what’s happening?! at&t cellular is being bought by cingular for $41 billion. eu has rejected...
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What’s Happening?!What’s Happening?!
AT&T Cellular is being bought by Cingular for $41 billion.
EU has rejected Microsoft’s offer to settle antitrust claims.
“The greater the degree of international flexibility, the less risk of an economic crisis.”
Alan Greenspan
2003 Market Data2003 Market Data
Semiconductor sales were $160 billion in 2003 and after a strong 2004 will have a 12% compound growth rate through 2008 reaching $282 billion.
China has become an increasingly important driver of the semiconductor market as the largest consumer of mobile phones and second largest consumer of PCs. China is ¼ of the $60 billion total for the Asia-Pacific region.
China has its own semiconductor companies.
PC Sales Stay StrongPC Sales Stay Strong
PC shipments in 2003 were 152 million units and are expected to grow 10% in 2004.
First quarter 2004 shipments are estimated to be 44 million First quarter 2004 shipments are estimated to be 44 million units a 13.3% increase.units a 13.3% increase.
Total shipments for 2004 are forecast as 187 million units Total shipments for 2004 are forecast as 187 million units up 13.9% over 2003.up 13.9% over 2003.
A corporate replacement will be a strong point in the A corporate replacement will be a strong point in the second half of the year.second half of the year.
Student ATP PresentationsStudent ATP Presentations
Apple Computer – Sam Braff
Agilent Technologies – Michael Djurovic
Dell Computer – Devon Ward
Intel – Xuemei Li
Oracle – Elizabeth Watt
Cisco – Brandi Martin
Sun Microsystems – Alexander Shusta
Presentations are on March 9
ATP PresentationsATP Presentations
10 minutes – will be strictly enforced.
Cannot present the entire paper.
Have multiple options as to how to structure the presentations.
• Success factor profile.
• Option generator.
• Redefine and/or define.
• Roles, roles and relationships.
Remaining ChaptersRemaining Chapters
Ch. 13 summary – Vitaliy LeeCh. 13 summary – Vitaliy Lee Ch. 14 introduction – Andrew PobleteCh. 14 introduction – Andrew Poblete Ch. 14 summary – Sunny BainsCh. 14 summary – Sunny Bains Ch. 15 introduction – Cindy WongCh. 15 introduction – Cindy Wong Ch. 15 summary – Steven LevchenkoCh. 15 summary – Steven Levchenko Ch. 16 introduction – Victoria LinCh. 16 introduction – Victoria Lin Ch. 16 summary – Nav MathurCh. 16 summary – Nav Mathur Ch. 17 introduction – Mira VissellCh. 17 introduction – Mira Vissell
Summary of Chapter 9Summary of Chapter 9
The Roles, Roles and The Roles, Roles and Relationships ConceptRelationships Concept
Main Chapter TopicsMain Chapter Topics
1. Roles, Roles, Relationship Concept and Examples.
2. Triggers of Action.
3. Technology Transfer Through Organizational Learning.
4. Information Systems Organization as a Business within a Business.
Roles, Roles and Relationship ConceptRoles, Roles and Relationship Concept
1. The role of information systems is focused on competitive priorities.
2. Senior management plays a major role in positioning and
prioritizing the competitive role of information systems.
3. There is an on-going working relationship between senior
management and the information systems organization to
sustain the successful use of information systems to compete.
Roles, Roles and Relationship Roles, Roles and Relationship Key ResponsibilitiesKey Responsibilities
Role of Senior Executive:Role of Senior Executive: Provide long term vision for Provide long term vision for the future of the business.the future of the business.
Role of Functional Management:Role of Functional Management: Understand the Understand the competitive role of IS, identify and specify requirement competitive role of IS, identify and specify requirement for the new system, give financial justification and for the new system, give financial justification and sponsor their systems.sponsor their systems.
Role of IS Manager: Role of IS Manager: Earn a seat at the corporate table.Earn a seat at the corporate table. Role of UsersRole of Users: They are the operational level people that : They are the operational level people that
use the information system and make things happen.use the information system and make things happen.
