Prsentation PowerPoint

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The net Comp_at_ny
A Road Map
A New Vision
IT / IS Management
IT ISManagement
What-to-Remember
e-Business
A New Way of Doing Business
The Net Comp_at_ny
A New Organization
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A Concomitant Evolution
A Historical Perspective
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A Historical Perspective
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Mintzberg's Book The Structuring of
Organizations (1979)
A Historical Perspective
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Structural Configurations where they come from
A Historical Perspective

• Mintzberg studies organizations from a given
  number of variables
• These variables can be used to describe
  organizations and understand the way they
  function
• But also to design organizations or change them
• Beyond his analytical study, he "discovers" that
  the possible set of compatible variables is
  limited to a few stable systems

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The variables or parameters
A Historical Perspective

• Five Basic Parts
• Five Coordination Mechanisms
• Five Systems of Flows
• Nine Design Parameters
• Four Contingency Factors

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Structural Configurations the Stable Systems
A Historical Perspective

• The Simple or Entrepreneurial Structure
• The Machine Bureaucracy
• The Professional Bureaucracy
• The Divisional Form
• The Adhocracy

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A Historical Perspective
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Five Basic Parts
A Historical Perspective
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TheFive Structural Configurations
A Historical Perspective
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Five Coordination Mechanisms
A Historical Perspective
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Five systems of Flows
A Historical Perspective

• Formal authority
• Regulated Flows (work and control)
• Informal communication
• Work constellations
• Ad-hoc decision processes

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Contingency Factors
A Historical Perspective

• Age and Size
• Technical System
• Environment
• Power

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The Machine Bureaucracy
A Historical Perspective
The Taylorist Organization
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The Machine Bureaucracy (1/7)
A Historical Perspective

• Key part Technostructure
• Coordination mechanism work process
  standardization
• Design parameters
• Formalization of activities
• Horizontal and vertical job specialization
• Large operational unit size
• Vertical centralization
• Action planning

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The Machine Bureaucracy (2/7)
A Historical Perspective

• Contingency factors
• Old, large, regulating
• Stable and simple environment
• Technical system simple, non automated
• Strong external control (shareholders,
  government)

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The Machine Bureaucracy (3/7)
A Historical Perspective

• Roles of the different parts
• Operating core simple, repetitive, highly
  standardized tasks
• Middle line management fully developed,
  administrative tasks, liaison with
  technostructure, support of vertical flows
  (authority, control, information)
• Strategic management fine tuning of the
  bureaucratic machine, formal (authority) and
  informal (knowledge) power
• Technostructure standardize everyone else's
  work, the only ones to share any real informal
  power with the top managers

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The Machine Bureaucracy (4/7)
A Historical Perspective

• Functioning
• Strategy top down
• Flows of authority following hierarchy
• Standardization and formalization
• Control ("obsession with control")
• Eliminate all possible uncertainty, so that the
  bureaucratic machine can run smoothly, without
  interruption

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The Machine Bureaucracy (5/7)
A Historical Perspective

• Examples
• Steel Industry, automobile, transports
• Services insurance, restaurant and hotel
  chains
• Public Administration
• Army, Police, Fire Brigades
• Airlines, hospitals
• Planned Economy
• All the big industry until now

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The Machine Bureaucracy (6/7)
A Historical Perspective

• Advantages
• Effective, efficient, reliable
• Easy to control and manage (Classical School
  of Management)
• Consumer goods society

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The Machine Bureaucracy (7/7)
A Historical Perspective

• Drawbacks
• At the operational level frustration,
  absenteeism, lack of motivation
• Conflict between the technical system and the
  social system ("human engineering")
• At the middle line level personal power stakes,
  lack of coordination and cooperation, inability
  to solve conflicts, paralysis
• At the strategic level too much time devoted
  to control, information delayed and inadequate,
  not adapted to changes
• Dichotomy between strategy design and strategy
  implementation

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The Adhocracy
A Historical Perspective
The flexible innovative organization
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The Adhocracy (1/7)
A Historical Perspective

