Managerial Levers
Jason C. H. Chen, Ph.D.
Professor of MIS
School of Business Administration
Gonzaga University
Spokane, WA 99223
chen@gonzaga.edu
Information Ecology (Davenport)
Data
Information
Simple Observations Data endowed with
of the world:
relevance & purpose:
Easily structured
Requires unit of
analysis
Easily captured on
machines
Often quantified
Easily transferred
Knowledge
Info. from the mind
includes reflection,
context, synthesis:
Hard to structure
Difficult to capture
Need consensus on the
on machines
meaning
Often tacit
Human mediation
necessary
Hard to transfer
Organizational strategy frameworks
Key Idea
Business
Diamond
4 key organizational
components: 1) business
processes, 2) values and
beliefs, 3) management
control systems, and 4)
tasks and structures.
Managerial
Levers
Organizational variables,
control variables, and
cultural variables are the
levers managers can use to
affect change in their
organization.
Source: Pearlson, 2001
Usefulness of IS
Discussions
Using IS in an organization
will affect each of these
components. Use this
framework to identify where
these impacts are likely to
occur.
This is a more detailed
model than the business
diamond and gives specific
areas where IS can be used
to manage the organization
and to change the
organization.
D’Aveni’s Disruption and 7-S’s
Vision for Disruption
Identifying and creating opportunities for
temporary advantage through understanding
• Stakeholder satisfaction
• Strategic Soothsaying
directed at identifying new ways to serve existing
customers better or new customers that are not
currently served by others
Market Disruption
Capability for Disruption
Sustaining momentum by developing
flexible capacities for
• Speed
• Surprise
That can be applied across actions to
Build temporary advantage
Tactics for Disruption
Seizing the initiative to gain advantage by
• Shifting the rules
• Signaling
• Simultaneous and sequential strategic
thrusts
With actions that shape, mold, or influence
the direction or nature of the competitor’s
response
D’Aveni’s 7-S’s
Approach
Definition
Superior stakeholder
satisfaction
Understanding how to maximize customer satisfaction by adding
value strategically
Strategic soothsaying
Seeking out new knowledge that can predict or create new windows
of opportunity
Positioning for speed
Preparing the organization to react as quickly as possible
Positioning for surprise
Preparing the organization to respond to the marketplace in a
manner that will surprise competitors
Shifting the rules of
competition
Finding new ways to serve customers which transform the
industry
Signaling strategic
intent
Communicating the intended actions of a company, in order to
stall responses by competitors
Simultaneous and
sequential strategic
thrusts
Taking a series of steps designed to stun and confuse
competitors in order to disrupt or block their efforts
Managerial Levers:
Organizational Design Variables
Organizational variables
Decision rights
Business Processes
Formal reporting relationships
Informal networks
Authority to initiate, approve, implement, and control various types of
decisions necessary to plan and run the business.
The set of ordered tasks needed to complete key objectives of the
business.
The structure set up to ensure coordination among all units within the
organization.
Mechanism, such as ad hoc groups, which work to coordinate and transfer
information outside the formal reporting relationship.
Control variables
Data
Planning
Performance measurement
and evaluation
Incentives
Cultural variables
Values
The information collected, stored, and used by the organization.
The processes by which future direction is established, communicated, and
implemented.
The set of measures that are used to assess success in the execution of
plans and the processes by which such measures are used to improve the
quality of work.
The monetary and nonmonetary devices used to motivate
behavior within an organization.
The set of implicit and explicit beliefs that underlie decisions made and
actions taken.
Managerial Levers
Execution
Organization
Control
Decision
rights
Business
processes
Strategy
Formal
reporting
relationships
Data
People,
Information, and
Technology
Informal
networks
Values
Culture
Incentives
and
rewards
Planning
Organizational
effectiveness
Performance
measurement
and
evaluation
Source: Cash, et al., 1994
Summary of Key Strategy Frameworks
Framework
Key Idea
Usefulness in Information Systems
Discussions
Porter’s generic
strategies
framework
Firms achieve
competitive advantage
through cost leadership,
differentiation, or
focus.
Understanding which strategy is chosen
by a firm is critical to choosing IS to
complement that strategy.
D’Aveni’s
hypercompetition
model
Speed and aggressive
moves and countermoves by a firm
create
competitive advantage.
The 7-S’s give the manager suggestions
on what moves and counter moves to
make and IS are critical to achieve the
speed needed for these moves.
Brandenberg and
Nalebuff’s
co-operation model
Companies cooperate
and compete at the
same time.
Being cooperative and competitive at the
same time requires IS that can manage
these two roles.
