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Information Systems, Organisations and Management
Prof. Ciaran MurphyDepartment ofAccounting Finance and Information Systems
National University of Ireland, CorkIreland
Some Questions
• Who is Ciaran Murphy ???– Accountant, Consultant, Academic, DSS, Mgt Acc, BPR,etc
• What are we doing this week ???
• What will we learn??
• What is on the exam paper !!!
• What time is coffee ???
Organisations and Management in the 1990s
New Business Environment
• Fundamental Shifts in Management Thinking :
Drucker, Porter,Senge etc
• New Markets
• Increased Competition in existing markets
• Redefinition of sectoral interests
• Falling Barriers
• Corporate Restructuring
Shifts in Management Thinking
Author
Drucker
Porter
Senge
Handy
Title
Post Capitalist Society
The Competitive Advantage of Nations
The Fifth Discipline
The Empty Raincoat
Post Capitalist Society
“every few hundred years a sharp transformation
has taken place and greatly affected society - its
worldview, its basic values, its business and
economics and its social and political structure.”
The Knowledge Society
“ .... we are in the middle of another time of radical change , from the Age of Capitalism and the Nation-State to a Knowledge Society and a Society of Organisations.”
The primary Resource in the Post Capitalist Society will be knowledge and the leading
social groups will be Knowledge Workers.
The Competitive Advantage of Nations
“Why do some social groups, economic institutions and nations advance and prosper ?” (Porter1990)
JapanKorea
Progress and Change - The Empty Promise: Handy
“If economic progress means that we become
anonymous cogs in some great machine than
progress is an empty promise. The challenge must be
to show how paradox can be managed.”
We are not where we hoped to be !!
1/2 * 2* 3
There are limits to management
The Inevitability of paradox
“ .. we need a new way of thinking about our problems and our futures. The acceptance of paradox as a feature of our life is the first step towards living with it and managing it.”
New Markets
• Eastern Europe
• Former USSR
• China
• Pacific Rim
• Teen Agers
• Emerging Middle Classes
• Entertainment Games, Travel etc
• Service sector
• 24 Markets
• Global Brands Coke, Sony, etc
New Markets
Increased Competition in Existing Markets
• Airlines in Europe and north America
• Banking and Financial Services
• TV Cable, Computing etc
• Auto Industry Korea
• Crystal Eastern Europe
Redefinition of Sectoral InterestsRedefinition of Sectoral Interests
• Banks and Insurance
• Postal Services Royal Mail, La Poste
• Microsoft and Entertainment Industry
Falling Barriers to MarketsFalling Barriers to Markets
• 1970’s EEC Free Trade in a protected Environment
• 1990’s Three/Four Main Forces
• Expanded EU
• Pacific Rim - Asian Tigers
• China
• NAFTA
Corporate Restructuring
IBM At & T ICI Digital Iberia Mazda
Corporate Restructuring
Relocation
Acquisition
Merger
Downsizing
Hyperextension of Operations
Time Stresses
Discontinuities Political
Business
Economic
Social
Pressure for Change !!!
Competition Globalisation Deregulation Technology
Quality
Recession Learning World Class
Redefinition
ChangingRules
CoreCompetences
Alliances
MergersAcquisitions
Time
Customers
Forces for Change
Routes to Transformation !!!
