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100 Organization Management models, diagrams and charts for powerful business presentations. Content: Organization Model, Scientific Management, Motivation Framework, Maslow’s Hierarchy, ERG Theory, Intrinsic/Extrinsic Rewards, Compensation Management, Job Enrichment, Group Performance, Linking Pin Organization, Likert’s Overlapping, Mintzberg’s Coordinating Mechanisms, Matrix Organization, Network Organization, Change Management, Hierarchical Structures, Formal Organization, Role Diagram, Job Description, Divisional Structures, Project Organization, Value Chain Management, Span of Control, Task Force, Organization Development, Growth Management, Learning Organization, Virtual Organization/nMore business diagrams to download on http://www.drawpack.com your visual business knowledge

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slide1

Strategic

Apex

Support

Staff

Technostructure

Middle

Apex

Operating

Core

Organization Management...

100 Slides

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slide2

Key Words...

Organization Model – Scientific Management – Motivation Framework – Maslow’s Hierarchy – ERG Theory – Intrinsic/Extrinsic Rewards – Compensation Management – Job Enrichment – Group Performance – Linking Pin Organization – Likert’s Overlapping – Mintzberg’s Coordinating Mechanisms – Matrix Organization – Network Organization – Change Management – Hierarchical Structures – Formal Organization – Role Diagram – Job Description – Divisional Structures – Project Organization – Value Chain Management – Span of Control – Task Force – Organization Development – Growth Management – Learning Organization – Virtual Organization

a basic organization model

Environment

Human Behavior in

Organizational Settings

The Individual – Organization Interface

The Organization

Environment

A Basic Organization Model
phases of scientific management i

Phase 1: A Task, a Manager, and a Pool of Workers

Manager

Task

Worker

Worker

Worker

Worker

Phase 2: Task Analysis, Breakdown, and Job Specialization by Manager

T1

T3

Manager

T2

T4

Worker

Worker

Worker

Worker

Phases of Scientific Management I
phases of scientific management ii

Phase 3: Task Assignment and Training

T1

T3

Worker

Worker

Manager

T2

T4

Worker

Worker

Phase 4: Continued Supervision, Coordination, and Planning by Manager

Manager

T3

T1

Worker

Worker

T4

T2

Worker

Worker

Phases of Scientific Management II
the basic motivation framework

1

Need Deficiencies

6

Need Deficiencies

Reassessed by

the Employee

2

Search for Ways

to Satisfy Needs

The Employee

5

Rewards or

Punishments

3

Goal-Directed

Behaviors

4

Performance

The Basic Motivation Framework
maslow s hierarchy of human needs

GENERAL EXAMPLES

ORGANIZATIONAL EXAMPLES

Achievement

Challenging Job

Self-

Actualization

Needs

Status

Job Title

Esteem Needs

Friends in

Work Group

Friendship

Belongingness Needs

Stability

Pension Plan

Security Needs

Shelter

Base Salary

Physiological Needs

Maslow‘s Hierarchy of Human Needs
parallels among need theories of motivation

Herzberg‘s

Two-Factor Theory

Maslow‘s

Hierarchy of Needs

Alderfer‘s

ERG Theory

Other

Key Needs

Achievement

Work Itself

Responsibility

Advancement and Growth

Self-Actualization

Needs

Growth

Needs

Need for

Achievement

Motivation

Factors

Need for

Power

Recognition

Self-Esteem

Esteem Needs

Respect of Others

Need for

Affiliation

Relatedness

Needs

Supervision

Interpersonal Relations

Belongingness Needs

Security

Company Policies

Interpersonal Security

Security Needs

Physical Security

Hygiene

Factors

Existence

Needs

Pay

Working Conditions

Physiological

Needs

Parallels Among Need Theories of Motivation
the individual organization exchange process

Time

  • Effort
  • Knowledge
  • Skills
  • Creativity
  • Energy

contributes

to

The

Employee

The

Organization

which rewards

with

for which

  • Pay
  • Benefits
  • Vacation
  • Status
  • Opportunities for Creativity
  • Occasions for Social Contributions
The Individual-Organization Exchange Process
the meaning of organizational rewards

