INFORMATION UBIQUITY AND
ORGANIZATION
CONUNDRUMS AND NEW
CAPITAL
DAVID FORQUER
ASSISTANT DEAN
ROBINSON COLLEGE OF BUSINESS...
TOPICS AND QUESTIONS
• The Impact of Inter and Intra Firm Information
Sharing Capacity on Value Creation
• Impact of Infor...
AN ONGOING
DILEMMA
Strategy Structure ?
Structure Strategy ?
Information Flows Structure ?
Software Information Structure ...
A SIMPLIFICATION
Strategy
Resources
Information
Structure
Customers
and
Markets
AND CONUNDRUM
Strategy
Resources
Information
Structure
Customers
and
Markets
Information, However
Disrupts Hierarchy
Has s...
Case Study
Customer Loyalty
HOW MANY COMPANIES PURSUE
CUSTOMER LOYALTY?
Revenue
Growth
Customer
Retention
Customer
Profitability
WHAT DRIVES
LOYALTY?
Initial Product-
Service
Quality
Ongoing
Service Quality
Relationship
Quality
Brand
Awareness &
Equit...
AND…
Not All Loyal Customers are Profitable
NOR…..
Are all Disloyal Customers Unprofitable!
Customer
Loyalty &
Referral
Initial
Product-
Service
Quality
Ongoing
Service
Quality
Relationship
Quality
Brand
Awareness
...
Customer
Loyalty &
Referral
Initial
Product-
Service
Quality
Ongoing
Service
Quality
Relationship
Quality
Brand
Awareness
...
At their very Heart, Good Customer Relationships and Customer
Governance Require a Clear Understanding of How Your Product...
A CONTINUOUS RENEWAL OF VALUE CO-
CREATION REQUIRES BOTH….
Efficiency,
Effectiveness
Innovation
Source: Arun Rai
IT-ENABLED PROCESS CAPABILITIES FOR
COORDINATION
Rai, Patnayakuni, Patnayakuni, MIS Quarterly, 2006;
X X
Integrated/Reconf...
DISRUPTIVE TECHNOLOGIES
REDEFINING COORDINATION
16
Source: Rai
IT CAPABILITIES: INTELLIGENCE X PROCESS
• Multi-channel coordination
• Womb-to-tomb processes
• Visibility at varying leve...
ORCHESTRATING ECOSYSTEMS
Value
Creation
Efficiency
Novelty
Complementarities
Value
Appropriation
Bundling
Lock-in
Barriers...
DIFFERENCES IN LEARNING
REQUIREMENTS
Nature of Interfirm Collaboration Objectives
Business
Opportunity
Goal
Orientation Ri...
CONSEQUENCES OF LEARNING ORIENTATION
The dual segment—where IT is used for both learning about
efficiency and innovation—o...
IS THIS ENOUGH?
ADAPTIVE CAPACITY IS A
CRITICAL IT ENABLED RESOURCE
QUESTIONS?
DAVID FORQUER
DFORQUER@GSU.EDU
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Information Ubiquity and Organization, Georgia State University

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Information ubiquity and organization. Conundrums and new capital

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Information Ubiquity and Organization, Georgia State University

