ครั้งที่ 5 วันที่ 16 กุมภาพันธ์ 2557 Strategic Information system MIT-M Chiangmai University Competitive strategy Strategy alignment model ครั้งที่ 5 วันที่ 16 กุมภาพันธ์ 2557

Strategic Planning for Information Resources Influence on Information Resources Information resources and IS strategy Business strategy Influence on Business Strategy 2-2

กลยุทธ์ธุรกิจ กับ กลยุทธ์สารสนเทศ Information resources and IS strategy มีผลกระทบต่อ Business strategy มีผลกระทบต่อ The Business layer reflects a view of what the business must do in the future in terms of its organisation structure & business processes The Information represents what must be “known” to effectively execute the processes The Applications serve to support process functionality and bring information to the process The IT Infrastructure enables access to information and execution of activities Business Information Applications IT Infrastructure

ความสัมพันธ์ระหว่างแผนกลยุทธ์ธุรกิจและ แผนกลยุทธ์สารสนเทศและเทคโนโลยีสารสนเทศ ผลกระทบและ โอกาส IT Business Strategy ทิศทางธุรกิจ Business Decisions Objectives & Direction Change การสนับสนุน การให้เป็นแนวทาง IS Strategy การเป็นโครง สร้างพื้นฐาน IT Strategy วิธีการนำ IT มาใช้ IS/IT ที่ต้องการ Business Based Demand Oriented Application Focused Activity Based Supply Oriented Technology Focused การกำหนดความ ต้องการ และลำดับ ความสำคัญ

Demand /Supply and Innovation Planning Practices Business Strategic Plan (Demand) (Strategic intention) IT Capability (Potential for new business directions) Innovation Demand/ Supply IT (Strategy for the Supply of IT) Business Units and Processes (Strategic Agenda for use of IT)

Strategic Alignment Model External Business External IT External Strategic Fit Internal Business Internal IT Internal Business IT Functional Integration Each block is characterized by different factors.

Mini-Case Example: Strategic Alignment at Medtronic, Inc.

Business System Planning วิสัยทัศน์องค์กร วิสัยทัศน์ IS องค์กร Part A Part B Part C พันธกิจขององค์กร พันธกิจของ IS กลยุทธ์ขององค์กร กลยุทธ์ของ IS ระบบสารสนเทศ กลยุทธ์ทางธุรกิจ ระบบสารสนเทศ เชิงกลยุทธ์ Business Challenges CSF + Problem IS Projects Organization - Structure - Resources Business System Planning IS/IT Trend IT Architecture Budget Organization - Structure - Resources IT Management Strategy เทคโนโลยีสารสนเทศ Project Plan IT Master Plan

Resource Allocation Project Management Strategic Information Planning Five-Forces Value chain CSF BSP Organizational Information Requirements Analysis ROI Cost/Benefit Resource Allocation IT Architecture PERT /CPM Milestone Project Management IT infrastructure

Why we exist? Change environment Disruptive Emerging New reality Strategic alignment model System thinking Business + IT Strategy Who are you? Personnel mastery Digital age Strategic Information System Strategic thinking General environment Scenario External driving forces Opportunities/ Threat Geographic environment Strength ?Weakness Resources based Internal driving forces Business Opportunities Life cycle / Opportunities driven TOWS matrix Strategic Planning What business to be in? GE matrix (market/Business strength) Core Business (Product /Service) Mission statement Strategic Direction Where to go? Strategic issue / Critical success Challenge + Mission statement Vision statement How to get there ? Strategic Positioning Business concept Business Model Product Positioning Product Portfolio BCG + Product/Market Matrix Business Strategy How to compete ? Generic model 5 Forces’+ Value chain Business Process Model IS Strategy Direction for business Implication for IS/IT Strategy IS Model Support business Need and Priorities IS Requirement IS Process / Data/Functional model Infrastructure /service IT application / Architecture / technology /Infrastructure How can be delivered IT requirement IT innovation IT Strategy IT Project IS/IT Project management

