CH. 5, TECHNOLOGY AND INNOVATION

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CH. 5, TECHNOLOGY AND INNOVATION

• By Stephen M. Shapiro

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• I. TECHNOLOGY CAN BE HEADACHE
• A. BUYING TICKETS ONLINE
• Computer interrupts
• Unable to verify
• No receipts
• Cannot verify by phone
• Delay in charge
• Delay in paper copy
• B. NOT THE SILVER BULLET YET
• Technology
• Applications
• Data
• Equipment
• Infrastructure
• Internet

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• C. NEED TO HAVE PERSON TO USE TECHNOLOGY
• D. HAS TO FIT IN ORGANIZATION
• E. AUTOMATING PROCESSES
• IRS
• Wall Street Journal
• New York Times, The Washington Post,The
  Economist
• F. CONNECTING THE DOTSTHRU TECHNOLOGY
• Create a virtual enterprise
• Change the rules of the game
• Collaborate throughout the value chain
• Increase knowledge of employees
• Launch new businesses

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• II. CREATING VIRTUAL ENTERPRISES
• A. GOING VIRTUAL AT UNIVERSAL LEVEN
• 2-year old insurance firm is completely on-line
• 15,000 accounts, 200 new policies each week
• Operated by 2 people
• Administrative activities outsourced
• B. SERVICE LEVEL AGREEMENTS
• String together companies so that customer sees
  only 1 firm
• Strategic partners paid by transaction

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• III. CHANGE THE RULES OF THE GAME
• A. NEW BUSINESS MODELS AT FIAT
• Barchetta only available online
• First OEM-to-customer
• Test drive at car rental
• Car configuration
• Trade-in
• Financing
• Home delivery
• B. REPLAY TV
• Watch whatever they want, whenever they want
• Have box on TV
• Change software in box

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• IV. COLLABORATE THROUGHOUT VALUE CHAIN
• A. USE TECHNOLOGY FOR SEAMLESS PROCESSING OF
  GLOBAL ORGANIZATIONS
• Data
• Connect departments within firm
• Connect competitors
• Connect suppliers, manufacturers, distributors,
  and retailers
• B. CHEMCONNECT
• Exchange for buyers andsellers of chemicals
• Search, buy, contracts online

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• C. CLICKCOMMERCE
• Web portal for customers, suppliers, employees
  worldwide
• Account status, product info, orders, inventory
  status, feedback
• D. ONE FACE AND ONE LANGUAGE
• Customer friendly
• Requires tremendous planning and organization
• Use technology to accomplish this
• V. INCREASE EMPLOYEES KNOWLEDGE
• A. KNOWLEDGE WORKERS
• Use technology to do administrative work
• So knowledge workers can do knowledge work
• Sales reps
• Social workers
• Trainers

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• B. SIMULATED LEARNING AT BELLSOUTH
• VI. LAUNCH NEW BUSINESSES
• A. QPASS
• Handles administrative costs for content
  providers on internet
• Micropayments
• 1.9 million digital products
• Reduces cost and risk of digital publishing
• B. LAUNCHING GLOBALVILLAGE TELECOM
• Created brand newtelecommunications firm
• Worked extensively onplanning and technology
• Was implemented in Brazilin 13 weeks

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• VII. SOME GOLDEN RULES
• A. TECHNOLOGY MUST IMPROVE VALUE
• B. TIE TECHNOLOGY TO VISION
• C. DESIGN NEW PROCESS AND TECHNOLOGY IN TANDEM
• D. TECHNOLOGY CAN PRESENT BARRIERS
• E. DONT LET IT CONTROL THINGS
• F. DONT FOCUS ON 1 TECHNOLOGY