• Key part support staff together with operating
  core
• Coordination mechanism mutual adjustment
• Design parameters
• Organic nature of the structure
• Less formalized behavior
• Role of expertise
• Moving and flexible units
• Selective decentralization towards groups of
  experts

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The Adhocracy (2/7)
A Historical Perspective

• Contingency factors
• Dynamic and complex environment
• Technical system automated, sophisticated,
  designed for innovation
• Youth Adhocracy is the least stable kind of
  structure
• Fashion every characteristic of the Adhocracy
  is very much in vogue today (1979)

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The Adhocracy (3/7)
A Historical Perspective

• Roles of the different parts
• Operating core either blended with the
  administrative component, or contracted out or
  automated
• Administratives and middle line no distinction
  between line and staff, support staff houses most
  of the experts and build a central pool together
  with (reduced) middle line
• Strategic management master human relations,
  monitor the projects, develop liaison roles with
  environment

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The Adhocracy (4/7)
A Historical Perspective

• Functioning
• Work done in small market based project teams
• Managers' roles and activities coordinate,
  cooperate, communicate
• Strategy emerges "after the fact"
• Chaotic behavior
• Over-communication
• To innovate means to break away from established
  patterns
• Decision making is distributed among managers
  and experts, according to the nature of decisions
  to be made.

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The Adhocracy (5/7)
A Historical Perspective

• Examples
• Consultancy
• Advertising
• Research
• Movie industry
• NASA (Apollo project)
• Newspapers (editorial staff))
• High-tech industries (Silicon Valley)
• Guerilla
• Every innovative company or unit

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The Adhocracy (6/7)
A Historical Perspective

• Advantages
• Reactivity, innovation, creativity
• Flexibility, fluidity
• Motivation, proudness, satisfaction at work
• Human and social relationship
• Positive, fashionable image

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The Adhocracy (7/7)
A Historical Perspective

• Drawbacks
• Permanent instability of structure
• Ambiguity, uncertainty, no landmarks
• Internal competition, management by stress
• Be able to manage experts, to capitalize
  experience
• Be able to manage inefficiency and waste
  (redundancy, try and errors)
• High costs of communication

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Different Kinds of Adhocracies
A Historical Perspective

• Projects
• Companies working by projects
• Networked organizations

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A Historical Perspective
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Hardware Architecture Evolution
A Historical Perspective

• '60s-'70s centralized legacy systems
• '80s microcomputers and Local Area Networks
• '90s client-server architecture
• 2000s
• Networks integration, IP standards
• Architecture simplification web-to-host

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Software Architecture Evolution (1/2)
A Historical Perspective

• '60s-'70s
• dedicated job control, OS and applications
• In-house, tailored developments
• '80s
• OS standardization
• Packages (office automation)
• Relational Databases
• Software engineering methodology
• '90s
• Standardization of IS packages (ERP), databases,
  users' interfaces
• Object Oriented methods and tools

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Software Architecture Evolution (2/2)
A Historical Perspective

• 2000s
• Simplification of software architecture
  integration, standards
• Multimedia developments
• Solutions for mobile access
• There's always something new !

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User's Interface Evolution
A Historical Perspective

• '60s-'70s alphanumerical monochromatic screens
  and menus
• '80s Windows and Mouse
• '90s browser
• 2000s multimedia customizable interfaces

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Business Concerns Evolution
A Historical Perspective

• '60s-'70s Automation
• Administrative tasks, accounting
• Office automation
• Production automation
• '80s Personal development and Management
  support
• '90s Improvement of global performance
• 2000s e-Business and Knowledge management

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Three Ages
A Historical Perspective
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The IBM Age
A Historical Perspective
"Taylor - Ford" Companies(The Machine
Bureaucracy)
Hardware centralized Legacy systems Software
task automation
IBM Age
Ruling of hardware manufacturers DP and telecom
are separate worlds Symbols IBM, ATT
DP Division DP professionals
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The Microsoft Age
A Historical Perspective
Hardware Micro-computers Software Office
Automation Relational DataBases
Software Packages
Decision Making Tools
Project Organization (Adhocratcy)
Microsoft Age
Price war Software impulses the hardware
investments Standards and Normalization Symbol
Microsoft
Project teams with specialists and users IT
spreads in Company Outsourcing
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The Internet Age
A Historical Perspective
Networks Internet, Intranet, Extranet Software
Integration Client-server architecture
Network Organization (Adhocracy the
Network) e-business
Internet Age
IT and Telecom Integration Multimedia,
etc.. Strategic Alliances, Start-upse-companies
IT as a component of every activity, of every
job IT management through network
organization (internal and external)
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The Role of IT and IS in Organizational Change
A Historical Perspective

