Description
The presentation that includes topics like blueprint for a "big-small" business,operating and innovating,managing and learning,leading and engaging,relationship options,networked market models.
The Organization Design Challenge
Complex & Global
?
Hierarchy
Simple & Local Stable & Certain Environment
Organization
Entrepreneurial Organization Dynamic & Uncertain
Chapter 3 Figure 3-1
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002.
Blueprint for a “Big-Small” Business
Sample Organizational Components
Sample Technology Components
Leading & Engaging
• Human Resources Management • Strategic Alliances • Customer Loyalty • Supplier Loyalty • Partnerships • Planning and Budgeting • Performance Monitoring • Organization Structure and Reporting • Organization Decision Making and Learning • Operating Process • New Product Development • Business Venturing
• HR Systems • Customer Relationship Management (CRM) • Personalization • Communication Infrastructure • User Access Devices • Management Reporting • Decision Support Systems and Tools • Business Intelligence Systems • Data and Knowledge Management • Enterprise Resource Planning (ERP) • Supply Chain Management • Order Fulfillment • New Product Development • Distributed Information Processing Infrastructure
Managing & Learning
Operating & Innovating
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 3 Figure 3-3
? Hierarchical Operations
? Entrepreneurial Operations
? Networked Operations
Capabilities
Precision execution ?? ?? Fast-cycled innovation ?? ?? ?? ?? ?? Customer and community connected (Note: All key stakeholders, including suppliers and partners are considered “customers” of an ebusiness.) ??
Business Design Requirements
Streamlined, integrated, and efficient operations seamlessly link activities performed inside the firm with those performed by customers, partners, and suppliers. Cost, cycle time and quality levels are benchmarks within the industry and exceed customer/stakeholder requirements. Flexible, modular designs enable customization, personalization, and continuous improvement. Change processes are embedded within the company’s day-to-day operations. Employees are rewarded for devising new, innovative ways to serve customers. Resources for change are available. There is a standardized and widely accepted process used to develop and present the “business case” and implementation plan for a potential idea. Executives and employees in all parts of the organization have the information required to understand the lifetime value of customers, suppliers and partners and have the ability and authority to make decisions and take actions to improve satisfaction and loyalty. Incentive systems reward success in attracting and retaining profitable customers, suppliers, and partners and in increasing the frequency and level of engagement.
??
Options
Vertical integration
Description
Locate all but the most routine, transaction-oriented activities inside the firm. Source selected activities from the outside. Traditionally, sourced activities were controlled through short-term contracts. Become part of a network of highly specialized, independent parties that work together to perform, coordinate, and control value chain activities.
Selective sourcing
Virtual integration
Basis of Interaction
Duration of Interaction Level of Business Integration Coordination and Control Information Flow
Transaction Discrete exchange of goods, services,nd a payments (simple buyer/seller exchange) Immediate Low
Contract Partnership Prior agreement governs Shared goals and processes for exchange (e.g., service contract, achieving them (e.g., lease, purchase agreement) collaborative product development) Usual shortterm and defined Usually long term and defined ly by the contract by the relationship Low to Moderate High
Supply and demand (market)
Terms of contract define procedures, monitoring, and reporting Primarily one way; One or two way; Limited in scope and Scope & amount are usually amount; defined in the contract Low level of customization
Interorganizational structures, processes, and systems; Mutual adjustment Two-way (i nteractive); Extensive exchange of rich, detailed information; Dynamically changing; Customizable
Impact of Information Technology on Market Evolution
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 3 Figure 3-7
Proprietary Capabilities and Infrastructure Create Walls Inside an Organization and Among Members of a Value Chain Network
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 3 Figure 3-8
Covisin t’s Role in t he Vir t u ally-In tegr a ted Global Au tomobile Ma r ke t
So urce: Applegate, Lynd a M., Rober t D. Au sti n, and F. War r en McF arl a n, Corporate I nfor m a tion S t ra tegy a n d M a n agement . Bur r Ridge, IL: McGr aw-Hill/Irwi n, 2002.
Ch ap t er 3 Figur e 3-9
AOL Time Warner’s Virtually-Integrated Organization within a Vertically-Integrated Market
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 3 Figure 3-10
Four Networked Market Models
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 3 Figure 3-11
doc_354666316.ppt
The presentation that includes topics like blueprint for a "big-small" business,operating and innovating,managing and learning,leading and engaging,relationship options,networked market models.
