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Challenges in e-commerce strategy - the case of ambient organization. Niels-Bjørn Andersen Professor Center for e-Commerce Copenhagen Business School. The Laurentian library. The demise of the traditional hierarchy. The inflexible, rule-determined, mass production

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Challenges in e commerce strategy the case of ambient organization

Challenges in e-commerce strategy - the case of ambient organization

Niels-Bjørn Andersen

Professor

Center for e-Commerce

Copenhagen Business School

Niels Bjørn-Andersen


Challenges in e commerce strategy the case of ambient organization

Niels Bjørn-Andersen


The laurentian library

The Laurentian library

Niels Bjørn-Andersen


Challenges in e commerce strategy the case of ambient organization

The demise of the traditional hierarchy

The inflexible, rule-determined, mass production

organization is being replaced by the flexible, porous,

adaptive, fleet-of-foot organization of the future.

In this organization, every person is ‘paid’ to be

obstrepous, to disrespect formal boundaries, to

hustle and to be engaged fully with engendering swift

actions, constantly improving everything.

Peters, 1988

Niels Bjørn-Andersen


So the great dream of the machines have come to an end

‘So the great dream of the machines have come to an end’

Scott, Southpole 1911

Niels Bjørn-Andersen


Organizational characteristics

Organizational characteristics

Niels Bjørn-Andersen


Challenges in e commerce strategy the case of ambient organization

IT enabled organizational change

Organizational

impact

Organizational

design

Inter-organizational

design

Organizational

re-invention

Virtual

Impact on

clerks

Shamrock

Modular

Borderless

Impact on

managers

Business

excellence

Virtual eco system

Flexible

Scandinavian

model

Networked

Hour-glass

shaped

Agile

Ambient

Responsive

Just in time

21 century

Delayered

Lattice

Postmodern

Learning

Innovative

Niels Bjørn-Andersen


Challenges in e commerce strategy the case of ambient organization

Vision for General Electric

‘Our dream for the 1990s is a boundaryless

company, a company where we have to knock

down the walls that separate us from each other

on the inside, and separate us from our key

constituencies on the other side’

Jack Welch, 1990

Niels Bjørn-Andersen


Challenges in e commerce strategy the case of ambient organization

Definition of a Virtual Organization

..temporary network of independent companies - suppliers, customers, even erstwhile rivals -

linked by information technology to share skills, costs, and access to one another’s markets. It has neither a central office nor organizational chart. It has no hierarchy, no vertical integration

Byrne & Brandt 1993

Niels Bjørn-Andersen


Transition to becoming a networked virtual organization

Transition to becoming a Networked Virtual Organization

Niels Bjørn-Andersen

Cisco: The bridge, 2003


Challenges in e commerce strategy the case of ambient organization

The Networked Virtual Organization is the most fundamental and significant change in organizational structure, we have ever experienced

John Chambers, CEO, Cisco

August 2002

Niels Bjørn-Andersen


Nvo drivers in cisco

NVO drivers in Cisco

  • Customer centric

    • Self service and support via web-site

    • On-line sales

    • Customer segmentation and optimization

  • Focus on core processes instead of context

    • Out-tasking of service/repair and e-learning

  • Continuous standardization

    • Standardized processes and data (e.g. Virtual close)

    • Standardized IT-infrastructure

Niels Bjørn-Andersen


Challenges in e commerce strategy the case of ambient organization

Marketplace-to-Marketplace (M2M) relationships

Logistics Exchange (horizontal)

Customer Exchange (B2C)

PrivateeMarket (vertical)

VirtualManufacturers

VirtualDistributors

Public eMarket

(B2B)

e-Supply Networks

3P Logistics

Manufacturers

Retailers

Engineering/

Design Partners

Raw MaterialsSupplier

B2B relationships

Consumer

Component

Supplier

Distributor/Reseller

Corporate Customers

Subcontractor

Manufacturer/ OEM

Product/Goods Flow

Logistics Providers

Information Flow

Niels Bjørn-Andersen

(Adapted from Forrester, 06/2000 & AMR SCM Report Jan 2000)


Challenges in e commerce strategy the case of ambient organization

Types of Collaborative Processes & Modelsin eMarkets

Viewed from the manufacturer’s perspective

3P Logistics

Distributors

Engineering/

Design Partners

Manufacturers

Collaborative Logistics Planning

Collaborative Transportation Mgmt

Collaborative Distribution Services

eMarket / Private Hub

Collaborative Product Engineering & Design

Subcontractors

Collaborative Supply Planning

Collaborative Supply Procurement

Synchronized Production Scheduling

Suppliers

Collaborative Demand Forecasting

Collaborative Replenishment

Collaborative Promotion Planning

Collaborative Life Cycle Planning

Manufacturers

Retailers

Retailers

CPFR

Collaborative Planning, Forecasting & Replenishment

CSUP

Collaborative Supply & Production Planning

CTM

Collaborative Transportation Management

CED

Collaborative Engineering & Design

Niels Bjørn-Andersen


Challenges in e commerce strategy the case of ambient organization

Definition of an Ambient Organization

  • This refers to an organization which is enabled by

  • the emerging Ambient Intelligence Technologies,

  • exploits virtual resources, communication and

  • collaboration schemes,

  • in order to redefine its organisational structure and

  • redefine its business model

  • in order to obtain sustainable value and utilize

  • technological opportunities for meeting increasingly

  • complex and ever more competitive environments.

Niels Bjørn-Andersen


Dream or reality

Dream or reality?

  • Development of WWW and Linux

  • Cisco and others have shown the direction of development for traditional organizations

  • Customers become part of your organization

  • Pfizer soliciting research assistance

  • Mobile broadband with pattern recognition, voice recognition brings new promises

Niels Bjørn-Andersen


Please stay tuned for next chapter on ambient organizations

Please stay tuned for next chapter on Ambient Organizations!

Niels Bjørn-Andersen


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