MIS 495 IT and Organization

1
MIS 495IT and Organization

• Dr. Steve Ross
• Winter 2008

Based on Chapter 2 of Applegate, Austin, and
McFarlan, Corporate Information Strategy and
Management, 7th ed., 2007.
2
New Business Models

• As they attempt to build lean yet agile
  businesses, executives must understand how
  organizational and design choices influence
  operational efficiency and flexibility and how
  to best align the organization with the
  environment and the strategy chosen to sense and
  respond to opportunities and threats. (p. 58)

3
Role of IT

• The insights from research suggest that IT is
  an important enabler for developing the
  best-in-class capabilities required for success.
  (p. 58)

4
What is the Problem?

• New economy requires
• Customized solutions
• Capabilities and expertise that cannot be
  inside the organization
• Diffuse and fluid business networks
• But organizations cannot
• Sacrifice efficiency for speed
• Abandon authority and control for empowerment

5
Business on Demand

• IBM term
• An on-demand enterprise unites information,
  processes, and people to create an enterprise in
  which end-to-end processes are integrated across
  a company, an industry, and globally to enable it
  to respond with speed and flexibility to any
  customer demand, market opportunity, or external
  threat. (quoted on p. 61)

6
Technology is not Enough

• Speed counts, but not at the expense of control.
• Empowerment is not anarchy.
• Transforming an organization requires more than
  just changing the structure.

7
Organizing for Innovation and Execution

• Lessons learned from failures
• Must redesign entire process end-to-end
• Must ensure that area redesigned is realigned
  with remainder of organization
• Change two types of process
• Operating process
• Design, produce, market, deliver, support
• Management process
• Strategic direction, control and coordinate ops

8
Organizing for Accountability and Collaboration

• Authority structures
• Formal and informal
• Coordinating mechanisms
• Responsibilities
• Incentives
• You can delegate authority but not
  responsibility.

9
Summary

• a new organizational model is emerging that
  harnesses the power of todays technologies in
  the hands of a more knowledgeable workforce to
  create networks of organizations that can act big
  and small at the same time. (p. 77)

10
Key Activities

• Identify key activities and decisions
• Have or acquire necessary resources
• Identify internal and external activities and
  decisions
• Group people and partners into teams
• Provide direction, resources, support, and
  incentives to teams

11
Key Activities (contd)

• Implement coordination and control structures
• Develop systems for information communication and
  response
• Develop, organize, and leverage creativity and
  potential of people and partners
• Create culture of shared values, behaviors, and
  purpose