Week 51 (6.4.08)

Learn - In corporate IT

No IT Project; but only Business Project

To engage any IT project which is actually a business project, need to determine:

1) What was the SCOPE in terms of size of the business; geographical location?
2) What kind of SERVICE LEVEL provided to client?
3) How does it compare EXISTING OPERATIONS?

It is important to determine where the business is in TODAY versus the FUTURE where the business vision and mission set to be.

Therefore, the traditional financial measures when accepting a business project is:

1) Net Present Value > 0 AND
2) Internal Rate of Return > Discount Rate (Hurdle Rate) of the project AND
3) Certainty of Cash Flow

All these are based on assumptions on the likely scenarios and possible outcomes.
To go ahead with a project, the IT Value/Benefits > IT Cost

In this Cost Benefit Analysis,

IT Cost consists of Direct Cost (hardware, software) & Indirect Cost (personnel, downtime)
IT Value/Benefit are Increase Revenue (development of new product), Reduce Cost (business cost & IT cost) & Reduce Risk (will not jeopardise company image)

Summary: Benefit-Cost>0

Unlearn

NIL

Relearn

Further enhance my knowledge from previous module in Strategy & Financial Management to see the link and apply the NPV & IRR to a business project.

However, the drawback is needed to work closely with Finance Department to advice on the sensitivity analysis on what is the percentage of discount rate or hurdle rate (= to support cost of the project + pay the investment of the stakeholder) for each option of the business project. Then, this will allow senior managers, after considering the IRR and business risk, in deciding which business options to take incorporating the business technology.

Week 50 (30.3.08)

Learn - IT System Development Methodologies

3 types:

1) Waterfall
Advantage: Sequential steps, upfront analysis and decision making
Disadvantage: Difficult to back up to previous step

2) Iterative
Advantage: Prototype based, faster to market, phase approach eg every 3 months, 6 months, not exposing risk to the whole population entirely before rollout
Disadvantage: Resulting system can be fragile or nonscalable

3) Hybrid
Start with Iterative, Move to Waterfall when appropriate
Can have advantages of both methods

IT Project & Application - 5 steps

1) Analysis - determine what user wants
2) Design - determine technical specification
3) Development - writing code and configuring package
4) Test - unit test and assembly test (or user acceptance test)
5) Deploy - provide training & address change management

Unlearn

Did not realize the importance role when I was involved in the User Acceptance Test. After learning from this chapter, I realized that if, I am as a user, did not happy or accept the application as what i needed, then I should not sign off during the User Acceptance Test despite whatever reason given to me.

Relearn

In order to get employees "Buy-In", in my opinion, "Hybrid" model would be a better approach for a business project application because when started with "Iterative", IT would be able to build something quickly and get user to deploy quickly and feedback. With this phase approach by doing small steps, the success will then be decided whether to deploy entirely to the whole population.

Therefore, subsequently, my role as a manager to teamwork with IT in providing the training and address change, will be easier and time shortened for people to accept and take new changes. This will cut down the time for "Valley of Despair" of individual to accept new change and get everyone to align to the business goals.

Week 49 (23.3.08)

Learn - IT Oraganization

3 Types:

1) Centralized
Advantage : standardization, efficiency, negotiating power with supplier, cost saving
Disadvantage: Inflexibility, user feels unresponsive & do not understand business

2) Decentralized
Advantage : responsiveness, alignment to business, flexibility
Disadvantage : difficult to integrate system across units, lack of negotiating power, more cost

3) Hybrid
Centralized strategy & architecture (centralized planning)
Decentralized design & delivery (decentralized execution)

Unlearn

NIL. All new concept learnt

Relearn

Found out that Pfizer is adopting "Hybrid" Organization. We centralized the corporate planning strategy among Asia countries but decentralized the execution on the sales function for country specific in Asia region. In my opinion, this strategy and plan will bring Pfizer more competitive because being more customer centric will enable us to identify and analyze customers to improve their satisfaction level.

Week 48 (16.3.08)

Learn

Components of IT Architecture

There are 5 elements:

1. Business Architecture - is a blueprint for how business works. It desribes:

how business makes money (ie profit model)

how business interacts with the outside world; customers, suppliers, regulators & other

stakeholders

2. Organization Architecture - defines how business is organized internally; whether

organization centralized or decentralized.

3. Application Architecture - is the system blueprint that defines how applications are

organized to meet functional needs.

