case

Localizing: Localization is the adaptation of a product or service to meet the needs of a particular language, culture or desired population's "look-and-feel."

+High Flexibility on local scale (silos apps) and low flexibility on Global.

+ You want you get

- Mess

- Costly and expensive .

- needs technical people

- can't operate on a national or global scale

Standardizing (about level of architecture):

+ reduce # hardware, vendors

+ Cost saving

- Same # of application ( work with IT )

Optimizing (business processes) (The use of one global instance)

+ Higher level of visibility and business control on data

+ Less software

+ build kind of ERP architecture( Enterprise resource planning (ERP) is business process management software that allows an organization to use a system of integrated applications to manage the business and automate many back office functions related to technology, services and human resources. ERP software integrates all facets of an operation, including product planning, development, manufacturing, sales and marketing.)

Expensive, less flexible on local scale

go to globally .

4- modality :it is about IT and move to the solution , high flexibility in global and local , speed ( use agility ) , complexity , how build IT in sample way , careful with cost saving . have simple product . to achieve modality we need granularity ( reusing ,agility,cost reduction )

Organization’s digital maturity level

How are companies using digital technologies such as social media, data and analytics, mobile devices and cloud computing to compete and operate differently?

in particular, strategy, culture and talent development. These differences represent an important distinction between companies with high and low digital maturity and offer insights for executives.

1.HOW DIGITAL STRATEGY OBJECTIVES VARY ?

1-Improve customer experience and engagement

2-Increase efficiency

3-Improve business decision making

4-Improve innovation

5-Transform the business

THE KEY ABILITIES COMPANIES LACK ?

1-Knowing the business and being able to conceptualize how new digital technologies can impact current business processes/models .

2-Willingness to experiment and take risks

3-Ability to use digital technologies such as social, mobile, analytics and the cloud to execute one’s job

4-Ability to manage or work in distributed, digitally savvy teams in fast-paced environments; flexibility

5-Willingness to share and be collaborative

The Importance of Digital Strategy ?

Companies must know what to listen for, how to analyze and interpret the data, and how to respond. be able to act quickly on the information the platform provides.

EMPLOYEES’ PERSPECTIVES ON DIGITAL LEADERSHIP?

Many survey respondents from companies at early-stage and developing digital maturity levels are not satisfied with the way their organizations are responding to digital trends. Such attitudes likely have implications for recruiting and retaining talent.

1-How important to you is it to work for an organization that is digitally enabled or is a digital leader

2-Our organization’s leadership has sufficient skills and experience to lead our organization's digital strategy.

3-I am satisfied with my organization's current reaction to digital trends

1-The trouble with enterprise software

1-The increase of complexity:

ERP start to serve the business fine, but with the growth of the business, ERP needs to customize software to fit with businesses need but that lead to more complexity. As mentioned, many firms end up with several instances for their ERP. In the end, ERP systems became just another subset of the legacy systems they were supposed to replace.

2-The Costs of Implementation:

Running cost for the consultations.

Under the mercy of the vendors.

c. Upgrading cost is huge as well.

d. Limited by the vendors capabilities.

3-The Vagaries of Data (Data issues- redundancy)

Having several instances lead to data redundancy. Effect one the ERP goals which is the whole picture.

To insure that firms needs to have highly standardization process for all the firms’ branches

“Is enterprise software just too complex to deliver on its promises? After all, enterprise systems were supposed to streamline and simplify business processes. Instead, they have brought high risks, uncertainty and a deeply worrying level of complexity. Rather than agility, they have produced rigidity and unexpected barriers to change, a veritable glut of information containing myriad hidden errors”

ERP:

- the ERP target are integrate the business, reduce the "silo" mentality , get information into a single system , get knowledge into defined and repeatable processes . The key issue are accuracy, uniformity, consistency to data combined with a standard method of delivery.

Single Global ERP Instance - Hopes :

1-Eliminating complexity of multiple applications

2-Predictable business processes.

3- operational excellence .

4- Centralized control and robust reporting .

5-one version of the truth .

2 -(how to thrive on turbulent markets)

Uncertainty is the defining characteristic of business competition today.

