the customerDefect: Failing to deliver what the customer wantsProcess Capability: What your process can deliverVariation: What the customer see and feelsStable Operations: Ensuring consistent, predictable processes to improve what the customer sees and feelsDesign for Six Sigma: Designing to meet customer needs and process capability

GEs 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 FactsMake-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.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.Sell-Side FactsOnline 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.

A corporation made up of many entities that wants to be the most valuable company in the world

http://aoltimewarner.com

2001 Merger1918 Time Magazine idea conceived1918 Brothers Warner open first West Coast studio1923 Times first issue published1927 Warner Bros. releases first synchronized talking movie1985 Steve Case & Jim Kimsey conceive new co. Quantum Computer Services no WWWeb.1989 Time acquires Warner to form Time Warner1995 WB Network debuts1996 Time Warner & Turner Broadcast Systems merge1998 AOL acquires Compuserve and ICQ2000 AOL reaches 27 million members2001 AOL & Time Warner merge

1989 MergerTIMELINE: TIME, WARNER, AOL

AOL Time Warner Corporate Executives (AND Forces Behind The Merger)Steven M. CaseChairman 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 opportunityGerald M. LevinChief 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 2001Prime Mover of Time Inc, and Warner Communications merger in 1990Prime Mover of Time Warners merger with Tuner Broadcasting Systems 1996 Recently resigned from primary duty of placing management structure regarding companys growth

AOLs Vision To build a global medium as central to peoples lives as the telephone or television and even more valuable.Time Warners Vision To build a global medium central to peoples lives that entertains and allows for communication.Evolution of a Vision

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.

AOL TIME WARNERS VISIONTo 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 worlds 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 DRIVERAgility 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 worlds 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 its 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 theyre the first ones in and the last ones out.

Teamwork. Its not there yet. Too many divisions within the company. Covergence is only at its 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. Its 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 companyAOL is in its most critical stage new merger Look at other ways to break down communication problems with IT Currently AOLTW uses email as its main source of communication They expanded on that recently by converting all entities email programs to an AOLs 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 its 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 EuropeAcquired 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

VISION ACHIEVEMENTS IN 2001

Federal Express VisionCreated by visionary Frederick W. Smith

Federal Express Early HistoryProduct 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 fleetFederal Express makes first profit in 1975

Federal Express andThe Vision Process

Step One:Define the Business Environment

Smiths genius came in the ability to position himself in an already established market of carriers using passenger routesSmith 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 technologyMake Federal Express a global organization

Step Three: Turn Vision Into PlanInternational ExpansionAcquisition of Tiger International Inc in Feb. 1989 made them the worlds largest full-service all-cargo airlineTiger International acquisition positioned Fed Ex in 21 countries, including facilities-wise and flying routesIn 1995 acquired Evergreen International Airlines for sole US cargo carrier rights to routes in ChinaToday Fed Ex serves more than 200 countries in Africa, Asia, Australia, Europe, North and South America.

Vision into PlanFed Ex and ITApril 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 problemJan 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 companys main HRIS (PRISM)

FedEx Awardsin 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)

FedEx FactsDid You Know?FedEx handles approximately 3.3 million packages and documents each nightIn a 24-hour period, FedEx planes travel almost one-half million milesFedEx 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 vehiclesIn 1994 Federal Express changed their name to FedExIn 2000, it extended itself to include FedEx Express,FedEx Ground, FedEx Freight, FedEx Custom Critical and FedEx Trade Networks