Intrinsic and

Extrinsic Rewards

The

Individual

Surface Value

Symbolic Value

Attitudes and Behaviors

The Meaning of Organizational Rewards
the historical development of job design

Scientific

Management

High

Job Enlargement

Job Rotation

Specialized

Craft Jobs

DEGREE OF JOB

SPECIALIZATION

Job Enrichment

Job Characteristics Theory

Social Information Processing

Autonomous Work Groups

General

Craft Jobs

Low

Early 1960s

to Present

Late 1940s to

Early 1960s

To 1900s

Around 1900 to

Late 1940s

TIME

The Historical Development of Job Design
four factors that affect group performance

Composition

Size

Group

Performance

Norms

Cohesiveness

Four Factors that Affect Group Performance
mintzberg s five coordinating mechanisms

Manager

M

M

Analyst

A

A

O

O

O

O

Operator

Operator

(1) MUTUAL ADJUSTMENT

(2) DIRECT SUPERVISION

M

A

O

O

INPUT SKILLS

(3)

WORK PROCESSES

(4)

OUTPUTS

(5)

STANDARDIZATION

Mintzberg‘s Five Coordinating Mechanisms
a matrix design

FUNCTIONAL DEPARTMENTALIZATION

Marketing

Department

Research and

Development

Department

Purchasing

Department

Production

Department

Manager

Manager

Manager

Manager

PROJECT DEPARTMENTALIZATION

Alpha

Project

Project

Leader

E

E

E

E

Beta

Project

Project

Leader

E

E

E

E

Gamma

Project

Project

Leader

E

E

E

E

A Matrix Design
basic communication process

SENDING

Encoding

Transmission

Decoding

Source

Receiver/

Responder

Noise

Decoding

Medium

Encoding

FEEDBACK LOOP

(Verification)

Basic Communication Process
four major problems in change management

RESISTANCE

POWER

People

Structure

Organization as

Social System

Information

Systems

Tasks

CONTROL

REDEFINITION

Four Major Problems in Change Management
hierarchy and decision making

Decreasing

power in

decision

making

Increasing

number of

people

Increasing

stature

Increasing

reward

Hierarchy and Decision Making
the non linearity of power and decision load

Managerial and Organizational Integration Within the Organic Enterprise

Decreasing power;

extreme narrowing

of

responsibilities

A

A

Increasing

responsibility

importance of

decision making;

perceptual

requirements

B

B

Responsibility

Information

load

Cost of

wrong

decisions

Level B

Level A

HIERARCHICAL LEVEL

The Non-Linearity of Power and Decision Load
technological innovation as a result of complex interactions

EXTERNAL ENVIRONMENT

INNOVATIVE INTERNAL ENVIRONMENT

Innovation

Creativity

Project

champion

  • Evaluation
  • systems
  • Analysis
  • Strategic
  • considerations
  • Project
  • management
  • R&D
  • Design
  • Production
  • Marketing

Project

proposal

Idea

Product

Project

R&D Dept.

Marketing Dept.

THE COMPANY

Knowledge

of market

needs

Scientific

and technological

knowledge

Technological Innovation as a Result of Complex Interactions
further developments of multidirectional communication and involvement

Strategic

analysis

Marketing

department

R & D

Financial

control and

analysis

Process

development

Maintenance

and services

Design

Product

planning

Further Developments of Multidirectional Communication and Involvement
organizational effectiveness

OrganizationInternalactivitiesandprocesses

Resourceinputs

Product and serviceoutputs

Systemresourceapproach

Internalprocessapproach

Goalapproach

Organizational Effectiveness
formal and informal organization

Structure

Hierarchy

Task and role definition

Performance

measurement

Coordination and control

Rules and procedures

Routines

Norms, values

Group / inter-group behavior

Coalitions, alliances, power

Perceptions, mental maps

Organizational culture

Formal and Informal Organization
optimum degree of formal organization

Organizational

effectiveness

Degree of formal organization

Optimum Degree of Formal Organization
contingency framework for organization design

environment

fit

organizationaleffectiveness

differentiation

task

strategy

integration

membercharacteristics

contingencyfactors

organizationdesign

outcome

Contingency Framework for Organization Design
organization chart role diagram job description

Positions

Processes

Who doeswhat in whichprocess?(action, decision,information, ...)

Position

Tasks

Competencies

Responsibilities

Reporting

relationships

...

Organization Chart, Role Diagram, Job Description
levels of organization design

multi-business

CEO

SBU A

SBU C

SBU B

functionalunit

R&D

R&D

R&D

Sales

Prod.

