Knowledge Driven Service Innovation and Management:

Transcription

1 Knowledge Driven Service Innovation and Management: IT Strategies for Business Alignment and Value Creation Eng K. Chew University of Technology Sydney, Australia Petter Gottschalk Bl Norwegian School of Management, Norway SCIENCE

2 Table of Contents Foreword by John R. Edwards Foreword by Ronald Cheung Preface Acknowledgment ix xi xii liv Section 1 What are the Basic Theories and Interrelationships of Strategy, Knowledge Organization, and Service? Chapter 1 \ Theories and Models of Service-Oriented Firms ). 1 Introduction i 1 Resource-Based Theory of the Firm 2, Knowledge-Based Theory of the Firm 5 Activity-Based Theory of the Firm 7 Value Configuration of the Firm 9 Comparison of Value Configurations 13 Business Model of the Firm 14 E-Business Models 18 Appropriate E-Business Models for E-Strategies 26 Summary 30 Chapter 2 Strategy, Process, Organization, and Systems 35 Introduction 35 Basic Principles of Strategy 36 Corporate Strategy 38 Strategic Management 39 Resource-Based Strategy 42 Capabilities-Based Strategy 45 Activity-Based Strategy 47

3 Strategic Planning 48 Business Strategy Analysis 50 Measurement of Competitive Strategy 62 Strategy Execution by Strategy Map 65 Organization as an Activity System 69 Analyzing Needs for Change: The Strategic System 70 E-Strategy for E-Service 71 Ethics in IT 77 Summary 78 Chapter 3 Knowledge Organizations and Dynamic Organizational Capabilities 84 Introduction 84 Knowledge Organization Defined 85 Business Intelligence for Knowledge 88 Stages of Growth in Knowledge Organizations 91 Organizational Knowledge Resources 93 Core Competence and Capabilities 96 Entrepreneurship for Organizational Capabilities 97 ACase of Dynamic Capabilities into Action 98 Knowledge Intensive Business Services 100 Summary 101 Chapter 4 Service Principles, Design, and Strategies 106 Introduction 106 Service-Dominant Logic 109 IT-Enabled Adaptive Value Network 111 Service Systems 113 Operant Resources 115 Customer Value Co-Creation 116 Service Concept 117 Service Design 118 Customer Experience Design 125 Service Architecture 126 Service Strategies 128 Summary 132 Section 2 How to Manage Strategic Business-IT Alignment, Program Portfolio Planning, and Execution to Deliver on the Service Customer Value Propositions Chapter 5 Strategic Alignment and IT-Enabled Value Creation 141 Introduction 141 Strategic Alignment toward Customer Value Co-Creation 142

4 Strategic Alignment Principles 145 IT-Enabled Value Creation 157 Method 1: Benefits of IS/IT 159 Method 2: Stages of IS/IT Growth 161 Method 3: IS/IT in Management Activities 162 Method 4: IS/IT in Business Processes 164 Method 5: IS/IT Support for Value Configuration 167 Method 6: Strategic Integration 168 Method 7: IS/IT Support for Knowledge Management 172 Method 8: IS/IT in E-Business 173 Method 9: IS/IT-Enabled Business Transformation 176 Summary 180 Chapter 6 Critical Success Factors of IT Strategy 185 Introduction 185 IT and Business as One 186 Acting as One Behayiorally 187 Acting as One Organizationally 189 Overview of the Critical Success Factors 190 Strategy Direction Setting Alignment 192 Strategic Planning Alignment 194 Case Example: Banking, 201 Strategy Execution Alignment 202 Case Example: Banking 204 Project, Program, and Portfolio for Strategy Implementation 204. Monitoring Business Outcomes against Strategic Objectives 207 Case Example: Retail 210, Recommendations 212 Global IT Strategy and Management 213 Summary '. 215 Chapter 7 Enterprise Processes and Architectures for Customer Value Creation 221 Introduction 221 Business Processes 222 Business Process Management Lifecycle 225 Business Process Management Maturity 229 Process Orientation 230 Enterprise Architecture 237 Summary 249 Chapter 8 Strategic Programs: Planning and Execution 255 Introduction 255 Cassidy Strategic Planning Model 256 Spewak Enterprise Architecture Planning (Eap) Methodology 258

