strategy and ict
TRANSCRIPT
-
7/28/2019 Strategy and Ict
1/65
Strategy and ICT
-
7/28/2019 Strategy and Ict
2/65
ICT
acceptance
ICT and Strategy
Competition and strategy
Competitive advantage
Companies as drivers of change
Transaction costs, value chain
The Information Society
The New Capitalism
-
7/28/2019 Strategy and Ict
3/65
So far Developments in society
Developments in economy
Companies as drivers of change
The existence/size/limits of companies:
- Transaction costs
- Value chain
-
7/28/2019 Strategy and Ict
4/65
To do
Explain the form of companies
Explain the conduct of companies
-
7/28/2019 Strategy and Ict
5/65
Company structure (Morgan and Mintzberg)
-
7/28/2019 Strategy and Ict
6/65
Basic Concepts
Organizational Structure: The formal
configuration between individuals and groups
with respect to the allocation of tasks,responsibilities, and authorities within
organizations.
Organizational Chart: A diagram representing
the connections between the variousdepartments within an organization: a graphic
representation of organizational design.
-
7/28/2019 Strategy and Ict
7/65
Sample Organizational Chart
-
7/28/2019 Strategy and Ict
8/65
Structure Concepts I
Hierarchy of Authority: A configuration of thereporting relationships within organizations; thatis, who reports to whom.
Division of Labor: The process of dividing themany tasks performed within an organizationinto specialized jobs.
Span of Control: The number of subordinatesin an organization who are supervised by anindividual manager.
-
7/28/2019 Strategy and Ict
9/65
Modern Trends: Delayering
As todays organizations restructure, the middle layers oforganizational hierarchies tend to get removed. The result is aflatter organizational structure, which puts managers closer to
the issues about which they have to make decisions.
-
7/28/2019 Strategy and Ict
10/65
Division of Labor
-
7/28/2019 Strategy and Ict
11/65
Tall vs. Flat Organizations
-
7/28/2019 Strategy and Ict
12/65
Structure Concepts II
Line Positions: Positions in organizations in which peoplecan make decisions related to doing its basic work.
Staff Positions: Positions in organizations in which people
make recommendations to others but who are notthemselves involved in making decisions concerning theorganizations day-to-day operations.
Decentralization: The extent to which authority anddecision making are spread throughout all levels of an
organization rather than being reserved exclusively for topmanagement (centralization).
-
7/28/2019 Strategy and Ict
13/65
Decentralization
-
7/28/2019 Strategy and Ict
14/65
Departmentalization
The process of breaking up organizations intocoherent units.
Functional Organization: The type of
departmentalization based on the activities orfunctions performed (e.g., sales, finance).
Product Organization: The type ofdepartmentalization based on the products (orproduct lines) produced.
Matrix Organization: The type ofdepartmentalization in which a product orproject form is superimposed on a functionalform.
-
7/28/2019 Strategy and Ict
15/65
Functional Organization
-
7/28/2019 Strategy and Ict
16/65
Product Organization
-
7/28/2019 Strategy and Ict
17/65
Matrix Organization
-
7/28/2019 Strategy and Ict
18/65
Organizational Design
The process of coordinating thestructural elements of an organization in
the most appropriate manner.Approaches include
Classical and Neoclassical Approaches The Contingency Approach
Mintzbergs Framework The Boundaryless Organization
-
7/28/2019 Strategy and Ict
19/65
Classical vs. Neoclassical Theory
Classical Organizational Theory: The approach thatassumes that there is a single best way to designorganizations. This approach assumes that managers need to have close
controlover their subordinates and calls for designingorganizations with tall hierarchies and a narrow span ofcontrol.
Neoclassical Organizational Theory: An attempt toimprove on the classical organizational theory that arguesthat not only economic effectiveness, but also employeesatisfaction, should be goals of an industrial organization. This approach assumes that managers do not have to
carefully monitor their subordinates and calls for designingorganizations with flat hierarchies and a wide span ofcontrol.
