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 Vision

3 Steps
Define The Business Environment.
2. Build A Company Vision
3. Turn The Vision Into A Plan
1.

Vision and Information Systems

Invest

Vision
Asset

Save Money

Applications
Networks
Strategic

Expense

Tactical

Tools

Jack F. Welch,Jr., Chairman and

Grocery Store

Formalities are not

very popular

Summer Sessions

Surprise

CEO

General Electric

Mission & 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 Vision

Critical to Quality: Attributes most important to the

customer
Defect: Failing to deliver what the customer wants
Process Capability: What your process can deliver
Variation: What the customer see and feels
Stable Operations: Ensuring consistent,
predictable processes to improve what the customer
sees and feels
Design 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 Facts

Make-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 Facts
Online 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.

http://aoltimewarner.com

A corporation made up of many entities

that wants to be the most valuable
company in the world

TIMELINE: TIME, WARNER, AOL

1918 Time Magazine idea

conceived
2001 Merger
1989 Merger

1918 Brothers Warner open

first West Coast studio
1923 Times first issue published
1927 Warner Bros. releases first
synchronized talking movie
1985 Steve Case & Jim
Kimsey conceive new co.
Quantum Computer Services no
WWWeb.
1989 Time acquires Warner to
form Time Warner
1995 WB Network debuts
1996 Time Warner & Turner
Broadcast Systems merge
1998 AOL acquires Compuserve
and ICQ
2000 AOL reaches 27 million
members
2001 AOL & Time Warner
merge

AOL Time Warner Corporate Executives

(AND Forces Behind The Merger)
Gerald M. Levin
Steven M. Case
Chief Executive Officer
Chairman 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 opportunity

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 2001
Prime Mover of Time Inc, and Warner
Communications merger in 1990
Prime Mover of Time Warners merger
with Tuner Broadcasting Systems 1996
Recently resigned from primary duty of
placing management structure regarding
companys growth

Evolution of a Vision

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.

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 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.
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.

MISSION STATEMENT
(7 Goals Needed To Achieve This Vision)
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 DRIVER
Agility 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.

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
company
AOL 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

VISION ACHIEVEMENTS IN 2001

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 Europe
Acquired 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

Federal Express Vision

Created by visionary
Frederick W. Smith

Federal Express Early History

Product 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 fleet
Federal Express makes first profit in 1975

Federal Express and

The 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 routes
Smith 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
technology
Make Federal Express a global
organization

Step Three: Turn Vision Into Plan

International Expansion

Acquisition of Tiger International Inc in Feb. 1989

made them the worlds largest full-service allcargo airline
Tiger International acquisition positioned Fed Ex in
21 countries, including facilities-wise and flying
routes
In 1995 acquired Evergreen International Airlines
for sole US cargo carrier rights to routes in China
Today Fed Ex serves more than 200 countries in
Africa, Asia, Australia, Europe, North and South
America.

Vision into Plan

Fed Ex and IT

April 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 problem
Jan 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 Awards
Information
Technology
Logisticsin
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 Facts
Did You Know?

FedEx handles approximately 3.3 million packages and

documents each night
In a 24-hour period, FedEx planes travel almost one-half
million miles
FedEx 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
vehicles
In 1994 Federal Express changed their name to FedEx
In 2000, it extended itself to include FedEx
Express,FedEx Ground, FedEx Freight, FedEx Custom
Critical and FedEx Trade Networks