School Construction Industry

normaldeerManagement

Nov 20, 2013 (3 years and 11 months ago)

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-
businessmanagement.com

2004 © Dr. John T. Whiting

All Rights Reserved

Slide
1

The Rationale for Integrating IT Assets
into the Strategic Business Plan in the
School Construction Industry

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businessmanagement.com

2004 © Dr. John T. Whiting

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Slide
2

The Value Gained From the Integration of IT
Resources into the Strategic Business Plan


Gains in Total Enterprise Business Management Efficiency
:


IT can reduce the operating, labor and project delivery
costs and the ability to deliver projects in a more timely
manner yielding greater profit margins.

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2004 © Dr. John T. Whiting

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Slide
3

Instant P&L access to information across the
business enterprise 60/24/7


* Source: E
-
BMC White Paper

P&L Portal Based
Management

E
-
Business
Management Partner

Operations
Management

R&D

Production

Logistics

Marketing

Finance &
Control

Human
Resource

(Total Enterprise Interconnectivity)

CEO Monitors Company
Performance Via “E” Portal

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businessmanagement.com

2004 © Dr. John T. Whiting

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Slide
4

The value in meeting the demands of multiple
business constituencies…


Cost Effective Quality Service to Multiple Business Constituencies
:


Construction projects must service multiple constituencies
including: the customer, the finance organization, government
regulatory agencies, the suppliers and vendors and the
community.


IT can dramatically reduce the cost and increase the timeliness
and accuracy of communicating with all constituencies.

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businessmanagement.com

2004 © Dr. John T. Whiting

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Slide
5

Construction
Marketing Plan

Internet/web based e
-
business
structure

Customers, inspectors,
politicians, etc.

School Officials

Record Keeping

Local Reach

National
Reach

Government
Compliance

Engineering

Project Management

General
Management

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businessmanagement.com

2004 © Dr. John T. Whiting

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Slide
6

The Ability to Capture New Markets and Sales…


Marketing, Sales and Competition
:


Construction companies can respond more quickly to
request for proposals (RFP), new sales and market
opportunities quickly using IT.


Companies that ignore the advantages of IT will be unable
to compete.

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businessmanagement.com

2004 © Dr. John T. Whiting

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Slide
7

Analysis
Market
Market
Determination
Marketing
Marketing Research
Sales Promotion
Marketing Planning
Sales Operations &
Administration
Sales Policy
Determination
Forecasting
Pricing
Buying
Packaging
Program
Development
Sales
Aids
Salesmen
Recruitment
Salesmen
Training
Salesmen
Direction
Salesmen
Compensation
Order
Servicing
Direct
Sales
Advertising
Campaign
Planning
Media
Selection
Copy
Preparation
Production
Requirement
Distribution
Problem
Analysis
Marketing Research

Marketing Planning

Sales Promotions

Sales Operations

Advertising

Marketing

Web based
Market
Requirement
Determination

Web based
Market Analysis

Direct


Sales

Sales
Training

Sales
Direction

Order
Servicing

Program
Development

Sales Aids

Packaging

Distribution
Problem
Analysis

Sales Policy
Determination

Buying

Salesmen
Recruitment

Salesmen
Compensation

Forecasting

Pricing

Media
Selection

Production

Campaign
Planning

Copy
Preparation

The e
-
business web portal
marketing strategy

Speed to Market! Generating of New Sales

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-
businessmanagement.com

2004 © Dr. John T. Whiting

All Rights Reserved

Slide
8

The Value in Reducing Project Management
Costs and Increasing Profit Margins…


Project Management Cost Benefits
:


The startup time and costs can be significantly reduced
by using IT to manage multiple projects using a single
project management team.

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businessmanagement.com

2004 © Dr. John T. Whiting

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Slide
9

Project Management

Production Planning

Materials Management

Production Management Operations

Project Engineering

Quality Assurance

Facility
Planning

Manpower
Planning

Production
Strategy

Budgeting

Facility
Design

Methods
Study

Work
Measurement

Production
Layout

Utilities
Design

Production
Equipment

Safety &
Security

Maintenance

Direct & Indirect
Labor Control

Materials
Handling Study

Buying

Purchase Research

Purchase
Expediting

Receiving

Shipping

Inventory
Control

Purchase Record
Keeping

Materials
Scheduling

Equipment
Procurement

Salvage
Sales

Dispatching

Materials
Procurement

Project
Expediting

Materials Management
Communication

Stores Keeping

Performance
Reporting

Production
Supervision

Time
Keeping

Methods
Development

Quality
Testing

Customer
Complaints

Salvage
Sales

Interconnectivity =

Logistics/Customer Service

The Web Based Portal
Project Management

…instant multiple project communication at less cost!