Using IS to CompeteUsing IS to CompetePrimary ResponsibilitiesPrimary Responsibilities
DirectionConceptualApproach
SpecificApproach
SeniorManagement
FunctionalManagement
I/SManagement
7
2
1
10
2
5
3
10
4
1
5
10Figure 9-4
RelationshipsRelationships
Relationships: Ongoing working relationship between the
senior management, that run the business and Information
Systems organization.
Two Options:
1. Integral to running the business.
2. A formal organization. i.e. a steering committee.
CompetitiveAdvantage
Action Initiators
Vision
Strategy
Tactics
ProcessImprovement
CrisisManagement
Executive Power
Business Leadership
Technology Leadership
Figure 9-5
Making Things Happen!Making Things Happen!
IS Organization as a Business IS Organization as a Business Within a BusinessWithin a Business
Does the information systems organization fit the business model?It has, • Customers: Also called users of information systems.• Suppliers: Provide things necessary to run an IS business.• Steering Committee: Act like a Board of Directors by
providing guidance and direction to the IS Organization.• Competitors unless there is a company policy against this.
Does not have a true financial relationship with internal users as a business has with its customers.
Technology TransferTechnology TransferThrough Organizational LearningThrough Organizational Learning
There is a direct correlation between the successful
introduction of a new information system within an
organization and the learning curve of the primary users.
Possible Exam Questions?Possible Exam Questions?
1. Explain the concept of Roles, Roles and Relationship of a business and cite a good company example where the concept was successfully followed.
2. Explain the three phases of managing information systems.
Chapter 10 SummaryChapter 10 Summary
The Redefine/Define Concept The Redefine/Define Concept and Change Managementand Change Management
Chapter ObjectivesChapter Objectives
Understanding the changes that can be realized through the use of information systems to provide value to customers.
Understanding the role of change management and how it needs to be accomplished in a relatively short amount of time.
Redefine and/or Define Redefine and/or Define
Companies that achieve a sustainable strategic advantage with information systems generally redefine the factors of competition rather than use the technology in a traditional way.
The ConceptThe Concept
Using Information Systems to redefine and/or Using Information Systems to redefine and/or define:define:– The businessThe business– Products and/or servicesProducts and/or services– Business processesBusiness processes
The ultimate goal is to provide value to the The ultimate goal is to provide value to the customer.customer.
Redefine and/or Define Redefine and/or Define the Businessthe Business
USA TodayUSA Today
– First ever general interest national newspaper.First ever general interest national newspaper.
– Computers and satellite communication helped get Computers and satellite communication helped get the paper across the U.S. in a timely manner.the paper across the U.S. in a timely manner.
– Newspaper is transmitted to 32 print location Newspaper is transmitted to 32 print location across the U.S., including international print across the U.S., including international print locations in Hong Kong, London, and Lucerne, locations in Hong Kong, London, and Lucerne, Switzerland.Switzerland.
Redefine and/or Define Products Redefine and/or Define Products or Servicesor Services
Charles SchwabCharles Schwab
– Initially founded as a full service broker in 1971 and Initially founded as a full service broker in 1971 and has become the largest discount broker in the U.S. has become the largest discount broker in the U.S.
– Schwab invests heavily in new services, information Schwab invests heavily in new services, information technology and training to differentiate from its technology and training to differentiate from its competitors.competitors.
– Clients have online access to stock quotes, Dow Jones Clients have online access to stock quotes, Dow Jones news, analysts’ opinion and trading opportunities.news, analysts’ opinion and trading opportunities.
– Has also become the largest e-broker in the country.Has also become the largest e-broker in the country.
Redefine and/or Define Business Redefine and/or Define Business ProcessesProcesses
BoeingBoeing
– The 777 was 100% digitally designed and preassembled The 777 was 100% digitally designed and preassembled through the use of a computer system.through the use of a computer system.
– This provided better quality, reduced design costs, resulted This provided better quality, reduced design costs, resulted in fewer changes and errors, and less paper work while still in fewer changes and errors, and less paper work while still staying on schedule.staying on schedule.
Value to Customer ChartValue to Customer Chart
Value-Add Value-Add ProcessProcess
What theWhat the Customer Customer
buysbuys
Product/ServiceProduct/Service
Value to CustomerValue to Customer
Del
iver
y P
roce
ssD
eliv
ery
Pro
cess
Pro
duct
/Ser
vice
Pro
duct
/Ser
vice
Change Management: A Major Change Management: A Major Management ChallengeManagement Challenge
A law regarding change should read as:A law regarding change should read as:
Achieving change, of any significance within an organization,
is in inverse proportion to the success that it has had up to the
time that management feels a change is needed.