Prod.

singlebusiness

Sales

Sales

=> different design issues on different levels

Levels of Organization Design
functional divisional multidivisional structures

CEO

CEO

Controlling

R&D

Logistics

Manufacturing

Sales

Finance

Cement

Concrete

Chemicals

CEO

CEO

Europe

North America

Asia

Europe

North America

Asia

Motor

Motor

Motor

Cement

Marine

Marine

Marine

Concrete

Fire

Fire

Chemicals

Functional, Divisional, Multidivisional Structures
project structures

CEO

CEO

Project

Unit A

Unit B

Unit C

Project

Unit A

Unit B

Unit C

CEO

Strategy

Finance

IT

Project 1

Project 2

Project 3

Project Structures
mechanistic vs mechanic designs in context

Low-Moderate Uncertainty

Low Uncertainty

1. Mechanistic structure;formal, centralized

2. Many departments, some boundary spanning

3. Few integrating roles

4. Some imitation

5. Some planning

1. Mechanistic structure;formal, centralized

2. Few departments

3. No integrating roles

4. Little imitation

5. Current operations orientation

Stable

ENVIRONMENTAL

CHANGE

High-Moderate Uncertainty

High Uncertainty

1. Organic structure, teamwork;participative, decentralized

2. Few departments, boundaryspanning

3. Few integrating roles

4. Quick to imitate

5. Planning orientation

1. Organic structure, teamwork; participative, decentralized

2. Many departments: differentiated, extensiveboundary spaning

3. Many integrating roles

4. Extensive imitation

5. Extensive planning, forecasting

Unstable

Simple

Complex

ENVIRONMENTAL COMPLEXITY

Mechanistic vs. Mechanic Designs in Context
problems of traditional organization design

=

+

hierarchicalboundaries

functionalboundaries

operationalislands

=> filtering of information=> functional closure=> leadership problems

=> coordination problems

Problems of Traditional Organization Design
link between structure and process

CEO

Procurement

Production

Sales

Administration

Transportation

Order documents

Inventoryoperation

Production

Shipping

Billing

Procurementorder

Productionorder

Order

Customer

Link between Structure and Process
organizational value chain

Company infrastructure

Human Resource Management

Supportprocesses

Technology development

Procurement

Entrylogistics

Operations

Marketingandsales

Exitlogistics

Customerservice

Primary processes

Organizational Value Chain
the development of organization design over time

collaboration

large

coordination

"?"

delegation

Size of Organization

red tape

direction

control

creativity

autonomy

small

leadership

young

mature

Age of Organization

The Development of Organization Design over Time
the five basic parts of organizations

Strategic

Apex

Support

Staff

Technostructure

Middle

Apex

Operating

Core

The Five Basic Parts of Organizations
structures to deal with residual interdependencies

(a) Hierarchical Structure

(b) Line and Staff Structure

(c) Liaison Overlay Structure

(e.g., Task Force)

(d) Matrix Structure

Structures to Deal with Residual Interdependencies
a continuum of liaison devices

Decisional Power with the Market Managers

Decisional Power with the Functional Managers

Pure

market

structure

Liaison

positions

superimposed

on a

market

structure

Matrix

structure

Task forces

and

standing

committees

superimposed

on a

functional

structure

Pure

functional

structure

Liaison

positions

superimposed

on a

functional

structure

Integrated

managers

superimposed

on a

market

structure

Integrated

managers

superimposed

on a

functional

structure

A Continuum of Liaison Devices
functional specialization

President

Vice President

Industrial

Relations

Vice President

Engineering

Vice President

Manufacturing

Vice President

Marketing

Vice President

Finance

Functional Specialization
process specialization

President

Vice President

Industrial

Relations

Vice President

Engineering

Vice President

Manufacturing

Vice President

Marketing

Vice President

Finance

Shaping

Department

Manager

Stamping

Department

Manager

Painting

Department

Manager

Assembly

Department

Manager

Shipping

Department

Manager

Process Specialization
product specialization

President

Vice President

Tricycle

Division

Vice President

Bicycle

Division

Vice President

Motor Scooter

Division

Vice President

Motorcycle

Division

Vice President

Snowmobile

Division

Product Specialization
customer specialization

President

Senior Vice

President

Marketing

Vice President

Industrial

Relations

Vice President

Engineering

Vice President

Marketing

Vice President

Finance

Director

Wholesale

Marketing

Director

Institutional

Marketing

Director

Consumer

Marketing

Director

Government

Marketing

Customer Specialization
geographic specialization

President

Vice President

Domestic

Division

Vice President

European

Division

Vice President

Latin American

Division

Vice President

Pacific

Division

Director Northeast

Director Midwest

Director Southern

Director Western

Geographic Specialization
various forms of specialization in a single organization

