Organization Management...

100 Slides
Technostructure Middle Apex Strategic Apex

Support Staff

Operating Core

Powered by www.drawpack.com. All rights reserved.

Key Words...
Organization Model Scientific Management Motivation Framework Maslows Hierarchy ERG Theory Intrinsic/Extrinsic Rewards Compensation Management Job Enrichment Group Performance Linking Pin Organization Likerts Overlapping Mintzbergs Coordinating Mechanisms Matrix Organization Network Organization Change Management Hierarchical Structures Formal Organization Role Diagram Job Description Divisional Structures Project Organization Value Chain Management Span of Control Task Force Organization Development Growth Management Learning Organization Virtual Organization

A Basic Organization Model

Environment

Human Behavior in Organizational Settings

The Individual Organization Interface

The Organization

Environment

Phases of Scientific Management I

Phase 1: A Task, a Manager, and a Pool of Workers
Manager Task
Worker Worker Worker Worker

Phase 2: Task Analysis, Breakdown, and Job Specialization by Manager

T1 Manager T2 T4
Worker Worker Worker Worker

T3

Phases of Scientific Management II

Phase 3: Task Assignment and Training
T1
Worker

T3 Manager
Worker

T2
Worker

T4
Worker

Phase 4: Continued Supervision, Coordination, and Planning by Manager

Manager T1
Worker

T3
Worker

T2
Worker

T4
Worker

The Basic Motivation Framework

1 Need Deficiencies

6 Need Deficiencies Reassessed by the Employee

2 Search for Ways to Satisfy Needs

The Employee
5 Rewards or Punishments 3 Goal-Directed Behaviors

4 Performance

Maslows Hierarchy of Human Needs

GENERAL EXAMPLES Achievement

SelfActualization Needs

ORGANIZATIONAL EXAMPLES Challenging Job

Status

Esteem Needs

Job Title

Friendship

Belongingness Needs

Friends in Work Group

Stability

Security Needs

Pension Plan

Shelter

Physiological Needs

Base Salary

Parallels Among Need Theories of Motivation

Herzbergs Two-Factor Theory Achievement Work Itself Responsibility Advancement and Growth Recognition Maslows Hierarchy of Needs Self-Actualization Needs Alderfers ERG Theory Other Key Needs Need for Achievement Growth Needs Need for Power

Motivation Factors

Self-Esteem Esteem Needs Respect of Others

Supervision Interpersonal Relations

Belongingness Needs

Relatedness Needs

Need for Affiliation

Hygiene Factors

Security Company Policies

Interpersonal Security Security Needs Physical Security Physiological Needs Existence Needs

Pay Working Conditions

The Individual-Organization Exchange Process

Time Effort Knowledge Skills Creativity Energy

contributes

to

The Employee

The Organization

for which

Pay Benefits Vacation Status Opportunities for Creativity Occasions for Social Contributions

which rewards with

The Meaning of Organizational Rewards

Intrinsic and Extrinsic Rewards

The Individual

Surface Value

Symbolic Value

Attitudes and Behaviors

A Total Compensation Package

Annual Compensation for an Employee

Awards Perquisites

Incentives Benefits

Salary

The Historical Development of Job Design

High

Scientific Management Job Enlargement Job Rotation Specialized Craft Jobs

DEGREE OF JOB SPECIALIZATION

Job Enrichment Job Characteristics Theory Social Information Processing Autonomous Work Groups

Low

General Craft Jobs To 1900s Around 1900 to Late 1940s Late 1940s to Early 1960s TIME Early 1960s to Present

Four Factors that Affect Group Performance

Group Performance

Likerts Overlapping Work Groups (The Linking Pin Organization)

Mintzbergs Five Coordinating Mechanisms

M Manager Analyst A A M

O Operator

O Operator

(1) MUTUAL ADJUSTMENT M A

(2) DIRECT SUPERVISION

O INPUT SKILLS (3) WORK PROCESSES (4) STANDARDIZATION

O OUTPUTS (5)

A Matrix Design
FUNCTIONAL DEPARTMENTALIZATION Marketing Department Manager PROJECT DEPARTMENTALIZATION Alpha Project Project Leader Research and Development Department Manager Purchasing Department Manager Production Department Manager

