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Value creation technology. Changing the focus to the group. Objective . The sources of value What are the focused dimensions for releasing IT potential? Value Patterns. Value creation defined. Anything that someone might consider useful, important, or desirable.

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value creation technology

Value creation technology

Changing the focus to the group

objective
Objective
  • The sources of value
  • What are the focused dimensions for releasing IT potential?
  • Value Patterns
value creation defined
Value creation defined
  • Anything that someone might consider useful, important, or desirable.
    • Economic value: wealth, resources
    • Physical value: well-being, comfort
    • Emotional value: security, excitement
    • Social value: effective relationships among people
    • Cognitive value: knowledge, wisdom
    • Political value: power, control, influence
sources of value i
Sources of Value (I)

Novelty

Value

Efficiency

Lock-in

Complementarities

sources of value ii
Sources of Value (II)
  • Complementarities
    • Between products and services for customers(vertical vs. horizontal)
    • Between on-line and off-line assets
    • Between technologies
    • Between activities
  • Novelty
    • New transaction structures
    • New transactional content
    • New participants, etc.
sources of value iii
Sources of Value (III)
  • Efficiency
    • Search costs
    • Selection range
    • Symmetric information
    • Simplicity
    • Speed
    • Scale economies, etc.
  • Lock-in
    • Switching costs
      • Loyalty programs
      • Dominant design
      • Trust
      • Customization, etc.
    • Positive Network externalities
      • Direct
      • indirect
value creation efforts
Value creation efforts
  • Methodology (reasoning process)
  • Potential intellectual bandwidth with two complementary parts
    • Degree of information assimilation (make sense of something)
    • Degree of collaboration (a suitable pattern of attention dynamics)
the information focus
The information focus
  • Data infrastructure (IT capacity)
    • Find—store—retrieve—transform—display
  • Communication infrastructure (collaborative activities)
    • Talk—send—gesture—show—share

Knowing is not the same as doing.

Doing is not the same as sense making.

sense making process
Sense making process
  • From tacit to tacit (socialization/mentorship)
  • From tacit to explicit (externalization/publication)
  • From explicit to explicit (combination/communication)
  • From explicit to tacit (internalization/assimilation)
attention dynamics focus
Attention dynamics focus
  • Forms of organization in teamwork
    • Collective effort: as the sprinters
    • Coordinated effort: as the relay
    • Concerted effort: as the crew
  • Patterns of attention dynamics
    • (diverge—converge)—(organize—deconstruct)—understand—(elaborate—abstract)—(analyze—synthesize)—(consensus—agree)

Some facilitated managerial mechanisms are needed.

schematic of thompson s technology classification
Schematic of Thompson’s technology classification

Sequential interdependence for long-linked technology

Output

Input

Pooled interdependence for mediating technology

Input

Output

Reciprocal interdependence for intensive technology

Input

Output

coordination patterns for different technological interdependence
Coordination patterns for different technological interdependence
  • Reciprocal dependence—mutual adjustment
    • Value resulted from intensive interactions, e.g., R&D
    • Cross-function teams, face-to-face, unscheduled meeting, full-time integrators, standardized recruiting, required professionals
  • Sequential dependence—planning
    • Value resulted from standardized outputs and seamless combinations of which, e.g., manufacturing
    • Scheduled meeting, task force, vertical communication by supervisors
  • Pooled dependence—standardization
    • Value resulted from training, standardized skill & process, and resource sharing, e.g., sales & marketing
    • Rules, plans, procedures, interfaces

High

interdependence

Low

the potential intellectual bandwidth
The potential intellectual bandwidth
  • Information assimilation × attention collaboration

Info assimilation

Automated

sense making

potential intellectual

bandwidth

Database query

Manual search

collaboration

Collective

Coordinated

Concerted

Individual

methodology
Methodology
  • Ontology (Perspective、Standpoint、Focus)
  • Epistemology (assumption、argument、hypothesis, model)
  • Method (operation/analysis skills)
work methodology focus
Work methodology focus
  • A repeated work process, an accepted working norm, a ubiquitous processing paradigm
    • Reason
      • Understand the problem—develop alternatives—evaluate alternatives—choose alternatives—plan for action
    • Act
      • Execute—coordinate—track—adjust—control

Anything existed should be allowed for challenges.

Core competences may be turned into core rigidities.

Keep the expertise personnel flow in some degree.

implications
Implications
  • IT metrics must be value based(contributed to information or collaboration)
  • IT/IS development will evolve into organizational structuring (communication channel/interaction mode)
  • All technology will be collaborative
  • Shift to sense making (not only symptom alerting but also value oriented innovation)
  • Moving to mass configuration rather than mass customization (the dynamics of relationship could be redefined)
extending readings
Extending readings
  • Stabell, C.B. and O.D. Fjeldstad (1998), “Configuring Value for Competitive Advantage: On Chains, Shops, and Networks,”Strategic Management Journal, Vol. 19, pp. 413-437.
  • Nonaka, Ikujiro and Hirataka Takeuchi (1995), “Theory of Organizational Knowledge Creation,” in The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation, Oxford University Press, New York.
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