หัวข้อวันนี้ ปรับตารางเวลาเรียนใหม่ เริ่มช่วงเช้า 8.30-12.30 น. ช่วงเย็นถึง 16.30 น. คำถามเชิงกลยุทธ์ เตือนประโยชน์จากการค้นคว้าเดี่ยว ที่ต้องรวมสรุปเอกสารงานค้นทั้งหมดส่ง งานกลุ่มต้องนำเอาความรู้จากการค้นคว้าเดี่ยวมาระดมความคิดและเรียนรู้ซึ่งกันและกัน ประเมินผลจากงานกลุ่ม ยังมีหลายกลุ่มยังไม่ค่อยชัดเจน และทำไม่ถึงที่สั่งไว้คือ Business Concept , Business Model KSF (Challenge) วิเคราะห์ 5 Forces’ Value chain วันนี้ วิเคราะห์การนำเอา IS/IT มาใช้กับกลยุทธ์ธุรกิจ คือการนำมาใช้กับวิเคราะห์ 5 Forces’ Value chain ในแง่ของ IS/IT เขียน Business Process มอบหมายงานกรณีศึกษา

มอบหมายงาน งานกลุ่ม ไปทบทวนปรับงานที่ทำตามแนวทางลำดับหัวข้อที่กำหนด งานกรณีศึกษา ให้ไปค้นคว้ากรณีศึกษาบริษัทที่ใกล้เคียงกับ Dummy Project ของกลุ่มว่าเขาเอา IS/IT อะไรมาใช้ในการสร้างความได้เปรียบในการแข่งขันของบริษัท ส่ง 22 กุมภาพันธ์ก่อน 16 น.

กรอบแนวทางการทำงาน Dummy Project จุดมุ่งหมาย ปรัชญา ของการทำธุรกิจ วิเคราะห์สภาพแวดล้อมทั่วไป PESTLE สรุปภาพอนาคตทั้งด้านธุรกิจและด้าน IT ใน 5 ปีข้างหน้า และระบุ O/T ออกมาอย่างน้อย 3-5 ปัจจัย วิเคราะห์สภาพแวดล้อมภายใน (เชียงใหม่) ว่ามีฐานทรัพยากรอะไรที่สำคัญ และระบุ S/W ออกมาอย่างน้อย 3-5 ปัจจัย สร้างกลยุทธ์การหาธุรกิจที่น่าสนใจเข้าไปทำด้วย TOWS Matrix คัดเลือกธุรกิจที่น่าสนใจและตรงกับจุดมุ่งหมาย ปรัชญาการทำธุรกิจของเรานำมาวิเคราะห์ด้วย GE Matrix โดยนำเอาวงจรชีวิตสินค้า วงจรชีวิตธุรกิจและวงจรชีวิตของเทคโนโลยีมาประกอบการพิจารณาด้วย ระบุธุรกิจที่สนใจออกมา 1 ธุรกิจ พร้อมทั้งระบุตัวสินค้าหลัก/บริการหลักให้ชัดเจน เขียนออกมาเป็น Mission statement มีรายละเอียดดังนี้ ปรัชญาธุรกิจ ตัวสินค้า/บริการ ตลาดเป้าหมาย ลูกค้าเป้าหมาย Supplier คู่แข่งขัน

กรอบแนวทางการทำงาน Dummy Project ต่อ 7. หาข้อท้าทายที่จะรับมือปัจจัยแรงกดดันจากภาพอนาคต ประมาณอย่างน้อย 4-5 ข้อ ท้าทายขึ้นไป 8. นำเอาข้อท้าทายกับ Mission statement มากำหนดวิสัยทัศน์ Vision Statement 9. วิเคราะห์แนวคิดธุรกิจ Business Concept ระบุให้ชัดเจนถึงคุณค่าที่ได้รับ Value Proposition นำมาเขียนเป็น Business Model Canvas 10. จาก Mission statement และ Business model นำมากำหนดการวางตำแหน่งธุรกิจ ด้วยMatrix ตัวสินค้ากับลูกค้า ทุกอย่าง บางอย่าง ทุกคน บางคน 11. นำไปวิเคราะห์ด้วย BCG และ Product /Market Matrix เขียนลูกศรเชื่อมโยง

B3 Business Challenge (Strategic Goal) Learning center Product and service Value creation Operation efficiency Supply chain infrastructure MIS 1 2 3 4 5