Beta Project

Project Leader

Gamma Project

Project Leader

Basic Communication Process

SENDING

Encoding

Transmission

Decoding

Source

Noise

Receiver/ Responder

Decoding

Medium

Encoding

FEEDBACK LOOP (Verification)

Small Group Communication Networks

WHEEL CHAIN

CIRCLE

ALL CHANNEL

Four Major Problems in Change Management

RESISTANCE POWER

People

Organization as Social System

Structure

Information Systems

Tasks

CONTROL

REDEFINITION

Hierarchy and Decision Making

Increasing number of Increasing reward people

Decreasing Increasing power in decision stature making

Cellular Structures Placed into Hierarchical Structures

The Non-Linearity of Power and Decision Load

Managerial and Organizational Integration Within the Organic Enterprise Decreasing power; extreme narrowing A of responsibilities

Increasing responsibility importance of decision making; perceptual requirements

Responsibility Information load Cost of wrong decisions Level B Level A HIERARCHICAL LEVEL

Technological Innovation as a Result of Complex Interactions

EXTERNAL ENVIRONMENT

INNOVATIVE INTERNAL ENVIRONMENT

Idea

Creativity

Project champion

Project proposal

Project Evaluation Project management systems R&D Analysis Design Strategic Production considerations Marketing

Product

Innovation

R&D Dept. THE COMPANY Scientific and technological knowledge

Marketing Dept. Knowledge of market needs

Further Developments of Multidirectional Communication and Involvement

Strategic analysis Marketing department R&D

Financial control and analysis

Process development

Maintenance and services Product planning

Design

Organizational Effectiveness

Organization
Resource inputs Internal activities and processes Product and service outputs

System resource approach

Internal process approach

Goal approach

Formal and Informal Organization

Structure Hierarchy Task and role definition Performance measurement Coordination and control Rules and procedures Routines Norms, values Group / inter-group behavior Coalitions, alliances, power Perceptions, mental maps Organizational culture

Optimum Degree of Formal Organization

Organizational effectiveness

Degree of formal organization

Contingency Framework for Organization Design

environment fit task member characteristics strategy differentiation organizational effectiveness

integration

contingency factors

organization design

outcome

Organization Chart, Role Diagram, Job Description

Positions

Processes

Position Tasks Competencies Responsibilities Reporting relationships ...

Who does what in which process? (action, decision, information, ...)

Levels of Organization Design

CEO

multibusiness SBU C

SBU A functional unit

SBU B

R&D
Prod.

R&D Prod. Sales single business

R&D
Sales

Sales

=> different design issues on different levels

Functional, Divisional, Multidivisional Structures

CEO CEO

Controlling

R&D

Logistics

Manufacturing

Sales

Finance Cement Concrete Chemicals

CEO

CEO

Europe Europe Motor Marine Fire North America Motor Marine Fire Asia Motor Marine Concrete Cement

North America

Asia

Chemicals

Project Structures
CEO CEO Project

Unit A

Unit B

Unit C

Project Unit A Unit B Unit C

CEO

Strategy

Finance

IT

Project 1

Project 2

Project 3

Mechanistic vs. Mechanic Designs in Context

Low Uncertainty
1. Mechanistic structure; formal, centralized 2. Few departments 3. No integrating roles 4. Little imitation 5. Current operations orientation

Low-Moderate Uncertainty
1. Mechanistic structure; formal, centralized 2. Many departments, some boundary spanning 3. Few integrating roles 4. Some imitation 5. Some planning

Stable

ENVIRONMENTAL CHANGE

High-Moderate Uncertainty
1. Organic structure, teamwork; participative, decentralized 2. Few departments, boundary spanning 3. Few integrating roles 4. Quick to imitate 5. Planning orientation

High Uncertainty
1. Organic structure, teamwork; participative, decentralized 2. Many departments: differentiated, extensive boundary spaning 3. Many integrating roles 4. Extensive imitation 5. Extensive planning, forecasting

Unstable

Simple

Complex

ENVIRONMENTAL COMPLEXITY

Problems of Traditional Organization Design

+
hierarchical boundaries functional boundaries

=
operational islands

=> filtering of information => functional closure => leadership problems => coordination problems

