MBL93GX - E-Business and Technology Mgt - 23 January 2014

8/9/2019 MBL93GX - E-Business and Technology Mgt - 23 January 2014

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2014 MBL93GX

Module overview 2014

E-business and technology management

MBL93!

"ear module

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This module overview contains important informationon our module!


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elcome to the module E-business and technology management 8MBL93!! Thisdocument provides important information on the course! 'lease familiarise ourself with the

main learnin outcomes for this module and ensure ou have the document with ou whenattendin stud schools! ou are invited to consult with us when faced with challenes so thatwe ma uide ou in this module!

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2.1 $ur:ose

The purpose of this module overview is to

• assist ou in our ourne throuh the prescri,ed material for this module

• help ou ain an understandin of the pedaoical approach to the module

• indicate the relative importance of the different topics in this module

The uidelines provided here are e5pected to ,rin ou closer to the fundamentals of thesu,ect matter ,oth in terms of understandin the practical forces relatin to the -nowlede,ase and the environmental dnamics affectin the fundamentals! There are man reasons for studin technolo manaement and the related field of e6,usiness manaement!

The -e differentiator in a competitive environment is the ,usiness model the oranisation usesand how effectivel this model is implemented and operated! "hanes in the technoloical

landscape provide a num,er of new opportunities that can ,e opened up in the mar-etplace!This important factor com,ined with the fact that the mar-etplace chanes or adapts to the useof new technolo ena,les companies ,oth esta,lished and new to create new services tooffer in the mar-etplace! These services are usuall ,ased on new technolo that ena,lescompanies to meet the needs of the mar-et more effectivel than their competitors!

Manaers ma-e man decisions ,ased on intuition ,ut the re7uire information that will clarifthe situation and reduce uncertaint when the decision involves ris-! $o,od would disareewith the fact that manaers in the technoloical arena need a reat deal of insiht -nowledeand information to fulfil their responsi,ilities and ma-e sound decisions! 8n this module anattempt is made to provide ou with the latest insihts from the fields of technolo strate and

e6,usiness strate which will ena,le ou to ma-e ,etter and more informed decisions in a fast6movin lo,al mar-etplace!

ou will have to demonstrate our a,ilit to appl various conceptstheories to practical real6lifesituations! ) com,ination of the lecturin and case stud method will ,e used and durinlecturin contact sessions ou will ,e e5pected to participate in discussions! )ctive interaction,etween the lecturer and students in the classroom and durin classes will ,e encouraed! 8t isessential for ou to ,e cooperative and supportive of one another and share our -nowledee5perience and resources freel! Ma-in creative use of the ener of dominatin students andencourain the participation of 7uiet mem,ers in a roup is the -ind of roup s-ill that isessential for a successful learnin e5perience! ou should ,e a,le to set individual learnino,ectives while respectin and participatin in the settin and fulfillin of roup o,ectives!Man s-ills are often learnt in a roup settin re7uirin consideration and sensitivit to theneeds of other students! )n approach that is in accordance with advanced adult learnin will ,efollowed in this module!


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ou will not ,e e5pected to memorise the stud material ,ut the emphasis will ,e onunderstandin and applin the various conceptstheoriesmodels in real6life situations! Theemphasis is therefore on pro,lem solvin! The lecturer will have a holistic practical approachloo-in at the ,roader picture trin to maintain an effective ,alance ,etween theor andpractice!

)n attempt will ,e made to ,rea- down the hih fences around the various functions of theoranisation and to show how the relate to one another! To illustrate the relationship ,etweenthe different elements and topics of the module :i!e! to help ou learn lin- and appl importantmar-etin concepts more effectivel; our te5t contains


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MBL93GXThe purpose of this module is therefore to develop our understandin of the strateic issuesassociated with effective technolo manaement and to provide enouh insiht for ou to usethe various technolo manaement models correctl! This module is desined to uide outhrouh the essential strateic uides necessar to ma-e effective contri,utions to the strateicdirection of our oranisation!

Learning ob


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MBL93GX3.2 (rea

Kalue chain

3.3 niversity

+nisa Graduate &chool of Business Leadership :&BL;

4 M%/LE-&EL('E/ &E%&,E

4.1 $rescribed boo>s

"haffe /! 2011! E-business and e-commerce management ! (th edition! +pper &addle .iver$JC 'rentice >all!

4.2 &ecommended boo>s

• Brown "K /e>aes / >offer J) Martin % @ 'er-ins "! 2012! Managing information technology. Eth edition! +pper &addle .iver $JC 'rentice >all!

• Burelman .) "hristensen "M @ heelwriht &"! 2009! Strategic management of technology and innovation! (th edition! McGraw6>ill Boston +&)

• "haffe / @ hite G! 2011! Business information management ! 2nd edition! >arlowCFinancial Times'rentice >all!

• >aa & @ "ummins M! 2013! Management Information Systems for the Information Age9th %dition McGraw6>ill 8rwin 2013 $ew or-!