-
7/28/2019 Strategy and Ict
20/65
Classical vs. Neoclassical Theory
-
7/28/2019 Strategy and Ict
21/65
Typology (Morgan)
Machines
Organism
Brains
Culture
Political systems
Psychic prisons
Flux & transformation
Instruments of domination
-
7/28/2019 Strategy and Ict
22/65
The machine
Bureaucracy
Functional specialisation
Scientific management (Taylor)
-
7/28/2019 Strategy and Ict
23/65
The organism
Adjust to environment
Organisation as an open system
Mintzberg
-
7/28/2019 Strategy and Ict
24/65
Henry Mintzberg
-
7/28/2019 Strategy and Ict
25/65
Mintzbergs Framework
Mintzberg claims that
organizations are
composed of five basic
elements, or groups of
individuals, any of which
may predominate in an
organization.
The element thatpredominates will determine
the most effective design in
that situation.
-
7/28/2019 Strategy and Ict
26/65
Mintzberg: Five Basic Elements
Operating Core: Employees who perform the basic workrelated to an organizations product or service.
Strategic Apex: Top-level executives responsible forrunning an entire organization.
Middle Line: Managers who transfer information betweenhigher and lower levels of the organizational hierarchy.
Technostructure: Organizational specialists responsiblefor standardizing various aspects of an organizationsactivities.
Support Staff: Individuals who provide indirect supportservices to an organization.
-
7/28/2019 Strategy and Ict
27/65
Five parts of an organisation
1. Strategic apex
2. Middle line
3. Support staff
4. Technostructure
5. Operating core
Illustrations borrowed from
presentations of Bolman and
Deal (Wiley Interscience)
-
7/28/2019 Strategy and Ict
28/65
Coordination
Mutual adjustment
Direct supervision
Standardisation of work processes
Standardisation of work outputs
Standardisation of skills
Standardisation of norms
-
7/28/2019 Strategy and Ict
29/65
Mintzberg: Organizational Designs I
Simple Structure: An organization characterized asbeing small and informal, with a single powerfulindividual, often the founding entrepreneur, who is in
charge of everything.Machine Bureaucracy: An organizational form in whichwork is highly specialized, decision making isconcentrated at the top, and the work environment isnot prone to change (e.g., a government office).
Professional Bureaucracy: Organizations (e.g.,hospitals and universities) in which there are lots ofrules to follow, but employees are highly skilled and freeto make decisions on their own.
-
7/28/2019 Strategy and Ict
30/65
Mintzberg: Organizational Designs II
Divisional Structure: The form used by many large
organizations, in which separate autonomous units are
created to deal with entire product lines, freeing top
management to focus on large-scale, strategic decisions.Adhocracy: A highly informal, organic organization in
which specialists work in teams, coordinating with each
other on various projects (e.g., many software
development companies).
-
7/28/2019 Strategy and Ict
31/65
Simple structure
-
7/28/2019 Strategy and Ict
32/65
Machine bureaucracy
-
7/28/2019 Strategy and Ict
33/65
Professional bureaucracy
-
7/28/2019 Strategy and Ict
34/65
Divisional form
-
7/28/2019 Strategy and Ict
35/65
Adhocracy
-
7/28/2019 Strategy and Ict
36/65
Mintzberg: A Summary
-
7/28/2019 Strategy and Ict
37/65
Boundaryless Organization
An organization in which chains of command areeliminated, spans of control are unlimited, and rigiddepartments give way to empowered teams.
Modular Organization: An organization thatsurrounds itself by a network of other organizationsto which it regularly outsources noncore functions.
Virtual Organization: A highly flexible, temporaryorganization formed by a group of companies that
join forces to exploit a specific opportunity.Affiliate Networks: Satellite organizations affiliatedwith core companies that have helped themdevelop.
-
7/28/2019 Strategy and Ict
38/65
Boundaryless Organization
-
7/28/2019 Strategy and Ict
39/65
Modular Organization
-
7/28/2019 Strategy and Ict
40/65
Virtual Organization
-
7/28/2019 Strategy and Ict
41/65
Strategic Alliances
Mutual Service Consortia: A type of strategic alliance inwhich two similar companies from the same or similarindustries pool their resources to receive a benefit that
would be too difficult or expensive for either to obtainalone.
