Discussion

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Lecture-02v2.pdf

CHIEF ALGORITHMS OFFICER ROLE ROLE GOES BEYOND DATA & ANALYTICS CRUNCHING TO THE “JOB TO

BE DONE” INSIGHTS TO ACTION INTEGRATED WORKFLOW MACHINE LEARNING “FEEDS” A RECOMMENDATION TO THE STYLIST “PERSONAL TOUCH” SELECTION STYLIST PRACTICES AT THE TOP OF THEIR “LICENSE”

• ERAS I – III

• ERA IV

• ERA V

• ERA VI

• THINGS

KNOWLEDGE

Competitive Force IT Influence on Competitive Force

Threat of New Entrants Can be lowered if there are barriers to entry.

Sometimes IT can be used to create barriers to

entry

Bargaining Power of

Buyers

Can be high if it’s easy to switch. Switching

costs are increased by giving buyers things they

value in exchange such as lower costs, effort, or

time; or useful information

Bargaining Power of

Suppliers

Strongest when there are few firms to choose

from, quality of inputs is crucial, or the volume

of purchases is insignificant to the supplier

Threat of Substitute

Products

Depends on buyers’ willingness to substitute &

the level of switching costs buyer’s face

Industrial Competitors Rivalry is high when it is expensive to leave an

industry, the industry’s growth rate is declining,

or products have lost differentiation

• PRIMARY ACTIVITIES

• SUPPORT ACTIVITIES

• LOWERING THE COST

• ADDING VALUE WILLING TO PAY MORE

LINKING

UNDERSTANDING

HOW INFORMATION IS USED

RARE & VALUABLE RESOURCES

DIFFICULT TO TRANSFER OR RELATIVELY

IMMOBILE

NOT TOO DIFFICULT OR

EXPENSIVE

SAVE THE FIRM IF

DISRUPTION MEASURES FAIL

AINING REQUIRES TOO MUCH EFFORT

DISRUPTION CAN HAVE A HUGE PAYOFF

Value Creation (Low / Moderate / High) Value Sustainability (Easy / Moderate / Difficult)

Resource / Attribute Value Rarity Imitation Substitution Transfer

IT Asset

Repository Explain Explain Explain Explain Explain

Solutions Explain Explain Explain Explain Explain

Infrastructure Explain Explain Explain Explain Explain

IT Capability

Relationship (External)

Explain Explain Explain Explain Explain

Relationship (Spanning)

Explain Explain Explain Explain Explain

Managerial Explain Explain Explain Explain Explain

Technical Explain Explain Explain Explain Explain

• AWAKENING A SLEEPING GIANT

• DEMONSTRATING BAD TIMING

• IMPLEMENTING IT POORLY

• FAILING TO DELIVER WHAT USERS WANT

• RUNNING AFOUL OF THE LAW

Co-creating IT & Business Strategy – The General Manager / IT Manager Dilemma

Are you in the business of IT because IT’s so much in the business?

Bottom Line

Variable Description

Organizational variables

Decision rights Authority to initiate, approve, implement & control decisions necessary to plan & run the business

Business processes Ordered tasks to complete key business objectives

Formal reporting relationships Structure set up to coordinate organizational units

Informal networks Mechanism, such as ad hoc groups, to coordinate & transfer information outside formal reporting relationships

Control variables

Data Facts collected, stored & used by the organization

Planning Processes by which future direction is established, communicated & implemented

Performance measurement

& evaluation

Measures to assess successful execution of plans then using the measures to improve the quality of work

Incentives Monetary & non-monetary devices to motivate behavior

Cultural variables

Values Implicit & explicit beliefs that underlie decisions & actions

Locus The span of culture – local, national, regional, etc.

Hierarchical Flat Matrix Networked

Description Bureaucratic w/

defined levels of management

Decision-making

pushed down to lowest level

Workers assigned to 2 or more supervisors

Formal/informal

communication

networks that connect all

Characteristics Division of labor

specialization, unity of command

Informal roles; often

small, young organizations

Dual reporting based on function/purpose

Known for flexibility & adaptability

Type of Environment Best Supported

Stable

Certain

Dynamic

Uncertain

Dynamic

Uncertain

Dynamic

Uncertain

Basis of Structuring Primary functional Very loose Functions & purpose Networks

Power Structure Centralized Decentralized Distributed Distributed

Key Supporting Technology Supporting

Mainframe, centralized data & processing

Mainframe, centralized data & processing

Networks Intranets & Internet

• MONITOR

• EVALUATE

• PROVIDE FEEDBACK

• COMPENSATE & REWARD

• CONTROL PROCESSES

• COLLECTIVE PROGRAMMING OF THE MIND SHARED VALUES & BELIEFS

Organizational Strategy Matters Because…

Culture Will Eat Strategy For Breakfast

Bottom Line

THANK YOU! (AND PLEASE DON’T FORGET TO POST QUESTIONS TO THE “I’VE GOT

A QUESTION!” DISCUSSION FORUM)