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PeopleSoft Standardized, Low Cost, Mixed after merger Oracle Processes of Strategic Value and Competitive Advantage Operations and Transaction Processes (Low Cost) Infrastructure Data, Middleware Planning ISM Optimization CRM HR / Payroll Mainframe Midrange, Client/Server Desktops Laptops Voice/Data, Networks, Email App. Interface Data Mgmt Customer Facing eBusiness Solutions PRISM / Supply Chain Systems Procurement Logistics Manufacturing Operations ? Order ? Billing ? A/R ? A/P ? G/L ? Reporting Middleware . Kearney 1/8510Color/15 Cause for Action . Kearney 1/8510Color/16 Information Technology Strategy ? Exploitation of current product customer base through geographic expansion, new services cross selling ? Extension of the traditional supply chain beyond current customer and supplier base ? Formation of partnerships and alliances ? Adoption of new value chain models exploiting today’s technology ? Global management and measurement processes ? Continuous cost improvement Possible Business Unit Response Acquisitions Shared Services Globalization eBusiness Continued industry consolidation Supply Chain Value Nets Business Model Revolution Pace of Technology Change Key Business Change Drivers Information technology must reinvent itself to develop capabilities that deliver substantial business value at the pace of today’s business environment Align and Support An updated IT strategy is necessary to align the anization and its service offerings to business unit requirements and operating models . Kearney 1/8510Color/17 Corporate Agenda IT Strategy Alignment 6–8% Revenue Growth 11% Return on Net Assets ? Assume leadership role in design implementation of customer enabled processes to promote scalability ? Leverage ebusiness technologies ? Develop data mining techniques to leverage customer information leading to increased sales ? Institute a program management approach Profitable Sustainable Growth Operational Excellence PostMerger Integration ? Continuous design of new processes and service offerings to promote customer intimacy and service excellence ? Implement low cost high availability infrastructure ? Simplify pany and customer pliance with regulations ? Continue migration to Company A’s applications ? Rapid deployment of new processes and technologies to enable cost initiatives ? Rapid application development and deployment Ebusiness strategy Corporate Objectives Linking the strategy to the CEO agenda reinforces IT’s mitment to be a high value service partner . Kearney 1/8510Color/18 Business Strategy IT Strategy Business Mission Scope Competencies Governance IT Mission Architecture Competencies Governance Alignment ? Align the IT anization to meet business unit requirements of the new Company ? Develop and municate the application and technical architecture direction ? Replace the current technical ―roadmap‖ with a prehensive and specific deployment flight plan depicting timing for replacing applications and technologies and implementing process/ service changes ? Implement a program management process to determine IT investment priorities set IT direction The IT strategy aligns with business strategies to define matching priorities, plementary capabilities, and patible anization dynamics IT Strategy Outes . Kearney 1/8510Color/19 IT Strategy Approach . Kearney 1/8510Color/20 The IT Strategy is prised of an IT vision, strategy and deployment plan that will enable rapid delivery of cost effective IT products and services Gap to Close Competencies Architecture Governance IT Future State Competencies Architecture Governance Deployment Plan Competencies Architecture Governance Business Strategy Strategy Development Process IT Strategy Deliverable IT Strategy IT Vision Core Competencies Application Tech. Architecture Direction Self Funding Investment Plan Governance Processes Deployment Strategy and Timing ? Corporate Strategy ? Business Unit Strategies ? Boundaries from Executive Council A new CIO was brought in to champion the effort while being the IT Change Agent IT Current State . Kearney 1/8510Color/21 A set of guiding principles will allow us to “rethink” the current way of doing business as we progress our strategy development process ? The applications and technical infrastructure must be aligned with business strategies and create substantial shareholder value ? IT will focus its energy on petencies that are results driven and add significant business value ? Our goal should be to deliver project results in half the time and half the cost (time to market is essential) ? IT budget will be owned and driven by the business for discretionary projects ? The anization will adopt a virtual and collaborative approach to address business problems ? The future state will drive our strategy design。 how we do things today may influence our future — but there are no sacred cows ? We must provide significant growth opportunities for our people to attract and retain a highly skilled and motivated staff ? We will share clear, unified munications at every level led by IT Leadership Team . Kearney 1/8510Color/22 Four parallel workstreams will contribute to development of the IT vision, strategy and deployment plan Organizational Effectiveness and IT Alignment Establish the IT Program Office Application Architecture Technical Architecture ? How should the anization be aligned to the businesses? ? What petencies should be developed to meet the challenges o