The greater the success of the company, the less likely it will
change.
Change Management FactorsChange Management Factors
The pace and time pressures of change in a The pace and time pressures of change in a business.business.
Financial controls that do not allow the increase of Financial controls that do not allow the increase of employees within a specific function despite employees within a specific function despite significant growth.significant growth.
The shifting of productivity and other operational The shifting of productivity and other operational objectives to information technology.objectives to information technology.
Dramatic improvements in information technology Dramatic improvements in information technology price/performance and function.price/performance and function.
ConclusionsConclusions
Information technology has the potential to be a catalyst for significant change within an organization.
It can change business processes, products and services and can even influence a fundamental change of the business.
Possible Exam QuestionsPossible Exam Questions
What areas of a company can the What areas of a company can the redefine/define concept be applied to and redefine/define concept be applied to and how can this concept provide value to a how can this concept provide value to a customer? customer?
How important is change management How important is change management when contemplating a major new when contemplating a major new information system? information system?
Chapter 11 SummaryChapter 11 Summary
Telecommunications as
the Delivery Vehicle
Networks Plus DataNetworks Plus Data
No Field In the World Offers
More Promise Than the Twin
Technologies of Computers and
Telecommunications.
Opens Up Entirely New Ways of Thinking
About:
• Products• Customers• Markets• Competition• Productivity• Service• Organization
Telecom NetworksTelecom Networks
Linking Users to Information within Applications on Linking Users to Information within Applications on NetworksNetworks
BUSINESSENTERPRISE
•Traditional Data•Text•Images
Information•Graphics•Voice•Video•Multi-media
Applications•Functions•Organizational Processes•Personal
Users
•Enterprise•Organization•Department•Individual
Network
•LANs•WANs
• Public• Private
•Wired•Wireless
Figure 11-2
BUSINESS AND INFORMATIONTECHNOLOGY DYNAMICS
• INFORMATION SYSTEMS ARCHITECTURE• OPEN SYSTEMS• STANDARDS
MULTI-VENDOR/MULTI-PRODUCTS
USER ORGANIZATIONS• APPLICATION FUNCTION• EASE OF USE• SEAMLESS AND TRANSPARENT
VENDOR HARDWARE ANDSOFTWARE PRODUCTS
AND/OR SERVICES
Figure 11-3
IS ArchitectureIS Architecture
A blueprint that depicts how future systems
will be designed and built.
The various systems components are
explicitly defined so that multiple people can
build systems around the same base line.
Client Server ComputingClient Server Computing““The Best of Both Worlds!?”The Best of Both Worlds!?”
• Better Performance
• Shared Data
• Easier to Use
• Sense of Ownership
• Good Modularity (expand and contract)
• Applications Implemented Faster
• More Cost Effective
Open Systems EnvironmentOpen Systems Environment
SoftwareSoftware
ApplicationsApplications
5. Software Development Tools5. Software Development Tools
Other ServicesOther Services 1. Operating1. Operating SystemSystem
2. Communication2. Communication ServicesServices
6. Systems6. SystemsManagementManagement ServicesServices
3. Database3. Database
4. User 4. User InterfaceInterface
Figure 11-4Figure 11-4
Making Money on the Internet Making Money on the Internet
1. Sell things for money.
2. Charging customers a fee—subscription or
membership.
3. Selling advertising on your web page.
Not to be confused with saving money on the Internet and/or using it as a way to communicate to a wide range of people.
Integrated Voice-Data ApplicationsIntegrated Voice-Data Applications
1. Has not experienced the same significant growth as the Internet or groupware.
2. Still has the potential where appropriate to benefit organizations through the integration of voice and data technologies. i.e. voice over IP looms as a platform to accomplish this.
Telecom Network ConclusionTelecom Network Conclusion
Telecom is an IT tool and an increasingly important resource that directly impacts the efficiency, effectiveness and competitiveness of a company.
