Eastman Chemical

1
Eastman Chemical the Vanguard GroupPlanning
for Strategic E-business Change

• Chapter 7
• Case 4

2
New Perspective for Technology

• Technology has a tremendous impact on a business.
• Traditionally spending on IT was considered a
  high cost with low return.
• Belief changed radically form one where
  businesses felt that they could do without IT, to
  one where they know they cannot.
• Technology decisions have become an integral part
  of the decision making process.

3
Eastmans Strategic Planning

• Use IT as a key enabler to take the company from
  a pure manufacturing organization to a service
  organization.
• Conduct research to find out how much to spend on
  IT to the company where they want to be.
• Conduct research to find out what your customers
  are demanding, and what technology will be
  required to meet those demands.
• Senior executives will play vital role in IT
  system requirements and developments initiatives.

4
Strategic Shift

• Create a direct line from IT to the CEO.
• Technology should be considered an integral part
  of business and should be included in decision
  strategies.
• Technology spending should be spent wisely.
• Companies who use technology to transform
  business practices and supply chains will become
  industry leaders.

5
Risks

• Transaction and volume required to send and feed
  massive amounts of pricing information, security,
  data integrity, firewalls, and complexity of
  interactions with back-end systems.
• Mission critical operation. Split-second delays
  could cost the firm a transaction, a lost
  customer, or even a lawsuit.

6
Playing it Safe

• Implementing new technologies can carry risks.
• Merrill Lynch often turns over the ongoing
  management, testing, maintenance, and support to
  outside specialists.