President

Assistant to President

Executive Vice President

Executive Vice President

Vice President

Industrial

Relations

Vice President

Finance

Vice President

Domestic

Marketing

Vice President

International

Marketing

Vice President

Tricycle

Division

Vice President

Bicycle

Division

Vice President

Motor Scooter

Division

Vice President

Motorcycle

Division

Vice President

Snowmobile

Division

Director Institutional Marketing

Director Government Marketing

Director Wholesale Marketing

Director Europe Marketing

Director Latin America Marketing

Director Pacific Marketing

Shaping Department

Stamping Department

Painting Department

Assembly Department

Shipping Department

Northeast Midwest Southern Western

Various Forms of Specialization in a Single Organization
multiform organization

Democratic

Specialists

Traditional

Bureaucratic

Managers

Contemporary

Matrix

Multiform Organization
what type of intervention

Top-down

Initiatives

Strong

Taks Force

RESISTANCE

Buttom-up

Initiatives

Weak

Participative

Weak

Strong

EXTERNAL FORCES

What Type of Intervention?
typical improvement actions

Bureaucracy Elimination

  • Duplication Elimination
  • Value-Added

Reduce

1

  • Automation
  • Big Picture
  • Improvement
  • Customer/Supplier
  • Partnership
  • Simplification
  • Process Cycle-Time
  • Reduction

Change

2

Innovate

4

3

Prevent

  • Error Proofing
  • Standardization
  • Simple Language
  • Upgrading
Typical Improvement Actions
improvement agenda

PACE OF CHANGE

Fast

Measured

Tactical

Focused

Improvement

Continuous

Improvement

(TQM)

DEGREE

OF

CHANGE

MEASUREMENT

Strategic

Focused

Restructuring

Business Process

Innovation

ORGANIZATIONAL CHANGE MANAGEMENT

Improvement Agenda
assessment management

CORPORATE STRATEGY

Good

Poor

What

happened?

Good

Change the Top

IMPLEMENTATION

SKILLS

Support the

management

Why are they still

alive?

Poor

Assessment Management
the initial decision matrix

STRATEGIC RELEVANCE

High

Low

Keep as is

Positive

Sell

PROFITABILITY

Close

Dispose of

Negative

Restructure

The Initial Decision Matrix
organizational practices in the five phases of growth

PHASE 5

Problem solving

and innovation

Matrix of teams

Participative

Mutual goal

setting

Team bonus

PHASE 1

Make and

sell

Informal

Individualistic and

entrepreneurial

Market results

Ownership

PHASE 2

Efficiency of

operations

Centralized and

functional

Directive

Standards and

cost centers

Salary and merit

increases

PHASE 3

Expansion of

market

Decentralized

and geographical

Delegative

Reports and

profit centers

Individual bonus

PHASE 4

Consolidation

of organization

Line staff and

product groups

Watchdog

Plans and invest-

ment centers

Profit sharing and

stock options

CATEGORY

Management

Focus

Organizational

Structure

Top-Management

Style

Control

System

Management

Reward Emphasis

Organizational Practices in the Five Phases of Growth
imaginary organization and relationship marketing two perspectives

Relationship

Marketing

Imaginary

Organization

Delivery

Systems

PARTNER

BASE

CUSTOMER

BASE

IO-

Leader

Core

Compe-

tence

Market

Communication

Customers

Relations

Transactions

LEARNING ORGANIZATION

Imaginary Organization and Relationship Marketing - Two Perspectives
imaginary organizations and some related concepts

LEARNING ORGANIZATIONS

THE CLIENT-DRIVEN FIRM

CONTINUOUS IMPROVEMENT

Learning

Imaginary

Organizations

CORE VS.

PERIPHERY

MARKETS VS.

