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Information ubiquity and organization. Conundrums and new capital
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INFORMATION UBIQUITY AND
ORGANIZATION
CONUNDRUMS AND NEW
CAPITAL
DAVID FORQUER
ASSISTANT DEAN
ROBINSON COLLEGE OF BUSINESS
GEORGIA STATE UNIVERSITY
TOPICS AND QUESTIONS
• The Impact of Inter and Intra Firm Information
Sharing Capacity on Value Creation
• Impact of Information Sharing on Customer
Loyalty
• Value Co-Creation and Customer Governance
• The Open Organization, Adaptive Capacity and
New Capital
• Q&A
AN ONGOING
DILEMMA
Strategy Structure ?
Structure Strategy ?
Information Flows Structure ?
Software Information Structure Strategy?
What is the Role of Information in Organization?
A SIMPLIFICATION
Strategy
Resources Information
Structure
Customers
and
Markets
AND CONUNDRUM
Strategy
Resources Information
Structure
Customers
and
Markets
Information, However
Disrupts Hierarchy
Has substitution and
complementary effects
Influences Internal and
External Market
Efficiency
Is an integral
part of most goods
and services
Cornerstone capability
For efficiency and
innovation
Case Study
Customer Loyalty
HOW MANY COMPANIES PURSUE
CUSTOMER LOYALTY?
Revenue
Growth
Customer
Retention
Customer
Profitability
WHAT DRIVES
LOYALTY?
Initial Product-Service
Quality
Ongoing Service Quality
Relationship Quality
Brand Awareness &
Equity
DO OUR INFORMATION FLOWS SUPPORT AN INTEGRATED APPROACH?
AND…
Not All Loyal Customers are Profitable
NOR…..
Are all Disloyal Customers Unprofitable!
Customer Loyalty & Referral
Initial Product- Service Quality
Ongoing Service Quality
Relationship Quality
Brand Awareness and Equity
Revenue
Growth
Reliability: Dependable and Accurate
Assurance: Inspire Trust
Tangibles: Appearance
Empathy: Caring Attitude
Responsiveness: Prompt Resolution
Strong Internal Organization
Service Quality
Service Quality Orientation Leadership High Levels of Productivity Employee Commitment
Not all loyal customers are profitable,
Disloyal customers can be profitable
All SQ outcomes are relative to competition;
Relative Competitive Position is a key driver of profitability and market share
Service Value
Key SQ Outcomes Customer
Requirements
Customer
Outcomes
The Service Profit Model
Customer
Retention
Customer
Profitability
Business Processes
Team/Unit Leadership
Service Orientation
Operational
Excellence
Brands
Ma
rke
ts
Customer Loyalty & Referral
Initial Product- Service Quality
Ongoing Service Quality
Relationship Quality
Brand Awareness and Equity
Revenue
Growth
Customer
Retention
Customer
Profitability
Business Processes
Team/Unit Leadership
Service Orientation
Operational
Excellence
Brands M
ark
ets
WHERE DO WE FOCUS, AND FAIL?
• What Defines a High Quality Relationship, and Good Customer Governance?
• What ‘Informational Steps’ Can you take to Promote One?
• Can You Achieve these Goals within the Boundaries of the Organization?
• How much of customer relationship quality relies on unstructured data?
At their very Heart, Good Customer Relationships and Customer
Governance Require a Clear Understanding of How Your Product
or Service Helps Your Customer Create Value for Their Customers.
We are Drawn into their Value System.
This Reality makes Value Co-Creation a Requirement.
Relationships are DYNAMIC.
IT Resources are Critical to Inter Firm Coordination and
Cooperation and Intra Firm IT Effectiveness
A CONTINUOUS RENEWAL OF VALUE CO-
CREATION REQUIRES BOTH….
Efficiency,
Effectiveness Innovation
Source: Arun Rai
IT-ENABLED PROCESS CAPABILITIES FOR
COORDINATION
Rai, Patnayakuni, Patnayakuni, MIS Quarterly, 2006;
Rai and Tang, Information Systems Research, 2010
X X
Integrated/Reconfigurable B2B IT Resources
X
Lo
we
r
Sw
itch
ing
Co
sts
Lo
we
r
Co
ord
ina
tion
Co
sts
Source: Arun Rai
DISRUPTIVE TECHNOLOGIES
REDEFINING COORDINATION
16 Source: Rai
IT CAPABILITIES: INTELLIGENCE X PROCESS
• Multi-channel coordination
• Womb-to-tomb processes
• Visibility at varying levels
Synchronized Processes
• Alerts
• Business rules
Real-time Business
Intelligence
• Data transfer standards
• Partner interface processes (PIPs)
• Service oriented architectures
Reconfigurable
Processes
• Data mining
• Process mining
Reflective Business
Intelligence
Inte
llig
en
t
Inte
gra
tio
n f
or
Eff
icie
ncy
Inte
llig
en
t
Rec
on
fig
ura
tio
n f
or
Inn
ov
ati
on
Source: Rai
ORCHESTRATING ECOSYSTEMS
Value Creation
Efficiency
Novelty
Complementarities
Value Appropriation
Bundling
Lock-in
Barriers to Imitation
Rai & Tang, IT-Enabled Business Models, Information Systems Research, in press
X
DIFFERENCES IN LEARNING
REQUIREMENTS
Nature of Interfirm Collaboration Objectives
Business Opportunity
Goal Orientation Risk Scope
Learning
Orientation New Existing
Short Term
Long Term
High Low End-to-
End Narrow
Efficiency
Innovation
Dual
Im and Rai, Management Science, 2008
Rai, Im and Hornyak, MISQ Executive, 2010
N = 238 buyer-supplier logistics relationships
CONSEQUENCES OF LEARNING ORIENTATION
The dual segment—where IT is used for both learning about
efficiency and innovation—outperforms the other segments on all
performance parameters Im and Rai, Management Science 2008
Rai, Im and Hornyak, MISQE, 2010
3.50
4.50
5.50Operational cost
Revenue
Service qualityOrder fulfillment
New products
Dual EfficiencyInnovation Mkt. Exchg
IS THIS ENOUGH?
ADAPTIVE CAPACITY IS A
CRITICAL IT ENABLED RESOURCE