Link between Structure and Process

CEO

Procurement

Production

Sales

Administration

Transportation Inventory operation Production Shipping Procurement order Production order

Order documents

Billing

Order
Customer

Organizational Value Chain

Company infrastructure
Support processes

Human Resource Management Technology development Procurement

Entry logistics

Operations

Marketing and sales

Exit logistics

Customer service

Primary processes

The Development of Organization Design over Time

large

collaboration

coordination
Size of Organization "?" delegation

red tape
direction creativity control

autonomy
small

leadership
young mature

Age of Organization

The Five Basic Parts of Organizations

Strategic Apex

Technostructure Middle Apex

Support Staff

Operating Core

The Flow of Formal Authority

Structures to Deal with Residual Interdependencies

(a) Hierarchical Structure

(b) Line and Staff Structure

(c) Liaison Overlay Structure (e.g., Task Force)

(d) Matrix Structure

A Continuum of Liaison Devices

Decisional Power with the Market Managers

Decisional Power with the Functional Managers

Pure Liaison functional positions structure superimposed on a functional structure

Task forces and standing committees superimposed on a functional structure

Matrix structure

Liaison positions superimposed on a market structure

Pure market structure

Integrated managers superimposed on a functional structure

Integrated managers superimposed on a market structure

Span of Control

Functional Specialization

President

Vice President Industrial Relations

Vice President Engineering

Vice President Manufacturing

Vice President Marketing

Vice President Finance

Process Specialization

President

Vice President Industrial Relations

Vice President Engineering

Vice President Manufacturing

Vice President Marketing

Vice President Finance

Shaping Department Manager

Stamping Department Manager

Painting Department Manager

Assembly Department Manager

Shipping Department Manager

Product Specialization

President

Vice President Tricycle Division

Vice President Bicycle Division

Vice President Motor Scooter Division

Vice President Motorcycle Division

Vice President Snowmobile Division

Customer Specialization
President

Senior Vice President Marketing

Vice President Industrial Relations

Vice President Engineering

Vice President Marketing

Vice President Finance

Director Wholesale Marketing

Director Institutional Marketing

Director Consumer Marketing

Director Government Marketing

Geographic Specialization

President

Vice President Domestic Division

Vice President European Division

Vice President Latin American Division

Vice President Pacific Division

Director Northeast Director Midwest Director Southern Director Western

Various Forms of Specialization in a Single Organization

President

Assistant to President

Executive Vice President

Executive Vice President

Vice President Industrial Relations

Vice President Finance

Vice President Domestic Marketing

Vice President International Marketing

Vice President Tricycle Division

Vice President Bicycle Division

Vice President Motor Scooter Division

Vice President Motorcycle Division

Vice President Snowmobile Division

Director Institutional Marketing Director Government Marketing Director Wholesale Marketing

Director Europe Marketing Director Latin America Marketing Director Pacific Marketing

Shaping Department Stamping Department Painting Department Assembly Department

Northeast

Midwest

Southern

Western

Shipping Department

Multiform Organization

Democratic

Specialists Bureaucratic Managers Traditional

Matrix

Contemporary

What Type of Intervention?

Strong

Taks Force

Top-down Initiatives

RESISTANCE

Weak

Participative

Buttom-up Initiatives

Weak
EXTERNAL FORCES

Strong

Typical Improvement Actions

Bureaucracy Elimination Duplication Elimination Value-Added

Automation Big Picture Improvement Customer/Supplier Partnership

Reduce 1 Innovate 4
3 Prevent Error Proofing Standardization Simple Language Upgrading Change 2 Simplification Process Cycle-Time Reduction

Improvement Agenda
PACE OF CHANGE

Fast

Measured Continuous Improvement (TQM)

MEASUREMENT

Tactical
DEGREE OF CHANGE

Focused Improvement

Strategic

Focused Restructuring

Business Process Innovation

ORGANIZATIONAL CHANGE MANAGEMENT

Assessment Management

CORPORATE STRATEGY

Good

Poor

Good
IMPLEMENTATION SKILLS

What happened?

Change the Top

Poor

Support the management

Why are they still alive?