• >aa & "ummins M @ Mc"u,,re /J! 2002! Management information systems for theInformation Age. BostonC McGraw6>ill 8rwin!

• Laudon " @ Laudon J'! 2013! Management information systems: managing the digital firm. 12th edition! +& %dition 8&B$613C 9E601330(0*91

• #?Brien J)! 2002! Management information systems: managing information technology inthe e-business enterprise! (th edition! BostonC McGraw6>ill 8rwin!

• .o,son ! 199E! Strategic management and information systems! 2nd edition LondonC'itman!

• Trott '! 2012! Innovation management and ne product development ! (th edition! >arlowC'earson %ducation!

• Tur,an % McLean % ether,e J Bollou $ @ /avison .! 2002! Information technology for management. 3rd edition! $ew or-C ile!

4.3 Electronic reserves 8e-reserves

www!pearsoned!co!u-chaffe

4.4 ,ase studies

The course ma-es use of case studies that act as -nowlede drivers! ou are e5pected to havea ,asic understandin of mar-etin operations and financial manaement ,efore startin thecourse ,ecause these s-ills will ,e essential in the analsis of the case studies! %ach case

stud provides ou with a comple5 scenario! ou are e5pected to do a thorouh analsis of thecase stud ma-in use of all the traditional -nowlede ained from our manaerial,ac-round and the other su,ects ou have studied in the MBL course! 8n various instancesou will also ,e as-ed to ma-e recommendations to the firm ou have studied in the case stud,ased on traditional manaement -nowlede! Karious technolo manaement models will then

http://www.pearsoned.co.uk/chaffeyhttp://www.pearsoned.co.uk/chaffey


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MBL93GX,e introduced to ena,le ou to ma-e a more informed decision a,out the case stud! The casestud methodolo therefore ,ecomes the -nowlede driver ,ecause it is used to introduce newmanaement models to ou! The ordinar introduction of a manaement model is of little use if it is not discussed in a specific conte5t! The various case studies provide different conte5ts inwhich the value of the technolo manaement model ,ecomes far more apparent than wouldnormall ,e the case!

4. @eb lin>s

httpCwww!Idnet!com

httpCnews!,,c!co!u-2hitechnolo

httpCwww!iamot!or

httpCwww!ieee!or

httpCwww!wired!com

httpCwww!economist!com

)lso see the recommended we,sites in the prescri,ed te5ts!

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.1 'he conce:t o; innovation management

.1.1 'uition :eriod

Time allocationC ,efore stud school 1

.1.2 :eci;ic outcomes

• /evelop a firms innovative capa,ilities!

• Manae innovation!

• /esin and implement a technolo strate!

• 8nterate and alin technolo strate with corporate strate!

.1.3 ,ritical Auestions

The main 7uestion in these readins is how to put technolo into corporate plannin!

•

/oes the strateic direction of the oranisation chane with chanes in technolo or doesthe technolo have to alin itself with the oranisation?s oalsN• 8n what wa do chanes in the mar-etplace alter the strateic direction of a compan or

does the mar-etplace chane with the proactive implementation of new technoloiesN

The a,ove 7uestions are not eas to answer ,ut the prescri,ed te5t does provide a framewor-that will help ou to understand in which instances a particular option ,ecomes more pertinent! ) num,er of additional 7uestions arise that are more conte5t specific to these readinreferences! The are the followinC

• >ow can a compan profit from technoloical innovationN

• >ow should technolo ,e incorporated into corporate planninN

• >ow are core competencies defined and how can the ,e used to assist in strateicplanninN


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MBL93GX• hich distinctive technoloical competencies and capa,ilities should ,e esta,lished to

maintain a competitive advantaeN• hat is the industr life ccle and how can it ,e used to simplif strateic decisions in the

technoloical arenaN• hat is strateN

• >ow is innovation fosteredN

• hat are the relevant theories a,out oranisations and innovationN• hat 8T sstems are used and what is their impact on innovationN

.1.4 Learning through activities

.ead the followin case studies in Trott :2012;C

• The success of the i'od raises the licensin 7uestion for )pple !!! aain on pae 33

• $ovels new products and >arr 'orter on pae 14(%ach of the a,ove cases is accompanied , a set of related 7uestions! )ttempt these 7uestions

as well as the discussion 7uestions posed as self6assessment e5ercises!

.1. el;-assessment

ou will ,e a,le to trac- our proress , answerin the followin 7uestionsC

• /efine the ,asic concepts of the manaement of technolo!

• /iscuss the importance of technolo manaement in toda?s ,usiness environment!

• /iscuss the influence of the industr life ccle on various aspects of the technolomanaement field!

•

%5plain the differences ,etween process innovation and product innovation!• /iscuss the importance of core competencies in an oranisation!

• %5plain wh core competencies are an interal part of strateic plannin for an oranisation!

• %5plain the difference ,etween operational effectiveness and strateic plannin!

