THE CHANGING BUSINESS LANDSCAPE & ORGANIZATIONAL BEHAVIOUR

Prof.Chris Abraham

You want me to think about what!!

We develop strategy for the FUTURE by planning, decision making and action today

Too many decisions to make, not enough time or information to make them properly?

Open Minds

Globalization 3.0

1492-1800 Shrank

Globalization 1.0

1492-1800 Globalization 1.0 Shrank world from a size Large to Medium Countries a size world fromglobalizingLarge to Medium

Countries globalizing

1800-2000

Globalization 2.0

Shrank world from a size Medium to Small

Companies globalizing

2000+

Globalization 3.0

Shrank world from a size Small to Tiny

Individuals collaborating & competing globally

Flatteners

1. 11/9/89 Berlin Wall comes down

2. 8/9/95 Netscape IPO

3. Workflow Software Let s Do Lunch: Have Your Application Talk to My Application Collaboration

4. Uploading Self-Organizing Collaborative Communities Open source Not controlled by corporations or Government

5. Outsourcing Y2K and India/Asia

6. Offshoring Rather than outsource jobs send the whole factory to India or China or Indonesia or Not just manufacturing

Wal-Mart

7.Supply-chaining

7. Supply-chaining Wal-Mart - the 800-pound supply chain gorilla

8. Insourcing

UPS is not only shipping parcels, but also providing smart business solutions

9. In-forming Building and deploying your personal information supply-chain Google now 3 billion searches per day Soon everything will be searchable

10. The Steroids

Making collaboration digital, mobile, personal, virtual Carly Fiorina Computing capabilities - including speed, I/O rate and storage capacity IM and file sharing BitTorrent, Kazaa VoIP Skype Video Conferencing HP & SKG Advanced graphics from video games Wireless communicate with anyone from anywhere

Triple Convergence & the 4 Drivers of Change

It is this triple convergence - of new players, on a new playing field, developing new processes and habits for horizontal collaboration - that is the most important force shaping global economics and politics in the early twenty-first century.

Four Drivers for Change

Web 2.0

WEB 2.0

The Net Generation

The Social Revolution

The Economic Revolution

Web 2.0
Web 2.0

The Net Generation

The Social Revolution

WEB SERVICES

Web 2.0

BROADBAND MOBILITY

The Economic Revolution

Four Drivers for Change

WEB 2.0

THE NET GENERATION

Digital Natives The Net Generation

Web 2.0

The Net Generation

The Social Revolution

The Economic Revolution

The Generation Lap

Web 2.0 The Net Generation

The Social Revolution

N-Geners Their Parents

The Economic Revolution

Four Drivers for Change

WEB 2.0

THE NET GENERATION THE SOCIAL REVOLUTION

The Rise of Collaborative Communities

Digg.com beats Slashdot.org Web 2.0

vs.
The Net Generation

The Social Revolution

The Economic Revolution

The Rise of Collaborative Communities

Craigslist.org beats Monster.com, Match.com

vs.
Web 2.0

The Net Generation

The Social Revolution

The Economic Revolution

The Rise of Collaborative Communities

Myspace.com beats MTV.com Web 2.0

vs.

The Net Generation

The Social Revolution

The Economic Revolution

The Rise of Collaborative Communities

Wikipedia.org beats Britannica.com Web 2.0 The Net Generation

vs.

