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Wednesday, December 7, 2011

Changing the Rules With Technology Information


Together with custoomer needs and core competences, information technology completes a trinity of elements leaders can combine to create market opportunities through revitalization. In fact, this element is so powerful that a company’s leadership can change the rules of the game through technology.
Technology is to corporate life what the nervouse system is to human life. It connect the various parts of the body in an integrated network of information sharing and decision making. It “ wires “ together disparate parts of the organization, allowing them to progres together toward a common goal rather than remain hopelessly disjointed. It can improve speed and efficiency, for example, through the automation of slower and error-prone human tasks.
Even more importantly, technology provides the wiring and programing needed to build connectors across corporate boundaries into the live of the other organization, giving birth to new corporate communities. This is why technology belongs to the revitalization section of our transformation framework, even though it can also be use for restructuring. For example, technology allows a company to build direct electronic links between it self, its customer, and its alliance partners, thus providing a conduit to extand the reach of the firm’s core competences.
Following the framework first offered by N. Venkatraman, the technology chromosome has five genes, corresponding to five levels of business operation, in increasing order of ambition and complexity : isolated activities or task, linked or integrated sets of related tasks, business processes, intercompany networks, and the scope of the business as a whole. The CEO has the following five corresponding tasks as genetic architect.
1. Sanctioning technology for localized efficiency improvement. The most apparent and widely applied advantage of technology rests in it ability to automate information-intensive ( and formerly paper-intensive) transaction and services. These are the most traditional applicationts that tend to be locally or functionallybased,. Payroll, other entry,customer support, CAD/CAM, reservation, and JIT inventory system are but a few examples here. Most companies recognizeand use such system, achieving remarkable increases in efficiency comparedto days gone by. Yet most companies are still plagued by unnecessary processes and layers of management that were created  before the era of “bit magic.”

2. inducing technology-based integration of internal business processes.
Common information is the central component of business process integration. Payroll information is affects benefits administration. The information taken in the order- entry process affect, or should affect, marketing, production planning, order fulfillmen, inventory management, accounts receivable, and so forth. Today’s technology makes it possible to build anelectronic “Main Street,” where related business processes are linked though shared information on a common IT platform.this in turn requires  the integration of organizational roles and responsibilitis neededto use that shared information.
3. Promoting technology-enabled reengineering. Connecting processes by putting them on the same technology platform is a launchpad for exploring brave new worlds of business process redesign, entering the realm of bioreenginering. Rthis is where radical change begins, where the “ought” starts becoming the “is.” It is where old process and organizational lines become very blurry, linked by the order chaos of free flowing information within amn organization. It is how lands’End takes your clothing order by phone in less than a minuts, and has it sitting on your doorstep within three days.
4. Leading the development of technology-enhanced bisiness networs. If technology –enabled reenginering lead to brave new worlds of business process redesign, then technology-enhanced business network transport a company into whole new galaxies. Many companies  already are forming more closely knit relationships with there suppliers, distributors, retailers, and customers. And while politicians are talking about building an “information superhighway,” some corporations are constructing their own, opening new strategic frontiers by sharing not just information but what was once considered proprietary knowledge.
5. redifining tyhe scope of the business through technology. As companies advance their business processes and network through technology, the very act of doing so expands or even fundamentally alters the scope of the business.in othher word, “bit magic” does to some corporations what automobiles did to buggy whips, or what  desktops did to mainframes. The preferable course is for a corporation to outomode itself with innovative applications of techology, while leveraging that innovation to redefine its business.
Using technology to expand a business’s scope or redefine it altogether is perhaps the CEO’s greates revitalization challenge. It can feel like being weaned a second time altering or discarding the very source of growth that has nurtured a company for decades. Few leadership teams accept the challenge, fewer still have surmounted it. But like Mount Everest, it is there. Unlike Mount Everest, meeting the challenge is not merely a personal option. Mastering technology has become a requirement of business survival.
      

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