*Agility*

Agility is: a company’s ability to identify and capture spot and exploit emerging business opportunities more quickly than its rivals do. The agility benefits are Including higher revenues, greater customer satisfaction, increased market share, and faster time to market. There are three types of agility :

1-Operational: the ability to consistently identify and seize opportunities more quickly than rivals do within a focused business model( How to execute the process fast )

2- Portfolio: shifting resources, such as employees and capabilities, to other business processes o Putting the right people in the right place o The hardest type of agility to achieve because it requires: § breaking out silos § changing employees responsibilities § redesigning business processes .

3- Strategic: the ability to identify and seize game changing opportunities when they arise o Capability is very important (might contribute to strategy change)

*Absorption*

firms have the strength and stamina to weather market shifts. Some sources of absorption tend to kill agility. Low costs, for instance, can keep a company in the game long enough to ride out market shifts, but excess staff can depress profit ability and create busywork for others.There are 10 way to have absorption:

LOW FIEXED COST: higher raw-materials costs, declining demand

VAST SIZE: To enable downsizing of operations during crises

INTANGIBLE RESOURCES: To insulate the firm against short- and mid-term market shifts; these resources might include brand, expertise, or technologies

CUSTOMER LOCK-IN: To buy time when competitive dynamics and markets shift; high switching costs, for instance, can prevent customers from jumping ship

PROTECTED CORE MARKET: To provide a safe stream of cash to weather storms

EXCESS STAFF: To be shed in hard times

Agile Absorption: Strike the Right Balance

Combine both approaches and display “agile absorption” :

the ability to identify and seize opportunities while retaining the structural characteristics to weather changes. In unstable times, cultivating and using both capabilities in combination can help companies not only survive but emerge as true market leaders. Managers should view agility and absorption with the balance shifting as circumstances change. Getting the mix right, instead of relying heavily on one or the other, increases the effectiveness of these two approaches during volatile times.

Not all sources of absorption are created equal:

Low fixed costs are good; they don’t prevent companies from seizing opportunities as they emerge. But excess staff is bad; top heavy management teams create more work to justify their existence and introduce unnecessary layers of bureaucracy.

Actively managing trade-offs:

Don’t sacrifice good sources of absorption (or agility) without being sure of the benefits you’ll receive in return.

Maintaining a culture of agility:

Firms follow a fairly standard trajectory over time: They slowly develop absorptive strengths, which can erode the culture of agility that once enlivened them as start-ups. This decline is common but not inevitable.

3- Complexity in the Digital Age :

 Digitization Helps Simplify the Customer Experience o Search, recommendation, filters, reviews, etc

 Digitization Helps Keep Internal Processes Simple o standardized processes,applications,data and technology

􏰀  Finding Your Complexity Sweet Spot (How to take advantages of complexity? ) to move to sweet spot we need to build modularity and have solution .

1- Assess your company’s current complexity position in product and process complexity. 2- Choose a path to complexity sweet spot 3- Increase product complexity (if needed) .4-Digitization: (responding to customer experience and make it simplification) 5-Standardization :(to achieve agility and solve complexity) .6- Increase process simplification (if needed) (decrease complexity) through: o MISSING POINT,o Modularity o Platforms,o Reusability.

What is complexity?  The amount of variety ( of the product and service) and links ( interdependency with other companies) within a company. companies operating in this “complexity sweet spot” outperform their competitors on profitability. increased product variety and links can make it difficult for customers to choose (hurt revenues) .Product and service complexity and the business process aspect of organizational complexity have the biggest impacts on achieving top performance. internal process complexity often grows with increased product complexity (add costs). Use SOA can help to minimize complexity.

4- Staying Power Six Enduring Principles for Managing Strategy and Innovation

How companies can stay power?

1. Platform not just product:

􏰀 that will requires external ecosystem (ex. iPhone, Nike shoes)and generate complementary products/ services . Also, it will let you build positive feedback , and give the ability to have reusable platform. Finally, Standards among the platform.

2-Services not Just products

􏰀   To sell, enhance, and do-commoditize products or standardized services. Products to create new value added opportunities and pricing models. Services to deliver them more efficiently and flexibly.

􏰀 3.Capability (Not Just Strategy)

􏰀 Build distinctive organizational capabilities and operational skills not just organizational vision. Focus on your strengths, and􏰀 deep capabilities combined with strategy. Strategy is only knowing .

