Title: MBA 669 Special Topics: IT-enabled organizational Forms
1MBA 669Special Topics IT-enabled
organizational Forms
- Dave Salisbury
- salisbury_at_udayton.edu (email)
- http//www.davesalisbury.com/ (web site)
2This 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?
3Strategic 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
4Information Resource Advantages
- What makes it valuable?
- Who gets the value?
- Is it equally distributed?
- Is it mobile?
- How quickly does it depreciate?
5Sustainable Competitive Advantage
- The Environment
- What happens out there
- Foundation Factors
- Something unique to leverage
- Action Strategy
- What you do with the situation
6Intra-Organizational Coordination
- Vertical Control
- Flattening hierarchy
- Technology control replaces human management
- Horizontal Control
- Electronic workflow
- Concurrent engineering
- Stockless production
- Virtual organization
7Intra-Organizational Coordination
- Organization and unit size
- Reduction in size
- Not vertical integration, but virtual integration
- Outsourcing
- Coupling
- Spin-off entrepreneurial
- Federation
8Intra-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)
9Inter-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
10Supply Chain Management
- Network of facilities and distribution options
- Procurement
- Transformation
- Distribution
- IT is obviously heavily involved
11Supply 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
12IT Support of SCM
13Customer 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)
14Major CRM Application Components
15Three Phases of CRM
16Customer Relationship Management
17Customer 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.
18Customer 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
19Customer Resource Life Cycle
- Establish Requirements
- Specify
- Select Source
- Order
- Authorize/Pay for
- Acquire
- Test and Accept
- Integrate
- Monitor
- Upgrade
- Maintain
- Transfer/Dispose
- Account for
20Processes v. Functions
- Functions
- Marketing, Finance, etc.
- Processes
- Things that get done
- Tend to cross functional barriers
21IT Business Processes
- IT as an enabler of change
- Reengineering
- Total quality management
- Cross functional and cross-organizational
integration
22Breaking Business Barriers
- Time barriers
- Geographic barriers
- Cost barriers
- Structural barriers
23Processes
- Beginning and end
- Inputs and outputs
- Set of transformational tasks
- Cross functional boundaries
- Metrics to assess performance
- cycle time
- throughput
24Dell
- Direct business model
- Bypass the dealer channel
- Inventory velocity
- Technology navigator
- Virtual integration
25Dell
- Partnerships and trust
- Affiliation with the customer
- Fast-cycle segmentation
- Trading inventory for information
- Using IT to stay close to the customer
26Ford 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?
27Enterprise Resource Planning
- SAP, PeopleSoft, etc.
- A means to pull together scattered and fragmented
IS - Modules for various operations activities
- Manufacturing
- Accounting
- Human Resources
- Sales
28Enterprise 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
29Enterprise 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
30Major Application Components of ERP
31ERP Process and Information Flows
32Costs of ERP
33Supply 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.
34IT Support of SCM
35Synchronization
- Having a hot-synch button
- Three dimensions
- Offerings
- Technology
- Organization
36ERP 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?
37More isomorphism and globalization
- Infrastructure
- Standards
- Legal systems
- Systems