• "onstruct a ood ,usiness strate!

.1. &e;lection

)t this point ou should ,e a,le toC

• define the ,asic concepts of the manaement of innovation

• discuss the importance of innovation manaement in toda?s ,usiness environment• discuss the influence of the industr life ccle on various aspects of technolo manaement

• discuss the importance of core competencies in an oranisation

• e5plain wh core competencies are an interal part of strateic plannin for an oranisation

• e5plain the difference ,etween operational effectiveness and strateic plannin

• identif and construct a ood ,usiness strate

8f ou feel that ou cannot answer these 7uestions effectivel please wor- throuh the readinsand case studies aain!

.1. ,onclusion

The -e focus of this topic is on the interation of innovation and strate! 'ractical e5amplesand case studies were iven in the te5t to hihliht the importance of effective strate


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MBL93GXformulation and of the concepts of the industr life ccle and core competencies! The focus ondifferent tpes of technolo in the ne5t section will enrich this discussion and ena,le ou tocreate more ro,ust technolo strateies!

.2 'echnology management and >nowledge

.2.1 'uition :eriod

Time allocationC after stud school 1

.2.2 :eci;ic outcome

Manae a firm?s innovative capa,ilit throuh .@/ and technolo!


8n this section the critical 7uestion of how to manae innovation in oranisations comes to thefore! The most critical 7uestions in this section are the followinC

• >ow do oranisations manae their -nowledeN

• >ow do ou chane an oranisation?s focus from an induced strateic action to anautonomous strateic actionN

• >ow do ou manae corporate researchN

• >ow do ou manae the internal corporate venturin processN

• >ow do ou form strateic alliancesN

• hat should the investment level in technolo development ,eN

• >ow should .@/ proects ,e manaedN



• The cor- industr the wine industr and the need for closure on pae 219

• The lon and difficult 136ear ourne to the mar-etplace for 'fiIer?s Kiara on pae 299

• "&8 and enetic finerprintin on pae 334!

• &on6%ricsson mo,ile phone oint venture dependent on technolo transfer on pae 3*(%ach of these case studies is accompanied , a set of related 7uestions! )ttempt these7uestions as well as the discussion 7uestions posed as self6assessment e5ercises!

.2. &e;lection

Manain technolo in lare oranisations is not an eas tas-! $ew technoloies aretransformin mar-ets ,usiness and societ at an increasin rate! 8t is therefore essential for a,usiness to manae technolo and its impact!

.2. ,onclusion

8t is of the imperative for oranisations to understand and manae technolo in order to realisethe competitive advantae inherent in its use! This can onl ,e done if the oranisation


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MBL93GXunderstands how it accumulates and utilises -nowlede forms strateic alliances and manaesits .@/ initiatives!

.3 )ew :roduct develo:ment 8)$/

.3.1 'uition :eriod


.3.2 :eci;ic outcomes

• "reate and implement a new product development strate!

• /esin and implement a technolo strate!

• 8nterate and alin technolo strate with corporate strate!


• hich technoloies should ,e used to implement core product desin concepts and how

should these technoloies ,e em,odied in productsN• hat is the difference ,etween sustainin and disruptive innovation and the impact of each

on corporate strateN• >ow should technolo and innovation ,e oranised or manaedN

• h do leadin firms failN

• >ow do ou manae the introduction of new technolo into the mar-etplaceN

• >ow do ou manae new product introduction into the mar-et when there are competintechnoloiesN

• >ow do ou meet the challene of disruptive chaneN

• >ow do ou define our own future in a fast6movin technoloical landscapeN



• Launchin innocent into the rowin fruit smoothie mar-et on pae 443

• >alfords #ilC redesin and re,randin of e5istin product on pae 4EE

• /son >oover and the ,aless vacuum cleaner on pae (43

• )n analsis of 3M the innovative compan on pae (1

%ach of these case studies is accompanied , a set of related 7uestions! )ttempt these7uestions as well as the discussion 7uestions posed as self6assessment e5ercises!

.3. el;-assessment

To test our -nowlede answer the 7uestions ,elow , returnin to the prescri,ed readins andusin this insiht into the prescri,ed case studies!

• %valuate the product and ,rand strate of a iven oranisation!

• Trace the connection ,etween differentiation strate core capa,ilities and positioninstrate! >ow are the relevant to new product planninN

• hat measures would appl to assessin the success of a new productN

• /iscuss the various roups of $'/ models and how the contri,ute to our understandin of $'/!


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MBL93GX• %5plain wh there is no one ,est oranisational structure for new product development!

• h do so man products failN

.3. &e;lection

8n this section ou were e5posed to $'/ ,randin strate mar-et research and manaementof the $'/ team! %ach of the readins provides essential insiht into the $'/ strate space toallow ou to ma-e more intellient decisions when em,ar-in on $'/ in our oranisation andits ,usiness model!

