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Richard Kartawijaya
Hari Sungkari
Hewlett-Packard (hp.com) developed a planning methodology
in which business process strategies and teknologies are
defined to allow the company to make process changes
regardless of the limitation of the existing technology, and it
gives visibility to the impact that new technologies and
processes have on each other.
In the past, HP had used a sequential process. First, it define
the business strategy and the operations and supporting
strategies, including technologies. Then, all these functions
were aligned and replanned, taking into consideration the
technologies available. In the new methodology, the planning
is performed for all areas concurrently. Furthermore, the
entire approach is complemented by a strong focus on
teamwork, specialized and objective driven functional areas
and business units, and a commitment to quality and
customer satisfaction. The approach links strategy and action.
The business alignment framework takes into account the
necessary process changes resulting from changes in the
business environment, as well as potential technological
developments.
=ut because major changes may result in a the R&D department better understand what is
change in value systems as well as culture and driving customers while simultaneously offering
team structures of the organization, HP a strong technology prespective that influence
includes these factors within the planning the business as a whole.
methodology.
Target processes, technologies, and standards
drive the selection of potential solutions. The
participative management approach ensure
effective implementation. According to the
framework, business processes and information
requirements are defined in parallel with
technology enablers and models, which are
then linked throughout the alignment process.
HP¶s focus on strategic alignment is evident not
only in this planning for internal technology
solutions, but also in its quest for technological
innovation through a centralized R&D functions
actively participates in the strategy
developement process, which help
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` Strategy is not the tools to understand the environment. This tools are:
¢ SWOT analysis
¢ PEST analysis
¢ Resources analysis
¢ Competitor analysis
¢ Five Forces analysis
¢ Scenario analysis, etc

` Strategy alows organization to operate in an environment, with

competitive pressures, with extreme high customer expectation,
increase in speed of change, degree of change; expectation to uplift
performance in exponentially.
` Strategy is more akin to a way of acting and thinking within an
organization.
` Œedium ± long term
` Strategic Planning is a plan for changes
` Developing Roadmap to Future

As well as strategy, traditionally known as

short-term, mid-term and long-term strategy

` Change of strategy reflect fluidity of the marketplace

` The fluidity demands a great deal of flexibility in the organization to
enable the change of strategy (systems, culture, people skill &
leadership)
` Strategy also about GROWTH
` =oards,
` CEO,
` CFO,
` Investors, and
` Customers

oa ieve I oals and su ort =usiness oals,

ou need to understand
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` Good strategy is the one that delivered, rather
than one looks good on paper
` Focus
` Easy to understand
` Œeasure:
¢ Ability to focus
¢ Align the activities of large numbers of people, so
organization can achieve more as a unified force
 
V   V
˜ 
‡ What are you trying to
Why are we doing this? achieve and for whom?
‡ Who are your masters and
what do they e pect?
  V V  V
˜   ‡ Product focus
‡ Process focus
Who should we target as customers? ‡ Sales Driven
‡ Œarket orientation

˜  V
What products & services should we be?
  Vm  :
‡ Doing better & differently
‡ Offer right products/Svcs
‡ Group the products differently

 V   V 

˜   V  V 
How can we do this in an efficient & effective? ‡ Doing it better, differently
‡ Information, knowledge &
Resources
‡ IT Role
` With the benefit presented to organization, how IT
may help to response expectation if internal and
external organization r IT becoming more
important
` IT taking leading role in development and delivery
of organization¶s aspirations:
¢ IT is leading, not following
¢ IT will enabling, not blocking
¢ IT presenting opportunities & possibilities, not
constraining
IT moves
from   
, through 
, to Ú