The Social Revolution

The Economic Revolution

The Rise of Collaborative Communities

Blogger.com beat CNN.com Web 2.0

vs.
The Net Generation

The Social Revolution

The Economic Revolution

Four Drivers for Change

WEB 2.0

THE ECONOMIC REVOLUTION

THE NET GENERATION THE SOCIAL REVOLUTION

Digital Conglomerates
Web 2.0 The Net Generation

The Social Revolution

The Economic Revolution

The Economics of Collaboration

Web 2.0
SelfOrganization

The Net Generation

Value Creation

The Social Revolution

The Economic Revolution

Traditional Hierarchy

Industrial Age Corporation

Physical Financial

Critical Resources

Knowledge

The Economics of Collaboration

Web 2.0
SelfOrganization

The Net Generation

Value Creation

The Social Revolution

Extended Enterprise

The Economic Revolution

Traditional Hierarchy

Industrial Age Corporation

Physical Financial

Critical Resources

Knowledge

The Economics of Collaboration

Web 2.0
SelfOrganization

The Net Generation

Value Creation

Business Webs

The Social Revolution

Extended Enterprise

The Economic Revolution

Traditional Hierarchy

Industrial Age Corporation

Physical Financial

Critical Resources

Knowledge

The Economics of Collaboration Web 2.0

The Net Generation
SelfOrganization

Mass Collaboration

Value The SocialCreation

Business Webs

Revolution
Extended Enterprise

The Economic Revolution

Traditional Hierarchy

Industrial Age Corporation

Physical Financial

Critical Resources

Knowledge

The Enterprise 2.0 and the Rise of Mass Collaboration

Web 2.0
1. Peering

The Net Generation

2. Being Open

The Social Revolution

3. Sharing

The Economic Revolution

4. Acting Global

Four Drivers for Change

WEB 2.0

THE ECONOMIC REVOLUTION

THE NET GENERATION THE SOCIAL REVOLUTION

Enterprise 2.0 New Business Models

A 50 year old mining company peers, opens, shares its proprietary data and acts globally in a bid to transform itself and explore the extent of a rich new find.

Peer Pioneers Financial Services

1

Marketocracy.com Investment Management

Enterprise 2.0 New Business Models

1. Peer Pioneers Financial Services

Zopa.com peer lending

Enterprise 2.0 New Business Models

Creating an eBay for innovation 2. Ideagoras How do you create a vibrant marketplace where you leverage other people's talents, ideas and assets quickly and move on? P&G s Larry Huston: Alliances and joint ventures don't open up the spirit of capitalism within the company. They're vestiges of the central planning approach when instead you need free market mechanisms.
How InnoCentive works:

Enterprise 2.0 New Business Models

2. Ideagoras

Enterprise 2.0 New Business Models

2. Ideagoras

Enterprise 2.0 New Business Models

Enterprise 2.0 New Business Models

3. Prosumers

Enterprise 2.0 New Business Models

3. Prosumers Case: Music IndustryThe Remix

Enterprise 2.0 New Business Models

3. Prosumers Help Us Write the Final Chapter!

Enterprise 2.0 New Business Models

3. Prosumers Physical Goods

Peer Produced T-Shirts

Enterprise 2.0 New Business Models

4. The New Alexandrians: The Sharing of Science

SNP Consortium: APBiotech, AstraZeneca Group PLC, Aventis, Bayer Group AG, Bristol-Myers Squibb Co., F. Hoffmann-La Roche, Glaxo SmithKline, Wellcome Trust, IBM, Motorola, Novartis AG, Pfizer Inc., and Searle

Enterprise 2.0 New Business Models

4. The New Alexandrians: Nature s Google Earth Avian Flu Mashup
Source: Howard Ratner, CTO, Nature Publishing Group

Enterprise 2.0 New Business Models

4. The New Alexandrians: Nature s Google Earth Avian Flu Mashup
Source: Howard Ratner, CTO, Nature Publishing Group

Enterprise 2.0 New Business Models

6. The Global Plant Floor

The Peer Produced Airplane In the past, Boeing wrote detailed specifications for each part and asked suppliers to build to plan Today, suppliers co-design airplanes from scratch and deliver complete subassemblies to Boeing s factory, where a single plane can be snapped together like Lego blocks, in as little as 3 days

Enterprise 2.0 New Business Models

6. The Global Plant Floor Chinese Motorcycle Industry

Enterprise 2.0 New Business Models

7. The Wiki Workplace

Current Crisis

A Burning Platform for Change

Google A 21st Century Organization

Globalization 3.0 & the External Environment

P olitical forces E conomics S ocial Factors T echnology L egal Forces E thical & Environmental Factors

Globalization 3.0 & Organizational Behavior

SAS- The Best company to work for-2010

What are organizations like as work settings?

An organization is a collection of people working together with available resources to achieve a common purpose.

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Organizational Stakeholders

SOCIETY P A R T N E R S (Suppliers & Distributors) INVESTORS CUSTOMERS EMPLOYEES

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Common Features of Organizations

Network of individuals System Coordinated activities Division of labor Goal orientation Continuity over time, regardless of change in individual membership
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Organizations as transformational settings realizing their mission

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Modern workplace trends

Inconsistent commitment to ethical behavior. Importance of human capital. Demise of command and control.
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Modern workplace trends

Emphasis on teamwork. Pervasive influence of information technology. Respect for new workforce expectations. Changing definition of jobs and career.

