IT and Network Organizations MIS Lecture 3

Transcription

1 IT and Network Organizations MIS Lecture 3 Prof. Dr. Elgar Fleisch 1

2 Agenda 0. Learning targets 1. Technology, division of labor, and networking 2. Bi Brief fhistory of management tinformation systems 3. Hybrid coordination 4. Enterprise network typologies 5. Internal networks 6. Stable networks 7. Revisit: Theory of non-contractible goods 8. Dynamic networks 9. The networked enterprise 10. Buy-make-sell framework 11. Citi Critical success factors in networking 2

3 0. Learning targets Understanding the nature and consequences of business networking 3

4 1. Division of labor, technology, and networking 4

5 New world order of the economy Old, Vertical Computer Industry New, Horizontal Computer Industry and Distribution Retailstores Superstores Dealers Mail orders Application Software Word Word Perfect etc. Operating System DOS/Windows OS/2 Mac UNIX Computer Dell Compaq HP IBM Chips Intel Motorola Risc IBM, Sperry, DEC, Wang Source: Prof. Dr. Roman Boutellier 5

6 2. Brief history of MIS phase 1 Phase 1 Phase 2 Phase 3 Phase 4 Computerization of individual functions (support of island functions such as invoicing) i i Computerization of functional areas (integrated functional areas, such as financial i accounting) Design of integrated processes (internally from customer to customer, such as e.g. order processing) Individual 1 : 1 integration of crossenterprise processes Customer Business unit / Enterprise Integration via computerization Function / process Output Network infrastructure Phase 5 Trust Transport Payment Consistent m : n integration of crossenterprise processes with the establishment of a networking infrastructure 6

7 Brief history of MIS phase 2 Phase 1 Phase 2 Phase 3 Phase 4 Computerization of individual functions (support of island functions such as invoicing) i i Computerization of functional areas (integrated functional areas, such as financial i accounting) Design of integrated processes (internally from customer to customer, such as e.g. order processing) Individual 1 : 1 integration of crossenterprise processes Customer Business unit / Enterprise Integration via computerization Function / process Output Network infrastructure Phase 5 Trust Transport Payment Consistent m : n integration of crossenterprise processes with the establishment of a networking infrastructure 7

8 still bio-mechanic 8

9 Brief history of MIS phase 3 Phase 1 Phase 2 Phase 3 Phase 4 Computerization of individual functions (support of island functions such as invoicing) i i Computerization of functional areas (integrated functional areas, such as financial i accounting) Design of integrated processes (internally from customer to customer, such as e.g. order processing) Individual 1 : 1 integration of crossenterprise processes Customer Business unit / Enterprise Integration via computerization Function / process Output Network infrastructure Phase 5 Trust Transport Payment Consistent m : n integration of crossenterprise processes with the establishment of a networking infrastructure 9

10 cross company Source: NZZ 10

11 Brief history of MIS phase 4 & 5 Phase 1 Phase 2 Phase 3 Phase 4 Computerization of individual functions (support of island functions such as invoicing) i i Computerization of functional areas (integrated functional areas, such as financial i accounting) Design of integrated processes (internally from customer to customer, such as e.g. order processing) Individual 1 : 1 integration of crossenterprise processes Customer Business unit / Enterprise Integration via computerization Function / process Output Network infrastructure Phase 5 Trust Transport Payment Consistent m : n integration of crossenterprise processes with the establishment of a networking infrastructure 11

12 3. Hybrid Coordination What is it? Why is it? 12

13 Source: Al lstyne, THE STATE OF NETWORK ORGANIZATION: A SURVEY IN THREE FRAMEWORKS 13

14 4. Enterprise network typologies Designer Producer Designer Producer Core Enterprise Broker Broker and Distribution and Distribution Internal Network Stable Network Dynamic Network Source: Snow, C., Miles, R., Coleman, H., Managing 21st Century Network Organization, in: Organizational Dynamics, Jg. 20, Nr. 3, S