4. Pull (do Not Just push)

 Pull: it all about understand the customers needs. Goal: Link each step in company’s key operation backward from the market in order to respond in real time to changes in demand, customer preference, competitive conditions, or internal difficulties. From it you can have feedback from customer. Pull resources fast and customize them to customer needs. Using modularity to serve customer.

5. Scope (Not Just Scale) :scale means efficiency in terms of physical system .

 Scope: provide variety of products and services .Using your platform to be more flexible to produce many types of one product.

6.Flexibility (Not just Efficiency) 􏰀 to meet customers needs.

5— What is business agility?

􏰀  An organization ability to act in a rapidly changing market by providing products and services that add value to common solutions (move to solutions, added value services) .An organization ability to build an ecosystem (i.e. team up with other businesses) . Using real-time reliable market data .Continuous quick small adjustment as condition changes . Scoping (variety of products) and customization is very important for agility. Customers are more willing to pay more for products wrapped by services .  Product + Added Value Services = Solution (ex. in Starbucks: coffee beans + AVS = (Customer experience) How to move to agility: 1.Provides solutions 2.Provides added value services

3.Provides continuous small adjustment 4.Allows customization

Companies Before Used to depend on Low Cost After the 3td world countries enters the Market Now the need to work on having agility they can have agility through two way

1-Efficiency

Basic Product & services with low cost that will Required(1. Predictability. 2. Stability).

2-Responsive

1 Wrap those products a& services with creativity ( Add value to the product ). 2.Customization ( writing the customer name on the cup of coffee Like Starbucks). 3.Flexibility . that will Required (1. Continuous Change, 2.Create more value).

6-Reuse and SOA (service -oriented architecture )

SOA : is an architecture style focused on representing repeatable business and technology activities.Also, it is middleware, as an open channel between systems. Its goal to achieve business needs. It is all about (Reusability,Flexibility and agility: Easy and flexible to reconfigure, Transparency across multiple legacy applications.).

modularity: have product simple .

SOA modular principle : shared , reuse (the idea of mixed and match ) , reconfiguration ( to create new solution ) , integration .

The benefit of Reuse 1-Reduce time and cost for developing services. 2-Business agility: response faster to market opportunities. Through(The time require to lunch a new product,to scale up or down in responding change demands,to transform business operation , and to absorb merger).

Firms, which only concern about cost saving should not choose SOA

Firms need to address cultural challenges associated with reuse.

Most difficult part make to get business people comfortable with the discipline of reusing standard information and business process.

The path to value from reuse(the firms looking for business agility benefit from reuse should take the following steps )

Focus on implementing Technology and business process standards.

Develop a high business architecture (business’s units).

Start small. A Small centralized team can take initial responsibility for building and reusing service.

Focus on large business component and build them on modular form.

Problems:

Increase in costs, risk and uncertainty, don’t deliver, and hard to be customized (complexity) .You have to aligning IT with the business.To Solve this problems you should move to have Service Structure Architecture (SOA) to fix for these problems. Involved: Updating and changing legacy systems by building modular cross-system business processes. But technical realists point out that many difficult technical problems must be solved before SOA can become the backbone for a new strategic architecture,

A16 : A Players or A Positions

A16 - A Players or A Positions

􏰀  Workforce differentiation: Today's environment requires a shift from treating everyone the same to treating everyone according to his or her contribution.

􏰀  Putting A players in A positions helps to ensure A performance.

􏰀  Identify strategically critical jobs, then to invest disproportionately to ensure that the right people doing the right things are in those positions.

􏰀  Effective management of your A positions requires intelligent management of your B and C positions, as well.

􏰀  Businesses need to adopt a portfolio approach to workforce management, placing the very best employees in strategic positions, good performers in support positions, and eliminating nonperforming employees and jobs that don't add value.

􏰀  One thing to keep in mind: Effective management of your A positions requires intelligent management of your B and C positions, as well.

􏰀  Create A positions before seeking A players.

􏰀  Identify strategically critical jobs, in order to find the right A players to fill those jobs.

􏰀  Incentivize employees to create a culture of performance.

􏰀  Adopt a portfolio approach to manage workforce.