Benchmarking TQM Empowerment Teams
OutSourcing
Delayering Groupware Matrix Management
BPR
Balanced Score Card
CoreCompetences IT
Investment
ABC EIS
Time
ISO 9000
Routes to Transformation
Organisational Decline
1/3 of 1970’s F0RTUNE 500 had vanished by 1983
The death rate is increasing
1/3 of today’s FORTUNE 500 will be gone in 10 years
year’s time
Environmental Complexity
Globalisation
Hyperextension of Operations
Time Stresses
Discontinuities Political
Business
Economic
Social
Business Restructuring Relocation
Acquisition
Merger
Downsizing
THE CHANGING ENTERPRISE
• Extended enterprise (EDI links)
• Total Quality Management
• Business Re-Engineering
• Enterprise Engineering
• Participative Management
• Empowered Workforce
• Massive automation
• Investment pressures to upgrade
technology and workforce
• Relentless technology innovation
• Massive growth in computer power
• Massive growth in network power
• Worldwide networks
• Worldwide corporations
• Computer-to-computer interaction among corporations, worldwide
• Robotic factories
• Instant money transfer
• Worldwide consumer demand
No-holds-barred competition among U.S., EC and Japan
Constant Change in Information Technologies
INFORMATION SYSTEMINFORMATION SYSTEM
INFORMATION INFORMATION
SYSTEMSYSTEM
BUSINESS BUSINESS
CHALLENGECHALLENGE
BUSINESS BUSINESS
SOLUTIONSSOLUTIONS
MANAGEMENTMANAGEMENT
INFORMATIONINFORMATION
TECHNOLOGYTECHNOLOGY
ORGANIZATIONORGANIZATION
MANAGEMENT, ORGANIZATION & MANAGEMENT, ORGANIZATION & TECHNOLOGY DIMENSIONSTECHNOLOGY DIMENSIONS
INFORMATION SYSTEMS & INTERNET INFORMATION SYSTEMS & INTERNET TRANSFORM ORGANIZATIONSTRANSFORM ORGANIZATIONS
PROCESS OF MANAGEMENTPROCESS OF MANAGEMENT
NEVER USE TECHNOLOGY FOR TECHNOLOGY’S SAKE
Improve competitiveness
Lower costs
Decrease cycle time
Delight the customer
Use technology to :
THE ROLE OF THE I.T ORGANISATION:A PARTNER IN ENTERPRISE REDESIGN
Business Evolution Information
Technology
RE-INVENTION OF ENTERPRISE
STRUCTURES
Fundamental Changes
in Technology
Changes inthe way we
work
A NEW INDUSTRIAL REVOLUTION
Time
We Are Here
Competitive Pressures are Rising Rapidly
• Changing Technologies• Automated factories
• Fast redesign of products
• Increasing rate of change
• Shorter windows of opportunity
• Pervasive information systems
• Growth of high-tech countries (like Japan)
• Growth of cheap-labour countries(Ex-USSR, India, China)
CHANGING MARKETPLACE
• Globalism
• Trading Blocks
-Pacific Rim -EC -NAFTA
CHANGING MARKETPLACE
• Deregulation
• More competitors ; lower margins
• Oversupply of products ; greater choice
• Increased customer expectations
The Mission of the I.T. Organisation
Make the enterprise as competitve/profitable/successful as possible
The I.T. Organisation :
An aggressive change agent
EVERYTHING IS SPEEDING UP
• Many new ways to attack competition
• They must be sized quickly
• Rapid design of products
• Shorter windows of opportunity
• Just in-time manufacturing
• Computer-to-computer interaction with suppliers, purchasers, customers, ets.
• Rapid adaptability, flexibility
FASTER PRODUCT DEVELOPMENT
Company Product 1980 Now
Honda Cars 5 Years 3 Years
AT & T Phones 2 Years 1 Years
Navistar Trucks 5 Years 2.5 Years
Hewlett-packard Printers 4.5 Years 22 Months
Time from Inception to delivery
SPEEDING UP
Successful corporations
move fast, change fast
The least successful organisation :
trapped in bureaucracy, unchangeable procedures
FASTER PRODUCTION
(from order to finished goods)
Company Product 1980 Now
GE Circuit breaker boxes 3 Weeks3 DayMotorola Pagers 3 Weeks2 HoursHewlett-Packard Electronic testers 4 Weeks5 DaysBrunswick Fishing reels 3 Weeks1 Week
“ It is speed that is the deciding factor in most competitve situations-
in identifying a new end use,
in getting products to the market,
in implementing new services,
in resolving problems that reduce waste
in responding to fashion trends,
in designing better processes,
in making effective organisational changes,
in controlling inventories and distribution ,and
in scenario simulations to optimise the machine/product mix.”
• Reduce inventories
• Just in-time inventory control
• Locate buying opportunities
• Shorten development cycle
Intercorporate Computing
Manufacturer Supplier
• Automatic re-ordering
• Catalogue look-up
• Customer can check order status
• Lock in customer
Intercorporate Computing
Selling Firm CustomerCorporation
AHS ASAP system
5000 customers on-line
“ ASAP was largely responsible for driving competitors like
A.S. Aloe & Will Ross Inc.from the national hospital supply
distrubution business”
Baxter could sell $5000/bed/hospital.
AHS could sell $12000/bed/hospital.