ChapterChapter 12 Introduction 12 Introduction
Using Information Systems to Compete:
A Success Factor Profile
Chapter ObjectiveChapter Objective
Analyze and examine key factors of specific Analyze and examine key factors of specific
organizations that were major contributors to organizations that were major contributors to
successful use of Information Systems to compete. successful use of Information Systems to compete.
The Success Factor ProfileThe Success Factor Profile
Compilation of strengths of more than 150 organizations.
With a goal to better understand key factors relative to the strategic use of Information Systems.
Can be Used 3 Ways at 3 Different Can be Used 3 Ways at 3 Different Points in TimePoints in Time
Initial Planning Process:Initial Planning Process: As basis to focus As basis to focus information systems on competitive issuesinformation systems on competitive issues
Assessment of Progress:Assessment of Progress: How new How new systems are meeting competitive objectivessystems are meeting competitive objectives
Audit Device for Mature Systems:Audit Device for Mature Systems: Makes Makes sure company is current with the dynamics sure company is current with the dynamics of organizations competitive environmentof organizations competitive environment
Success Factors ProfileSuccess Factors Profile
Business Vision Culture Risk Management Plan Implementation 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 Customer
Service Pervasive Computing
Literacy IS Architecture IS Marketing IS User Relations
There are 16 factors included in the profile:
Success Factor ProfileSuccess Factor Profile
Questions Regarding Success FactorsQuestions Regarding Success Factors
1. How important is each factor in relation to gaining a competitive advantage?
2. Who should play a key role?
3. Where are the current strengths and what areas must be improved?
Why So Many Factors?Why So Many Factors?
Different businesses are different companies in different industries. Therefore, strengths of IS for each is different.
Key is not to streamline the list, but to understand the multiple factors and choose the ones that are truly strengths of the company
Company Success Factor ProfilesCompany Success Factor Profiles
There are two examples in the Text Book:There are two examples in the Text Book:
1.1. Federal ExpressFederal Express
2.2. British AirwaysBritish Airways
Use in Analysis Term PapersUse in Analysis Term Papers
Select between four and six factors that apply to the company that is being evaluated.
Do not include factors that are not on this list.
Do not introduce new material, but highlight information presented earlier in Section III.
Present the information in a summary format with sub-titles for the factors.
ConclusionsConclusions
The Success Factor Profile is the fifth and final part of the structured analysis process
Can be used as planning vehicle to identify key factors for an organization to use information systems to gain competitive advantage
Very effective in summarizing the reasons why a specific company secured a competitive advantage through the use of information systems.
Chapter 12Chapter 12
Using Information Systems to Compete:
Success Factor Profile
Success Factor ProfileSuccess Factor Profile
Federal ExpressFederal Express
Success Factor ProfileSuccess Factor Profile
1. Vision
2. Culture
3. Executive and Information Systems
Management Partnership
4. IS Integral to the Business
British AirwaysBritish Airways
SuccessSuccess Factor Profile Factor Profile
1. Vision
2. Culture
3. Information Systems Integral to the Business
4. Executive and IS Management
Partnership
5. Information Systems Architecture
Organizational ImprovementOrganizational Improvement
Processes
Tools
Culture
Three Essential Elements
Which one is most important?
The ability to change the culture of a company is both necessary and sufficient since it is the beginning, the middle and the end to making change.
CultureCulture
Culture Importance!Culture Importance!
Corporate culture is amorphous but crucial, hard to nail down and harder still to change.
There is also a fear that too much change risks killing the best a company offers or what made them successful.
Corporate culture is not unlike a human body when faced with a transplant.
Whether it needs help or not, the immune system is set up to fight—and sometimes reject what is foreign.
Company CulturesCompany Cultures
Southwest Airlines’ culture is spirited and customer oriented.
Microsoft’s culture is brilliant and ruthless.
Gannett’s culture is only the fittest survive.
“When USA Today turns a profit we will release the prisoners.”
Alan Neuharth
Harley-Davidson Culture Harley-Davidson Culture
1. Ethics and honesty.
2. Have fun!
3. Renewal, not survival.
4. Total experience.
5. Commitment, not compliance.
6. Community.
Richard Teerlink
Company Culture or Marketing Slogans?
• DuPont: Better things for better living through chemistry.
• Federal Express: Absolutely and positively overnight delivery.
• Allstate Insurance: You’re in good hands with Allstate.