The Initial Decision Matrix

STRATEGIC RELEVANCE

High

Low

Positive
PROFITABILITY

Keep as is

Sell

Negative

Restructure

Close Dispose of

Organizational Practices in the Five Phases of Growth

CATEGORY
Management Focus Organizational Structure Top-Management Style Control System Management Reward Emphasis PHASE 1 PHASE 2 PHASE 3 PHASE 4 PHASE 5 Problem solving and innovation Matrix of teams

Make and sell

Informal

Efficiency of operations
Centralized and functional Directive

Expansion of market

Consolidation of organization

Decentralized Line staff and and geographical product groups Delegative Watchdog

Individualistic and entrepreneurial Market results

Participative

Standards and cost centers Salary and merit increases

Reports and profit centers Individual bonus

Plans and investment centers

Mutual goal setting

Ownership

Profit sharing and Team bonus stock options

Imaginary Organization and Relationship Marketing - Two Perspectives

Imaginary Organization

Relationship Marketing

Delivery Systems

PARTNER BASE

IOLeader

CUSTOMER BASE

Core Market Compe- Communication Customers tence

Transactions Relations

LEARNING ORGANIZATION

Imaginary Organizations and Some Related Concepts

LEARNING ORGANIZATIONS THE CLIENT-DRIVEN FIRM CONTINUOUS IMPROVEMENT

Learning

CORE VS. PERIPHERY

Transactions
MARKETS VS. HIERARCHY

Imaginary Organizations

Relations

NETWORKS, RELATIONSHIP MARKETING, VALUE CONSTELLATION

Organizations as Processes
CORE SYSTEMS SERVICE DELIVERY PARTNERSHIP

Role of Virtual Organizing and Knowledge Management in Business Networking

BUSINESS NETWORKING STRATEGIES

Electronic Commerce

Supply Chain Mgmt

Relationship Mgmt

Customer Interaction
DIMENSIONS OF VIRTUAL ORGANIZING

Asset Configuration

Knowledge Leverage

Business Engineering Model Applied to Business Networking

Strategy level
Business unit Cooperation strategy Business unit

Business network

Process level

Business process Transactions and coordination techniques

Business process

Process network

IS level

Information system Communication link

Information system

IS network

Major Strategy Decision

ORGANIZATIONAL RESOURCE DECISION

Outsourcing Electronic Commerce

Virtual Organization

Insourcing

eProcurement for C goods

SCM for X parts with Y partners

Content Management for Z catalogs

NETWORKING DECISION

Supply Chain Management

Relationship Management

Virtual Organizations and Virtual Cultures

E-Market Culture E-Business Culture

Virtual Organization Culture

Models of Virtuality

The Virtual Face

Star-alliance Model

Co-alliance Model

Value-alliance Model

Virtual Alliance Models

Autonomy/Substitutability or virtual links
Low High virtuality

Interdependence/ Strength of Organizational Links colocation culture synchronicity shared risks

High

star

satelite Virtual- costarFace alliance alliance value market virtual broker

Virtual Organizational Change Model (VOCM)

Electronic Market Ecosystems

e-Business Structual Alliances

Strategy

ICT

Virtual Culture

Knowledge Management

The Cycle of Knowledge Creation

(1) An employee comes up (4) The new employee with & posts an idea to discusses the process improve response to with a colleague over service calls coffee and it provokes a further improvement idea

Conversation
TACIT KNOWLEDGE

Codification
EXPLICIT KNOWLEDGE

Learning & Internalization

Re-Use & Combination

(3) A new Call Center employee uses the process and gets complimented by the customer

(2) The idea gets built into the companys automated Call Response System processes

Knowledge Management Life Cycle

CREATE

EVOLVE

Class II Expanded View (performative)

ORGANIZE

APPLY

Class I Localized View FORMALIZE (supportive)

DISTRIBUTE

Knowledge Management

Organization

Process

Technology

Knowledge Management

Choosing Pilot Groups

High Visibility

Willing to Share Info

Pilot Group Group Works with Current Info

Big Impact on Revenue

KWorld

Consultants (The Right People)

Scheduling (The Right Time)

KWorld

Knowledge Base (The Right Problem)