The nature of managerial work

Managers work long hours. Managers are busy people. Managers are often interrupted. Managerial work is fragmented and variable. Managers work mostly with other people. Managers spend a lot of time communicating.

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The management process

An effective manager is one whose

organizational unit, group, or team consistently achieves its goals while its members remain capable, committed, and enthusiastic. Key results of effective management: Task performance. Job satisfaction.

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Managerial skills and competencies

A skill is an ability to translate knowledge into action

that results in a desired performance.

Categories of skills. Technical. Human. Conceptual.
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Basic Elements of Strategic Organizational Behavior

Organizational behavior The actions of individuals and groups in an organizational context. Managing organizational behavior Actions focused on acquiring, developing, and applying the knowledge and skills of people.
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Course Objectives
Focus on continuous improvement of the effectiveness of organizations and their members Understand why people and groups in organizations feel and behave as they do Identify processes and methods that can improve behaviors and attitudes of organizational members and, thus, their effectiveness Develop and enhance your skills as an organizational member and manager

Topics
Introduction & overview Organizational behavior Values, attitudes & personality Perception Motivation Facilitating effective teams Organizational politics Leadership Organizational Change Organizational structure Organizational culture

The Primary Objective of Management

The attainment of organizational goals in an effective and efficient manner through Planning, Organizing, Leading, and Controlling organizational resources.

Manager s Primary Outcome Responsibilities

Effectiveness
Degree to which the organization achieves its stated goals

Efficiency
The use of minimal resources (materials, money, and people) to produce desired output

Performance
Ability to attain goals by using resources in an efficient and effective manner

The Skills Managers Need

Conceptual: Cognitive ability to see the organization as a whole and relationships among the parts Human: Ability to work with and through other people and to work effectively as group member and leader Technical: Understanding of and proficiency in performance of specific tasks

Traditional Management Mind Set

Tight top-down control Employee separation & specialization Management through impersonal measurement and analysis

Changes Bringing About A Management Revolution

Global competition Cutbacks in personnel Worldwide economic, political, and social shifts Cultural changes

Changes Bringing About A Management Revolution

Diversity of the workforce Request for sharing of power Technology New decision makers Others?

The Old & New Paradigms: Forces on Organizations

The Old Vertical Organization Local Domestic Homogeneous The New Learning Organization

Markets

Global

Workforce

Diverse

Technology

Mechanical Stability Efficiency

Electronic Change Chaos

Values

The Old & New Paradigms: Management Competencies

The Old Vertical Organization The New Learning Organization Customers Employees Dispersed Empowering

Focus

Profits

Leadership

Autocratic

Doing Work

By Individuals

By Teams

Relationships

Conflict Competition

Collaboration

Net Gen Model to Create Relationship Capital

Old Model of Employee Management Talent Relationship Management

1. Attraction 2. Learning and Development 3. Communications and Management 4. Compensation and Rewards 5. Performance Management 6. Retention

Initation
Engagement

Evolution Motivation

Collaboration

Real Time Performance

Employer led and controlled

Relationship oriented 2-way efforts required

The Next Paradigm?

GMBA Participants: What do you think: Markets? Workforce? Technology? Values? Focus? Leadership? Doing work? Relationships?

Factors and Outcomes of Strategic Approach

Organizational Factors (culture, work environments, adaptability

Organizational Success

Satisfaction of Individuals and Groups

Productivity of Individuals and Groups

Individual Factors (learning ability, personality, values, motivation, stress)

Interpersonal Factors (leadership, communication, decision-making skill, intraand inter-group dynamics, communication)
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Adapted from: Exhibit 1.1 Factors and Outcomes of a Strategic Approach to Organizational Behavior

A Turning Point in History: Rebooting Our Institutions

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Question and challenge all those assumptions that underpin how you see the world - and what you don t see.

...because what works today will probably not work for those who follow you in the future...

Most importantly, it s about being ready for the future rather than waiting for it to overwhelm you...

We can't solve problems by using the same kind of thinking we used when we created them (Albert Einstein).

The future belongs to those who believe in the beauty of their dreams

Thank You...