􏰀  Guideline:

􏰀  Identifying Your A Positions: 􏰁 Two defining characteristics:

a. its impact on strategy

b. the range in the performance level of the people in the position (source of competitive advantage)

􏰁 must work forward from strategy 􏰁 determine your company's strategy 􏰁 identify your strategic capabilities 􏰁 identify jobs that are critical to those capabilities

􏰀  Managing Your A Positions

􏰁  You need strategies for managing you’re a, B, and C positions

􏰁  Explain to your workforce clearly and explicitly the reasons that different jobs and people need to be treated differently.

􏰁  A positions require a disproportionate level of investment

􏰁  manage your portfolio of positions so that the right people are in the right jobs, paying particular attention to your A positions:

a. using performance criteria developed for determining who your A, B, and C players are, calculate the percentage of each currently in A positions

b. act quickly to get C players out of A positions, replace them with A players

c. work to help B players in A positions become A players

􏰀  Managing Your Portfolio of Positions: 􏰁 disproportionately invest in your A positions and players 􏰁 Don’t ignore the rest of your workforce!

􏰁 Although you aren't likely to win with your B positions, you can certainly lose with them.

􏰁 The performance of people in A roles needs to be evaluated in detail. 􏰁 There should be compensation according to performance

Businesses need to adopt a portfolio approach to workforce management:

􏰀  A Positions, which are strategic and critical.

􏰀  B Positions, which are, support positions to support strategic ones.

􏰀  C Positions, which may be required but not of any strategic impact. Making tough choices:

􏰀  Strategy is about making choices, and correctly assessing employees and roles are two of the most important.

􏰀  today's competitive environment requires a shift from treating everyone the same to treating everyone according to his or her contribution.

A18 - What is your Management Model

Findings:

􏰀  Asking “What is your management model?” may be as key as asking “What business are you really in?”

􏰀  Companies are often unaware of the management models they are using.

􏰀  There is no one best management model. Rather, there are deliberate choices to be made, based on many factors unique to each company. Business model: is all about how a company makes money! Theory of the business:

1. Assumptions about the environment of the organization

2. The specific mission of the organization

3. The core competencies needed to accomplish the organization’s mission.

A management model is the choices made by a company’s top executives regarding how they:

1. Define objectives

2. Motivate effort

3. Coordinate activities and allocate resources

In other words, how they define the work of management.

Management is about how we get work done through others — it is concerned with the day-to- day work of setting objectives, motivating efforts, coordinating activities and shaping decisions

Diagnosing the Principles of Management:

1. Choices about the nature of the objectives the company pursues. [Clear set of short- term goals for the company or Goal Setting Obliquity?] 􏰀

2. Choices about how individuals are motivated to pursue these objectives [Extrinsic or intrinsic rewards?]

3. Choices about how activities are coordinated in the company [Formal or informal processes?]

4. Choices about how decisions are made in the company. [Hierarchy or Collective Wisdom]

􏰀 collective intelligence, suggests that under certain conditions the aggregated expertise of a large number of people can produce more accurate forecasts and

􏰀

better decisions than those of a small number of experts. Risks of collective intelligence:

i. A failure to tap into a suitably diverse crowd.

ii. Allowing the collective group to do too much

iii. collective effort has limited capacity for creative tasks

Using the Framework to Make Explicit Management Choices : This allows us to identify four generic management models

1. The planning model: Many large companies operate with narrow short-term objectives, clearly defined management processes and strict hierarchical decision-making. And, importantly, these are often among those objectives through a variety of means.

2. The quest model: is to loosen up the “means” of management while retaining tight control over the “ends.” Or, saying it slightly differently, to tell your employees what to do, but not how to do it o Ends (i.e., managing objectives, motivating individuals) o Means (i.e., coordinating activities, making decisions)

3. The scientific model: free up the ends while keeping control of the means. This is how science makes progress.

4. The discovery model: both the means and ends of management are deliberately loose, but for certain activities, and for certain periods of time, it can be highly effective.

o suitable for many startup ventures operating in highly ambiguous environments where there are multiple potential ways forward of varying levels of potential, and success is achieved through trial and error

o has promise for established organizations that are looking for new ways forward.