Baxter bought AHS.
INTERCORPORATE NETWORKING
CUSTOMER MANUFACTURER
SUPPLIER
SHIPPER
DISTRIB.
RETAILER
BANK
LESSONS FROM BENETTON
Systems geared to speed of changeWorldwide corporate transparency
Immediate knowledge of changes in demand
Everything integratedLow inventories; low capitalGrowth made possible by Many partnerships Many small manufacturers All on-line
Benetton
Shops
CentralDesign Ordering
of Material400Producers
DyeWorks
WarehouseManagement
Distribution
Central PlanningAds =3%of Sales
All shops on-line to central computer. Changes in demand, fashion, colour, immediately.
Robotic warehouses. Computerised logistics, worldwide.
Products in demand delivered immediately. Low inventory
Procurement controlled by central computer. Many small flexible subcontractors.
Factories on-line. CAD.CAM for cutting and sewingColour added at last possible minuteThe whole worldwide corporation is “transparent”.
Consolidated data and decision making.
Benetton
• Make airline bookings Travel agent
• Send electronic mail/fax Mail service
• Do banking from home Branch bank
• Analyse and buy stocks Stock broker
• Buy direct from factory Retailer/wholesaler
• Transmit music to home Music store
• Obtain sales info from store Market research
EMPLOY USER FACILITIES TO: BYPASS
BY PASS THE MIDDLEMAN
• Much faster
• Avoid the commision/fee
• Sometimes easier
• No translation & misunderstanding
• Highly flexible
Empower employeesSelf-directing teamsParticipative management
Empower employeesSelf-directing teamsParticipative management
All employees can improve the design of theirwork processes when challenged to.
KREMLIN MODEL
Traditional hierarchy
ASSUMPTIONS
• Knowledge resides with the people at the top
• People at the bottom of the
hierachy
• Orders must be passed
down hierarchically
KNOWLEDGE WORKER MODEL
• Most workers are knowledge workers
• KW’s use computerised knowledge.
• Elaborate DSS, expert systems, etc
• KW’s have excellent training• KW’s are specialists who direct their own
•Performance and take responsibility
• KW,s are highly motivated• Financial rewards are related to value added• Kw teams and workgroups
MULTICORPORATE NETWORK MODEL
• Computers in separate corporations are interlinked
• KW,s can access databases in their trading partners
• KW,s interact directly with KW,s in other enterprises
KNOWLEDGEWORKER NETWORK MODEL
• Any information can be accessed by any KW
• Information passes directly from the bottom to the top
• KW’s can interact worldwide
• A KW workgroup may be in different locations
• KW’s develop highly specialised skills which may be applied in remote locations
• Managers cannot tell specialists how to work
• KW’s share a common mission, goals, and critical success factors
• Corporate wide connectivity is critical (broadband)
TRADITIONAL HIERARCHICAL MODEL:
The soldier must not think
MODERN CORPORATION
All employees think
• Have powerful thought-aid tools• Contribute to improving the enterprise• Multiply the use of knowledge
The Old View
• Division of labour• Divide and simplify work• Lowest cost per worker• Workers do not think• There is one best way to
do work
The New View
• Empower workers• Enrich work• Highest value-added per worker• Workers make maximum use of
their intelligence
Old Management New Management
• Taylorism• Hierarchical• Management gives orders• Workers have little effect on
quality
• Minimise cost through
• A static enterprise
• KAIZEN• Participative• Self-managed teams• Quality is everyone’s job• Train and grow every employee• A learning enterprise
THE FUTURE CORPORATION
• Massive automation
• Integration of value-stream systems
• Computer-to-computer links to trading partners
• Information Engineering ()
• Repository-based RAD
• KAIZEN - capable I.T.