• Automation of information flows processing
  contributes to the flattening of pyramids
• Development of worldwide communication networks
  boosts cooperation both intra-organizational and
  inter-organizational
• Importance of information changes value from
  physical assets to immaterial (knowledge) assets
• Pervasion of IT in the workplace increases the
  number of knowledge and information workers
• Economy is changing toward an Information
  Economy

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A Historical Perspective
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A Historical Perspective

• At company's level
• Companies always bare traces of their past, even
  if they have changed
• Past events often explain existing situations
  and behavior
• At IT/IS level
• The rhythm of evolution of IT may not be as
  quick as expected
• Several layers of technology generally co-exist
  in companies

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A Historical Perspective

• At company's level
• Three kinds of strategy continuation,
  transition, breaking up
• At IT/IS level
• It is no more possible to change all the system
  once at a time

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What is a Net Comp_at_ny
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As far as this course is concerned, a Net
Comp_at_ny is .
What is a Net Comp_at_ny
A company that uses IT to improve its business,
but not only, and not specifically the Internet
A company which understands that some new
organization principles, work behavior ans
management activities are necessary to improve
flexibility, reactivity, globalization and
customer satisfaction
A company which tries to implement this kind of
innovative relationship both inside and outside,
with a strong support of IT.
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In other words .
What is a Net Comp_at_ny
A company which uses a networked internal
structure, between deconcentrated ans
decentralized rather small oragizational units
A company which emphasizes the relationship with
its suppliers and clients up to networking
A company which relies on a tight intertwinning
between IT and business processes to allow both
intra- and inter-organizational networking
A company which understand the necessary changes
in organizational behavior and management
principles and activities and provides support
and training to implement them
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What is a Net Comp_at_ny
The Net Comp_at_ny
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The roots of the Net Comp_at_ny
What is a Net Comp_at_ny
Net Comp_at_nies are the result of

• Organizational evolution

• Environmental contengencies

• Abilities of management to develop new visions

• Resources and opportunities provided by IT
  and IS mangement evolutions

• Abilities of everyone to understand and foster
  behavioral changes in the workplace

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What is a Net Comp_at_ny
Structural Networks
The Net Comp_at_ny
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The Network Metaphor
The Network metaphor
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1st Example the Railroad Network
The Network metaphor
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2nd Example Network of PCs (LAN)
The Network metaphor
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3rd Example Network of Alumni
The Network metaphor
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4th Example the Networked Organization
The Network metaphor
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How to recognize a Net Comp_at_ny
Management Flat hierarchy Propagates
decentralization Favors autonomy and
responsiveness Cooperation / collaboration Communi
ty of resources Project mode organization
The Network metaphor
Nodes Different entities relatively autonomous
- physically materialized
Ties Financial flows selling / buying,
accounting / reporting / consolidation Material
flows raw material, products, energy, supplies,
equipment Communication flows documents / voice
/ information Relation flows people / projects
/ structures / hierarchy / authority /
network Legal and/or capitalistic links
subsidiaries / group / holdingCommercial and/or
contractual links
Technology support Strongly integrated ISIT
management tools Intertwinning of IT and business
processes Understanding of strategic use of ISIT
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Why do companies have to network?