————————————————————————————-

 Making good decisions and making them happen quickly are the hallmarks of high- performing organizations.

􏰀  The most effective organizations score well on: o the major strategic decisions: which markets to enter or exit, which businesses to buy or sell, where to allocate capital and talent. o the critical operating decisions requiring consistency and speed: how to drive product innovation, to position brands, to manage channel partners.

􏰀  there can be ambiguity over who is accountable for which decisions.

􏰀  many companies struggle to make decisions because lots of people feel accountable – or no one does

􏰀  The most important step in decision making is assigning clear roles and responsibilities

􏰀  most companies use RAPID to analyze decision making (give senior management teams a method for assigning roles and involving the relevant people)

o Recommend: People in this role are responsible for making a proposal, gathering

input, and providing the right data and analysis to make a sensible decision in a

timely fashion. o Agree :Individuals in this role have veto power – yes or no – over the

recommendation o Input: these people are consulted on the decision. Because the people who provide

input are typically involved in implementation, recommenders have a strong interest

in taking their advice seriously o Decide: the person with the D is the formal decision maker. o Perform: Once a decision is made, a person or group of people will be responsible

for executing it 􏰀 The entire decision-making process can stall, usually at one of four bottlenecks: global

versus local, center versus business unit, function versus function, inside versus outside partners

􏰀 The companies that succeed tend to follow a few clear principles: o Somedecisionsmattermorethanothers o Action is the goal o Ambiguity is the enemy

o Speed and adaptability are crucial o Decision roles trump the organizational chart o A well-aligned organization reinforces roles o Practicingbeatspreaching

——————————————————————————————————

. The Matrix is consist of 8 unit, and each unit have to have 4 Purpose or role:

. 􏰀 Broad Responsibilities (laying out what the unit is supposed to be doing) o Unit responsibilities need to be specified in a way that makes the broad remit clear, but leaves most of the details to be determined by the unit. o the unit needs to know what resources it will have in carrying out its responsibilities 􏰀 Reporting Relationships (how it is supposed to work with other units) o specify to whom units will report, and what the nature of this reporting relationship will be. o Business unit general managers are normally closely involved in the decisions made by the main operating functions reporting to them. 􏰀 Lateral Relationships (how it is supposed to work with other units) o Lateral relationships between sister units are more varied than reporting relationships. o in interdependent structures it is important for units to have a sense of what sort of relationships they are meant to have with other units. o 5 types of relationships:

1. Mutual self-interest relationships: work together if both parties see an interest in doing so, but are free not to collaborate if they do not.

2. Pressure group/principal relationships: one unit has the final word on a decision, but the other unit is expected to exert its influence on the outcome

3. In service provider/client relationships: the service provider must treat other units as its customers, endeavouring to win their business through the quality, responsiveness and cost-effectiveness of its service offering.

4. Resource owner/user relationship: The resource owner must not only respond to users’ requirements, but must also develop and nurture the resource on behalf of the company. (may imply prioritising different users’ requests)

5. Team relationships: all units must collaborate to realise the goals of the larger, upper-level unit of which they are part.

o The value of these five archetypal relationships lies in their ability to capture the intended orientation of each unit towards other units.

􏰀 Main Accountabilities (how its performance will be assessed)

o “What gets measured gets done” o helps managers to decide what priorities

they should give to different tasks on their ‘to do’ lists, therefore shapes the way in which they discharge their responsibilities

Unit roles:

. 1-  Business Units: serve selected target product/market segments and are responsible for maximising the value that can be created from serving these markets.

. 2-  Business Functions: achieve functional excellence and cost effectiveness, in a way that contributes to the overall success of the business unit.

. 3-  Overlay Units: create a focus of management attention on product-market segments that may not be given sufficient emphasis by the business units.( create additional dimensions of focus)

. 4-  Sub-businesses: concentrate on more narrowly-defined, disaggregated product-market segments than the business unit

. 5-  Core Resource Units: focus management attention on selected resources that are key to competitive advantage in several business units.

. 6-  Shared Service Units: responsible for providing their services to other units in a way that is cost-effective and responsive driven purely by what their ‘customers’ want, rather than by their own

. 7-  Project Units: focus on specific tasks or projects that cut across other units

. 8-  Parent Units: the upper levels of management to which other units report, responsible for obligatory compliance and due diligence tasks, and for influencing and adding value to the operating units.

