Strategy and Practice 5 - Innovation-Based Strategy
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(Difference between revisions)
(Created page with "Innovating forms of organizations *''Innovation in terms of organizational strcuture like m-form'' *''Innovation as novel combination of processes'' - new combination of structur...") |
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| − | Innovating forms of organizations | + | ==Innovating forms of organizations== |
| − | *''Innovation in terms of organizational | + | *''Innovation in terms of organizational structure like m-form'' |
*''Innovation as novel combination of processes'' - new combination of structures using BPR | *''Innovation as novel combination of processes'' - new combination of structures using BPR | ||
*''Innovation as novel re-combination of previous structures'' - recombining previously new structures differently using BRP, or HR v Personnel Customer service rather than Sales | *''Innovation as novel re-combination of previous structures'' - recombining previously new structures differently using BRP, or HR v Personnel Customer service rather than Sales | ||
*''Innovation as an organisational initiative - may not be new'' - but new for that industry | *''Innovation as an organisational initiative - may not be new'' - but new for that industry | ||
| − | + | ==Why new forms?== | |
*Dismanatling of vertical forms | *Dismanatling of vertical forms | ||
*deregulation | *deregulation | ||
| − | * | + | *M&A |
| − | * Less protectionism | + | *Less protectionism |
| − | * JV's | + | *JV's |
| − | + | *more volatile buying patterns | |
| − | *more | + | *faster diffusion of technology |
| − | * faster diffusion of technology | + | *New Technologies |
| − | * New Technologies | + | *organizing to exploit information |
| − | * organizing to exploit information | + | |
Technology is a driver of these changes | Technology is a driver of these changes | ||
* The internet | * The internet | ||
| − | Galbraith 6 Shapers of Organizational forms | + | [[author::Galbraith]] - 6 Shapers of Organizational forms |
* Buying power | * Buying power | ||
* variety | * variety | ||
| − | * The internet | + | * The internet as an integrating force |
* Change - more decisions need to made more frequently - needs collaboration and departmentalism | * Change - more decisions need to made more frequently - needs collaboration and departmentalism | ||
* Speed | * Speed | ||
* Multiple channels | * Multiple channels | ||
| − | + | ==Ideal Forms or Organizational structures== | |
| − | Ashkenas has argued for organizations without boundaries | + | [[aujtor::Ashkenas]] has argued for organizations without boundaries |
| − | + | [[Author::Hamel]] says that organisations arent designed for innovation | |
| − | + | Benenton has broken away from silo structure and has 350 suppliers manufacturing for them | |
| − | + | ==Novel Combinations or recombinations of processes== | |
*Reducing costs | *Reducing costs | ||
| − | * Changing structures | + | *Changing structures |
*BPR | *BPR | ||
*Continuous Improvement | *Continuous Improvement | ||
*Customer service | *Customer service | ||
| − | + | ==A unified perspective [[author::Denison]]'s process-based theory of organizational design== | |
A focus on value chain and networks | A focus on value chain and networks | ||
| − | * More | + | * More market driven than hierarchy driven |
| − | * | + | * Focus on external relations |
Firm strategy - increasingly about devloping core competences | Firm strategy - increasingly about devloping core competences | ||
| − | Hierarchy structure - is still present from | + | Hierarchy structure - is still present from an administrative view but not crucial determining capabilities |
A move towards defining organizations in terms of relations | A move towards defining organizations in terms of relations | ||
Firm boundaries - more blurred - much larger constituency of interests | Firm boundaries - more blurred - much larger constituency of interests | ||
| − | + | ==Duality of structure and process== | |
| − | Communications and relations more important than structure and cintracdicts | + | Communications and relations more important than structure and cintracdicts [[author::Chandler]]'s ''structure follows strategy'' |
| − | Globalization is affecting structure [[Ghoshal]] Technology means that firms are not constrained by geography | + | Globalization is affecting structure [[author::Ghoshal]] Technology means that firms are not constrained by geography |
| − | New | + | New Manufacturing systems - Japanese Continuous Improven Kaisan- has an affect on organizational structure |
Managaing business process not depetament - x-functional teams | Managaing business process not depetament - x-functional teams | ||
| − | Global firms as inter-organisational networks - HQ | + | Global firms as inter-organisational networks - HQ ''Parenting values'' |
Organising to exploit knowledge and not capital and distributing knowledge - social capital becomes a form of competitive advantage | Organising to exploit knowledge and not capital and distributing knowledge - social capital becomes a form of competitive advantage | ||
| Line 67: | Line 66: | ||
| − | Success is no longer determined by economic success but cooperation and | + | Success is no longer determined by economic success but cooperation and proximity of government and social agencies |
| − | + | Innovation - is doing or thinking something new | |
Creativity - something that might already done but in a new context | Creativity - something that might already done but in a new context | ||
Much thinking around organizing organizations to meet information needs, hyper-competitiion, globalization | Much thinking around organizing organizations to meet information needs, hyper-competitiion, globalization | ||