HIERARCHY

NETWORKS,

RELATIONSHIP

MARKETING,

VALUE

CONSTELLATION

Relations

Transactions

Organizations

as Processes

CORE SYSTEMS

SERVICE DELIVERY

PARTNERSHIP

Imaginary Organizations and Some Related Concepts
role of virtual organizing and knowledge management in business networking

BUSINESS NETWORKING STRATEGIES

Electronic

Commerce

Supply

Chain Mgmt

Relation-

ship Mgmt

Customer Interaction

DIMENSIONS

OF VIRTUAL

ORGANIZING

Asset Configuration

Knowledge Leverage

Role of Virtual Organizing and Knowledge Management in Business Networking
business engineering model applied to business networking

Business unit

Business unit

Strategy level

Business network

Cooperation strategy

Business process

Business process

Process level

Process network

Transactions and

coordination techniques

Information system

Information system

IS level

IS network

Communication

link

Business Engineering Model Applied to Business Networking
major strategy decision

ORGANIZATIONAL RESOURCE DECISION

Virtual

Organization

Insourcing

Outsourcing

eProcurement

for C goods

Content

Management

for Z catalogs

Electronic

Commerce

SCM for

X parts with

Y partners

Supply Chain

Management

NETWORKING

DECISION

Relationship

Management

Major Strategy Decision
virtual organizations and virtual cultures

E-Market Culture

E-Business Culture

Virtual Organization Culture

Virtual Organizations and Virtual Cultures
models of virtuality

The Virtual Face

Star-alliance Model

Co-alliance Model

Value-alliance Model

Models of Virtuality
virtual alliance models

Autonomy/Substitutability or virtual links

High

Low

virtuality

  • Interdependence/
  • Strength of
  • Organizational
  • Links
  • colocation
  • culture
  • synchronicity
  • shared risks

star

satelite

High

Virtual-

Face

co-

alliance

star-

alliance

value

market

virtual

broker

Virtual Alliance Models
virtual organizational change model vocm

Electronic Market Ecosystems

e-Business

Strategy

Structual

Alliances

ICT

Virtual

Culture

Knowledge

Management

Virtual Organizational Change Model (VOCM)
the cycle of knowledge creation

(1) An employee comes up

with & posts an idea to

improve response to

service calls

(4) The new employee

discusses the process

with a colleague over

coffee and it provokes

a further improvement idea

Conversation

Codification

TACIT

KNOWLEDGE

EXPLICIT

KNOWLEDGE

Learning &

Internalization

Re-Use &

Combination

(3) A new Call Center

employee uses the

process and gets

complimented by the

customer

(2) The idea gets built

into the company‘s

automated Call

Response System

processes

The Cycle of Knowledge Creation
knowledge management life cycle

CREATE

Class II

Expanded View

(performative)

EVOLVE

ORGANIZE

Class I

Localized View

(supportive)

APPLY

FORMALIZE

DISTRIBUTE

Knowledge Management Life Cycle
knowledge management

Organization

Process

Technology

Knowledge Management

Knowledge Management
choosing pilot groups

High

Visibility

Willing to

Share Info

Pilot Group

Group

Works with

Current

Info

Big Impact

on Revenue

Choosing Pilot Groups
kworld

Consultants

(The Right

People)

Scheduling

(The Right

Time)

KWorld

Knowledge Base

(The Right Problem)

KWorld
consultant network

Best

Practices

Skills

Solutions

Availability

Consultant Network
a typical knowledge management platform

Knowledge

Desktop

Knowledge Portal

Knowledge Tools

Knowledge

Services

Search and Deliver

Collaboration

Document

Management

Data

Warehousing

and

Business

Intelligence

(Data Analysis)

Tracking and Workflow

System

Business Logic

Security

Replication

Communication

Directory

Administration

A Typical Knowledge-Management Platform
knowledge management modules

KM Enabling Modules

Data Analysis

(Data Warehousing

and Business Intelligence)

Communities,

Teams and Experts

Real Time

Collaboration

Content Management

(Publish&Metadata)

Portals and Search

Complete Intranet

Pre-requisites

Messaging and Collaboration

Knowledge-Management Modules
graph of evolving technology and knowledge management over time

The KM-Enabled Enterprise

Knowledge

management

Content management

Communities,

Teams and Experts

Portals and Search

Data Analysis

(Real Time Collaboration)

Application

Integration

Sophisticated

Comprehensive

Workflow and

Tracking

Publishing and

Approval

LEVEL OF

INTEGRATION

Subscription

and Notification

Document

Management

Data Warehouse,

Complete Catalog Services

Real Time

Collaboration

Basic Intranet

Search

Meta

Directory

Complete

Intranet

Platform

Integration

Metadata

Messaging

and Collaboration

Pragmatic

Visionary

INFRASTRUCTURE OVER TIME

Graph of Evolving Technology and Knowledge Management Over Time
graph of technology and its effectiveness