  1. 1. INFORMATION UBIQUITY AND ORGANIZATION CONUNDRUMS AND NEW CAPITAL DAVID FORQUER ASSISTANT DEAN ROBINSON COLLEGE OF BUSINESS GEORGIA STATE UNIVERSITY
  2. 2. TOPICS AND QUESTIONS • The Impact of Inter and Intra Firm Information Sharing Capacity on Value Creation • Impact of Information Sharing on Customer Loyalty • Value Co-Creation and Customer Governance • The Open Organization, Adaptive Capacity and New Capital • Q&A
  3. 3. AN ONGOING DILEMMA Strategy Structure ? Structure Strategy ? Information Flows Structure ? Software Information Structure Strategy? What is the Role of Information in Organization?
  4. 4. A SIMPLIFICATION Strategy Resources Information Structure Customers and Markets
  5. 5. AND CONUNDRUM Strategy Resources Information Structure Customers and Markets Information, However Disrupts Hierarchy Has substitution and complementary effects Influences Internal and External Market Efficiency Is an integral part of most goods and services Cornerstone capability For efficiency and innovation
  6. 6. Case Study Customer Loyalty
  7. 7. HOW MANY COMPANIES PURSUE CUSTOMER LOYALTY? Revenue Growth Customer Retention Customer Profitability
  8. 8. WHAT DRIVES LOYALTY? Initial Product- Service Quality Ongoing Service Quality Relationship Quality Brand Awareness & Equity DO OUR INFORMATION FLOWS SUPPORT AN INTEGRATED APPROACH?
  9. 9. AND… Not All Loyal Customers are Profitable
  10. 10. NOR….. Are all Disloyal Customers Unprofitable!
  11. 11. Customer Loyalty & Referral Initial Product- Service Quality Ongoing Service Quality Relationship Quality Brand Awareness and Equity Revenue Growth Reliability: Dependable and Accurate Assurance: Inspire Trust Tangibles: Appearance Empathy: Caring Attitude Responsiveness: Prompt Resolution Strong Internal Organization Service Quality Service Quality Orientation Leadership High Levels of Productivity Employee Commitment Not all loyal customers are profitable, Disloyal customers can be profitable All SQ outcomes are relative to competition; Relative Competitive Position is a key driver of profitability and market share Service Value Key SQ Outcomes Customer Requirements Customer Outcomes The Service Profit Model Customer Retention Customer Profitability Business Processes Team/Unit Leadership Service Orientation Operational Excellence Brands Markets
  12. 12. Customer Loyalty & Referral Initial Product- Service Quality Ongoing Service Quality Relationship Quality Brand Awareness and Equity Revenue Growth Customer Retention Customer Profitability Business Processes Team/Unit Leadership Service Orientation Operational Excellence BrandsMarkets WHERE DO WE FOCUS, AND FAIL? • What Defines a High Quality Relationship, and Good Customer Governance? • What ‘Informational Steps’ Can you take to Promote One? • Can You Achieve these Goals within the Boundaries of the Organization? • How much of customer relationship quality relies on unstructured data?
  13. 13. At their very Heart, Good Customer Relationships and Customer Governance Require a Clear Understanding of How Your Product or Service Helps Your Customer Create Value for Their Customers. We are Drawn into their Value System. This Reality makes Value Co-Creation a Requirement. Relationships are DYNAMIC. IT Resources are Critical to Inter Firm Coordination and Cooperation and Intra Firm IT Effectiveness
  14. 14. A CONTINUOUS RENEWAL OF VALUE CO- CREATION REQUIRES BOTH…. Efficiency, Effectiveness Innovation Source: Arun Rai
  15. 15. IT-ENABLED PROCESS CAPABILITIES FOR COORDINATION Rai, Patnayakuni, Patnayakuni, MIS Quarterly, 2006; X X Integrated/Reconfigurable B2B IT Resources X Lower Switching Costs Lower Coordination Costs Source: Arun Rai
  16. 16. DISRUPTIVE TECHNOLOGIES REDEFINING COORDINATION 16 Source: Rai
  17. 17. IT CAPABILITIES: INTELLIGENCE X PROCESS • Multi-channel coordination • Womb-to-tomb processes • Visibility at varying levels Synchronized Processes • Alerts • Business rules Real-time Business Intelligence • Data transfer standards • Partner interface processes (PIPs) • Service oriented architectures Reconfigurable Processes • Data mining • Process mining Reflective Business Intelligence Intelligent Integrationfor Efficiency Intelligent Reconfigurationfor Innovation Source: Rai
  18. 18. ORCHESTRATING ECOSYSTEMS Value Creation Efficiency Novelty Complementarities Value Appropriation Bundling Lock-in Barriers to Imitation Rai & Tang, IT-Enabled Business Models, Information Systems Research, in press X
  19. 19. DIFFERENCES IN LEARNING REQUIREMENTS Nature of Interfirm Collaboration Objectives Business Opportunity Goal Orientation Risk Scope Learning Orientation New Existing Short Term Long Term High Low End- to- End Narrow Efficiency Innovation Dual Im and Rai, Management Science, 2008 Rai, Im and Hornyak, MISQ Executive, 2010 N = 238 buyer-supplier logistics relationships
  20. 20. CONSEQUENCES OF LEARNING ORIENTATION The dual segment—where IT is used for both learning about efficiency and innovation—outperforms the other segments on all performance parameters Im and Rai, Management Science 2008 Rai, Im and Hornyak, MISQE, 2010 3.50 4.50 5.50 Operational cost Revenue Service qualityOrder fulfillment New products Dual Efficiency Innovation Mkt. Exchg
  21. 21. IS THIS ENOUGH?
  22. 22. ADAPTIVE CAPACITY IS A CRITICAL IT ENABLED RESOURCE
  23. 23. QUESTIONS? DAVID FORQUER DFORQUER@GSU.EDU

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