Challenges in e-commerce strategy - the case of ambient organization
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Transcript of Challenges in e-commerce strategy - the case of ambient organization
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Niels Bjørn-Andersen 1
Challenges in e-commerce strategy
- the case of ambient organization
Niels-Bjørn AndersenProfessor
Center for e-CommerceCopenhagen Business School
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Niels Bjørn-Andersen 2
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Niels Bjørn-Andersen 3
The Laurentian library
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The inflexible, rule-determined, mass production organization is being replaced by the flexible, porous, adaptive, fleet-of-foot organization of the future. In this organization, every person is ‘paid’ to be obstrepous, to disrespect formal boundaries, to hustle and to be engaged fully with engendering swift actions, constantly improving everything.
Peters, 1988
The demise of the traditional hierarchy
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Niels Bjørn-Andersen 5
‘So the great dream of the machines have come to an end’
Scott, Southpole 1911
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Organizational characteristics
Traditional Virtual forms
Structure Hierarchical Fluid
Direction Management Self-managing
Requirement Management Leadership
Prime resource Capital People
State Static/stable Dynamic
Basis of action Control Empowerment
Key drivers Rewards/punish Commitment
Relationships Ind competition Collabor. teams
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Organizational impact
Organizational design
Inter-organizationaldesign
Organizationalre-invention
IT enabled organizational change
Impact on clerks
Impact on managers
Hour-glass shaped
Delayered
Flexible
Just in time
Shamrock
Scandinavianmodel
Responsive
Postmodern
Innovative
Agile
VirtualModular
Business excellence
Learning
Borderless
Networked
Ambient
21 century
Lattice
Virtual eco system
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Niels Bjørn-Andersen 8
‘Our dream for the 1990s is a boundarylesscompany, a company where we have to knockdown the walls that separate us from each otheron the inside, and separate us from our key constituencies on the other side’
Jack Welch, 1990
Vision for General Electric
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..temporary network of independent companies - suppliers, customers, even erstwhile rivals - linked by information technology to share skills, costs, and access to one another’s markets. It has neither a central office nor organizational chart. It has no hierarchy, no vertical integration
Definition of a Virtual Organization
Byrne & Brandt 1993
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Transition to becoming a Networked Virtual Organization
Traditional Leading Ideal futureCentralized Distributed Collaborative
Org size Org value Core focus
Positional power Information power Intellectual power
Vertical integration Extended integration Virtual integration
Predictability Responsive/flexible Proactive
Long-term planning Near-term planning Adaptive planning
Labor/management Workforce Intellectual capital
Cisco: The bridge, 2003
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The Networked Virtual Organization is the most fundamental and significant change in organizational structure, we have ever experienced
John Chambers, CEO, CiscoAugust 2002
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NVO drivers in Cisco
• Customer centric– Self service and support via web-site– On-line sales– Customer segmentation and optimization
• Focus on core processes instead of context– Out-tasking of service/repair and e-learning
• Continuous standardization– Standardized processes and data (e.g. Virtual close)– Standardized IT-infrastructure
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Corporate Corporate CustomersCustomers
Distributor/Reseller
Manufacturer/ OEM
Retailers3P Logistics
Raw MaterialsSupplier
Logistics Providers
ConsumerConsumer
ComponentSupplier
ManufacturersEngineering/Design Partners
Subcontractor
PrivatePrivateeMarketeMarket (vertical)(vertical)
PrivatePrivateeMarketeMarket (vertical)(vertical)
Logistics Logistics Exchange Exchange (horizontal)(horizontal)
Logistics Logistics Exchange Exchange (horizontal)(horizontal)
Public eMarket
(B2B)
Public eMarket
(B2B)
Product/Goods FlowProduct/Goods Flow
Information FlowInformation Flow
Customer Customer Exchange Exchange
(B2C)(B2C)
Customer Customer Exchange Exchange
(B2C)(B2C)
(Adapted from Forrester, 06/2000 & AMR SCM Report Jan 2000)
VirtualManufacturers Virtual
Distributors
Marketplace-to-Marketplace
(M2M) relationships
B2B relationships
e-Supply Networks
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Types of Collaborative Processes & Models in eMarkets
eMarket / eMarket / Private HubPrivate Hub
eMarket / eMarket / Private HubPrivate Hub
Collaborative Logistics PlanningCollaborative Logistics PlanningCollaborative Transportation MgmtCollaborative Transportation MgmtCollaborative Distribution ServicesCollaborative Distribution Services
Collaborative Logistics PlanningCollaborative Logistics PlanningCollaborative Transportation MgmtCollaborative Transportation MgmtCollaborative Distribution ServicesCollaborative Distribution Services
Collaborative Demand ForecastingCollaborative Demand ForecastingCollaborative ReplenishmentCollaborative ReplenishmentCollaborative Promotion PlanningCollaborative Promotion PlanningCollaborative Life Cycle PlanningCollaborative Life Cycle Planning
Collaborative Demand ForecastingCollaborative Demand ForecastingCollaborative ReplenishmentCollaborative ReplenishmentCollaborative Promotion PlanningCollaborative Promotion PlanningCollaborative Life Cycle PlanningCollaborative Life Cycle Planning
Collaborative Supply PlanningCollaborative Supply PlanningCollaborative Supply ProcurementCollaborative Supply Procurement
Synchronized Production SchedulingSynchronized Production Scheduling
Collaborative Supply PlanningCollaborative Supply PlanningCollaborative Supply ProcurementCollaborative Supply Procurement
Synchronized Production SchedulingSynchronized Production Scheduling
CSUPCSUP
Collaborative Supply & Production PlanningCollaborative Supply & Production Planning
CTMCTM
Collaborative Transportation ManagementCollaborative Transportation Management
CPFRCPFR
Collaborative Planning, Forecasting Collaborative Planning, Forecasting & Replenishment& Replenishment
Collaborative Product Engineering & DesignCollaborative Product Engineering & DesignCollaborative Product Engineering & DesignCollaborative Product Engineering & Design
3P Logistics
Suppliers
ManufacturersEngineering/Design Partners
Subcontractors
Retailers
Distributors
CEDCED
Collaborative Engineering & DesignCollaborative Engineering & Design
Retailers
Manufacturers
Viewed from the Viewed from the manufacturer’s manufacturer’s
perspectiveperspective
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This refers to an organization which is enabled by the emerging Ambient Intelligence Technologies,
exploits virtual resources, communication and collaboration schemes,
in order to redefine its organisational structure and redefine its business model
in order to obtain sustainable value and utilize technological opportunities for meeting increasingly complex and ever more competitive environments.
Definition of an Ambient Organization
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Dream or reality?
• Development of WWW and Linux
• Cisco and others have shown the direction of development for traditional organizations
• Customers become part of your organization
• Pfizer soliciting research assistance
• Mobile broadband with pattern recognition, voice recognition brings new promises
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Please stay tuned for next chapter on Ambient Organizations!