Value-Chain Partnerships: Strategic alliances betweencompanies in different industries that havecomplementary capabilities.
Joint Ventures: Strategic alliances in which severalcompanies work together to fulfill opportunities thatrequire the capabilities of one another.
-
7/28/2019 Strategy and Ict
42/65
Back to Morgan: Brains
Self learning system
Cybernetics
Negative feed back
-
7/28/2019 Strategy and Ict
43/65
Culture
Shared values and norms
Institutionalisation
-
7/28/2019 Strategy and Ict
44/65
Political systems
Interest groups
Power/influence
-
7/28/2019 Strategy and Ict
45/65
Instruments of domination
The multinational
-
7/28/2019 Strategy and Ict
46/65
Strategy
-
7/28/2019 Strategy and Ict
47/65
2007 Wolters-NoordhoffOrganisation and Management
-
7/28/2019 Strategy and Ict
48/65
SWOT
Structure Conduct Performance Resource Based View
-
7/28/2019 Strategy and Ict
49/65
The strategy perspective
Structure-Conduct-Performance model(Porter, 1980, 1985)
-
7/28/2019 Strategy and Ict
50/65
Porters five forces model
2007 Wolters-Noordhoff Organisation and Management
-
7/28/2019 Strategy and Ict
51/65
Question
Are there industry characteristics (based
on the five forces model) which explain
the use of the Internet as a channel?
-
7/28/2019 Strategy and Ict
52/65
Disappearance of barriers of
entry
Economies of scale
Product differentiation
Switching costsAccess to distribution channels
(Shin, 2001; Lucas, 2002)
-
7/28/2019 Strategy and Ict
53/65
Existing rivalry
Winner takes all
First mover advantage
(Source: Coltman, 2001)
-
7/28/2019 Strategy and Ict
54/65
Strategies
? + +
- 0 +
- - ?
Relative resource-produced value
Lower Parity Higher
Relative
resource
costs
Lower
Parity
Higher
-
7/28/2019 Strategy and Ict
55/65
Strategies to realize competitive
advantage (Porter, Treacy and Wiersema)
Cost leadership/operational excellence
Differentiation/product leadership
Focus/customer intimacy
-
7/28/2019 Strategy and Ict
56/65
Question
Mention examples of companies that use
the Internet to create a competitive
advantage
-
7/28/2019 Strategy and Ict
57/65
Boston Consultancy Group Portfolio Matrix
2007 Wolters-Noordhoff Organisation and Management
-
7/28/2019 Strategy and Ict
58/65
2007 Wolters-NoordhoffOrganisation and Management
-
7/28/2019 Strategy and Ict
59/65
2007 Wolters-NoordhoffOrganisation and Management
-
7/28/2019 Strategy and Ict
60/65
Growth according to Ansoff(1965)
PRODUCT
Existing New
MARKET
Existing
New
Penetration
Market development
Product development
Diversification
-
7/28/2019 Strategy and Ict
61/65
Strategy (2)
Horizontal integration
Forward vertical integration
Backward vertical integration
-
7/28/2019 Strategy and Ict
62/65
The role of ICT in companies
Strategic Alignment Model
-
7/28/2019 Strategy and Ict
63/65
Business Strategy
Organizationalinfrastructure
Infrastructure andprocesses
ICT Strategy
Alignment
Impact
Business ICT
Alignmentmodel Venkatraman & HendersonStrategic Alignment: levering Information Technology for Transforming Organisations
IBM Systems journal, 32 (1) 1993, p 4-16
-
7/28/2019 Strategy and Ict
64/65
Strategic Alignment Model
-
7/28/2019 Strategy and Ict
65/65
Four dominant alignment perspectives
1. Strategy execution
2. Technology transformation
3. Competitive potential 4. Service level