กรอบแนวทางการทำงาน Dummy Project ต่อ 12. วิเคราะห์สภาพแวดล้อมการแข่งขัน (5Forces) ระบุปัจจัยที่สำคัญของแรงกดดัน ออกมา และวิเคราะห์ว่าจะนำ IT เข้าไปช่วยสร้างความได้เปรียบในการแข่งขันใน Forces เหล่านั้นได้อย่างไร กำหนดกลยุทธ์การแข่งขันด้วย Generic Model วิเคราะห์ Value chain ระบุปัจจัยที่สำคัญของกิจกรรมภายในออกมา และวิเคราะห์ว่าจะนำ IT เข้าไปช่วยสร้างขีดความสามารถในการแข่งขันในกิจกรรมหลักและกิจกรรมสนับสนุนเหล่านั้นได้อย่างไร

ตัวอย่างที่เคยทำมา IBSC ITSC CNX night Safari

MARKET SHARE DOMINANCE Strategic Direction Where to go? Strategic issue / Critical success Challenge + Mission statement Vision statement How to get there ? Strategic Positioning Business concept Business Model Opportunities Idea Resource Asset Value Value Product Positioning Product Portfolio BCG + Product/Market Matrix MARKET SHARE DOMINANCE HIGH LOW MARKET GROWTH RATE LOW HIGH Product Exist New Exist High growth Market leaders Require cash High growth Low market share Need cash Poor profit margins Market New $ Low growth High market share High cash flow Low growth Low market share Minimal cash flow Copy right@chaiyot suntivong BA CMU

Competitive Advantage Business Strategy How to compete ? Generic model 5 Forces’+ Value chain Business Process Model Threat of New Entrants Bargaining Power of Suppliers of Buyers Relative of Unions, Governments, etc. Potential Threat of Substitute Products or Services Industry Competitors Rivalry Among Existing Firms Other Stakeholders Buyers Substitutes Suppliers Competitive Advantage Uniqueness Perceived by the Customer Low Cost Position Industry Low Cost Differentiation Differentiation Focus Cost Focus Target Market Niche

Porter’s five forces model Potential Entrants to market Threat of entry Rivalry with competitors Suppliers Buyers Bargaining Power Bargaining Power Threat of substitutes Substitutes

Porter’s Competitive Forces Model Chapter 13

Threat of entry More likely when Important issues Economies of scale are possible Capital requirements of entry are low Easy access to distribution channels No dominant “player” Little expected retaliation Little government/legislative intervention Low levels of differentiation Important issues What barriers exist? What is our position?

Buyer power More likely when High concentration of buyers Large number of small suppliers Little risk/low cost of switching Alternative sources of supply Low differentiation High levels of competition High risk of backward integration

Supplier power More likely when High concentration of suppliers Cost of switching suppliers is high Risk of switching suppliers is high Supplier has powerful brand Supplier dominates market High risk of forward integration

Threat of substitutes Product for Product Substitution of need Post replaced by fax replaced by email Substitution of need Better quality castings reduces need for machine tools Generic substitution Holiday or a new TV? Do without!

Competitive rivalry (1) Rivalry between competing organisations Issues – What is it based on? Increasing or decreasing? How is it affecting us? What can we do about it?

Competitive Rivalry(2) Balance of rivalry Lots of small, balanced competitors? Market domination? Market growth rates Product life cycle? Global markets? High fixed costs High cost of extra capacity Level of differentiation High exit barriers Easy acquisition

Collaboration and competition Collaboration between buyer and seller Input and output! Collaboration to increase buying power NISA, SPAR, SURF? Collaboration to avoid substitution or prevent entry Collaborative R&D, marketing boards Collaboration to gain entry Honda/Rover?

Key issues What are the key forces at work in our competitive environment? Are there underlying forces (SLEPT analysis?) contributing to this? Is it likely that these forces will change? If so how and why? How do our competitors stand? How do WE stand? What can be done to influence these forces?

