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MBA 669 Special Topics: IT-enabled organizational Forms

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Special Topics: IT-enabled organizational Forms Dave Salisbury salisbury_at_udayton.edu (email) http://www.davesalisbury.com/ (web site) This Week s Fun Stuff IT for ... – PowerPoint PPT presentation

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Title: MBA 669 Special Topics: IT-enabled organizational Forms


1
MBA 669Special Topics IT-enabled
organizational Forms
  • Dave Salisbury
  • salisbury_at_udayton.edu (email)
  • http//www.davesalisbury.com/ (web site)

2
This Weeks Fun Stuff
  • IT for competitive advantage
  • The power of virtual integration
  • Dell
  • TAL JC Penney
  • Synchronizing your firm
  • ERP and the control of information/decision-making
  • How fast does one have to be?

3
Strategic Issues
  • Strategic Advantage
  • If youre first, a novel technology creates an
    advantage
  • Strategic Necessity
  • Eventually, technology-based gains are lost
    because they are easily replicable

4
Information Resource Advantages
  • What makes it valuable?
  • Who gets the value?
  • Is it equally distributed?
  • Is it mobile?
  • How quickly does it depreciate?

5
Sustainable Competitive Advantage
  • The Environment
  • What happens out there
  • Foundation Factors
  • Something unique to leverage
  • Action Strategy
  • What you do with the situation

6
Intra-Organizational Coordination
  • Vertical Control
  • Flattening hierarchy
  • Technology control replaces human management
  • Horizontal Control
  • Electronic workflow
  • Concurrent engineering
  • Stockless production
  • Virtual organization

7
Intra-Organizational Coordination
  • Organization and unit size
  • Reduction in size
  • Not vertical integration, but virtual integration
  • Outsourcing
  • Coupling
  • Spin-off entrepreneurial
  • Federation

8
Intra-Organizational Coordination
  • Core product
  • Information
  • Communication protocols
  • Learning and innovation
  • Influence rather than fiat
  • Weak ties
  • Ownership/control
  • From hierarchies to markets (Dell in week 5)

9
Inter-organizational forms
  • Inter-organizational coupling
  • Again, from hierarchies to markets (Dell in week
    5)
  • Electronic integration
  • Integration in terms of strategic alliances
    enabled by IT
  • Interstitial links

10
Supply Chain Management
  • Network of facilities and distribution options
  • Procurement
  • Transformation
  • Distribution
  • IT is obviously heavily involved

11
Supply Chain Management (SCM)
  • Cross-functional interenterprise system that uses
    IT to help support manage the links between
    some of a companys key business processes and
    those of its suppliers, customers, business
    partners
  • Goal is to create a fast, efficient, low-cost
    network of business relationships

12
IT Support of SCM
13
Customer Relationship Management
  • Customer-facing employees get a single, complete
    view of customers at each touch point across
    all channels
  • Customers get a single, complete view of the
    company and its extended channels
  • Integrates automates customer service processes
  • IT framework of software databases that
    integrates this with the rest of the companys
    business operations
  • Enhances employee ability to interact with
    customer
  • Allows businesses to identify their best
    customers, and makes possible real-time product
    service customization (e.g. Amazon.coms
    suggestion lists)

14
Major CRM Application Components
15
Three Phases of CRM
16
Customer Relationship Management
17
Customer Relationship Management
  • CRM has been practiced manually by corporations
    for generations.
  • E-crm emerged in the mid-1990s, when customers
    began using electronic touchpoints.
  • Three service levels
  • Foundational service. This includes the minimum
    necessary services such as Web site
    responsiveness (e.g., how quickly and accurately
    the service is provided), site effectiveness, and
    order fulfillment.
  • Customer-centered services. These services
    include order tracking, product configuration and
    customization, and security/trust. These are the
    services that matter the most to customers.
  • Value-added services. These are extra services
    such as online auctions and online training and
    education.

18
Customer Relationship Management CRM Activities
  • Customer Service on the Web
  • Search and Comparison Capabilities
  • Free Products and Services
  • Technical and Other Information and Service
  • Allowing Customers to Order Products and Services
    Online
  • Letting Customers Track Accounts or Order Status
  • Tools for Customer Service
  • Personalized Web Pages
  • FAQs
  • Chat Rooms
  • E-Mail and Automated Response
  • Call Centers
  • Troubleshooting Tools
  • Wireless CRM

19
Customer Resource Life Cycle
  • Establish Requirements
  • Specify
  • Select Source
  • Order
  • Authorize/Pay for
  • Acquire
  • Test and Accept
  • Integrate
  • Monitor
  • Upgrade
  • Maintain
  • Transfer/Dispose
  • Account for

20
Processes v. Functions
  • Functions
  • Marketing, Finance, etc.
  • Processes
  • Things that get done
  • Tend to cross functional barriers

21
IT Business Processes
  • IT as an enabler of change
  • Reengineering
  • Total quality management
  • Cross functional and cross-organizational
    integration

22
Breaking Business Barriers
  • Time barriers
  • Geographic barriers
  • Cost barriers
  • Structural barriers

23
Processes
  • Beginning and end
  • Inputs and outputs
  • Set of transformational tasks
  • Cross functional boundaries
  • Metrics to assess performance
  • cycle time
  • throughput

24
Dell
  • Direct business model
  • Bypass the dealer channel
  • Inventory velocity
  • Technology navigator
  • Virtual integration

25
Dell
  • Partnerships and trust
  • Affiliation with the customer
  • Fast-cycle segmentation
  • Trading inventory for information
  • Using IT to stay close to the customer

26
Ford and Virtual Integration
  • Ford has attempted a Dell-like transformation
  • Radical business process redesign
  • It works for Dell will it work at Ford?
  • What are the similarities between the two
    businesses?
  • What are the differences between the supply
    chains at Dell and Ford?

27
Enterprise Resource Planning
  • SAP, PeopleSoft, etc.
  • A means to pull together scattered and fragmented
    IS
  • Modules for various operations activities
  • Manufacturing
  • Accounting
  • Human Resources
  • Sales

28
Enterprise Resource Planning
  • Require fundamental changes to business processes
  • If you have no processes in place, no biggie
  • If you do have existing processes, and they are a
    source of advantage, EIS are not appropriate
  • When you are out of time, its a canned package
    that works

29
Enterprise Resource Planning (ERP)
  • Cross-functional enterprise backbone that
    integrates automates internal business
    processes and IS
  • Helps companies gain enhance their efficiency,
    agility, responsiveness
  • Gives a company an integrated real-time view of
    its core business processes
  • ERP software suites typically consist of
    integrated modules
  • Manufacturing
  • Distribution
  • Sales
  • Accounting
  • Human Resource Management

30
Major Application Components of ERP
31
ERP Process and Information Flows
32
Costs of ERP
33
Supply Chain Management (SCM)
  • A cross-functional interenterprise system that
    uses IT to help support manage the links
    between some of a companys key business
    processes and those of its suppliers, customers,
    business partners.
  • Goal is to create a fast, efficient, low-cost
    network of business relationships.

34
IT Support of SCM
35
Synchronization
  • Having a hot-synch button
  • Three dimensions
  • Offerings
  • Technology
  • Organization

36
ERP and locus of control
  • Some cases used to push decision-making to lower
    levels
  • Some cases used to get control
  • What is the effect of advanced IT in
    organizations?
  • Liberating or constraining?
  • Autonomy or top-down control?

37
More isomorphism and globalization
  • Infrastructure
  • Standards
  • Legal systems
  • Systems
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