• Corporate wide Distributed Computing Environment
• A learning information infrastructure
TECHNOLOGY
• KAIZEN/TQM
• Empowered employees
• Maximum-value-added work
• Participative management
• Self-driving teams
• Knowledge worker - Network management
• Motivated by a common vision & mission
• A constantly learning enterprise
THE FUTURE CORPORATION
• Catalyst for change with technology
• Aggressive change agent
• Value-stream modeling
• Builder of Value-stream platform
• Fast implementation
• Technology architects
ROLE OF I.T. DEPT IN CHANGING ENTERPRISES
Key drivers of the New Business Environment
Productivity of Knowledge WorkersQualityResponsivenessGlobalisationOutsourcingPartneringSocial and environmental Responsibility
The New Enterprise
From Closed Hierarchy to the Open Networked Organisation
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The New EnterpriseThe New Enterprise
Structure Scope Resource Focus State Personnel/focus Key drivers Direction Basis of Action Individual Motivation Learning Basis forCompensation Relationships Employee attitude Dominant Requirements
StructureStructure
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From Hierarchial to Networked
ScopeScope
From Internal/Closed to external/open
Resource FocusResource Focus
Capital to Human, Information
State
Static and Stable to Dynamic and Changing
Personnel/focusPersonnel/focus
From Managers to professionals
Key driversKey drivers
Reward and Punishment to Commitment
?
Direction
Management Commands to Self management
Basis of Action
Control to Empowerment to Act
Individual MotivationIndividual Motivation
Satisfy Superiors to Achieve Team Goal
LearningLearning
From specific Skills to Broader Competencies
Basis for CompensationBasis for Compensation
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Position in Hierarchy Accomplishment
RelationshipsRelationships
Competitive versus Cooperative
Employee attitude
Detachment to Identification
Dominant RequirementsDominant Requirements
Leadership
The Promise
The High Performance Business Team
The Integrated Organisation
The Extended Enterprise
The Promise
The High Performance Team
The Integrated Organisation
The Extended Enterprise
The Business Team and the Open Networked Organisation
• A Transformation in the way business functions are executed and organisations are structured
• Shifting the Focus from Traditional Highlt Structured Hierarchial Organisation to the Business Team
• Cutting Across Traditional Organisational Boundries
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Removing Traditional Hierarchies
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Command and Control
Direction Setting and Coordination
The Open Networked Organisation
Based on Cooperative, Multidisciplinary Teams and Businesses Networked Togeather across the Enterprise
Client Server Functions
• Teams are Both Clients and Servers for Other Teams
• Knowledge Repositories
• Building Value Networks
Client Server Teams
Knowledge Repository
?
Value Networks
Supporters
• Drucker - Networked Organisations
• Moss Kanter - Dancing Elephants
• Keen - Relational Organisations
• Savage - Human Networking
• Peters - Life Without Hierarchy
Driving Forces
Increased Competition in existing marketsEnvironmental ComplexityGlobalisationExtension of Operations Competing in TimeEmpowermentProductivity of Knowledge WorkersQualityResponsivenessOutsourcingPartnering
Responsive Information Systems
Uncertain Fast Moving Decision Making Environment
Shorter Feedback Loops
Increased Volatility of Decision Making
Shorter Product
Life-Cycles
VolatileMarkets
GlobalCompetition
Recession
Driving Forces
WorkGroup Computing Support Teams Through Technology
• Information Exchange
• Document Creation
• Information Storage and Retrieval
• Decision Support: Analytical and Modelling Tools
• Time and Resource Management
• Educational Tools
The High Performance Team
The Integrated Organisation
The Extended Enterprise
The Promise
The Integrated Organisation
The Integrated Organisation
TechnologyPush
BusinessPull
The Integrated Organisation
PhysicalResources
HumanResources
Financial Resources
IntegratedInformation
Systems
The Integrated Organisation
Physical Resource Management
Process Control
Production Control & Robotics
MRP
Automated Warehouses
ATM’s etc
Human Resource Management
Financial Resource Management
Messaging Systems
DSS & EIS
Groupware
CAD / CAM
Accounting Information Systems
Marketing Information Systems
EFT
The Integrated Organisation
The Benefits of Organisational Transformation
• Increase Service to Customers
• New Business Opportunities
• Streamlining Business Practices
• Lower Unit Costs of Production
• Leveraging Experience from Different Areas
• Responsive Organisation
The High Performance Team
The Integrated Organisation
The Extended Enterprise
The Promise
The Extended Enterprise
Competitors
Suppliers
Customers
AffinityOrganisations
The Extended Enterprise
• Electronic Mail
• Electronic Data Interchange
• Groupware
• ATM’s
• Teleconferencing
• On Line Ordering
InterenterpriseComputing
IntegratedSystems
WorkgroupComputing
The High Performance Team
The Integrated Organisation
The Extended Enterprise
The Promise
InterenterpriseComputing
IntegratedSystems
WorkgroupComputing
The High Performance Team
The Integrated Organisation
The Extended Enterprise External
Relationships
OrganisationTransformation
BPR
The Promise
The reality - Organisational Pathologies
• Field HQ Tensions
• Leadership is Depersonalised
• Fragmented Understanding
• Inefficient Project Work and Team Work
• A Growing Subservence to Documents
• Middle Management Dilema
• Negative Value of Experience
Field Headquarters Tensions
• Remoteness of Corporate HQ’s
• Peer Competition
• Site V’s HQ Loyalty
• Pressure to Perform
• Income Smoothing
Leadership is Depersonalised
• Absence of Face to Face Contact
• Delays in Dissemination of Information
• Lack of Direct Communication
Fragmented Understanding
“In a long chain of paperwork stretched over time, people and geography, no single may have a complete picture of the system.”