4. Information Architecture - defines how info. is organized, stored, and accessed.

5. Technology Architecture - defines the technology standards for the company.

Unlearn

Thinking that one can comprehend all skills; business & organization architecture are more relavant to a business manager where technology operates, however, application, information and technology architecture relate to the technology itself.

Relearn

Capability: Improve Inventory Tracking & Sourcing

Business Architecture:

• The end goal of keeping sufficient stocks will improve Pfizer's competitiveness over competitors and eventually contributes to revenue and profits upon customer purchased, rather than currrent practise of frequent out-of -stock for major products.
• This will improve customer's needs and satisfaction over time.

Organization Architecture:

• There will be changes in the new roles of assigned logistic executive to be trained on the required skills gap.
• Sales people will be motivated to sell more due to sufficient stocks available for them.
• Appropriate incentives will further drive the sales force motivating them to meet the challenging and competitive environment.

Information Architecture:

• Define the "Low" inventory holding capacity - 1 month, 2 months, 3 months?
• Generate data on items that are fast moving - seasonal ie promotion?
• Sales manager will need accurate data by the 15th of each month before the closing of next month

Week 47 (9.3.08)

Learn

Linking IT Strategy to Business Strategy

IT strategy and business strategy must be linked, influencing each other and responding to the rapid environmental changes.

Organizations that make effective use of IT have the following characteristics:

1. Vision - clear vision on how IT can make them more effective
2. Alignment - IT activities and investments are always closely aligned with business priorities
3. Emerging technology - assess how emerging technologies can impact their competitive environment
4. Technology sourcing - make choices of what to keep in house and what to outsource; constantly evaluate whether they are best in class at performing certain activities

Unlearn

NIL. Now i can comprehend better how IT is linked to Business Strategy

Relearn

Capability: Improve Inventory Tracking & Sourcing

Vision: To improve the out-of-stock situation for major products. Technology can help us to monitor and indicate when the stocks are low and appropriate sourcing. Ultimately, we should be able to address the dissatisfaction of our customers and improve customer relationship with Pfizer.

Alignment: Our biggest issue at the moment is the frequent out of stock situation for fast moving products. IT primary focus is on improving manufacturing, shipping and time of delivery to customers. Within the sales function, the most critical is identifying the purchasing patterns of customers and ensure on time delivery.

Emerging technology: Perhaps this technology can be used to create a mechanism for collecting data that shows low in stock and alert the sales managers/logistic manager.

Technology sourcing: Adopt a technology standard to reduce cost.

Week 46 (2.3.08)

Learn

IT Application has 2 components:

1. Strategic Enabling Opportunity

- deliver value

- lead

- focus on risks & find opportunity

2. Commodity Application

- spend less

- need not lead

- focus on risks

Business strategy drives IT strategy which enables the business to increase its efficiency.

Unlearn

Earlier has no comprehension on whether IT drives business or Business drives IT.

Relearn

In Pfizer, i can now relate how the implementation of E-card works. It is actually a business strategy that drives on the IT deployment. This business strategy helps Norvasc, which loses its exclusitivity, to stay competitive in the market position. E-card provides additional value to loyal customers with a leading concept on customer relationship management.

Week 45 (24.2.08)

Learn

Does IT Matter? - Nicholas Carr, Harvard Business Review

Logic Flow:

• IT is common pervasive
• IT system in place in your company is NOT different from another
• IT is no longer giving business a competitive edge
• Conclusion: IT does not matter
• However, IT is a necessity

Unlearn

I have all the while in the opinion that IT alone will not make any business more competitive because IT can be outsource (via consultants or buy). So, IT never mattered. What matters are the people who invent technologies and who deploy and use them.

Relearn

As a result from my learning, i am more conscious now on my role to work closely with IT department in Pfizer, for a greater adoption of information technologies , to increase the opportunities for competitive advantage for financial performance in sales division.

Week 44 (17.2.08)

Learn

How companies Use IT to Improve Their Effectiveness? - AMA Module

1. Exchanging information
2. Finding new markets or channels
3. Negotiating and completing transactions
4. Supporting major decisions through analysis
5. Streamlining administrative processes

Unlearn

Before reading up this module, in my opinion, I thought IT acts as a tool for data storage, data processing and data transportation only. Actually, IT can increase companies effectiveness through proper implementation and deployment.

Relearn

In Pfizer, we used IT as a source to secure more sales from the e-Procurement of government tenders, to analyse market opportunity and customer segmentation, and finally, HR use IT for Employee Database, payroll and e-Leave.