Consultant Network

Skills

Best Practices

Solutions

Availability

A Typical Knowledge-Management Platform

Knowledge Desktop

Knowledge Portal Knowledge Tools

Search and Deliver

Data Warehousing Document and Management Business Intelligence (Data Analysis)

Knowledge Services

Collaboration

Tracking and Workflow

System

Business Logic Security Communication Directory

Replication Administration

Pre-requisites Communities, Teams and Experts

Portals and Search

Content Management
(Publish&Metadata)

KM Enabling Modules

Complete Intranet

Knowledge-Management Modules

Messaging and Collaboration

Real Time Collaboration Data Analysis

(Data Warehousing and Business Intelligence)

Graph of Evolving Technology and Knowledge Management Over Time

The KM-Enabled Enterprise
Knowledge management Application Integration Publishing and Approval LEVEL OF INTEGRATION Sophisticated Comprehensive Workflow and Tracking
Content management Communities, Teams and Experts Portals and Search Data Analysis (Real Time Collaboration)

Subscription Document Data Warehouse, and Notification Management Complete Catalog Services Real Time Collaboration Complete Intranet Messaging and Collaboration Pragmatic INFRASTRUCTURE OVER TIME Visionary Basic Intranet Search Meta Directory

Platform Integration

Metadata

Graph of Technology and its Effectiveness

The KM-Enabled Enterprise
Knowledge management Content management Communities, Teams and Experts Portals and Search Data Analysis (Real Time Collaboration)

LEVEL OF INTEGRATION User Usability Ratio

Messaging Integration

EFFECTIVENESS OF THE KM SYSTEM

The Five Cs that Differentiate Data from Information

Condensation

Contextualization

Categorization

Calculation

Correction

Data Data

Information

The Basic Elements of Knowledge Utilization and Typical Technology Tools

Acquisition
Databases and Capture Tools

Databases

Elements of knowledge utilization and basic technology support

Sharing
Sharing Tools Collaborative Tools Communications Links Networks Intranets

Browser Web Pages Document Distribution Systems Collaborative Tools

Utilization

The Four Levels of Knowledge, Levels of Leverage Derived, and Possibilities of Technology Support
Desirable Care-Why

Know-Why

KNOWLEDGE STAGE

Knowledge management system supported Know-How

Know-What Current State of Most Companies Initial LEVEL OF KNOWLEDGE Desirable LEVERAGIBILITY

The Framework of Technologies Required to Support Knowledge Management and their Functionality
Workflow Document Management Routing Electronic Conversation Transparent Capture tools e.g., Crosspads Web Conferencing Expertise Pointers Telephones

Publishing Control Distribution Project Management

Informal Capture

Dialog Conversation

Informal Conversation Making

Activity

Knowledge Management Technologies

Conversation

Watercoolers

Operational Distribution Data Knowledge Connectivity Collaboration Discover Validation Publishing Cleansing Intranets GroupWare Data Warehouse

Brainstorming Tacit Knowledge Capture

Problem Solving Decision Support Systems Case-based Reasoning

Digital Whiteboards

Informal Capture Data Mining Document Exchange Data Cleansing Collaboration Validating Independent Thought Mind Maps Visual Thinking Tools

Connecting Islands of Data with a Knowledge Server

File Servers Intranet

Exchange Servers

Centralized Knowledge Server

Public Sites & Information Services

Notes-type Discussion Databases

Telecommuters

Nonakas SECI Model and the Places where IT Support Fit in

Socialization Tacit >> Tacit
Face-to-Face Communications Video Conferencing Tools Web Cams Virtual Reality Tools

Externalization Tacit >> Explicit

Process Capture Tools Traceability Reflective Peer-to-Peer networks Expert Systems Discussion Platforms

I I

I S E C

I I

Internalization Explicit >> Tacit

Collective Knowledge Networks Notes Databases / Org Memory Pattern Recognition Neural Networks

Combination Explicit >> Explicit

Systematic Knowledge Tools Collaborative Computing Tools Intranets, Groupware Discussion Lists Web Forums Best Practice Databases

C G

C
G

Legend C: Companys Knowledge G: Group or Team Knowledge I: Individual Employees Knowledge