.3. ,onclusion

)t this point ou should ,e familiar with the $'/ life ccle! ou should ,e in a position tooversee this life ccle! $'/ is a deli,erate and calculated process from feasi,ilit assessmentriht down to the ,randin mar-etin and introduction to the mar-et! 8ts success depends onthe various mem,ers of the $'/ team pullin toether under sound manaement uided , a

clear strate!

.4 E-commerce and e-business management

.4.1 'uition :eriod


.4.2 :eci;ic outcome

)lin an e6commerce strate with corporate strate!


8n this section the critical 7uestion of how to alin an e6commerce strate with corporatestrate comes under the spotliht! The most critical 7uestions in this section are the followinC

• hen do ou alin corporate strate with the e6commerce strate and when do ou aline6commerce strate with corporate strateN

• >ow are the core needs of the customer alined with the e6commerce strateN

• >ow do ou ,uild a resource sstem to em,od and support the core ,enefits of the valueproposition to the customerN


.ead the followin cases in "haffe :2011;C

• "ase 1!3C %6Ba O the world?s larest e6,usiness on pae 40

• "ase (!1C "apital #ne creates value throuh e6,usiness on pae 2**

• "ase (!3C Boo hoo O learnin from the larest %uropean dot6com failure on pae 293

• "ase !3C The new $apster chanes the music mar-etin mi5 on pae 441

• "ase 9!1C Tesco!com increases product rane and uses triered communications to

support ".M on pae (19!

.ead part 2 in "haffe :2011;! The emphasis is on the e6,usiness strate namel the strateicanalsis o,ectives definition and implementation! .ead the case studies provided to reinforce


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MBL93GXthe theor discussed in these sections of the te5t! )lso attempt the e5ercises at the end of eachchapter as self6assessment!

.4. el;-assessment

• /escri,e the factors that would cause a compan to continue to do ,usiness in a traditionalwa and to avoid electronic commerce!

• >ow miht manaers use &#T analsis to identif new applications for electroniccommerce in their strateic ,usiness unitsN

• )nalse a we,site and ma-e recommendations to improve the interface laout!

.4. &e;lection

The e6commerce strateic alinment process is fairl straihtforward! >owever the applicationof this -nowlede is 7uite difficult! The choice of the a5is of the customer sementation map is adifficult tas- without even oin into the difficult of descri,in mar-et sements in the rid! Theconstruction of the core focus of the compan is also eas to follow in an e5ample format ,ute5tremel difficult to create on our own! This lin-ae to the e model and finall the resourcemap is essential in understandin the lin-ae ,etween the value proposition of the companand the core needs of the client!

.4. ,onclusion

This is one of the easier theoretical sections in this module! >owever its application is 7uitedifferent! ) num,er of practice runs with these theoretical uidelines should ena,le ou tomaster it fairl 7uic-l!

'/" ,%%L $L()

There will ,e onl one stud school for this module! /urin the stud school the topics will ,ediscussed in interactive sessions ,etween the lecturer:s; and students!

M%/LE-$E,#*#, '/" $L()

This is a one6ear module! &tudents are re7uired to read throuh the articles ,efore the studschool ,ecause -nowlede of the topics will ,e re7uired for discussions! The prescri,ed articlesshould ,e considered as part of the theor that must ,e studied and applied for theassessments!

The te5t,oo-s should ,e used as a ,asis for students when the prepare the assessments!

5 (EME)'

There are a total of three assessments durin the ear! Two of the assessments will ,e roup,ased! Two formative assessments in the form of assinments are re7uired! ) final summativeassessment will ,e in the form of a written e5amination!

5.1 (ssessment :lan

Formative assessment will ,e , means of two roup assinments! The assinments must ,esu,mitted in order to o,tain admission to e5amination! The ear mar- which is ,ased on themar- o,tained for the two compulsor roup assinments contri,utes 40P towards the final

mar-! The summative assessment will ,e done throuh a written two6hour open6,oo-e5amination at the end of the ear! The summative assessment contri,utes *0P towards thefinal mar-! To pass a module the student must o,tain a final mar- of at least (0P!


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MBL93GX5.2 eneral assignment numbers

To ,e provided if re7uired

8.2.1 Due dates for assignments

To ,e provided

5.3 ubmission o; assignments

)ssinments should ,e su,mitted ,eforeon the due dates! Late assinments will ,e mar-edand commented on as part of the learnin of students ,ut the will not ,e raded! )ssinmentsshould ,e su,mitted on the accepted electronic platform used , +nisa &BL! 8t is currentl the%/& sstem!

5.4 (ssignments

MBL93! #)/#=#/(L (#)ME)' 01

/ue date 09C0C2014

(ssignment ;ormat and instructions

:1; ord limitC our assinment e5cludin the ta,le of contents pae cover pae andappendices must not e5ceed ( 000 words :i!e! 20 paes;!

:2; our assinment should include a ta,le of contents pae!