If we start with a need to have a much greater understanding of our customers, I think
the real issue is about being able to recognize how their behaviour is changing and then
being able to respond and provide services in a focused way that meet those needs.
Walmart are doing this well at the moment in the way they are using their website. Like
everyone else, they recognized that their customers were increasingly using the web to
buy things, and therefore they were exposed to the rist that they would lose out on
income. This could be income lost either by way people not coming into the store or
because their customers started using other providers, who could supply over the
internet. What they also noticed through their research into customer behaviour was the
customers were increasingly confused by the multiplicity of products and services
available to them, and in many cases, the technology involved in those products. You
just think of buying a digital camera, and there are so many options that it is easy for the
customer to say ³Oh, I just won¶t bother´.
Separately, Walmart had noticed from their customers in-store behaviour that if they
were provided with information guides about products and services, customers wer not
only more likely to buy, but also were likely to up trade to higher model.
So they pulled information together when deciding upon their website strategy. They
decided to:
¢ Target existing customers, rather than new ones
¢ With the aim of drawing increasing numbers into their store, rather than less, and
¢ Getting them to spend more as a result of being informed
Their website does 2 main things. Firstly, it provides information regarding products and
services so that their customers are better informed. Yes, their customers can buy
online, but it also encourages them to come into the store to purchase or collect. And
when they are in the store, they spend on other goods and services.
Separately, they are other trigger that draw those some customers into the store, so that
they can spend more money when they get there. For example, your can upload your
digital photos from your digital camera and within a few hours you can go to your local
store to pick up the pictures. And whilst there, why not pic up a bottle of wine and some
snacks so that you can enjoy your pictures with your family and friends.



   


 
 
 
 

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Õ. Introduction to the Course › After this session, student expected to   !
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› Highlight of the course course and able to follow the course
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› Introduction

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Õ. Discussion Õ·

2. Paper 2

. Assignment 2

K Final Exam K·

Total Õ
` Student must attend the class as required by =inus University¶s regulation
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` Student should participate actively in the group discussion and group assignment.
` j', V, each group should suggest a real company case which provides the
information needed strategy to analyze on knowledge management development or KŒ
culture. The case must be approved by the lecturer before continue working on it. The
requested factors for analysis will be given. Œaximum of K students are permitted in one
group.
` j12, student should submit their assignment on time according the due date required
by the lecturers, any late submission may result penalty on student assignment mark.
` j! #Final exam will be scheduled and the material will cover all the course
subject.
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¢ Œust be ready as specified on each schedule
¢ Failed to fulfill will not given second presentation time (for the
limited lecturing session), the valuation only by the paper.
¢ For Group project paper and presentation slide, on case study,
should be submitted before the presentation time.
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¢ Student should submit their quiz or assignment on time.
¢ Every late of paper submission or power point presentation will be
deduct Õ of mark accepted for each day of late.
=oeing (boeing.com) is the company typically associated with the development and marketing of jet aircraft,
a highly technical field. HQ in Chicago, the corpo-ration posted 2· sales of $·K,8 billion. =oeing¶s Õ·.
employees are spread throughout 6Î countries. =oeing is the United State¶s number-one net exporter in the
global economy. In addition, =oeing is China¶s largest commercial aviation partner. =y 22·, =oeing
forecasts that China will need 2. jetliners, becoming one of the world¶s largest airplane markets.
˜ 
Ú   
Õn ÕËË8, =oeing had over .8 direct suppliers. Relationship with suppliers were manage strictly through
competitive bidding on the basis of price, quality and delivery. Terms were specified in contracts, which then
had to be closely managed. =oeing wanted to move away from this competitive model with its non-value-
added processes and form closer business relationship with fewer suppliers. In effect, suppliers would be
extentions of =oeing factories. Information and collaboration systems were needed that would interface with
their supplier to improve the delivery of parts to their factories. Integrated supply chain information systems
would improve visibility and flexibility, decrease production time, and increase competitiveness.
˜  Ú 
=oeing¶s design and production strategy is to get the Î8Î built as quickly and economical as possible. That
involves an unprecedented degree of collaboration between =oeing and its partners around the world ±
partners who are participating in the actual design of the plane.


