What's Happening?! Lucent just reported another bad quarter

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Transcript of What's Happening?! Lucent just reported another bad quarter

  • 1. Whats Happening?! Lucent just reported another bad quarter with profits down 53%. Motorcycle sales are at the highest level since 1979. American Airlines reported a $387 million loss for the final quarter of 2004. Northwest reported ($420 million) eBays earnings werent as great as expected and raised concern about slowing growth in corporate profits in 2005.
  • 2. Analysis Term Papers
    • Contacting the companies you are evaluating
    • is not necessary and in some cases not very
    • practical.
  • 3. Oracle Industry Definition Database System and Enterprise Application Software Industry. Business Strategy Model: Product Strategy: Software categories, operating systems and processor categories. Customer Strategy: Categories of targeted customers. Market Strategy: Geographic Development Strategy: (in lieu of manufacturing) Sales/Distribution: Field sales force, Internet direct, Value-add resellers, retailers. Company Structure: Information Systems:
  • 4. Computer Software General- Purpose Application Programs Application- Specific Programs System Management Programs System Development Programs Application Software System Software Computer Software
      • MS Office Groupware Integrated Desktop
    • Packages
    Business, Accounting & Finance Engineering ERP, SCM, CRM, etc. Operating Systems Network Management Database Management Systems Utilities Performance & Security Programming Languages Programming Editors CASE Packages
  • 5. Intel Industry Definition
    • Semiconductors is too broad.
    Microprocessors is too narrow. PC Component Industry Microprocessors Motherboards Network devices Memory Storage
  • 6. Chapter 4 Conclusion
    • Airline Industry Analysis
  • 7. The Plan
    • Why the airline industry?
    • The Porter Competitive Model
    • Business Strategy Model
    • Importance of IT to the airline industry
    • Conclusions
  • 8. Airline Industry
    • Learned the Porter Competitive Model in Chapter 3
    • Apply this to the airline industry
      • Why the airline industry?
        • Boundaries are clearly defined
        • Highly visible
        • Well-known industry
        • One of two technologies that are globalizing the business world
  • 9. Porter Competitive Model Intra-Industry Rivalry SBU: American Airlines Network Rivals: United, Delta, US Air, Northwest Low-cost Rivals: Southwest, JetBlue, ATA, etc. Bargaining Power of Buyers Bargaining Power of Suppliers Substitute Products and Services Potential New Entrants Airline Industry Analysis U.S. Market
    • Travel Agents
    • Business Travelers
    • Leisure Travelers
    • Charter Service
    • Federal Government
    • U.S. Military
    • Cargo and Mail
    • Alternate Travel Services
      • Fast Trains
      • Boats
    • Private Transportation
    • Videoconferencing
    • Groupware
    • Aircraft Manufacturers
    • Aircraft Leasing Companies
    • Labor Unions
    • Food Service Companies
    • Fuel Companies
    • Airports
    • Local Transportation Service
    • FAA
    • Hotels
    • Foreign Carriers
    • Regional Carrier Start ups
    • Cargo Carrier Business Strategy Change
    Figure 4-2
  • 10. Conclusions - Porter Model
    • Competition within the US is intense
    • Customer is always first
    • Power of suppliers is mixed
      • Labor unions have strong bargaining power
      • Aircraft manufacturers, fuel and food supplier power shifts to airlines
    • Potential new entrants are still a threat
    • Substitutes could become a major problem
      • Video conferencing
  • 11. Europe North American Pacific Rim Low Fare Premium Fare Independent Alliances Figure 4-1 Latin American Passengers Operations Logistics Business Product/Service Strategy Scheduled Passengers Charter Services Cargo Mail Air Express Code Sharing Business Strategy Model Airline Industry Customer/Fare/Market Strategy Business Travelers Leisure Travelers Senior Citizens First Time Flyers Frequent Flyers Sales Strategy Reservation Agents Travel Agents Web Page Super Saver Company Structure Strategy Information Systems Strategy Short Haul Long Haul Hub and Spoke Point to Point Routes and Route Structure Strategies
  • 12. Importance of IT to the Industry
    • Why is IT important?
      • Volumes of data
      • Complexities based on the number of flights and connections
      • Critical time windows dictate a need for real-time data
    • IS examples
      • Reservation system
      • Yield management systems
      • Operational information systems
      • Business systems
  • 13. Importance of IT to the Industry Continued
    • Convenience to customers
    • Knowledge of Customers
    • Providing a foundation for other systems
    • Building a foundation for other businesses
  • 14. Conclusions
    • Questions for airline industry:
      • Can they make a profit as privately held companies?
      • Maintain a public service responsibility?
      • Provide an effective strategic resource for their home country?
    • A vivid example of the dynamics of the markets that it serves
    • Need to establish strategies dictated by these markets
    • Provides a good example of IS that can effectively and successfully support core business strategies
    • An important chapter for our paper
  • 15. Possible Exam Questions
    • Identify and explain two major benefits that information systems have provided for the airline industry.
    • Based on the Porter Competitive Model, explain new entrants and substitutes conceptually and then explain the impact that they have had on American Airlines.
  • 16. Chapter 5 Introduction Information Systems Can Redefine Competitive Boundaries
  • 17. Objective Of the Chapter
    • To understand the role and significance of:
    • Inter-organizational Systems.
    • Business process changes involving customers and suppliers, with an emphasis on supply-change management.
    • Multiple forms of strategic business alliances.
  • 18. Interorganizational Systems
    • Efficiency
      • Ex. Transmitting purchase orders electronically eliminates paper flow and manual input on a more timely basis.
      • More accurate and provides better customer service.
      • More cost effective.
  • 19. Interorganizational Systems
    • Effectiveness
      • The broadening of the scope of tasks.
      • Breaking down barriers between companies make communication more effective, on a more timely basis, and get the job done.
  • 20. Interorganizational Systems
    • Competitive advantage through customer
    • service:
      • We are available.
      • We are interested in you.
      • We are responsive.
      • You can count on us.
      • We want to earn your trust and respect.
  • 21. Interorganizational Systems
    • Competitive advantage through strategic