15 Network types Attribute Internal Network Stable Network Dynamic Network Purpose Introduction of market Flexibility through Agility through principles in the partial outsourcing of massive outsourcing of company processes processes Vertical integration High - Ownership of production factors held centrally Transactions Long time frame High probability of repetition Medium - few participants dedicate their resources for a decentralized creation of value Long time frame High probability of repetition Low resources of many partner are allocated projectoriented by a broker Medium time frame Medium probability of repetition sustained, directly, m:n On request, with Communication sustained, via (vertical) sustained directly m:n On request with communication limited life time, channels, 1:n / n:1 directly, m:n Organizational principles Shared Service,, fractal organization Outsourcing, Supply Chain Management, Strategic alliances, Keiretsu Virtual companies 15

16 5. Internal networks Profit centers Shared services Divisional organizations Core competencies oriented organizations Business process oriented organization Fractal organization 16

17 Case example Zara Mobile and internet computing Assembling Cutting Headquarters Store Customer Store manager sends idea Designer come up with specs Design is scanned in Cutting and forwarding 2/3 of assembling within Spain many different workshops Highly automated cutting factory 200+ designers 924storesin31countries Results Quick turnaround: restocking worldwide twice a week Development from pattern to store: 2 weeks vs. 6 month Innovation rate: designs vs. 4 collections per year 17

18 6. Stable networks Attribute Literature Strategic Network Keiretsu Supply Chain Management Outsourcing as long-term, purposeful arrangements among distinct but related for-profit organizations that allow those firms in them to gain or sustain competitive advantage vis-à-vis their competitor outside the network In corporate culture, keiretsu refers to a uniquely Japanese form of corporate organization. A keiretsu is a grouping or family of affiliated companies that form a tight-knit alliance to work toward each other's mutual success. The keiretsu system is also based on an intimate partnership between government and businesses. It can best be understood as the intricate web of relationships that links banks, manufacturers, suppliers, and distributors with the Japanese government. they comprise one large company and then tiers out subcontractors. These hundreds, and sometimes thousands of subcontractors form a hierarchical pyramid with each tier passing work down to more subcontractors, as the keiretsu fans out and the companies get smaller and smaller. These are not subcontractors t in the Western sense of the word. They are committed to work for anyone else. a way of thinking that is devoted to discovering tools and techniques that provide for increased operational effectiveness and efficiency throughout the delivery channels that must be created internally and externally to support and supply existing corporate product and service offerings to customers. Outsourcing is defined as the procurement of products or services from sources that are external to the organization. Jarillo (1988) SearchSMB.com T. Kippenberg, Keiretsu A Very Japanese form of alliance, The Antidode Issue 7 (1997) A. Cox Business Success, Earlsgate Press (1997) W. M. Lankford, F. Parsa, Outsourcing: a Primer, Management Decisions (1999) 18

19 Case example Volvo Source: Lee et al. (1997) 19

20 Case example Baby Supply Source: Lee et al. (1997) 20

21 7. Revisit: Theory of non-contractible goods Case example Riverwood (1/2) 21

22 Case example Riverwood (2/2) RiverwoodPlanung Planung Planning Verkauf Verkauf Miller Planung Planung Beschaffung Planning Beschaffung Beschaffung Procurement 22

23 Case example Riverwood (2/2) m Computer Business : : : 1 : n Computer : Computer Business : Business 2 1 RiverwoodPlanung Planung Planning Verkauf Verkauf SCM-Center Riverwood Planning Execution Reduction of Order-to-Cash Cycle by 60 days Reduction of product inventory from 8 to 2,5 weeks Reduction of service costs by 50% Increased customer satisfaction Reduction of overhead costs from 30% to 20% of turnover Increased capital profitability Minor Customer 2 Minor Customer 1 Major Customer Planung 2 Miller Planung Planung Beschaffung Planning Beschaffung Beschaffung Procurement 23

24 8. Dynamic networks 24

25 Another Example The 4 bedroom house 25

26 Case example Vollbad 26

27 9. The networked enterprise 27

28 Diversity of network relationships 28

29 Managing networkability 29

30 Managing networkability 30

31 10. Buy-make-sell framework 31

32 11. Critial success factors 32

33 Reading material Fleisch, E., Österle, H.: A Process-oriented Approach to Business Networking, in: Electronic Journal of Organizational Virtualness, Jg. 2, 2000, Nr. 2, S