Critical (Key) Success Factors CSFs are aspects of strategy where you must provide better value and beat the competition Competences needed in activities which underpin each critical success factor Performance standards for these determine how competitive advantage will be achieved Advantage lost by competitor performance & CSFs changing

Identifying Critical Success Factors These are for an Industry Ohmae gives 3 areas to consider, the 3 Cs Customer issues The competition The business (or Corporation)

Customers Who are they now & potentially Segments in the market Why do they buy from whoever General issues price service reliability + quality tech spec brands

Competition Who & who has market dominance & why Market factors and intensity Resource comparisons General issues Cost and price comparisons Quality and service Logistics

The Business What do our competitors actually deliver to customers What is our biggest cost area General issues Low cost, labour costs, economy of scale Output and quality People - skills, relationships Innovation and technology

Competitor Analysis Who are your competitors Where are they How many What do they compete on What market share do they have Is the market segmented How strongly do they compete Are there any alliances

Strategic alternatives Growth and expansion Acquisition Integration Divestment

Competitive strategies Porter’s generic strategies Cost leadership Broad-market differentiation Focus Cost Focus differentiation

Cost leadership (1) Low level of differentiation Aim for average customer Introduce improvements only when customers demands them Pricing strategies Sell at industry average, improve profits Sell at below average, improve market share

Cost leadership(2) Needs these strengths Access to capital required for significant investment in process technology Ability to design products/services that have low production costs Exclusive access to low cost materials/components Efficient distribution channels

Cost leadership(3) Advantages Risks Cost advantage can protect from new entrants Pricing at industry average allows price-cutting if necessary Risks Technology may be leapfrogged or copied Risk from a number of focussed cost leading enterprises

Differentiation(1) Perceived quality is the key! Whether real or not. Intrinsic qualities of the product Pre/post sales service Allows premium pricing

Differentiation(2) Typical strengths required Access to leading edge R&D Highly skilled and creative product development Strong sales team Corporate reputation for quality and innovation

Differentiation(3) Advantages Risks Price increases from powerful suppliers can be passed on to buyers Brand loyalty protects from substitution Brand loyalty protects against market entry Buyers’ cost of switching may be high Risks Imitation is a possible threat “Novelty” value short-lived Limits to price elasticity Customer tastes may change

Focused strategies (1) Focuses on a narrow market segment (niche market) and attempts to obtain competitive advantage on a cost or differentiation basis. Often generates fierce customer loyalty Concentrate on core competences

Focused strategies(2) Advantages Power of buyers – often sole source of supply Brand loyalty helps protect against substitution or market entry Easier to stay close to customer and respond quickly to changes in need

Focused Strategy (3) Risks Low purchasing quantities hands power to suppliers Low production volume brings high unit costs Change in consumer taste means that niche markets disappear May be easy for cost leaders/big differentiators to adapt their products to compete

Potential IS Contributions Profit Margin Infrastructure - Planning Models Human Resource - Skills & Experience Databases Technology - Computer-Aided Design Procurement - On-line parts ordering Elapsed Time - Value added time cost Automated Warehouse Inbound Logistics Check Clearing Operations Point of Sale Scanners Outbound E-Commerce Marketing & Sales Remote Equipment Servicing Service Support Activities Primary Activities

Inbound Logistics Inbound Logistics Highly Efficient Systems to Link Suppliers’ Products with the Firm’s Production Processes Located in Close Proximity with Suppliers Inbound Logistics 23

Human Resource Management Technological Development Operations Efficient Plant Scale to Minimize Mfg. Costs Timing of Asset Purchases Policy Choice of Plant Technology Organizational Learning Relatively Few Management Layers to Reduce Overhead Firm Infrastructure Human Resource Management Effective Training Programs to Improve Worker Efficiency and Effectiveness MARGIN Technological Development Investments in Technology in order to Reduce Costs Associated with Manufacturing Processes Procurement Frequent Evaluation Processes to Monitor Suppliers’ Performances Efficient Plant Scale to Minimize Manufacturing Costs Delivery Schedule that Reduces Costs Small, Highly Trained Sales Force Service Inbound Logistics Outbound Logistics Selection of Low Cost Transport Carriers Products Priced to Generate Sales Volume Operations Operations Timing of Asset Purchases MARGIN Policy Choice of Plant Technology Efficient Order Sizes Organizational Learning 24

