Strategic Thinking:Technological Trends

The University of San FranciscoCollege of Professional Studies

pmcdermott@msn.com

Copyright © 2007 Patrick McDermott

Anderson, David, Managing Information Systems: Using Cases within an Industry Context to Solve Business Problems with Information Technology, Upper Saddle River, New Jersey: Prentice Hall (0-201-61176-7), 2000, pp. 1-2.

Organizations Have Changed• Technology is rapidly changing what we do

in society, in business, and at work• Specific skill sets are rewarded rather than

broad knowledge about a subject area• In technology, these skills can be

measured and defined• The goal is to identify those areas where

these skills can be specifically applied

“Technology has resulted in the identification and implementation of a number of trends. Understanding the role that these trends play in the industry is important. Recognizing them can assist you in your endeavors to position yourself for career growth and expansion.”

Standardization

• Jobs similar, routine, and interchangeable • Economies saved because the

components of the job are the same• Example: The rule set that McDonald’s

applies to all of its tasks– From making fries to ordering and tracking the

inventory

“By measuring everything from hours worked to wasted fries, McDonald’s’ management information system enforces the rule set required for standardization.”

Leverage

• Move the responsibility for all tasks to the lowest possible level– Army: “Man on the Ground”

• Tasks carefully evaluated and assigned based on the ability required

• Example: The managerial structure in major consulting firms

“The role and budgetary requirements of the partner, manager, senior, and staff levels force tasks to be accomplished at the level that most closely matches the required expertise. Using technology to direct the billing structure ensures that tasks are accomplished with this approach in mind.”

Mass Customization• The focus of all products and services on

a specific customer• Market products not just to specific market

segments, but to specific individuals• Example: Grocery store coupons

specifically printed based on products bought

• Example: A specifically focused mailing from a store based on previous purchases on credit or buyer’s card

Amazon.com Pages

Franchise• Organization into small central office with many

autonomous, but identically structured units• Strict guidelines in terms of cost and output for

each location• Information reported to headquarters in a

structured format• Reduces the need for layers of middle

management to evaluate and interpret the information from regional offices

• Examples: Most evident in the fast-food industry

“Franchising has made possible the proliferation of identical restaurants with identical products around the world.”

Methodology• Clear directives to use in the management

process• Step-by-step, almost cookbook-like approach

that anyone with a minimum set of skills can pick up and use to deliver a product

• Technology enables this methodology to be available across an organization

• In strategic firms, the methodology defines and reinforces the overall approach used to manage the business

• Example: Systems Development CMM

“Following the methodology provides the programmers with clear directives on what the next steps are, the deliverables from each step, and what to do at each step of the process.”

Modularization• Construct product using sections of code, rather than at

the most granular level• Object orientation enables modules to be constructed

and applied– If inputs and outputs are standard, objects can be encapsulated

& addressed in the same way• Example: the ability of Word, Excel, Access &

PowerPoint to fit together in Microsoft Office suite• Using the concept of modules, users can apply the

components of the suite to their individual needs• Example: On the World Wide Web, plug-ins inserting a

module into your web application

“It is much faster and more straightforward to put objects or modules together than to work with individual lines of code.”

Liquid Assets• Reduce costs by reducing reliance on fixed

assets by using liquid assets instead• Changing costs from fixed to variable enables

an organization to more directly link the individual costs of an item to an expenditure– Thus, costs can be broken down and only incurred

when they are needed rather than purchased as part of a larger package

• Example: Lease rather than purchase of fleet cars and office space.

• Example: Outsourcing of human resources or even technology departments– Like a marriage: need to divorce

Client/Servers

• Provides for the decentralization of the technology tools

• Data can be stored at the enterprise-wide, group, and individual levels

• Diversifying the data and the technology enables information to be stored throughout the organization– Rather than concentrated in a single place

“Applying a client/server approach enables the technology, applications, and data to be stored and accessed efficiently at the local level while being maintained across the organization.”

Knowledge-Driven Workers• Constantly reassembled to lend expertise to a

project not restricted to working in a hierarchy• Constant reassembly keeps workers fresh and

focused• They must clearly understand that sharpness of

expertise keeps them employed and focused– Rather their longevity in the organization

• Example: persons are organized into teams to accomplish specific project objectives

“Set with a clear beginning and end, the project is organized to accomplish specific objectives using a cross-section of knowledge-driven skills.”

Technology Change Drivers

• The technology innovations that enable technology to be implemented in the organization– Point-of-Purchase displays– Scanning devices– ATM machines– Voice-activated data entry

• “The change drivers are the tools that propel the implementation of technology to the next stage.”