:3; Te5tC fontC )rial :12; spacinC 1Q line!

:4; )ll te5t must ,e ustified at each marin!

:(; our answers must include an theories charts ta,les or e5hi,its necessar to support our analsis and recommendations!

:*; .eferencesC )t least eiht sources of reference :te5t,oo-s ournals press reports internetetc!; must ,e included in our ,i,lioraph!

:E; The >arvard reference stle must ,e used!

:; ou MUST use theorliterature to support our discussiono,servation and opinions! /o notmerel e5tract information from the interview :you ill lose mar!s if you do so;!

:9; %nsure that readins are not merel reproduced in the assinment without oriinal criticalcommentsenaement and views!

.ead the interview ,elow and answer all five 7uestions that follow!

Managing #' trans;ormation on a global scale+ an interview with hell ,#%D (lan Matula

#ver the last decade &hell has ,een underoin an 8T transformation that is remar-a,le for thescope of chane it is see-in in one of the world?s larest and most comple5 oraniIations Oone with 2( ,usiness portfolios and operations across more than 100 nations! Thetransformation is defined , four phases sas )lan Matula e5ecutive vice president and roup"8#!

The first was a,out oin ,ac- to ,asics O allowin &hell?s 8T leaders to ,etter alin 8T with the,usiness units , sta,iliIin operations esta,lishin proect discipline and trac-in costspeople and assets! Matula sas that this solid foundation is essential to an successful 8Ttransformation!


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8n the second phase the tarets were costs and comple5it! &hell rationaliIed and consolidatedinfrastructure su,stantiall reduced the num,er of ,usiness applications improvedprocurement procedures and aressivel off6shored! 8t also strenthened overnance ,reconiIin that a real dialoue with the ,usinesses was needed and recruited hih6rade talentto conduct it!

8nvestments in the future formed the third phaseC innovation functional improvements and,usiness6driven multiear investment prorams to help the ,usinesses meet their tarets! &hellimplemented strateic sourcin to consolidate hundreds of suppliers leavin ust 11 -epartners with whom it outsourced selected functions! Matula sas the chane in directionallowed &hell to wor- with suppliers


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MBL93GXnation reion , reion and replace a lot of the leac assets and start to initiate our standardiIation aenda to attac- costs and comple5it!

6uestion+ "8#s de,ate whether 8T should follow ,usiness chane or lead it O in our case for e5ample , furtherin &hell?s lo,aliIation throuh 8T standardiIation! hat is our viewN

(lan Matula+ 8 see it somewhat differentl! 8T is li-e cement to the standardiIation activities! 8f ou don?t cement chanes with 8T then over time the will erode and revert ,ac-! 8T providesthe transparenc that ou need for drivin standardiIation in a lare diversified corporation li-e&hell!

6uestion+ ou?re now a few ears into the campain! hat has chanedN

(lan Matula+ e went from hundreds of national enterprise resource prorams to a,out si5 toeiht core platforms that do the heav liftin in terms of ,usiness transactional capa,ilit! For e5ample we now have one >. sstem one health sstem and three or four ,i applicationlandscapes per ,usiness sector!

6uestion+ )nd what a,out the applications that have to ,e tailored for ,usiness needsN

(lan Matula+ 8n addition to the core platforms we divided the ,usiness into portfolios around-e sectors such as upstream downstream and corporate functions! But to reall alin 8Tdirectl to the ,usiness strate ou need to o one laer deeper! &o for downstreamoperations that means retailin and manufacturinR for upstream it?s e5ploration andproduction! 8n total we have 2( ,usiness portfolios!

6uestion+ )re these manaed differentlN

(lan Matula+ That?s where we?ve put our -e talent in terms of 8T capa,ilit! Because of their ,usiness domain -nowlede these are the people who reall et a seat at the ta,le with,usiness leadership teams! The understand the ,usiness strateies and can create thedifferentiatin 8T on top of the ,usiness transactional laer! ) lot of what we consider competitivel differentiatin is -ept in house! %ven thouh ou read a lot a,out outsourcin the-e differentiatin sstems are still -ept and manaed specificall within &hell!

6uestion+ &teppin ,ac- a ,it how does a "8# ,uild the ,usiness case O one thatdemonstrates the ,enefits of a ,road transformation that involves maor investments and a lot of chaneN

(lan Matula+ e?ve learned for sure that when ou ma-e the ,usiness case ou have toensure accounta,ilit for deliver of the ,enefits! ou need the names of the people who areoin to e5tract the ains! Then ou need to trac- ,enefits on an onoin ,asis! e?re pilotin7uarterl monitorin where ou loo- at an applications portfolio and e5amine where ,enefits arematerialiIin and where the aren?t! Beond that ou have to have the riht people at the,usiness interface! The are invalua,le! ou will not find a "8# who doesn?t strule with findintalent for the ,usiness interface! e?ve invested in our 8T people throuh a learnin proramdelivered , a ,usiness partner proram!