Human Resource Management Technological Development Outbound Logistics Firm Infrastructure Delivery Schedule that Reduces Costs Human Resource Management Selection of Low Cost Transport Carriers MARGIN Technological Development Efficient Order Sizes Procurement Frequent Evaluation Processes to Monitor Suppliers’ Performances Delivery Schedule that Reduces Costs Small, Highly Trained Sales Force Interrelationships with Sister Units Effective Product Installations to Reduce Frequency and Severity of Recalls Service Outbound Logistics Outbound Logistics Selection of Low Cost Transport Carriers Products Priced to Generate Sales Volume Marketing & Sales MARGIN Efficient Order Sizes National Scale Advertising Interrelationships with Sister Units 25

Human Resource Management Technological Development Marketing & Sales Firm Infrastructure Small, Highly Trained Sales Force Human Resource Management Products Priced to Generate Sales Volume MARGIN Technological Development Procurement Global Scale Advertising Service Inbound Logistics Outbound Logistics Marketing & Sales Marketing & Sales Operations MARGIN 26

Human Resource Management Technological Development Service Firm Infrastructure Effective Product Installations to Reduce Recalls Human Resource Management MARGIN Technological Development Procurement Service Service Inbound Logistics Outbound Logistics Marketing & Sales Operations MARGIN 27

Human Resource Management Technological Development Firm Infrastructure Human Resource Management MARGIN Technological Development Procurement Procurement Service Inbound Logistics Procurement Outbound Logistics Marketing & Sales Operations MARGIN Systems and Procedures to Find the Lowest Cost Products to Purchase Raw Materials Frequent Evaluation Processes to Monitor Suppliers’ Performances 28

Human Resource Management MARGIN Technological Development Firm Infrastructure Human Resource Management MARGIN Technological Development Technological Development Procurement Technological Development Service Easy-to-Use Manufacturing Technologies Investments in Technology in order to Reduce Costs Associated with Manufacturing Processes Inbound Logistics Outbound Logistics Marketing & Sales Operations MARGIN 29

Human Resource Management Human Resource Management MARGIN Firm Infrastructure Human Resource Management Human Resource Management MARGIN Technological Development Human Resource Management Procurement Consistent Policies to Reduce Turnover Costs Effective Training Programs to Improve Worker Efficiency and Effectiveness Service Inbound Logistics Outbound Logistics Marketing & Sales Operations MARGIN 30

Human Resource Management Technological Development Firm Infrastructure Firm Infrastructure Human Resource Management Support Activities MARGIN Technological Development Firm Infrastructure Cost Effective MIS Systems Simplified Planning Practices to Reduce Planning Costs Relatively Few Management Layers to Reduce Overhead Procurement Service Outbound Logistics Marketing & Sales Inbound Logistics Operations MARGIN 31

IT-business alignment: multiple angles It’s not just about “building stuff that the business will use” Business Investment in capability Change capabilities, limitations Change implications Delivery of value IT © Macehiter Ward-Dutton 2005 www.mwdadvisors.com

The IS/IT Strategic Model The building blocks of the strategy formulation and planning framework

The real world From Towards Application implementation Buy AND build AND integrate Build, or buy vs. build Business area investment focus Front office and beyond Back office “Personal productivity” desktop IT access environment Productivity desktop + global access to resources Technology innovation focus Communication, collaboration, integration Data processing Capability supply “Multi-sourcing” Outsourcing vs. in-house delivery Older approaches fail to capture reality re: integration, communication, collaboration, supply complexity © Macehiter Ward-Dutton 2005 www.mwdadvisors.com

Gartner’s “hype cycle” 2009

Basic IT Infrastructure IT Hierarchy of Needs Strategic IT IT-enabled innovation & relatioships Tools, & Applications Automate, streamline transactions, foster creativity and collaboration Basic IT Infrastructure Core: servers, networking, storage, desktops, mobility, and telecommunication

TYPES OF INFORMATION SYSTEMS DATA WORKERS KIND OF SYSTEM GROUPS SERVED STRATEGIC LEVEL SENIOR MANAGERS MANAGEMENT LEVEL MIDDLE MANAGERS OPERATIONAL OPERATIONAL LEVEL MANAGERS KNOWLEDGE LEVEL KNOWLEDGE & SALES & MANUFACTURING FINANCE ACCOUNTING HUMAN RESOURCES MARKETING