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businessmanagement.com

2004 © Dr. John T. Whiting

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Slide
10

Project Management Cost Savings Using IT

Project Manager

Project Receptionist

Site Administrator

Site
Superintendent

Project
Scheduler

Project
Engineer

Site Safety
Inspector

Estimated Project Team Salary Costs = $455,000*

$90,000

$60,000

$60,000

$30,000

$70,000

$95,000

$50,000

* Estimates courtesy of MJ Architects. Costs do not include employment insurance and related benefits.


Increasing Project Management Capacity from a 1:2 ration to a
1:8 ration would generate a
$3,185,000

savings for the company!

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businessmanagement.com

2004 © Dr. John T. Whiting

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Slide
11

NJEDA:


“E
-
BMC Model”


Building/financing


S
mall business support


Tech Grant Recipients


Performance monitoring


Applicant pre qualification


Application processing



NJSCC:


School Districts


Grant compliance reporting


Performance monitoring


Applicant pre
-
qualification


Applicant Processing

IT Increases Communication Efficiency with
Government Regulators, Business Contacts and Markets

Business Partners,
Vendors, Suppliers,
Contractors

Customer School
Districts, Boards
of Education and
Administrators

Changes in the Market
and New Business
Opportunities

Construction
Company Compliance
and Market
Communication

Company PR & Communication Services

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businessmanagement.com

2004 © Dr. John T. Whiting

All Rights Reserved

Slide
12

Steps Required to Integrate IT:

Adoption of Corporate Policy
:


Escalating IT decision making from the tactical/technical
level managed by IT professionals to the strategic business
level managed by P&L level business executives.


Integrating IT decision making into the strategic business
plan based on standards applied across the enterprise
guided by management by objectives (MBO) and return on
investment (ROI) criteria.


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businessmanagement.com

2004 © Dr. John T. Whiting

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Slide
13

Policy Change Escalating of IT Management
to the Strategic Business Level

IT regarded as a tactical asset and
managed at the tactical/ technical
level by IT Managers.

IT integrated into the strategic
business plan and managed at the P&L
Executive level.

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businessmanagement.com

2004 © Dr. John T. Whiting

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Slide
14

The Need for a Methodology to
Guide IT Integration

Adoption of a Methodology to Assess IT Needs and to Guide the
Integration of IT into the Strategic Business Plan
:


The making of IT decisions, investments and deployment
based on the strategic business plan within the context of
standard strategic planning and budgeting processes.

The Routine Identification and Initiation of IT Projects Based
on MBO and ROI Value
:



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businessmanagement.com

2004 © Dr. John T. Whiting

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Slide
15

Phase I
-

Phase II
-

Phase III
-

Phase IV
-

Phase V
-

Baseline Company Audit to Identify IT
Integration Status:



Business Policy Status



Technology/User Status



Technology Asset Status

IT Integration Plan (ITIP)
Development and Targeting of IT
Integration Priorities

Prescription of Priority IT
Integration Targets Projects

Priority IT Integration Project
Implementation & Formative
Evaluation

Priority Project Completion,
Summative Evaluation and Status
Re
-
assessment

Discovery of IT Integration Status,
Discrepancy Analysis and Needs
Assessment

Diagnosis of Status, FIGCP
Development & Priority Targeting

Priority IT Integration Project
Identification Within Key Business
Functions & Across the Enterprise

Implementation of Priority Projects,
Formative Evaluation to Document
Progress based on the ITIP

Completion of Priority IT Integration
Projects, Summative Evaluation and
Documentation

Note: The process is continuous and integrated into the strategic planning and budgeting process!

The E
-
BMC Model Guides the Integration of IT

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businessmanagement.com

2004 © Dr. John T. Whiting

All Rights Reserved

Slide
16

The Primary Force Driving the Integration of IT
Resources into the Strategic Business Plan

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businessmanagement.com

2004 © Dr. John T. Whiting

All Rights Reserved

Slide
17

The Goal: Optimizing Performance and
Profits for the Construction Company
Based on a E
-
BMC Partnership!

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businessmanagement.com

2004 © Dr. John T. Whiting

All Rights Reserved

Slide
18

Interested in more information…

Contact


Dr. John T. Whiting at:

john.whiting@e
-
businessmanagement.com

973
-
764
-
0375

15 Village Way


Suite F
-
6

Vernon, NJ 07462