Fragmented Understanding
Inefficient Project Work and Team Work
Distance, Time and Place
Lines of Communication are Stretched
Coordination Becomes Expensive and Complex
Travel Increases
A Growing Subservence to Documents
• Ritualisation of Documents
• Purchase oders, GRN’s,Invoives, Confirmations etc
• Organisational Slack
Middle Management Dilema
• Eroding Competitiveness
• Rigid Organisations
• Most to Lose from Loss of Status Quo
• “..Costs Walk and Wear a Suit.”
Negative Value of Experience
• Experience becomes a liability rather than an asset
• The Value of Experience rests on the Status Quo
• The more Things Change the Less Experience is Worth
• IROC’s
“The 1990’s is a Decade of paradigm Shifts in I.T.
Organisations which fail to master
these shifts will be unable to compete
Critical Shifts in the Application of IT
• From Personal Computing to Workgroup Computing
• From Systems Islands to integrated Systems
• From Internal to Inter Enterprise Computing
WorkGroup ComputingWorkGroup Computing
WorkGroup Computing Support Teams Through Technology
• Information Exchange
• Document Creation
• Information Storage and Retrieval
• Decision Support: Analytical and Modelling Tools
• Time and Resource Management
• Educational Tools
WorkGroup ComputingWorkGroup Computing
• Permit Electronic Communication
• Facilitate the Management of Common Information
• Used by Groups
WorkGroup Computing
• Administration
• Information Management
• Communications Management
• Realtime Meeting Facilitation
WorkGroup Computing - Guiding principles
• Connectivity
• Coordination
• Control
• Collaboration
• Change
WorkGroup Computing - Technology
• High Powered Desktop Computers
• Graphical User Interface
• Multimedia
• Remote Working
• WorkGroup LANS
• Mobile and Wireless Communications
WorkGroup Computing - Typical Objectives
Streamline Communications or Business processes
Eliminate unproductive activities in the business process
Improve Collaborative creation of work products such as documents, ,specifications, designs and code
Exercise more efficient division of labour strengthen Brainstorming, synergy Alert Group Members to important events Improve Decision Making
WorkGroup Computing - Barriers
• Change– Lack of Strategic vision
– Lack of Accountability
• Coordination– Separate units and island of competence have to give up
perceived independence
– People rooted in stand alone PC mode
• Collaboration– Threatens those with expert derived status
– Technical problems with H\W platforms
• Control– More effective control not always welcome
• Connectivity– Unlearning Traditional Approaches
– Technical Connectivity Problems
– Critical Mass
WorkGroup Computing - Barriers
WorkGroup Computing - Approaches to Implementation
• Downsizing but lack of resource to replace IT Infrastructure
• Change Possible in some areas but not all
• Radical Change from the Top
WorkGroup Computing - Barriers to Implementation
Range of ProductsLearning Curve and Financial Costs InvolvedLack of Data Integration Between ProductsThe PC, Group Computing and Enterprise
Computing Seperation
The Integrated Organisation
The Integrated Organisation
The Integrated Organisation
TechnologyPush
BusinessPull
The Integrated Organisation
PhysicalResources
HumanResources
Financial Resources
IntegratedInformation
Systems
The Integrated Organisation
Establishing New Service Levels for increased customer satisfaction
Creating new business opportunities through the extension of existing product and service offerings
Streamlining organisational proceduresLowering computing Costs through Common IT PlatformsLeveraging experienceMore Responsive organisation
Examples
• Federal Express
• Smith Klein Beecham
• Otis Elevator
• British Airways
• Price Waterhouse
The Integrated Organisation
Physical Resource Management
Process Control
Production Control & Robotics
MRP
Automated Warehouses
ATM’s etc
Human Resource Management
Financial Resource Management
Messaging Systems
DSS & EIS
Groupware
CAD / CAM
Accounting Information Systems
Marketing Information Systems
EFT
The Integrated Organisation
The Benefits of Organisational Transformation• Increase Service to Customers
• New Business Opportunities
• Streamlining Business Practices
• Lower Unit Costs of Production
• Leveraging Experience from Different Areas
• Responsive Organisation
The Extended Enterprise
Competitors
Suppliers
Customers
AffinityOrganisations
