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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


  • 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)






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



Pooled interdependence for mediating technology



Reciprocal interdependence for intensive technology



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




The potential intellectual bandwidth
The potential intellectual bandwidth interdependence

  • Information assimilation × attention collaboration

Info assimilation


sense making

potential intellectual


Database query

Manual search






Methodology interdependence

  • Ontology (Perspective、Standpoint、Focus)

  • Epistemology (assumption、argument、hypothesis, model)

  • Method (operation/analysis skills)

Work methodology focus
Work methodology focus interdependence

  • 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 interdependence

  • 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 interdependence

  • 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.