—————————————————————————————————-

Companies must understand what customers truly value. The only way to do that is to break down the traditional, often entrenched, silos and unites resources to focus directly on customer needs.

􏰀  (coordination, cooperation, and capabilities) mutually reinforce the effort to put customers at the organization’s fore

􏰀  Connection dramatically increases the power and reach of solutions by focusing attention beyond the firm’s boundaries.

􏰀  All of them help companies break internal silos in service of higher-value customer solutions.

. Extra description: Coordination for Customer Focus few companies are actually structured to deliver products and services in a synchronized way that’s attractive from a customer’s perspective. Individual units are historically focused on perfecting their products and processes, and give little thought to how their offerings might be even more valuable to the end user when paired with those of another unit. It’s not just that the status quo doesn’t reward collaborative behavior – although the right incentives are also critical. It’s that the connections literally aren’t in place. How to achieve more formal coordination?

. 􏰀 do away with traditional silos altogether and create new ones organized by customer segments or needs.

16|Page IST 305 - Final Exam – Spring 2015

􏰀 layer boundary-spanning roles or units over the current structure and charge them with connecting the company’s disparate activities to customer needs (without discarding existing silos)

Culture of Cooperation

􏰀  don’t necessarily inspire a willingness among members of competing silos to fully cooperate and make sometimes time consuming and costly adjustments in the interest of customers.

􏰀  Just as important as coordination, then, is a cooperative environment in which people are rewarded for busting through silos to deliver customer solutions.

􏰀  customer-focused companies o build an outside-in perspective into all major elements of their cultures o solving customer problems above all else and celebrate customer victories

􏰀  At least half the battle of promoting cross-silo, customer-focused cooperation lies in the “softer” aspects of culture (including values and the way the company communicates them through images, symbols, and stories)

􏰀  Powerful cultural tools for aligning employees around customer needs: o Service accomplishments instead of, or in addition to, product accomplishments o treat your workers the way you want them to treat customers.

􏰀  softer cooperation-promoting measures won’t take hold if the harder ones–power structures, metrics, and incentives – don’t reinforce them. Building Capability Regardless of the incentives and cultural elements in place to enhance customer-focused silo busting, employees will fall back on their old competencies and ways of thinking if they haven’t developed new skills. As a company becomes more adept at inducing coordination and cooperation across units, new skills become valued and desirable. Rather than highly specialized expertise, customer-focused solutions require employees to develop two kinds of skills: 1) multi-domain skills – the ability to work with multiple products and services, which requires a deep understanding of customers’ needs, and 2)boundary-spanning skills – the ability to forge connections across internal boundaries. Connection with External Partners by redefining the boundaries of the company itself, firms can further fight commoditization in two ways (require cross-boundary efforts between a company and its partners):

􏰀  cutting costs by outsourcing all but core activities (and, in some cases, by finding creative ways to outsource them

􏰀  joining forces with companies that have complementary offerings to create even higher- value solutions, which command a larger price premium.

There are pitfalls to integrating closely with suppliers. Some companies – especially those that are unclear on their core values – give away too much. Others become captive to their key suppliers and lose the motivation to make ongoing investments in new technology. Some also find that they are funding the development expertise and scale that may allow a partner to become a competitor.

apply the principles used to manage across internal silos–coordination and cooperation find efficient ways of exchanging information and aligning incentives.

Cooperation issues may be even more central to external relationships than to internal ones.

———————————————————————————————————-

A10 - Working Smarter

􏰀  Working smarter is defined as an organization-wide mindset to continuously improve performance by using information from a digitized platform (i.e., using people’s smarts more effectively).

􏰀  Working smarter Improve the organization performance by using information from a digitized platform.

􏰀  The ability to rapidly respond to customer demands and new business opportunities is what makes working smarter a competitive advantage. An Ongoing behavioral Transformation

1. Transforming from heroics to discipline (Adopting culture of standardized, disciplined business processes)

2. Transforming from disciplined processes to evidence-based management (More significant agility benefits resulting from transforming the decision making habit to rely on analysis and evidence as a basis for decision making)