To implement its new strategic plan, =oeing reorganized its supplier
operation and collaboration systems. They renamed their supplier
management operation Global Partners. In 26,
=oeing had reduced the number of suppliers who supported the manufacture and service of its
commercial aircraft, including the Î8Î Dreamliner, from .8 to Õ.2 ± 68 reduction in the number
of suppliers.
=oeing began development of the Î8Î by collaborating with those suppliers. Suppliers at over ՝
sites around the world are linked to =oeing¶s development teams through regular face-to-face
meetings, known as  

. Urgent items are dealt with via video-conferencing over
secure internet connections. The videoconferences are, in effect, the modern-day version of
engineers gathering around a drawing board to scratch their heads and work out how make
something.
=oeing maintains ten multimedia rooms at its Everett, Washington complex for the use of
collaboration teams. The rooms are open 6· days a year, 2K hours a day becaus it¶s al-ways
daytime somewhere. There may be meetings underway between one group of engi-neers at =oeing
and their peers at Œitsubishi Heavy Industries Ltd., in Japan, while another group works with teams at
Japan¶s Kawasaki Heavy Industry Ltd. Australia¶s Hawker de Havilland, a =oeing subsidiary. A
visualization application developed by =oeing allows the teams to do real-time design reviews of
complex geometry without any lag time as the models load. The tone is cordial because it¶s
engineers talking to engineers. Œeetings are conducted in English, with sidebar conversations as
needed in native languages around the world.
Sharing information between =oeing and suppliers allowed everyone in the supply chain to

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take a longer-term view of how the market for the new aircraft would
develop. Suppliers were able to prepare more effectively for future
demand, and =oeing was able to prepare for possible
problems. The aim was to smooth out any potential lumps in the supply chain before they
materialized. With a price tag of $՝ million for each Î8Î, both =oeing and its partners needed to
get the logistics right to deliver on time. For airplanes struggling with high fuel prices. The Î8Î offers
a large number of seats (about  seats), but lightweight contruc-tion gives 2 fuel saving over
other aircraft of similar size. The Î8Î was easy to reconfi-gure to suit different airlines, thus
improving their return on investment.
˜  Ú
=oeing is making the shift not only for the saving from making the planes faster & cheaper. The
company is also spreading the cost of design and development throughout its partner network, and
building global relationships that may, in turn, help the company well it planes overseas.
The previous state of the art in aircraft manufacturing was to have global partners work from a
common blueprint to produce parts that were then physically shipped to a =oeing assembly plant
near Seattle to see if they fit together. There, successive iterations of the planes were built and
refined with onsite teams from around the world. That process and outdated informations systems
plan is gone.
Now part are designed concurrently by partners, and virtually assembled in a computer model
maintained by =oeing outside its corporate firewall. The design is occuring in Japan, Russia, Italy
and USA. This kind of collaboration has taken a huge amount of time out of the process. Different
people build different pieces by creating data that are assembled and

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checked in real time. Completed sections of the plane are picked up
by three specially fitted ÎKÎs and carried to a =oeing facility in Everett,
Washington. =ecause of online modeling.
=oeing can now trust its global partners with the process of creating entire section of the plane, from
concept through to production.
Global partners has replace the company¶s previous Supply Œanagement and Procurement. The
name change reflects =oeing¶s new strategic approach to its supplier relationships. Global Partners
is part of the newly created Airplane Production organization, which conso-lidates all commercial
airplane production operations into a single integrated =oeing pro-duction system ± from design
through production and delivery.
The competitive advantage is critical to =oeing, which is in a global battle for market leadership with
Airbus SAS, the Toulouse, France-based aerospace manufacturer that has emerged as its most
potent competitor for civil aviation business in the modern era. =oeing has 2ËÕ firm orders and 88
commitments from 2Î airlines for the new Dreamliners.
=oeing still makes pieces of the planes they sell, but the change in their business model is
undenialbe. While they still do manufacturing. =oeing is moving up the value stream to become a
large-scale systems integrator
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Õ. What business does =oeing in? Please explain
their business model? Then, explain their
Competitive Œodel
2. Who are their competitor? Which market is their
target? Why?
. What is their business strategy? How do they
manage IT Strategy aligned to their =usiness
Strategy?
K. How is culture in =oeing support the business
strategy and IT strategy?