The Organization Design Challenge
Complex & Global
?
Hierarchy
Simple & Local Stable & Certain Environment
Organization
Entrepreneurial Organization Dynamic & Uncertain
Chapter 3 Figure 3-1
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002.
Blueprint for a “Big-Small” Business
Sample Organizational Components
Sample Technology Components
Leading & Engaging
• Human Resources Management • Strategic Alliances • Customer Loyalty • Supplier Loyalty • Partnerships • Planning and Budgeting • Performance Monitoring • Organization Structure and Reporting • Organization Decision Making and Learning • Operating Process • New Product Development • Business Venturing
• HR Systems • Customer Relationship Management (CRM) • Personalization • Communication Infrastructure • User Access Devices • Management Reporting • Decision Support Systems and Tools • Business Intelligence Systems • Data and Knowledge Management • Enterprise Resource Planning (ERP) • Supply Chain Management • Order Fulfillment • New Product Development • Distributed Information Processing Infrastructure
Managing & Learning
Operating & Innovating
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 3 Figure 3-3
? Hierarchical Operations
? Entrepreneurial Operations
? Networked Operations
Capabilities
Precision execution ?? ?? Fast-cycled innovation ?? ?? ?? ?? ?? Customer and community connected (Note: All key stakeholders, including suppliers and partners are considered “customers” of an ebusiness.) ??
Business Design Requirements
Streamlined, integrated, and efficient operations seamlessly link activities performed inside the firm with those performed by customers, partners, and suppliers. Cost, cycle time and quality levels are benchmarks within the industry and exceed customer/stakeholder requirements. Flexible, modular designs enable customization, personalization, and continuous improvement. Change processes are embedded within the company’s day-to-day operations. Employees are rewarded for devising new, innovative ways to serve customers. Resources for change are available. There is a standardized and widely accepted process used to develop and present the “business case” and implementation plan for a potential idea. Executives and employees in all parts of the organization have the information required to understand the lifetime value of customers, suppliers and partners and have the ability and authority to make decisions and take actions to improve satisfaction and loyalty. Incentive systems reward success in attracting and retaining profitable customers, suppliers, and partners and in increasing the frequency and level of engagement.
??
Options
Vertical integration
Description
Locate all but the most routine, transaction-oriented activities inside the firm. Source selected activities from the outside. Traditionally, sourced activities were controlled through short-term contracts. Become part of a network of highly specialized, independent parties that work together to perform, coordinate, and control value chain activities.
Selective sourcing
Virtual integration
Basis of Interaction
Duration of Interaction Level of Business Integration Coordination and Control Information Flow
Transaction Discrete exchange of goods, services,nd a payments (simple buyer/seller exchange) Immediate Low
Contract Partnership Prior agreement governs Shared goals and processes for exchange (e.g., service contract, achieving them (e.g., lease, purchase agreement) collaborative product development) Usual shortterm and defined Usually long term and defined ly by the contract by the relationship Low to Moderate High
Supply and demand (market)
Terms of contract define procedures, monitoring, and reporting Primarily one way; One or two way; Limited in scope and Scope & amount are usually amount; defined in the contract Low level of customization
Interorganizational structures, processes, and systems; Mutual adjustment Two-way (i nteractive); Extensive exchange of rich, detailed information; Dynamically changing; Customizable
Impact of Information Technology on Market Evolution
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 3 Figure 3-7
Proprietary Capabilities and Infrastructure Create Walls Inside an Organization and Among Members of a Value Chain Network
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 3 Figure 3-8
Covisin t’s Role in t he Vir t u ally-In tegr a ted Global Au tomobile Ma r ke t
So urce: Applegate, Lynd a M., Rober t D. Au sti n, and F. War r en McF arl a n, Corporate I nfor m a tion S t ra tegy a n d M a n agement . Bur r Ridge, IL: McGr aw-Hill/Irwi n, 2002.
Ch ap t er 3 Figur e 3-9
AOL Time Warner’s Virtually-Integrated Organization within a Vertically-Integrated Market
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 3 Figure 3-10
Four Networked Market Models
Source: Applegate, Lynda M., Robert D. Austin, and F. Warren McFarlan, Corporate Information Strategy and Management. Burr Ridge, IL: McGraw-Hill/Irwin, 2002. Chapter 3 Figure 3-11
doc_354666316.ppt