5 Enterprise Architecture Driven IT Strategic Plan 264 Making the Plan 265 IT Strategy Document 267 IT Project Portfolio Management 269 Product/Service Portfolio Management 275 Summary 277 Chapter 9 Strategic Alignment and Service Systems Case Examples 281 Introduction 281 Strategic Alignment Via Strategy Map: A Biopharmaceutical Company Case Example 281 Strategy Alignment Using Strategy Map: A Utility Company Case Example 284 CLP Group Vision/Mission 285 Strategic Positioning 285 CLP Group Strategy 286 CLP IT Strategy 286 CLP Strategy Map 286 CLP Financial Perspective 287 CLP Customer Perspective 288 CLP Internal Perspective (Core Processes) 288 CLP Learning and Growth Perspective 290 Service Systems: A Business-to-Business IT Services Case Example 293 Summary 296 Section 3 How to Lead, Govern, and Source IT to Maximize Service Customer Value Creation Chapter 10 Outsourcing of IT Resources: Basic Principles 299 Introduction : 299 Capabilities and Knowledge as Strategic Resources 300 Characteristics of Strategic Resources 301 Strategic IT Resources 304 Outsourcing Definitions 307 IT Organizational Principles to Facilitate Outsourcing 309 Outsourcing Opportunities 311 Outsourcing Threats 313 IT Sourcing Options 318 Summary 320 Chapter 11 Sourcing Strategies and Theories 325 Introduction 325 Distinctive Nature of IT Sourcing 325 Sourcing Alternatives 326

6 Four Sourcing Categories 327 IT Outsourcing Decisions 334 Outsourcing Performance 336 Transformational Outsourcing 337 Global or Offshore Outsourcing 339 Dimensions of IT Outsourcing Strategy 346 Sourcing Theories 348 Service-Dominant Logic Model of Outsourcing Service 356 Case Examples: Sourcing Strategies 360 Summary 361 Chapter 12 The CIO Enabling IT and Service Governance 369 Introduction 369 What is IT Governance? 370 Corporate Governance 372 Contracts in Governance 372 Governance and Management Roles 377 Why is IT Governance Important? 377 Service Governance 379 The Outsourcing Governance Model 382 How to Succeed as a Client 385 How to Succeed as a Vendor 385 CIO Leadership and IT Governance 385 The CIO Position 387 Hybrid Manager 392 Roles and Responsibilities 393 CIO Leadership Behavior 394 The New CIO Leader 401 TheCEO-CIO Relationship 404 Summary 405 Section 4 How to Innovate to Co-Create Unique Customer Value to Win the Service Game Chapter 13 Business Innovation and Information Management 411 Introduction 411 Business Innovation Types 412 Characteristics and Scale of Innovation 418 Value of IT: Levels of Business Transformation Capabilities 421 Information Capabilities for Innovation 425 IT-Driven Business Innovation 430 IT Value in Disruptive Innovations 430 Innovative IT Management 432

7 Conditions for Innovation 433 Drivers of Innovation 435 Innovation Process and Infrastructure 436 Open Innovation 439 New Age of Business Innovation 440 Innovation Management Measurement 441 Summary 443 Chapter 14 Service Innovation and Management 448 Introduction 448 Service Innovation: Basic Principles 449 Service Innovation: Conceptual Models 450 Knowledge Intensive Business Services 453 Service Innovation Typology 455 Sources and Determinants of Service Innovation 460 Service Innovation Process 462 New Service Development 464 Service Engineering 467 Customer Participation 469 Community-Based Innovation 475 Service Strategy and Innovation Management 477 Service Lifecycle Management 478 Dynamic Capabilities and Service Innovation: Case Study Examples 479 Next Steps in Service Science Research 483 Summary 485 Chapter 15 Innovation Driven Knowledge Management 494 Introduction 494 The Knowledge-Strategy Link '. 495 Approaches to Knowledge Management 496 The Strategic School 507 Chief Knowledge Officer 514 IS/IT in Knowledge Management -^j5j8 Knowledge Management Processes 520 Case Example: Product Innovation Knowledge Management Strategy Implementation 525 Summary 526 Compilation of References 531 About the Authors 558 Index 559