• Two main processes
• Decentralization, spin off of side activities
  large companies are cut in pieces
• Alliances

The Network metaphor

• And still the same challenges
• Cut the costs, spare time, improve quality
• Play on the global playground but deliver
  products customized to the final user's needs
• Think global, at local
• Be big and small at the same time

This could not be achieved through the old modes
of organizationcompanies had to invent new ones
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Case Studies
Case Studies
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Asea Brown Boveri
Created in 1987 by the merger of ASEA (Swedish)
and BB Corporation (Swiss multinational)
Case Studies
Percy Barnevik, ASEA CEO, made a genuine
organizational design
His purpose was "to be big and small at the same
time"
www.abb.com
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Asea Brown Boveri
Case Studies
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Asea Brown Boveri from the web site
Case Studies
www.abb.com
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Asea Brown Boveri from the web site
Case Studies
www.abb.com
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Asea Brown Boveri from the web site
Creating value ABBs vision and mission is to
create value for its customers and stakeholders
and the communities and societies in which it
operates. To achieve our vision and mission, we
have drawn up a charter of values, a set of
guidelines that we strive to follow at all times.
Integral to our mission and values are our
business ethics. They enable us to maintain the
highest ethical standards, fulfill our
commitments and act with integrity in accordance
with sound business principles.
Case Studies
www.abb.com
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Asea Brown Boveri from the web site
ABB creates value By making our customers more
competitive in a networked worldWe strive to
help our customers gain competitive advantage
from technology advances and developments in
their markets. We do this by creating
comprehensive Industrial IT offerings that
combine world class products and services with
superior domain know-how and collaborative
commerce.By offering our employees opportunities
to learn, grow and share in the value created by
their effortsWe reward creativity, flexibility
and results-oriented actions that help make our
customers successful. Through adoption of common
business processes, we release energies and
creativity to focus on serving our customers.By
achieving returns that meet or exceed the
expectations of our shareholdersWe generate the
growth that creates investor confidence by
managing for value. The power of being close to
the market and understanding how we can create
more value for our customers will generate the
financial strength needed in fast changing
capital markets.By living our commitment to
sustainabilityWe strive for a balance in the
economic, environmental and social impact of our
business and we actively contribute to economic
progress, environmental stewardship and
sustainable development in the communities and
countries in which we operate
Case Studies
www.abb.com
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Bombardier
Sea-doo and ski-doo the recreation vehicles
branch of the Canadian company
Case Studies
Typical of the metallurgic sector
A large study was undertaken by research teams in
the University of Quebec, to understand the
impact of IT on innovation processes
They evidenced an original network structure
www.bombardier.com
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Bombardier
Case Studies
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Bombardier from the web site
Mission Bombardier's mission is to be the leader
in all the markets in which it operates. This
objective will be achieved through excellence in
the fields of aerospace, rail transportation
equipment, recreational products and financial
services. All Bombardier units must meet the
needs of their customers and markets as well as
reach and maintain world-class performance. They
must also create added value in order to sustain
their own growth and achieve a superior level of
economic return to shareholders.
Case Studies
Products and Services Bombardier is
customer-oriented and keeps abreast of market
trends to provide, in a timely manner, top
quality products and services at the best
price/quality ratio. Bombardier distinguishes
itself by technical and administrative
innovation, constantly striving towards new
products and services and high productivity
www.bombardier.com
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Bombardier from the web site
Human Resources Bombardier is proud of its
employees and recognizes their valuable
contribution. The Corporation's success is based
on the sense of belonging, professionalism,
entrepreneurship, commitment, hard work and team
spirit of all its employees. Bombardier believes
that its competitiveness and performance are
closely linked to its stable and rewarding
relationship with its employees. Bombardier
endeavors to create a satisfying and stimulating
work environment. It promotes employee
development and growth through its management
policies, training and enhancement
programs. Bombardier provides a safe work
environment, employment equity, fair and
competitive compensation
Case Studies
Communications Bombardier encourages free
expression of ideas and suggestions to improve
its performance and to foster quality of life at
work. Bombardier communicates its mission and
corporate objectives to all employees and keeps
them informed of policies, achievements and
results
www.bombardier.com
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Bombardier from the web site
Organization Bombardier is a diversified
corporation composed of autonomous operating
groups. Each group has the necessary authority
upon its operations and is expected to take
measures to achieve a high level of performance
consistent with the mission, code of ethics,
policies and internal governance of the
Corporation. The Corporation expects its
operating groups to adopt a decentralized
management structure. As a result, operating
groups have the ability to act and react quickly
to events and to stimulate entrepreneurship
amongst their employees. Bombardier takes
appropriate steps to optimize all strategic
benefits to be derived from cooperation,
coordination and transfer of know-how between its
operating groups
Case Studies
www.bombardier.com
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Benetton
Created as a family business in the late '60s
Distinctive characteristics regarding the
production process production is subcontracted
for more than 95
Case Studies
Benetton relies on a very specific environment
the Italian industrial districts
The last diversification "for people on the move"
www.benetton.com
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Benetton
Case Studies
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Benetton from the web site
THE COMMERCIAL NETWORK The development of
Benetton's commercial organisation has been
supported by a major programme of investment in
megastores, some of which are directly managed by
the Group. These stores are characterised by
their large dimensions, their prestigious
locations in historic and commercial centres and
by the high level of customer services they
offer. The new Benetton megastores carry complete
casual womenswear, menswear, childrenswear and
underwear collections, as well as a wide
selection of accessories, offering a full range
of Benetton style and quality. The Group's
sportswear and sports equipment are distributed
through traditional specialist outlets, with
emphasis on the development of dedicated corners
in large sports stores, and through the Playlife
chain, which is enjoying continuous growth in
Europe
    