Customer Valuation, Interactivity, and the Need for Relationship Management

Differential
High

Frequency Marketing
Customer Valuation

CRM

Interactivity

Mass Marketing

Niche Marketing

Consistent

Customer Needs

Differential

Consistency of Interaction Across all Channels is Key

Sales and Marketing Cross-selling Up-selling

Customer Support Pre-sales Post-sales

Fulfillment

Retention and Loyalty Incentives Offers Rewards

Consistent Interaction

Web

Telephone

Catalog

Brick-andMortar Store

The Evolution of Knowledge-Oriented Business Processes

High

Knowledge-oriented Business Processes

PROCESS COMPLEXITY

Activity-oriented Business Processes

Transaction-oriented Business Processes

Low High KNOWLEDGE INTENSITY

New Approaches to Customer Knowledge Management

High KCRM Interactive Marketing Data Mining Interactivity Database Marketing

Basket Analysis

Loyalty/Reward Programs

Low

Customer-specific Knowledge

High

The KCRM Strategic Framework

Expression barrier

Environment
Market Trends Competitive Threats Regulatory Controls

Interpretation barrier

Strategic Context
Product/Services Market Opportunities Customer Segments Value Proposition Alliances Expression barrier

Impacts

Interpretation barrier Impacts Drives Impacts

Influences

Enables

Specification barrier

Specification barrier

Implementation barrier

Implementation barrier

Enables

KCRM Strategy
E-Business Strategy Competitive Differentiation Knowledge Digital Capital Adaptability

KCRM Technology
E-Business Infrastructure KCRM Architecture Interaction Channels Integration

Aligns

Stages of the Customer Relationship Management Process and Knowledge Intensity

Advanced
Needs Prediction Community Building Differentiated Customer Service Automatic Replenishment Clicks-&-Mortar Integration

KCRM Level

Detailed Customer Profiling Profiling of Data Recognize Returning Customers Registration Enticements

Personalized Recommendations
Seamless Partner Integration

Customizable Web Experience

Basic Stage Identify Differentiate Interact Customize

Responding to Uncertainty The Organization Design Options

Uncertainty and change Creates a need to cope with more information

Create slack resources Allow more time Allow more resources

Environmental management Vertical integration Marketing Co-operation

Create selfcontainted tasks Change from functional task design to group with all necessary resources

Invest in vertical information systems Plan much more frequently

Create lateral relations Move decisionmaking down and across funcional boundaries

Reduce need for information processing

Increase capacity to process information

The scope of transformation

Levitts Diamond: The Interaction of Social Forces in an Organization

Task

Structure

People

Technology

Organization Design Parameters

Strategy and goals

Structure Factors: Division of labour Departmentalization Horizontal and vertical distribution of power Task Factors: Diversity Difficulty Variability

Information and decision making Factors: Scope of database Formalization of process Frequency Decision mechanism

Reward systems Factors: Compensation Promotion Leadership style Job design

People Factors: Selection Training and development Promotion

Matching Management Style and Organizational Model

Entrepreneurial

Pseudoentrepreneurial

Effective entrepreneurial

MANAGEMENT STYLE

Conservative

Efficient bureaucratic

Unstructured unadventurous

Mechanistic

Organic

ORGANIZATIONAL MODEL

Thorn A Realigned Strategy

Business strategy From an emphasis on administration and cost reduction To an emphasis on marketing, service and growth

Systems strategy From an emphasis on control, administration and cash accounting To an emphasis on decentralization, commitment and added value business activity Organization strategy From a centralized, mechanistic orientation To a more decentralized, organic and committed orientation

Using CSFs to Generate the Business Vision

Business objectives Raise earnings per share Increase market share Improve productivity Development new businesses Develop internationally

Critical success factors

Create new markets Develop new products Concentrate Develop a Maintain Automate on profitable group image companyproduction activities world-wide wide control Improve product quality/ reliability

Information systems contributions

Develop customer intelligence systems Develop Install Build profit new flexible analysis DSS products/ manufacturing (Decision services systems Support System) Investigate electronic links with customers Enhance financial control reporting system Develop an online diagnostic service

Positioning an Organizations Approach to Strategic Systems Planning

High Beware
POTENTIAL SYSTEMS CONTRIBUTION TO TOTAL VALUE ADDED

Attack

Safe
Low

Explore benefits

Low

High
EXISTING SYSTEMS SCALE/EXPERIENCE

The IT Strategic Grid Distinguishes Levels of System Criticality

Factory
IT is crucial to current business operations, but is not key to the organizations strategic development