The KM-Enabled Enterprise

Knowledge

management

Content management

Communities,

Teams and Experts

Portals and Search

Data Analysis

(Real Time Collaboration)

LEVEL OF

INTEGRATION

User Usability

Ratio

Messaging

Integration

EFFECTIVENESS OF THE KM SYSTEM

Graph of Technology and its Effectiveness
the five c s that differentiate data from information

Condensation

Contextualization

Categorization

Correction

Calculation

Information

Data

Data

The Five C‘s that Differentiate Data from Information
the basic elements of knowledge utilization and typical technology tools

Databases and

Capture Tools

Acquisition

Elements of knowledge

utilization and basic

technology

support

Sharing

Databases

  • Sharing Tools
  • Collaborative Tools
  • Communications
  • Links
  • Networks
  • Intranets

Utilization

  • Browser
  • Web Pages
  • Document
  • Distribution Systems
  • Collaborative Tools
The Basic Elements of Knowledge Utilization and Typical Technology Tools
the four levels of knowledge levels of leverage derived and possibilities of technology support

Desirable

Care-Why

Know-Why

Knowledge management

system supported

KNOWLEDGE

STAGE

Know-How

Know-What

Current State of Most Companies

Initial

Desirable

LEVEL OF KNOWLEDGE LEVERAGIBILITY

The Four Levels of Knowledge, Levels of Leverage Derived, and Possibilities of Technology Support
the framework of technologies required to support knowledge management and their functionality

Workflow

Transparent

Capture tools

e.g.,

Crosspads

Web

Conferencing

Expertise

Pointers

Document

Management

Telephones

Routing

Electronic

Conversation

Informal

Capture

Dialog

Conversation

Publishing

Control

Distribution

Informal

Conversation

Making

Project

Management

Watercoolers

Knowledge Management Technologies

Activity

Conversation

Distribution

Connectivity

Publishing

Operational

Data Knowledge

Discover Validation

Cleansing

Problem

Solving

Brainstorming

Tacit Knowledge

Capture

Collaboration

Decision

Support

Systems

Case-based

Reasoning

Intranets

GroupWare

Digital

Whiteboards

Data

Warehouse

Informal Capture

Independent Thought

Mind Maps

Visual Thinking Tools

Data Mining

Document Exchange

Data Cleansing

Collaboration

Validating

The Framework of Technologies Required to Support Knowledge Management and their Functionality
connecting islands of data with a knowledge server

File Servers

Intranet

Centralized

Knowledge

Server

Exchange

Servers

Public Sites

& Information

Services

Notes-type

Discussion

Databases

Telecommuters

Connecting Islands of Data with a Knowledge Server
nonaka s seci model and the places where it support fit in

Socialization

Externalization

  • Face-to-Face Communications
  • Video Conferencing Tools
  • Web Cams
  • Virtual Reality Tools
  • Process Capture Tools
  • Traceability
  • Reflective Peer-to-Peer networks
  • Expert Systems
  • Discussion Platforms

Tacit >> Explicit

Tacit >> Tacit

I

I

G

I

I

I

I

S E

I C

Internalization

Combination

  • Collective Knowledge Networks
  • Notes Databases / Org Memory
  • Pattern Recognition
  • Neural Networks
  • Systematic Knowledge Tools
  • Collaborative Computing Tools
  • Intranets, Groupware
  • Discussion Lists
  • Web Forums
  • Best Practice Databases

Explicit >> Explicit

Explicit >> Tacit

C

G

I

G

C

G

Legend

C: Company‘s Knowledge

G: Group or Team Knowledge

I: Individual Employee‘s Knowledge

Nonaka‘s SECI Model and the Places where IT Support Fit in
customer valuation interactivity and the need for relationship management

Differential

High

Frequency

Marketing

CRM

Customer

Valuation

Interactivity

Mass

Marketing

Niche

Marketing

Consistent

Differential

Customer Needs

Customer Valuation, Interactivity, and the Need for Relationship Management
consistency of interaction across all channels is key

Sales and

Marketing

Cross-selling

Up-selling

Customer

Support

Pre-sales

Post-sales

Fulfillment

Retention

and Loyalty

Incentives

Offers

Rewards

Consistent Interaction

Catalog

Brick-and-

Mortar Store

Telephone

Web

Consistency of Interaction Across all Channels is Key
the evolution of knowledge oriented business processes