Conventional and IT design variables
Class of Variable
Structure
Work process
Conventional
Design Variable
Definition of
organizational subunits
Determining purpose,
output of subunits
Reporting mechanisms
Linking mechanisms
Control mechanisms
Staffing
IT Design Variable
Virtual components
Electric linking
Technological leveling
Tasks
Workflows
Dependencies
Output of process
Buffers
Production automation
Electronic workflows
Communications
Formal channels
Informal communication
Electronic communications
Technology matrixing
collaboration
Interorganizational
Make vs. buy decisions
Electronic relations
customer/supplier relationships
Electronic
customer/supplier relationship
Electronic linking mechanism
Exchange of materials
Communications
Virtual components
Source: H. Lucsa and J. Baroudi, “The Role of Information Technology in Organization.” JMIS, Spring 1994, pp. 9-23
Functional (Hierarchical) View of the Firm
(source: Pearlson, p.9, 2001)
Marketing
Operations
Executive Management
NOLAN’s Six Stages of IS Growth
The six stages are:
1. Initiation: Initial introduction of computers to the
organization. Batch processing to automate clerical
operations to achieve cost reduction, operation systems
focus, lack of management interest, and Centralized ISD.
2. Contagion (expansion): Centralized rapid growth as
users demand more applications based on high
expectations of benefits, move to online systems as ISD
tries to satisfy all user demands. Little control if any. IT
expenses increase rapidly.
3. Control: In response to management concern about cost
vs. benefits, systems projects are expected to show a
return, plans are produced and methodologies/standards
enforced. Often produces a backlog of applications and
dissatisfied users. Planning and controls are introduced.
4. Integration: Considerable expenditure on integrating (via
telecommunications and databases) existing systems. Users
accountability for system established, and ISD provides a
service to users, not just solutions to problems. At this time
there is a transition computer use and a approach from data
processing to information and knowledge processing
(transition between the two curves).
5. Data administration: information requirements rather than
processing drive the applications portfolio and information is
shared within the organization. Database capability is
exploited as users understand the value of information and
are willing to share it.
6. Maturity: The planning and development of IT in the
organization is closely coordinated with business
development. Corporatewide systems are in place. The ISD
and the users share accountability regarding the
application of computing resources. IT has truly become a
strategic partner.
Source: Compiled from Nolan (1979).
NOLAN’s Six Stages of IS Growth
The six stages are:
1. Initiation: Initial introduction of computers to the
organization. Batch processing to automate clerical
operations to achieve cost reduction, operation systems
focus, lack of management interest, and Centralized ISD.
2. Contagion (expansion): Centralized rapid growth as
users demand more applications based on high
expectations of benefits, move to online systems as ISD
tries to satisfy all user demands. Little control if any. IT
expenses increase rapidly.
3. Control: In response to management concern about cost
vs. benefits, systems projects are expected to show a
return, plans are produced and methodologies/standards
enforced. Often produces a backlog of applications and
dissatisfied users. Planning and controls are introduced.
4. Integration: Considerable expenditure on integrating (via
telecommunications and databases) existing systems. Users
accountability for system established, and ISD provides a
service to users, not just solutions to problems. At this time
there is a transition computer use and a approach from data
processing to information and knowledge processing
(transition between the two curves).
5. Data administration: information requirements rather than
processing drive the applications portfolio and information is
shared within the organization. Database capability is
exploited as users understand the value of information and
are willing to share it.
6. Maturity: The planning and development of IT in the
organization is closely coordinated with business
development. Corporatewide systems are in place. The ISD
and the users share accountability regarding the
application of computing resources. IT has truly become a
strategic partner.
Source: Compiled from Nolan (1979).
NOLAN’s Six Stages of IS Growth (Cont.)
I
Initiation
2
Expansion
3
Control
4
Integration
5
Data
administration
6
Maturity
Critical Success Factors Questions
1. What objectives are central to your organization?
2. What are the critical factors that are essential
to meeting these objectives?
3. What decisions or actions are key to these critical factors?
4. What variables underlie these decisions, and how are they measured?
5. What information systems can supply these measures?
Value-Creating Business Opportunities
Commerce
Content
Community
Value-Enabling IT Infrastructure
Solutions and Services
• Enterprise resources planning
• Supply chain management
• Customer relationship management
• E-business packages
• Pedagogic systems (Blackboard systems)
• Internet service providers
• Systems integration services
• Outsourcing and hosting
Software Productivity and Development Tools
• Productivity packages
• Integrated development environments (Jbuilder, VB, C++Builder)
• Programming languages (Java, C++, VB, COBOL, etc.)
• Specialized software (simulation, statistical analysis, groupware)
• Web site development tools
• Streaming medium tools
Computing
• Hardware (computers, printers, etc.)
• Operating systems
• Database management Information
• Document management systems
• Application frameworks (J2EE, .NET, XML, etc.)
Communication
• Hardware (networks, routers, etc.)
• Network operating systems
• Gateways
• E-mail and file transfer services
• Servers: Web, applications, and database
• Tele-& Video-conferencing equipment
资产管理的演进过程
资讯
机会性
(绝对报酬)
知识
智慧
结构性
(资讯比率)
全面性
(夏普指数)
资产管理
市场投资时机
资产配置
分散投资
(时间，资产类别 ，
投资模型。。。)
Source: ABN.AMRO Asset Management Taiwan Ltd.
另类投资
(包括保本型商品。。。)
首选企业