6uestion+ hat role is 8T plain in &hell?s innovation effortsN

(lan Matula+ e review each of our maor portfolios ever 1 to 24 months focusin on the-e technoloies needed to sta in the ame as well as what is needed for competitivedifferentiation! e have done some ver innovative thins O in Telematics for e5ample usinwireless technolo to monitor auto fuel consumption and efficienc! But the -e to innovation is


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MBL93GXhavin a real dialoue at the ,usiness6portfolio level to understand where technolo isimportant! That means a chane of mind6set and s-ills movin from a focus on the ,asicinfrastructure of ,usiness administration to a position as close to the ,usiness leaders? needs aspossi,le!

6uestion+ hat was the reasonin ,ehind consolidatin suppliers and outsourcinN >ow didour thin-in evolveN

(lan Matula+ e actuall tested outsourcin earl in phase two ,ut we ,ac-ed awa from it,ecause we didn?t want to outsource 8T pro,lems we hadn?t fi5ed! #nce we were comforta,lewith our proress we started the third phase! e spent almost a ear ,rinin in suppliers O 10or 1( of them O e5plorin what was wor-in what wasn?t and what needed chanin! 8t wasthen that we latched on to multisourcin as a model! For e5ample in infrastructure we nowhave three suppliers that are capa,le of providin services across the ,oard! This provides uswith fle5i,ilit and ailit as we evolve the deliver model to respond to the chanin 8T mar-etand &hell ,usiness needs! e ,enchmar- the suppliers and we have written contracts that arever fle5i,le!

6uestion+ 8s there an optimum num,er of suppliers for a compan li-e &hellN

(lan Matula+ Thins do not sta the same forever! But to ive ou a sense of our thin-in,efore we consolidated our infrastructure suppliers we had a,out 1(00 different contractscoverin licenses hardware and services with an outsourcin model that was verframented! e?re now down to three infrastructure suppliers and these are an interal part of what we call our ecosstem of -e suppliers!

6uestion+ as there a drivin philosoph ,ehind the new outsourcin model and the new wasof wor-in with suppliersN

(lan Matula+ e started with the idea that we wanted E0 percent of our spendin to ,ee5ternal! #f that we wanted 0 percent to ,e focused on the top 11 suppliers! e put those 11into three roupsC First there are the foundation suppliers those in which we ma-e lon6term,ets O "isco Microsoft #racle and &)'! Then there?s the infrastructure roup with three,undles O )T@T >' and T6&stems O for networ-s end6user computin and hostin of storae respectivel! )nd finall we have four application services suppliers O )ccenture 8BMLoica and ipro! hat we?re doin differentl is ,rinin all 11 of them toether to wor- as acollective!

6uestion+ Tell us more a,out that last point!

(lan Matula+ ),out two ears ao we ,ean meetin with the ecosstem suppliers ever7uarter! e started out slowl definin olden rules and how we operate with the am,ition of actuall doin thins toether that not onl are ood for &hell ,ut that also are innovative in themar-etplace and help the industr!

6uestion+ hat -inds of innovationN

(lan Matula+ The ,oundaries ,etween the traditional suppliers are ,lurrin! &ome traditionalhardware suppliers are oin into software and vice versa! #thers are ettin into the datacentre ,usiness! )s we started to ive our top 11 suppliers some ,i challenes that ave riseto some innovative approaches! ou?re startin to see all suppliers wantin to pla differentl ,colla,oratin to improve the overall deliver to &hell! 8 thin- it?s oin to ,e an e5citin time aswe continue to push current industr norms to drive reater derees of colla,oration chaneand innovation!


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6uestion+ ou thin- of 8T in terms of phases! hat is the ne5t frontier for 8T transformation at&hellN

(lan Matula+ The ne5t phase in our transformation will ,e a shift to harvestin the ,enefits fromthe assets we have put in place O a new sstem for >. should last 1( ears! &o the oal now isto leverae these assets to improve ,usiness performance! That?s a different model of chane!8t forces us to ,e more intimate with the ,usiness actuall puttin ,usiness operations and 8Toperations side , side! 8n the proect mode of recent ears ou could -eep some distance asou restructured ,ut in the harvest6and6sustain mode ou have to wor- to optimiIe the,usiness processes with 8T deliverin ,usiness performance improvements! The structuralapproach will ,e different and that?s what we?re now e5plorin!

6uestion+ Goin forward since ou?re trin to capture ,enefits outside 8T ou need a differentsteerin mechanism and metrics ,eond ust reducin 8T unit costs rihtN

(lan Matula+ The pressure to reduce unit costs will never o awa in 8T! But when ou et to

harvest and sustain it?s a,out smarter demand manaement to ma-e sure ou are usin onlthe 8T that ou re7uire and are doin onl the 8T proects that ou need to do! 8t?s also a,out adifferent set of metrics on the ,usiness side and the ultimate art of this is tal-in to the,usinesses in their own terminolo to show e5actl where 8T contri,utes to their oals! e?retestin a couple of portfolios to see if we can do this! 8t?s somethin that ever "8# would love to,e a,le to do! 8t?s a,out smarter demand manaement to ma-e sure ou are usin onl the 8Tthat ou re7uire and are doin onl the 8T proects that ou need to do!

