15.566
Information Technology as an Integrating
Force in Manufacturing
Session 5 of 24
MASSACHUSETTS INSTITUTE OF TECHNOLOGY
Sloan School of Management
Class Slides
Prof. Brian Subirana
Prof. Brian Subirana, MIT Sloan School of Management
THE MIT VIEW OF THE FIRM
ORGANIZATION’S VALUE PROPOSITION
INFORMATION
INFORMATION
VALUE
VALUE
PROCESS
PROCESS
VALUE
VALUE
ORGANIZATION’S
MATERIAL
MATERIAL
VALUE
VALUE
ARCHITECTURE
DEEP STRUCTURE
OF
BUSINESS PROCESSES
COMPUTER
ACTIVITIES
DESIGN
BUY
MAKE
HUMAN
ACTIVITIES
SELL
MANAGE
TECHNOLOGY
MACHINES & MATERIALS
PEOPLE
(Prof. Brian Subirana
and Prof. Thomas
Malone, 2002.)
ENVIRONMENT
Prof. Brian Subirana, MIT Sloan School of Management
PROGRAM
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PROCESS
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Prof. Brian Subirana, MIT Sloan School of Management
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GENERIC IT ARCHITECTURE ABSTRACTION STACK
SOFTWARE
Coordination activities
FRAMEWORK
PROCESS MANAGEMENT
WORKFLOW
Base activities
PROGRAMMING LANGUAGE
APPLICATION & SERVICE
PROTOCOL
DATA
OPERATING SYSTEM
HARDWARE
NETWORK
MACHINE
COMPONENT
Prof. Brian Subirana, MIT Sloan School of Management
ENVIRONMENT
A “Real” Computer Architecture
Clock
Keyboard
Mouse
CPU
001
Instructi on
Counter
0101
1101
Registers
Monitor
Laser printer
Prof. Brian Subirana, MIT Sloan School of Management
Memory
Enterprise Networking Architecture
See: Laudon & Laudon, Management Information Systems: Organization and Technology, Prentice Hall, 1998
Prof. Brian Subirana, MIT Sloan School of Management
Baxter 1996 spin-off • 20,000 people
• $4,5B sales 1995
• up to 80% of hospital supply needs
• American leading provider of “healthcare products and cost management systems”
• Relationships with hospitals saved up to 20% per surgical procedure
1999(*)
• Also in the laboratory segment and other non-hospital segments with special fees for value
added services and delivery options
• built 6 supercenters (NY, Texas, Illinois, Georgia and California)
• 50 other facilities
• Through valuelink, 60 percent of deliveries were low unit (even to hospitals)
Prof. Brian Subirana, MIT Sloan School of Management
(*) Source: Interview with Larry Rohrer, Allegiance vice president, Medicaldistribution.com 1999