The Extended Enterprise - Examples
• Digital
• Auto Industry GM
• Supervalue
• AHS Baxter
• Benetton
The Extended Enterprise
• Electronic Mail
• Electronic Data Interchange
• Groupware
• ATM’s
• Teleconferencing
• On Line Ordering
The Extended Enterprise
• Reaching out to Customers
• Reaching out to Suppliers
• Reaching Out to Competitors
• Reaching out to Affinity Organisations
Emerging Technology Trends
• More Powerful Memory Chips
• Microprocessors
• RISC
• Client Server Computing
• Graphics User Interface GUI
• Mobile Communications
• CASE Tools
• OOP’s
• Parallelism
• Electronic Data Interchange
• Image processing
• Speech recognition
• Intelligent Documents
• Smart Cards
• Bar Scanners
Emerging Technology TrendsEmerging Technology Trends
Emerging Technology Trends
• Broadband Networks
• Video Conferencing
• TeleWorking
• Multimedia Computing
• Downsizing
• Broadband Networks
• Video Conferencing
• TeleWorking
• Multimedia Computing
• Downsizing
Client Server ComputingClient Server Computing
• GUI
• Extending PC Capability
• Lower Cost
• Sharing devices
• Sharing local databases
• Workgroup Environment
• Fast Flexible Development
Client Server
A Software Issue not a Hardware Issue !!!
Why Network Computing
• Operational Alignment
• Platform Specialisation
• Cost savings
• Integration
• Flexibility
• Innovation
Client Server
Four Waves of ComputingFour Waves of Computing
• The First Wave: Mainframes 1950’ 1960’s
• The second Wave: Minicomputers 1970’s
• The Third Wave: personal computers 1980’s
• The Fourth Wave: Client server systems
1990’s
• The First Wave: Mainframes 1950’ 1960’s
• The second Wave: Minicomputers 1970’s
• The Third Wave: personal computers 1980’s
• The Fourth Wave: Client server systems
1990’s
0
10
20
30
40
50
60
70
80
MAINFRAME LAN SERVER PC
Hardware Costs$k/MIPS
DOWNSIZING
BENEFITS DANGERS
Greater flexibility
Faster innovation
Bypass the I.T. backlog
Helps value-stream re-invention
Tower of Babel
Loss of control
Incompatible data
Redesigning The Organisation Through Information Technology
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Management Challenges of the 1990’s
• Extreme fragmentation of Industrial era Organisations
• Accountability in Flat Organisations
• Focussing and Coordination of Multiple Cross Functional Task Teams
• Continual Learning
The key Concepts
Connectivity
Interfacing
Integrating
Steep Hierarchies and Fox Hole Management (Savage)Steep Hierarchies and Fox Hole Management (Savage)
• The Division an Subdivision of Labour and self interest
• Pay for narrowly defined tasks
• Division and subdivision of management (Foxhole Management)
• Seperation of ownership and Management
• Seperation of thinking and Doing
• One person one Boss
• Automation
Difficulties in the New Organisations (Drucker)
Developing rewards,recognition and career opportunities for specialists
Creating a unified vision in an organisation of specialists
Management Structures for an organisation of Task forces
Ensuring the supply, preparation, and testing of top management
Networking will need to encompass hierarchiesNetworking will need to encompass hierarchies
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Computerisation Critical Issues with new Organisations
• Ownership of Information
• Managed information systems
• Hidden assumptions and levels of abstraction embedded in software applications
• Multiple applications with inconsistent definitions
• Social Norms about transmission of information
• The values and politics of the organisation
NetworkingNetworking
Peer to peer Networking
Integrative Processes
Work as dialogue
Human Time and Timing
Virtual task focusing teams
The Transition
• Industrial to knowledge Era
• From Routine to complexity
• From Sequential to Parallel
• Chain of Command to Networked and networking
• Command and Control to Focus and Coordination
• Authority of Position to Authority of Knowledge
• Vertical communications to Horizontal Communications
• Distrust and compliance to Trust and Integrity
Managing the Networked Organisation
• Develop Visioning Capabilities
• A data Integration strategy
• Functional Centres of Excellence
• a Technical Networking Infrastructure
• Identify and Track Multiple Task teams
• Develop Learning and Unlearning Capabilities
• Develop Norms ,Values and rewards to support task focussed teams
• Extend Task focussed teams to outsiders.