6uestion+ )re ou doin our own 8T research to develop innovations for the ,usinessN

(lan Matula+ )t the ,einnin of each ear we carve out -e technolo areas or domains that

we want to mine O thins li-e sensors hih6performance computin new was of wor-in! ewor- with the e5ternal providers as well as internall searchin for areas where we can ma-edisruptive differentiatin stri-es! 8n terms of structure we have put all 8T technolo researchinto a proects6and6technolo oraniIation with a chief technoloist whose o, is to loo- for those technolo stri-es that add the most ,usiness value! e want to send the messae thatthe "T# is a ,usiness partner at a ver different level from standard 8T! The proects6and6technolo oraniIation is split from the rest of the 8T function and there?s a cut line ,etweenthe ,i technolo plas and supportin staff O 20 percent of the total staff O versus the moreincremental activities that remain in the traditional 8T line or 0 percent of the staff!

6uestion+ ou have recentl chaned how ou overn 8T with the ,usiness unit "8#s now

reportin to the 8T function and no loner to the ,usiness heads! 8s this the optimal modelN

(lan Matula+ 8t?s reall a,out maturit! 8n the earl phases there was no wa ou couldconsolidate 8T under one function! e needed to ,uild credi,ilit with the ,usinesses and theneeded to ta-e ownership of their proect portfolios! 8n toda?s phases maturit starts to,lossom! The "8#s et more and more credi,ilit! )s lon as the still have that seat at the,usiness ta,le are heavil enaed and serve on ,usiness forums and leadership teams thenthat is what is reall important! 8f that starts erodin then we?ll o ,ac- to the previous model!

6uestion+ The chane in overnance more or less coincided with the start of the recessionN

(lan Matula+ That?s riht! 8 now have more levers to pull when it comes to costs and ailit! Thenew overnance model has allowed us to move faster and ma-e decisions without wor-inacross different ,usiness lines to et everone to aree! Furthermore we can move 8Tresources around easier and more 7uic-l!


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6uestion+ 8n the financial crisis some "8#s have focused primaril on cuttin 8T spendinwhile others have focused on 8T?s important role in cuttin ,usiness costs! hat has ,een our e5perienceN

(lan Matula+ ou have to do ,oth! e have for e5ample made use of the networ- for telephone calls and we have transformation proects in place that use technolo so we canwor- virtuall! But it?s a ,alance! ou need to -eep drivin down pure 8T costs on a unit ,asiswhile also providin technolo that drives ,usiness costs down! #f course it?s alwas hard totell that latter stor since it?s often difficult to determine the full cost of a ,usiness process!

6uestion+ hile ou have pushed standardiIation and sourcin to the ma5imum level is it stillpossi,le to s7ueeIe more costs and inefficiencies out of 8T operationsN

(lan Matula+ There are new models emerin ,ased on cloud computin and software as aservice that are oin to have an impact! Beond that we have to ,e a lot more selective a,outwhat proects we do and most of all we have to wor- for continuous improvement to et the full

potential from our 8T assets!

6uestion+ hat are the lessons ou have learned from this transformationN hat miht ouhave done differentl and what would ou tell other "8#sN

(lan Matula+ 8T is more important and intense to the enterprise than ever ,efore and thatessentiall re7uires an on6oin effort to transform 8TR there is alwas another phase! To supportthat mental model the first thin is to never lose the perspective that ou?re here to ma-e the,usiness more productive and more competitive! #ur catchphrase . finance and

procurement!

) second thin is that ou?re onl as ood as the talent that ou have! For instance in thero,ust sourcin of infrastructure and applications we have put in place the people at theinterface are ver important! The manae the critical supplier relationships with "%#?s and tope5ecutives at these firms and the have the technical -now6how to help uide the suppliers!

Finall if ou don?t have the ,asics riht ou won?t have an credi,ilit! 8t onl ta-es one ,ad


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6E'#%) 3 820 M(&7

#utline the strateies adopted , &hell to deal with each of the followinC

3!1 .esistance to chane3!2 8nnovation3!3 8T research3!4 Governance3!( 8T cost cuttin

6E'#%) 4 820 M(&7

Matula mentions the emerence of cloud computin as havin a maor impact on corporate 8T!%5plain the concept of cloud computin and discuss the ,enefits it offers!

