Pace 36 PG WEEKNAPPLIGATION DEVELOPMENT. APPLIED INTELLIGENCE NOVEMBER 28, 1988 Strategic-Information Oystems: Formula for OUCCESS tems, James Martin de- sceribes how a use informa- tion-systems technology to tive advantage. In recent been many ex- amples of one corporation pulling ahead by making better use of information technology than its competitors. At the same time, there have been some corporations that have watched their earnings decline (sometimes to the edge of bankruptcy) because their competition used comput- ers, microelectronics, intercorporate net- works or information in new competi- tive thrusts. One of the most important guestions in corporate computing is, how can we use information technology to gain a competitive advantage? Systems that enable a corporation to gain a direct advantage over its compe- tition are called strategic systems. Some of these are on-line systems that directly enable the corporation to accomplish a mission, and are referred to as mission- critical systems. Examples of mission-critical systems are an airline operating a network of terminals in travel agents' offices and a distributor using on-line computers in its customer locations. | In this, the first of five columns on strategic sys- corporation can gain a competi- years, there have in which information systems can en- hance the competitive position of a cor- poration. Rigorous business-planning methodolo- gies—the analysis of goals and prob- lems, technology-impact analysis and critical-success-factor analysis —should be used, but strategic-systems vision is perhaps the most important technigue for top-level planning. The habit of thinking about how technology can change (or radically transform) the en- — terprise to make it more competitive needs to start at the top and pervade the entire enterprise. End users with In- formation Center tools need to be en- | % bad 4 . b. za Mir ; J ' 3 ka N | i Šv še ovi A k % | s : [ ma ka da tih Božo 2 di ročna k DAJ Ah NE Me NA a, ia 4 , A mission-critical system operatesat . | — ne heart of the business, performing vi tal corporate and intercorporate func- tions. If the system stops, those aspects of the business stop. A strategic system is thus critical to the functioning of the business rather than a back-room, pa- perwork-processing system, as most commercial computers are. As shown in the figure, strategic-sys- tems opportunities include on-line links to customers, agents, distributors, retail- ers and suppliers, as well as software in customer locations, new products, auto- mated fabrication, service innovations, strategic alliances and so on. Corporate presidents are strongly con- erned with how their organizations can lo better than the competition or how hey can prevent the competition from aking business away from their organi- ations. They need to regard the com- Juter and information system as critical veapons in their battles with competi- ion. Some corporate presidents do not lave this vision yet. They still regard omputers as an overhead cost that hould be minimized whenever possible. Jne president of a large corporation in Manhattan told me, "Tm an enemy of zomputers in this place. All | want to know about them is how much they ost —and its too much," At the same ime, his competition was devising in- rentive ways of using information tech- lology to capture a major part of his Jusiness, - The phrase "strategic-systems vision" imply describes the ability to see ways Ceoz« ra vi sa Fr ua 4 ČA m - bei h za E zo Nil kessč ea z s a za si Fil ! OE Federal Express was once a small up- start confronted with numerous compet- ing airfreight companies. Benetton in It- aly was, in the early 1970s, a small fam- ily business in a no-growth industry with tough, old, established large firms. Reuters, in the 18505, used the tech- nology of carrier pigeons to distribute news and details of transactions on the Brussels stock exchange faster than its competition. In the 19705, it again out- did its competition by providing finan- cial information on terminal screens with its worldwide news network, and then enabling its customers to make trades over that network. did: tike a vii DEA hi HAti 1 i p db idiii dani TA zi uči 4 s % ši T daji zjamik [ Hi Že - am aaa. k m dij Ve —-i Ca k za e k rata k P ; Pok, grd a a, 4 Moi ma sei go ma ae ba 4 ' z i ži č z i sa šk, - ' iča 5 čegr o-eu a z . na h kčj-a. A a ER nač zasta ša o Ma ee 1 ie me uje mrki, "Ij lali s - "a a A a ih. ču j z s ; ' Na i di č E a ui ke čl. z. 4 - kol AE rm ni ni k Ham ea sar a. s ie" x e he a o PRSI La PORE net ' a z pa h o ee, si Aa ai ik Moni a m ai RI asi, - lika. ui Miše — .. " ui ue JA 4, v Iz -a k ai a o aa m ni zdi - DO ani Na ni LJ m ME pip, Vem meče. z, nj, ze a J - že elan ke Ja me? m Mi aa PI min [ k x ge z k ira 2 NE a s h " F gib. pi k