• Frito-Lay: There is no such thing as doing too much for a customer.
Risks and Pitfalls of Cultures
• A strong culture can become a deterrent to necessary change.
• It can cause inconsistency if you can’t adhere faithfully and consistently to the values it intends to promote.
• It can cause organizational obsolescence.
A good leader must understand
cultural values at a particular
point in time.
Chapter 13Chapter 13
IS Organization and
Personnel Considerations
eBay PresentationeBay Presentation
Wanted to address the material in this chapter before the eBay presentation.
Important that you ask questions during his presentation.
Will try to send you questions to ask before Thursday.
IS Organizationand PersonnelConsiderations
IS Valueand Financial
Strategies
IntegratingBusiness andIS Planning
TQM andInformation
Systems
Roles, Rolesand Relationships
Information Systems Management Issues
A Successful EnterpriseA Successful Enterprise
• Based on a Clear and Simple Theory of Business.
• Clearly Understood Objectives.
Information Systems OrganizationInformation Systems OrganizationIS Vice President
Data BaseAdministration
Figure 13-1
Office Systems Planning AdministrativeStaff
Data BaseAdministration
NetworkOperations
ComputerOperations
Development &Maintenance
ProjectManagers
SystemsAnalysts
Programmers
SystemsSupport
SystemsProgramming
DevelopmentCenter
InformationCenter
Scope of IS OrganizationScope of IS Organization
MISOrganization
DPDept.
CorporateInformation
Systems
Tele-communications
OfficeSystems
End UserComputing
?
IS Organization and Personnel
1. What is the logical skill profile for the person that heads the information systems organization?
2. How difficult is the information systems manager job compared to other major functions within a company?
3. To whom should the information systems manager report?
4. Is there something unique about information systems that there is really a need for a steering committee that spans the organization?
5. Is there a logical alternative to having a steering committee?
IS Organization and Personnel
6. If the information systems manager reported to you, what major factors would you like to review with her on a regular basis to assure yourself that the information systems organization is being well managed?
7. It is not unusual to find people who feel that information systems employees are different from other employees. Is this actually the case? If so, how would you suggest that they be treated and managed?
8. What will the information systems organization look like in the future? What are the primary reasons that it is changing?
IS Organization and Personnel
9. Are there major issues to be addressed in establishing
the information systems organization of the future?
10. Does the current information systems environment
call for the creation of newly structured jobs and skill
profiles?
IS Organization and PersonnelIS Organization and Personnel
1. What is the logical skill profile for the person
that heads the information systems organization?
IS Manager ProfileIS Manager Profile
• Business Knowledge
• Management Experience
• People and Organizational Skills
• Politically Astute
. . . On an IT Knowledge Base
A Non-IT Background Information
Systems Manager Short Changes
Both Company Management and
Users.
IS Organization and PersonnelIS Organization and Personnel
2. How difficult is the information systems manager job compared to other major functions within a company?
Difficulty of IS Manager JobDifficulty of IS Manager Job
• Largest Staff Function
• A Dual Personality Job
• Provides Both Products and Services
• Must Interface with Multiple Groups
• Frequently Deal with Uniformed Publics
• Function in an Area of Rapid Change
• Under Frequent Financial Scrutiny
IS Organization and PersonnelIS Organization and Personnel
3. To whom should the information systems
manager report?
The IS Executive Should Report To?The IS Executive Should Report To?
• CEO, President or General Manager
What criteria should be used to make this decision?
• Chief Financial Officer
• VP of Operations
• None of the Above
IS Organization and PersonnelIS Organization and Personnel
6. If the information systems manager
reported to you, what major factors
would you like to review with her on a
regular basis to assure yourself that the
information systems organization is
being well managed?
If the IS Executive Reported to YouIf the IS Executive Reported to You
1. Status of major projects.
2. Future capacity projections.
3. Assessment of support to key users.
4. Productivity improvements within the
I/S organization.
5. Contribution to the competitiveness of
the business.
Successful Information Systems
• Senior Management Who Run the Entire Business.
• Functional Management Who Run Major Parts of the Business.
• Actual Users of Information Systems on a Day-to-day Basis.