High

Knowledge-oriented

Business Processes

Activity-oriented

Business Processes

PROCESS

COMPLEXITY

Transaction-oriented

Business Processes

Low

High

KNOWLEDGE INTENSITY

The Evolution of Knowledge-Oriented Business Processes
new approaches to customer knowledge management

High

KCRM

Interactive

Marketing

Data Mining

Database

Marketing

Interactivity

Basket Analysis

Loyalty/Reward

Programs

Low

High

Customer-specific Knowledge

New Approaches to Customer Knowledge Management
the kcrm strategic framework

Environment

Strategic Context

Product/Services

Market Opportunities

Customer Segments

Value Proposition

Alliances

Market Trends

Competitive Threats

Regulatory Controls

Expression barrier

Interpretation barrier

Impacts

Interpretation barrier

Expression barrier

Impacts

Drives

Impacts

Influences

Enables

Specification barrier

Implementation barrier

Enables

KCRM Strategy

KCRM Technology

E-Business Strategy

Competitive Differentiation

Knowledge

Digital Capital

Adaptability

Implementation barrier

Specification barrier

E-Business Infrastructure

KCRM Architecture

Interaction Channels

Integration

Aligns

The KCRM Strategic Framework
stages of the customer relationship management process and knowledge intensity

Advanced

Needs Prediction

Automatic

Replenishment

Community

Building

Clicks-&-Mortar

Integration

Differentiated

Customer

Service

Detailed

Customer

Profiling

Personalized

Recommendations

KCRM

Level

Profiling of Data

Seamless Partner

Integration

Recognize

Returning

Customers

Customizable Web

Experience

Registration

Enticements

Basic

Identify

Differentiate

Interact

Customize

Stage

Stages of the Customer Relationship Management Process and Knowledge Intensity
responding to uncertainty the organization design options

Uncertainty and change

Creates a need to cope

with more information

  • Create slack
  • resources
  • Allow more
  • time
  • Allow more
  • resources
  • Environmental
  • management
  • Vertical
  • integration
  • Marketing
  • Co-operation
  • Create self-
  • containted tasks
  • Change from
  • functional task
  • design to group
  • with all necessary
  • resources
  • Invest in vertical
  • information
  • systems
  • Plan much more
  • frequently
  • Create lateral
  • relations
  • Move decision-
  • making down
  • and across
  • funcional
  • boundaries

Increase capacity

to process information

Reduce need for information processing

The scope of transformation

Responding to Uncertainty – The Organization Design Options
organization design parameters

Strategy and goals

  • Structure
  • Factors:
  • Division of labour
  • Departmentalization
  • Horizontal and vertical
  • distribution of power
  • Information and
  • decision making
  • Factors:
  • Scope of database
  • Formalization of
  • process
  • Frequency
  • Decision mechanism
  • Task
  • Factors:
  • Diversity
  • Difficulty
  • Variability
  • Reward systems
  • Factors:
  • Compensation
  • Promotion
  • Leadership style
  • Job design
  • People
  • Factors:
  • Selection
  • Training and
  • development
  • Promotion
Organization Design Parameters
matching management style and organizational model

Effective

entrepreneurial

Pseudo-

entrepreneurial

Entrepreneurial

MANAGEMENT

STYLE

Efficient

bureaucratic

Unstructured

unadventurous

Conservative

Mechanistic

Organic

ORGANIZATIONAL MODEL

Matching Management Style and Organizational Model
thorn a realigned strategy

Business strategy

From an emphasis on

administration and cost

reduction

To an emphasis on

marketing, service and

growth

Systems strategy

From an emphasis on

control, administration

and cash accounting

To an emphasis on

decentralization,

commitment and added

value business activity

Organization strategy

From a centralized,

mechanistic orientation

To a more decentralized,

organic and committed

orientation

Thorn – A Realigned Strategy
using csfs to generate the business vision

Business objectives

  • Raise earnings per share
  • Increase market share
  • Improve productivity
  • Development new businesses
  • Develop internationally

Critical success factors

Create

new

markets

Develop

new

products

Automate

production

Concentrate

on profitable

activities

Develop a

group image

world-wide

Maintain

company-

wide control

Improve

product

quality/

reliability

Information systems contributions

Develop

customer

intelligence

systems

Install

new

products/

services

Build

flexible

manufacturing

systems

Develop

profit

analysis DSS

(Decision

Support

System)