High

Strategic
IT has been critical for business success in the past and will remain so for the future

BUSINESS IMPACT OF EXISTING SYSTEMS

Support
IT is not critical to the business, either in the past or for the future

Turnaround
IT has not been critical to the business so far, but is vital for the future if the organization is to achieve its strategic objectives

Low

Low

High

BUSINESS IMPACT OF APPLICATION DEVELOPMENT PORTFOLIO

Technology Impact on Competitive Forces

High

Rivals
Suppliers

IMPACT OF IT ON COMPETITIVE FORCES

Buyers

Entrants
Substitutes
Low
RELATIVE IMPORTANCE OF COMPETITIVE FORCES

High

The Interaction of Strategic Elements in an Organization

Technological environment

Technology

Organization structure and culture

Processes

People: individuals and roles

Socio-economic environment

Strategy

The Potential Impact of IT on Transformation

High

Stage 4
Business re-engineering

Stage 3
POTENTIAL BUSINESS IMPACT
Process redesign

Stage 2
Cross-functional integration

Stage 1
Functional improvements Low DEGREE OF BUSINESS REDESIGN High

The Emphasis of IT Management Has to Change

Emphasis on management Emphasis on management of data resources: of computers:

Centralized computing Proprietary applications Minimal connectivity Technology push

EXPLOITATION OF IT FOR BUSINESS BENEFIT

Distributed computing Standardization (open systems) High connectivity User pull

First S-curve

Second S-curve

TIME

Traditional Approaches to System Design are Technically Focused

Open

DESIGN DEGREES OF FREEDOM

Technical design process Organizational learning

Closed Feasibility Design TIME Implementation

Traditional Approaches to System Design Allow Little Scope for User Input
Technical design process

Open

Window for user contributions to design

DESIGN DEGREES OF FREEDOM

Organizational learning
Closed Feasibility Design TIME Implementation

Assessing the Business and Technical Contribution of Applications

High
Renew Maintain and enhance

Systems in this category may have These systems are critical to the business and are technically suffered from a lack of maintenance successful they must be and the organization might suffer if maintained and enhanced to ensure it were to fail their continued success BUSINESS VALUE (USERS)

Reassess Divest
Systems may be outdated or not necessary but consumers scarce resources Such systems might be outmoded in business terms, hence they can be divested, or they may have been developed in advance of the business need or capability, hence a need for user training. Before action is taken on the system, reassessment to determine the business value is necessary

Low
Low

TECHNICAL QUALITY (PROVIDERS)

High

The IS Responsibility Matrix

High Specialist dominance

Operational efficiency is primary objective MATURITY OF THE TECHNOLOGY

Hybrid
Users need to be in control of the systems strategy, while specialists control systems development

Risk dominance
High technical risk with limited business potential suggests the application should not be developed

User dominance
With a high technical risk and a high strategic impact, applications should be under user control, with a major emphasis on effective exploitation

Low
Low

High
STRATEGIC IMPACT OF FUTURE SYSTEM APPLICATIONS

Drawpack Diagrams
Drawpack.com offers premium Business Diagrams for students and professionals around the globe for their personal use.

Please enjoy these Business Diagrams. You can send these slides to your personal contacts who might be interested in Business Diagrams.
For further information about our service please contact us: info@drawpack.com Please find our membership offer on www.drawpack.com

Usage rights
1. Drawpack.com allows the customer an unlimited but not exclusive right to
use the provided services, products and diagrams.

2. The services, products and diagrams that the customer has received can
be copied, edited, saved and used by the customer for their personal and commercial use. 3. The customer is prohibited from providing the service, products and diagrams on professional download levels in the area of audio, video and software transmission. This includes providing the services, products and diagrams via download against payment or free of charge. The customer is prohibited providing the services, products and diagrams on internet servers or on websites with public access. 4. The customer is prohibited providing identical or similar services to those provided on www.drawpack.com with the services, products and diagrams. 5. Any infringements against the above usage rights will lead to legal action. All rights are reserved to www.drawpack.com