A Product of Good Working Relationships
Working RelationshipsWorking Relationships
• I/S Steering Committees
• Functional Interface Managers
• Functional End-user Coordinators
• Service Level Agreements
• User Training and Education
• Application and Technical Consultation
• Joint R&D Projects
• The Working and Personal Relationship of the I/S
Manager Within the Company
5. Is there a logical alternative to having a
steering committee?
IS Organization and PersonnelIS Organization and Personnel
4. Is there something unique about information
systems that there is really a need for a steering
committee that spans the organization?
• Frequently do not work the first time that an organization uses this approach. • Should function as a true “Board of Directors” for the IS organization.
• Major benefit is often visibility of IS within the organization and communication regarding major activities.
IS Steering CommitteesIS Steering Committees
IS Organization and PersonnelIS Organization and Personnel
7. It is not unusual to find people who feel that
information systems employees are different
from other employees.
Is this actually the case?
If so, how would you suggest that they be
treated and managed?
IS PersonnelIS Personnel
1. Does the organization have enough qualified people?
2. Do their skills address both current and future
needs?
3. Does a migrant worker mentality exist among
the information systems professionals?
4. Is the best way to grow a strong information
systems organization by hiring and developing
your own people?
IS Personnel
5. Can an information systems organization
promote long term career growth?
6. Are the above questions out-dated and is the right future information systems organization a small core of people with the rest sub-contracted to outside companies?
IS Personnel
1. Treat new hires for information systems the same as any new employee within the company.
2. During their first five years emphasize the value of different experiences by not allowing an employee to stay with the same manager for longer than eighteen months.
3. Work to establish parity in the perspective of information systems employees towards jobs in operations, applications development and systems design/support.
IS Personnel
4. Promote information systems people into other jobs within the company. At a later date bring them back into the information systems organization with another promotion.
5. Spend more time on identifying and developing management potential people within the information systems organization.
6. Work to eliminate a mentality that job "burn-out" is inevitable with information systems employees.
IS PersonnelIS Personnel7. Make sure that the work environment is as good as that of the rest of the company.
8. Pay special attention to excessive overtime.
9. Recognize and reward those that make major contributions.
10. Have fun within the information systems organization. No one ever said that IS jobs are supposed to be dull and completely stressful.
Customer Service OrganizationCustomer Service Organization
UsersCustomer
ServiceOrganization
ApplicationDevelopment
Operations
TechnicalSupport
IS Management and Administration
Executive Review Board
IS Organization and PersonnelIS Organization and Personnel
8. What will the information systems organization look like in the future? What are the primary reasons that it is changing?
9. Are there major issues to be addressed in establishing
the information systems organization of the future?
10. Does the current information systems environment
call for the creation of newly structured jobs and skill
profiles?
CIO JobCIO Job
To provide technology vision and leadership for developing and implementing IT initiatives that create and maintain leadership for the enterprise in a constantly changing and intensely competitive marketplace.
• To forge and carry out a vision of IS as a vital corporate resource. • To bring systems out of the back room and into the competitive marketplace.
• To coordinate an increasingly decentralized IT.
• To serve as a driving “engine of change.”
Why a CIO?Why a CIO?
• Really understand the business.• Earned a seat at the corporate table to become part of the corporate management power structure.• A strategic thinker and planner.• Political, organizational and communication skills.• Experienced in managing various aspects of an organization particularly sales and production.• Able to deal with and understand technical specialists.
CIO “Must Have” Skill ProfileCIO “Must Have” Skill Profile
Personal QualitiesPersonal Qualities
Superb leadership, communication and interpersonal skills; an ability to function in a collaborative and collegial environment; sensitivity to others; high integrity and intelligence; excellent judgment; a conceptual thinker -- strategic and well as pragmatic; and an ability to generate trust and build alliances with co-workers.
CTO: Shift or Threat to CIO?CTO: Shift or Threat to CIO?
An ascendancy of the Chief Technical Officer role points to the importance of understanding increasingly complex IT environment in general and e-business technologies specifically.
Future IS Organization?Future IS Organization?I/S Executive CIO
Client InterfaceGeneral and
AdministrationI/S Utility Telecommunications
CompetitiveSystems
Professionaland Technical
Support
Client SystemsGroups
Administration
Finance
Equipment andFacilities
DataCenter
Performanceand Planning
DevelopmentCenter
DataNetworks
VoiceSystems
Figure 13-2