ระบบสารสนเทศ แบ่งตามระดับชั้นขององค์กร Business Intelligence Sales Analysis Inventory Turnover Financial EIS Executive Knowledge Worker MIS, DSS Manager Contents Management Documents Management E-Mail Reports VDO Conference Staff Accounting Information System Retail Management System GL Payroll Finance AP AR Ware- house Barcode System Logistic System CRM System Sales Management TPS: Transaction Processing System

The Value Chain

แสดงกิจกรรมและเรียนรู้ B2 Value Chain Firm Infrastructure (Accounting, Finance, Administrator) Human Resource Management Research & Development Technology ปัจจัยรับเข้า พันธมิตรเครือข่าย เตรียมกิจกรรม เรียนรู้และสวนสนุก แสดงกิจกรรมและเรียนรู้ ตลาด/ขาย บริการ Procurement Input Business partner Service Process Preparation Service delivery Sale Service After sale Customer Development Quality Control

Business process Applications Data The challenge Activities, processes The business The real world doesn’t “decompose” nicely – and IT isn’t just about things you build in-house © Macehiter Ward-Dutton 2005 www.mwdadvisors.com

The Strategic Alignment Model Business I/T Distinctive Competencies Governance Scope Systemic Technology Business Strategy I/T Strategy Processes Skills Administrative Strategic Fit Organizational I/T Infrastructure Infrastructure Functional Integration Structure Architecture

Components of Strategic Alignment Model (Henderson & Venkatraman)

Organization Strategy Fusion I/T Infrastructure Business Strategy Organization Infrastructure Combination of: I/T Infrastructure Strategy Perspective I/T Organizational Infrastructure Perspective Organization Strategy Fusion I/T Strategy

Business & IT – Strategic Alignment Business Strategy Growth & Customers Market & Competition Operational Efficiency Performance Analysis & Decision Support IT Strategy Platforms Budget & TCO Vendors Initiatives & Projects Resources & Skills 7

IS Application Portfolio Strategic High Potential Applications which Applications which are critical to may be of important sustaining future in achieving future business strategy success Applications on which Applications which are the organisation valuable but not critical currently depends for success for success Key Operational Support Developed from Ward Fig., 1.8 which is sourced from McFarlan

The Context for IS/IT Strategy: External Context

Alignment – Breakdown & Translation (EXAMPLE) No. Strategic Business Objective Goals IT Initiative / Solution 1 Profitable Growth Increased Market Share Awareness Coverage CRM – Pre-Sales, Marketing & Sales Analytics Increased Profitability CRM – Gross Profit Confirmation for incentives Reduce Errors via CRM product configurator rules Business Performance Transparency Enhanced analysis & reporting capabilities (BI / Pro-forma reporting prior to quote approval) 2 Cost Reduction Business Transaction Efficiency SAP Dealer Portal: Order & Vehicle Mgmt. life-cycle CRM: Streamlined quoting and transition to order management DBMS Integration Offline Productivity TMQS CRMToday Shared Services IT Shared Services Utilize Global Licensing Balanced IT Resource Model (in-house vs. consulting) Standard IT Application Platform Consolidation of customer and partner websites onto single Enterprise Portal platform 3 Mergers & Acquisitions Standardized Processes & Flexible IT Platform Expandable and open (integration) technology platform 24

B3.1 Critical Success Factors Firm Infrastructure (Accounting, Finance, Administrator) Human Resource Management Research & Development Technology Procurement Input Business partner Process and / Service preparation Service Delivery Marking & Sales Service After sale

Value Chain Analysis Inbound Logistics Operations • Assessing the PRIMARY Activities in the Value Chain ( from Table 4-1) Inbound Logistics Materials control system Inventory control system Raw material handling and warehousing • Operations Equipment comparison to competitors Plant layout Production control system Level of automation in production processes •