Case Studies
www.benetton.com
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Benetton from the web site
TECHNOLOGY, PRODUCTION AND LOGISTICS As in the
case of the commercial network, a constant
commitment to innovation, a crucial factor for
development, has always characterised the Group's
business organisation, from communication to IT,
from research into new materials to integrated
logistics. Special attention is given to
innovation in production, where all systems and
equipment are totally renewed every five years.
The core of the Benetton production system is the
hi-tech facility at Castrette (Treviso), one of
the most advanced clothing complexes in the
world, capable of turning out over 100 million
casual and sportswear garments every year
Case Studies
www.benetton.com
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Benetton from the web site
PRODUCTION The organisation of the Benetton
system is based on an ongoing commitment to
technological innovation and production
flexibility. This has involved investment
amounting to more than 200 billion lire in the
clothing sector and has led to certification in
compliance with UNI EN ISO 9001 and 14001. Today,
the production system embraces a Europe-wide
network, with facilities in Hungary, Croatia and
the Iberian peninsula, backed up by a factory in
Tunisia. The focal point of the system is the
industrial complex in Italy at Castrette, one of
the most advanced manufacturing and logistical
centres in the world, with a total covered area
of 190,000 square metres. Both casual clothes and
sportswear are manufactured under conditions of
total quality control, for a total annual
production of more than 100 million garments
Case Studies
www.benetton.com
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Benetton
Case Studies
www.benetton.com
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Benetton
Case Studies
www.benetton.com
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Global Performance in the Net Comp_at_ny
Business Intelligence
Customer Relationship Management
IT Management for global performance
Integrated Administration
Global Communication
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Network Management in The Net Comp_at_ny

• Overcome resistance
• Individualism
• Fear to loose (identity, power, position,
  know-how...)
• Need for references
• Lack of autonomy
• Lack of time
• Lack of organizational capability

Network Management
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Network Management in The Net Comp_at_ny

• Develop new competencies
• Ability to cross boarders
• Exchange and reciprocity
• Loyalty
• Cooperation competition
• Collaboration and communication skills

Network Management
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Network Management in The Net Comp_at_ny

• Manage people on a new basis
• Be able to identify the networks we already
  belong to
• Solve conflicts on a win-win basis
• Manage in a multi-cultural environment
• Manage cross-organizational groups/teams
• Favor responsiveness, exchange and loyalty
• Trust and be trustworthy

Network Management
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Network Management in The Net Comp_at_ny

• Build and develop the networking
• Travels / conferences / meetings
• Favor professional mobility
• Redefine profiles and careers
• Use training
• Modify the offices
• Work in project teams
• Develop networking activities

Network Management
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Network Management in The Net Comp_at_ny

• Still (new) Challenges for Managers
• Cross borders geographic, cultural, functional
• Manage highly variable structures
• Manage competencies and careers in a new way
  (including yours)
• Manage on exchange and reciprocity basis
• Change values

Network Management