| − | Recent effects - breakdown in | + | Recent effects - breakdown in vertical structures, excess capacity, M&A, trading blocks, volatility of customers buying patterns |
| − | + | ==6 Shapers of tomorrows organizations'' | |
* structures around customers segments | * structures around customers segments | ||
* internet as a integrating force | * internet as a integrating force | ||
| − | *Variety amd mass customization | + | * Variety amd mass customization |
* Speed | * Speed | ||
* multiple distribution channels | * multiple distribution channels | ||
| − | * decentralization and | + | * decentralization and networks to make decision quickly |
| − | + | ==Virtual orgs - without boundaries - Benetton | |
| − | ''Changes in structure'' - to reduce costs, bpr, TQM | + | *''Changes in structure'' - to reduce costs, bpr, TQM |
| − | ''Chnages in process'' - CI, learning organizations | + | *''Chnages in process'' - CI, learning organizations |
| − | ""externally focused'' = customer service | + | *""externally focused'' = customer service |
| − | ''Denison process-based theory of | + | ''Denison process-based theory of Organizationa Design'' - Value chain and networks, alliances and inter-form networks |
| − | ''Myerson - '' | + | ''[[author::Myerson]] - ''swift trust'' - trust is a key requirement of new organizations forms |
Organizations structure will be less about reducing transaction costs but gaining access to new mkts | Organizations structure will be less about reducing transaction costs but gaining access to new mkts | ||
| − | [[Structure follows Strategy Follows Structure]] | + | *[[Structure follows Strategy Follows Structure]] |
| − | [[Operations Strategy 6 - Organization]] | + | *[[Operations Strategy 6 - Organization]] |
[[Category:Strategy]] | [[Category:Strategy]] | ||
| + | <comments /> | ||
Revision as of 21:54, 12 September 2012
Contents |
Innovating forms of organizations
- Innovation in terms of organizational structure like m-form
- Innovation as novel combination of processes - new combination of structures using BPR
- Innovation as novel re-combination of previous structures - recombining previously new structures differently using BRP, or HR v Personnel Customer service rather than Sales
- Innovation as an organisational initiative - may not be new - but new for that industry
Why new forms?
- Dismanatling of vertical forms
- deregulation
- M&A
- Less protectionism
- JV's
- more volatile buying patterns
- faster diffusion of technology
- New Technologies
- organizing to exploit information
Technology is a driver of these changes
- The internet
Galbraith - 6 Shapers of Organizational forms
- Buying power
- variety
- The internet as an integrating force
- Change - more decisions need to made more frequently - needs collaboration and departmentalism
- Speed
- Multiple channels
Ideal Forms or Organizational structures
Ashkenas has argued for organizations without boundaries Hamel says that organisations arent designed for innovation Benenton has broken away from silo structure and has 350 suppliers manufacturing for them
Novel Combinations or recombinations of processes
- Reducing costs
- Changing structures
- BPR
- Continuous Improvement
- Customer service
A unified perspective Denison's process-based theory of organizational design
A focus on value chain and networks
- More market driven than hierarchy driven
- Focus on external relations
Firm strategy - increasingly about devloping core competences Hierarchy structure - is still present from an administrative view but not crucial determining capabilities A move towards defining organizations in terms of relations Firm boundaries - more blurred - much larger constituency of interests
Duality of structure and process
Communications and relations more important than structure and cintracdicts Chandler's structure follows strategy
Globalization is affecting structure Ghoshal Technology means that firms are not constrained by geography New Manufacturing systems - Japanese Continuous Improven Kaisan- has an affect on organizational structure Managaing business process not depetament - x-functional teams
Global firms as inter-organisational networks - HQ Parenting values
Organising to exploit knowledge and not capital and distributing knowledge - social capital becomes a form of competitive advantage
Modularity - interconnecting coordinating self organizing networks
n-form comes from the hypercompetitive environments
Success is no longer determined by economic success but cooperation and proximity of government and social agencies
Innovation - is doing or thinking something new Creativity - something that might already done but in a new context
Much thinking around organizing organizations to meet information needs, hyper-competitiion, globalization
Recent effects - breakdown in vertical structures, excess capacity, M&A, trading blocks, volatility of customers buying patterns
==6 Shapers of tomorrows organizations
- structures around customers segments
- internet as a integrating force
- Variety amd mass customization
- Speed
- multiple distribution channels
- decentralization and networks to make decision quickly
==Virtual orgs - without boundaries - Benetton
- Changes in structure - to reduce costs, bpr, TQM
- Chnages in process - CI, learning organizations
- ""externally focused = customer service
Denison process-based theory of Organizationa Design - Value chain and networks, alliances and inter-form networks
Myerson - swift trust - trust is a key requirement of new organizations forms
Organizations structure will be less about reducing transaction costs but gaining access to new mkts
<comments />
