© 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

© Dr. John T. Whiting All Rights Reserved 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.

© Dr. John T. Whiting All Rights Reserved 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

© Dr. John T. Whiting All Rights Reserved 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.

© Dr. John T. Whiting All Rights Reserved 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

© Dr. John T. Whiting All Rights Reserved 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.

© Dr. John T. Whiting All Rights Reserved Slide 7 Marketing Research Marketing PlanningSales 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

© 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.

© Dr. John T. Whiting All Rights Reserved 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!

© Dr. John T. Whiting All Rights Reserved 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 $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!

© Dr. John T. Whiting All Rights Reserved 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

© 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.

© Dr. John T. Whiting All Rights Reserved 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.

© Dr. John T. Whiting All Rights Reserved 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:

© Dr. John T. Whiting All Rights Reserved 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

© Dr. John T. Whiting All Rights Reserved Slide 16 The Primary Force Driving the Integration of IT Resources into the Strategic Business Plan

© 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!

© Dr. John T. Whiting All Rights Reserved Slide 18 Interested in more information… Contact Dr. John T. Whiting at: Village Way – Suite F-6 Vernon, NJ 07462