Management Decision Process for IT
Awareness
Business Vision
Compelling Business Message
No
No
No
Yes
Yes
Yes
Abdication
Delegation
Enlightened Delegation
Management Policy DrivesIT Planning
Awareness
Senior Management Acknowledges Links Between IT and Competitive Positioning
Management Decision Process for IT
Awareness
Business Vision
Compelling Business Message
No
No
No
Yes
Yes
Yes
Abdication
Delegation
Enlightened Delegation
Management Policy DrivesIT Planning
Business Vision
Senior Management has a clear business vision that sets the criteria and priorities for investing in IT
Management Decision Process for IT
Awareness
Business Vision
Compelling Business Message
No
No
No
Yes
Yes
Yes
Abdication
Delegation
Enlightened Delegation
Management Policy DrivesIT Planning
Compelling Business Message
Senior management Perceives a compelling business message for developing a corporate IT platform
Management Decision Process for IT
Awareness
Business Vision
Compelling Business Message
No
No
No
Yes
Yes
Yes
Abdication
Delegation
Enlightened Delegation
Management Policy DrivesIT Planning
The Reach and Range of the I.T. Platform
Anyone,Anywhere
Customers,Suppliers,with the same ITBase as Ours
Intercompanylocationsabroad
AcrossintercompanydomesticLocations
Within aSingleLocation
The Integrated ITPlatform for Integrated BusinessProcesses
Standard Access to Independant Multiple Cross LinkedMessages Stored data Transactions Transactions
REACH : Who is accessible ThroughOur IT Platform
RANGE: What Services CanWe Automatically andDirectly Share Acrossthe Platform
Organisational Complexity: Causes, Consequences and Solutions through IT
Environmental Complexity
Organisational Complexity
IT Countermeasures Organisational pathologies
Attack
Gives Rise to
Gives Rise to
Environmental Complexity
Globalisation
Hyperextension of Operations
Time Stresses
Discontinuities Political
Business
Economic
Social
Business Restructuring Relocation
Acquisition
Merger
Doensizing
Organisational Complexity: Causes, Consequences and Solutions through IT
Environmental Complexity
Organisational Complexity
IT Countermeasures Organisational pathologies
Attack
Gives Rise to
Gives Rise to
Organisational Complexity
More Managerial Layers
Elaboration of Procedures and Controls
Administrative Overhead
Relience on communications by paper and
reporting systems
Organisational Complexity: Causes, Consequences and Solutions through IT
Environmental Complexity
Organisational Complexity
IT Countermeasures Organisational pathologies
Attack
Gives Rise to
Gives Rise to
Organisational Pathologies
Field Headquarter Tensions
Depersonalisation of Management
Fragmented Understanding
Inefficent Project and team work
Subservience to Documents
Middle Management Dilemmas
Negitive Value of Experience
Organisational Complexity: Causes, Consequences and Solutions through IT
Environmental Complexity
Organisational Complexity
IT Countermeasures Organisational pathologies
Attack
Gives Rise to
Gives Rise to
IT CounterMeasures
• Re create organisational Simplicity
• Design structure and location independant organisations
• Facilitate the Collaborative Organisation
• Make it easier to communicate than not to do so
• Repersonalise Management
Environmental Complexity
Organisational Complexity
IT Countermeasures Organisational pathologies
Attack
Gives Rise to
Gives Rise to
Organisational Complexity: Causes, Consequences and Solutions through IT
Summary