Value Chain Analysis Outbound Logistics Marketing and Sales Assessing the PRIMARY Activities in the Value Chain (continued) ( from Table 4-1) Outbound Logistics Timeliness and efficiency of finished products delivery Warehousing of finished products • Marketing and Sales Marketing research Sales promotions and advertising Alternative distribution channels Competency and motivation of sales force Organization’s image of quality Organization’s reputation Brand loyalty of customers Domination of various market segments •

Value Chain Analysis Customer Service • Assessing the PRIMARY Activities in the Value Chain (continued) ( from Table 4-1) Customer Service Customer input for product improvements Handling of customer complaints Warranty and guarantee policies Employee training in customer education & service issues Replacement parts and services •

Technological Development Value Chain Analysis Assessing the SUPPORT Activities in the Value Chain ( from Table 4-2) Procurement Alternate sources for obtaining needed resources Timeliness of resources procurement Procurement of large capital expenditure resources Lease-versus-purchase decisions Long-term relationships with reliable suppliers • Technological Development R&D activities in product and process innovations Relationship between R&D and other departments Meeting deadlines in technological development activities Quality of labs and other research facilities Qualifications of lab technicians and scientists Creativity and innovation in organizational culture •

Human Resource Management Value Chain Analysis Assessing the SUPPORT Activities in the Value Chain (continued) ( from Table 4-2) Human Resource Management Recruiting, selecting, orienting, and training employees Employee promotion policies Reward systems to motivate and challenge employees Absenteeism and turnover Union-organization relations Employee participation in professional organizations Employee motivation, job commitment, and satisfaction •

Value Chain Analysis Firm Infrastructure • Assessing the SUPPORT Activities in the Value Chain (continued) ( from Table 4-2) Firm Infrastructure Identification of external opportunities and threats Accomplishing goals with strategic planning system Coordination and integration of value chain activities Low-cost capital expenditures & working capital funds IS support for strategic and operational decisions Relationships with stakeholders Public image as a responsible corporate citizen •

Example Value Chain Uses of information systems to add value Customer Service Response System Uses of information systems to add value Electronic Data Interchange Link between Suppliers and Dealers Website with Online Ordering, etc Inbound Logistics Operations Outbound Logistics Sales & Marketing Service Computer Aided Manufacturing Product R&D, Technology, and System Development Computer Aided Software Engineering Human Resource Management Project Management Software General Administration Accounting/ Financial Decision Support Software

Support activities Primary activities MIS-Text Book pg.50 Admin. & Mng. :Decrease reporting & administrating tasks Human Resources: Work force planning Technology: POS , ATM Procurement: Electronic Ordering System Inbound Logistics Operations Outbound Logistics Sales & Marketing Service -Electronic Ordering System - Increasing Selling Space -POS -ATM - Home Delivery - WEB Site - Customer Database -The Sears Charge Card - Repair Services Primary activities MIS-Text Book pg.50

B3.1 Critical Success Factors Learning Center Learning Technology (E-tracking) Firm Infrastructure (Accounting, Finance, Administrator) Human Resource Management Research & Development Technology Procurement Knowledge (KMS) Input Business partner Process and / Service preparation Service Delivery Marking & Sales Service After sale Knowledge transfer (e-book/e-learning)

B4 IS/IT Strategies and IS/IT Project IS Strategy 1:พัฒนา KM / E-learning Objective 1: เพื่อให้มีการสร้างฐานองค์ความรู้และถ่ายทอดองค์ความรู้ IS/IT Projects Business Benefit Knowledge Base Management System องค์ความรู้ขององค์กร E-Book/E-Learning เกิดการถ่ายทอดความรู้สู่ชมชนโดยสามารถเรียนรู้ด้วยตัวเองได้ E-Tracking บริหารจัดการข้อมูลสัตว์

Information Systems Planning Develop Strategies Design IT Arch- itecture Tactics Create Vision Determine Drivers Assess IT Architecture Best Practices Strategic Opportun- ities Technology Platform Re- engineer Technology Implementation Plans Data Resources Specific Needs Business Vision Gap Assess- ment Business/IT Strategies Application Portfolio Investment Plans Existing Capabil- ities IT Organ- ization Organization Transformation Plans Customer Needs Long-Range Position Needs Partners Needs