Investigate

electronic

links with

customers

Enhance

financial

control

reporting

system

Develop

an online

diagnostic

service

Using CSFs to Generate the Business Vision
positioning an organization s approach to strategic systems planning

High

Beware

Attack

POTENTIAL

SYSTEMS

CONTRIBUTION

TO TOTAL VALUE

ADDED

Explore

benefits

Safe

Low

Low

High

EXISTING SYSTEMS SCALE/EXPERIENCE

Positioning an Organization‘s Approach to Strategic Systems Planning
the it strategic grid distinguishes levels of system criticality

Factory

IT is crucial to current

business operations, but

is not key to the

organization‘s strategic

development

Strategic

IT has been critical

for business success

in the past and will

remain so for the

future

High

BUSINESS

IMPACT OF

EXISTING

SYSTEMS

Support

IT is not critical to the

business, either in the

past or for the future

Turnaround

IT has not been critical

to the business so far,

but is vital for the future

if the organization is to

achieve its strategic

objectives

Low

Low

High

BUSINESS IMPACT OF

APPLICATION DEVELOPMENT PORTFOLIO

The IT Strategic Grid Distinguishes Levels of System Criticality
technology impact on competitive forces

Rivals

High

Suppliers

IMPACT OF

IT ON

COMPETITIVE

FORCES

Buyers

Entrants

Substitutes

Low

High

RELATIVE IMPORTANCE OF

COMPETITIVE FORCES

Technology Impact on Competitive Forces
the interaction of strategic elements in an organization

Technological

environment

Technology

Organization

structure and

culture

Processes

People: individuals

and roles

Strategy

Socio-economic

environment

The Interaction of Strategic Elements in an Organization
the potential impact of it on transformation

Stage 4

Business

re-engineering

High

Stage 3

Process

redesign

POTENTIAL

BUSINESS

IMPACT

Stage 2

Cross-functional

integration

Stage 1

Functional

improvements

Low

High

DEGREE OF BUSINESS REDESIGN

The Potential Impact of IT on Transformation
the emphasis of it management has to change

Emphasis on management

  • of data resources:
  • Distributed computing
  • Standardization (open systems)
  • High connectivity
  • User pull
  • Emphasis on management
  • of computers:
  • Centralized computing
  • Proprietary applications
  • Minimal connectivity
  • Technology push

EXPLOITATION OF

IT FOR BUSINESS

BENEFIT

Second S-curve

First S-curve

TIME

The Emphasis of IT Management Has to Change
traditional approaches to system design are technically focused

Open

Technical

design

process

DESIGN DEGREES

OF FREEDOM

Organizational

learning

Closed

Design

Implementation

Feasibility

TIME

Traditional Approaches to System Design are Technically Focused
traditional approaches to system design allow little scope for user input

Technical

design

process

Open

Window for

user

contributions

to design

DESIGN DEGREES

OF FREEDOM

Organizational

learning

Closed

Design

Implementation

Feasibility

TIME

Traditional Approaches to System Design Allow Little Scope for User Input
assessing the business and technical contribution of applications

High

Maintain

and enhance

These systems are critical to the

business and are technically

successful – they must be

maintained and enhanced to ensure

their continued success

Renew

Systems in this category may have

suffered from a lack of maintenance

and the organization might suffer if

it were to fail

BUSINESS

VALUE

(USERS)

Reassess

Such systems might be outmoded in

business terms, hence they can be

divested, or they may have been

developed in advance of the

business need or capability, hence

a need for user training. Before

action is taken on the system,

reassessment to determine the

business value is necessary

Divest

Systems may be outdated or not

necessary – but consumers scarce

resources

Low

Low

High

TECHNICAL QUALITY

(PROVIDERS)

Assessing the Business and Technical Contribution of Applications
the is responsibility matrix

High

Specialist

dominance

Operational efficiency is primary

objective

„Hybrid“

Users need to be in control of the

systems strategy, while specialists

control systems development

MATURITY

OF THE

TECHNOLOGY

User

dominance

With a high technical risk and a

high strategic impact, applications

should be under user control,

with a major emphasis on effective

exploitation

Risk

dominance

High technical risk with limited

business potential suggests the

application should not

be developed

Low

Low

High

STRATEGIC IMPACT OF

FUTURE SYSTEM APPLICATIONS

The IS Responsibility Matrix
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