6E'#%) 820 M(&7

&hell is one of the world?s larest and most comple5 oranisations with 2( ,usiness portfoliosand operations across more than 100 nations! /iscuss the 8T challenes that &hell is e5posedto with reard to the followinC

(!1 $etwor-in and connectivit(!2 &ecurit(!3 Manain in a lo,al environment

End o; (ssignment 01

MBL93! #)/#=#/(L (#)ME)' 02

/ue date 05C05C2014

(ssignment ;ormat and instructions

:1; ord limitC our assinment e5cludin the cover pae ta,le of contents pae andappendices must not e5ceed ( 000 words :i!e! 20 paes;!

:2; our assinment should include a ta,le of contents pae!

:3; Te5tC fontC )rial :12;R spacinC 1Q line!

:4; )ll te5t must ,e ustified at each marin!

:(; our answers must include an theories charts ta,les or e5hi,its necessar to support our analsis and recommendations!

:*; .eferencesC )t least eiht sources of reference :te5t,oo-s ournals press reports internetetc!; must ,e included in our ,i,lioraph!

:E; The >arvard reference stle must ,e used!

:; ou MUST use theorliterature to support our discussiono,servation and opinions! /o notmerel e5tract information from the interview :you ill lose mar!s if you do so;!

%nsure that readins are not merel reproduced in the assinment without oriinal criticalcommentsenaement and views!


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MBL93GXE-cigarette ma>ers ads echo tobaccos heyday

%lectronic ciarettes ma ,e a creation of the earl 21st centur ,ut critics of the devices samanufacturers are increasinl ,orrowin mar-etin tactics that are more reminiscent of thehead das of to,acco in the mid61900s!

ith )merican smo-ers ,uin e6ciarettes at a record pace S annual sales are e5pected to

reach 1!E ,illion , ear?s end S e6ciarette ma-ers are openin their wallets wide spendinrowin sums on television commercials with cele,rities catch sloans and sportssponsorships! Those tactics can no loner ,e used to sell tobacco cigarettes ,ut are readilavaila,le to the industr ,ecause it is not covered , the laws or reulations that affect theto,acco ciarette industr! The e-cigarette industry is also spendin lavishl on mar-etinmethods that are also still availa,le to their to,acco ,rethren includin promotions eventssample iveawas and print ads!

The Blu e"is ,rand O which recentl added the actress Jenn Mc"arth to its roster of star endorsers oinin the actor &tephen /orff O spent 12!4 million on ads in maor media for thefirst 7uarter of this ear compared with 992000 in the same period a ear ao accordin to

the antar Media unit of ''! )nd ad spendin in a cateor that antar Media calls smo-inmaterials and accessories which includes products li-e pipes and lihters in addition to e6ciarettes has s-roc-etedC from 2!E million in 2010 to E!2 million in 2011 to 20! million lastear!

8n the first 7uarter of 2013 antar Media reported cateor ad spendin soared aainreachin 1(!E million compared with 2 million in the same period a ear ao! 8n fact that1(!E million total e5ceeded the spendin for ads in maor media for to,acco ciarettes at13!9 million accordin to antar Media!


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MBL93GX ) sellin point in a campain for Kuse that ,ean this wee- in "olorado is that it is


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MBL93GXEnd o; (ssignment 02

5. Mar>ing guidelineCmatriFCrubric

There are ood not6so6ood and ,ad assinments! Good assinments are creative well6structured documents in which the thin-in processes ,ehind the assinment ma ,e traced! )ninteration of practice and theor is of the utmost importance! .eferencin is important and wee5pect ou to include a proper ,i,lioraph!

'o:icCitem MaF mar>

Uualit of presentation 10

Uualit of analsis 3(

.ecommendations 3(

#verall impression 10

.eferencin 10

'%'(L 100

9 %'E& (EME)' ME'%/

The summative assessment will ,e in the form of a written e5amination!

10 E!(M#)('#%)

The e5amination paper ma contain of short 7uestions case studies calculations andscenarios! More details a,out the e5amination will ,e provided durin the stud school or closer to the e5amination!

11 *&E6E)'L" (7E/ 6E'#%)

These will ,e formulated throuhout the ear and durin the stud school:s;

12 %&,E ,%)L'E/

The main sources of information are iven a,ove!

13 ,%),L#%)

The life ccles of products have ,een decreasin steadil in the last (0 ears! >ence innovationis essential ,ut it is difficult and ris- and it demands a lot of resources and s-ills and it iscertainl no wal- in the par-! 8n todas uncertain economic environment where costs areescalatin ,udets are shrin-in and resources are scarce 8T oranisations are continuouslfaced with the challene of prioritisin proects eliminatin unnecessar spendin andma5imisin .#8! 8f companies are oin to succeed the need effective information sstemswhich must support the firm?s e6,usiness and e6commerce manaement processes! 8n so doinfirms will ,e a,le to react faster to chanin ,usiness pressures and alin their 8T strateies and

resources with their ,usiness strateies!


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14 (//E)/M

There are no further addenda to this tutorial letter!

MBL93GX - E-Business and Technology Mgt - 23 January 2014

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Transcript of MBL93GX - E-Business and Technology Mgt - 23 January 2014