CH-3-4 Organizational Strategy and Information Systems – Managing and Using Information Systems: A Strategic Approach : Book Guide

This Document Contains Chapters 3 to 4 Chapter 3: Organizational Strategy and Information Systems Chapter Overview This chapter, retitled in this edition for greater accuracy, is about the organizational impacts of using information systems. It will set up, and in many ways complement, the following chapter, Chapter 4: Digital Systems and the Design of Work. Whereas this chapter is about the organizational level impacts, the next chapter is about the individual worker level impacts. Many students find these discussions complementary, and in some ways they overlap. But we felt it was important to present them as two different chapters to make sure the key points from both perspectives were not lost. Discussion Opener: See the slide show for questions to ask the class about Cognizant and TCS (and answers in the Notes section). Alternate Discussion Opener: What information resources (assets and capabilities) are employed by your university? How can IS lead to competitive advantage? Key Points in Chapter The opening scenario, about Cognizant Technology Solutions, highlights how an outsourcing company had to change its model of managing its employees across the globe, particularly in India. Managers were moved to customer locations while the software engineers stayed in their original location. This led to new headaches, but Cognizant learned that some of the teams were working well. They changed to a new layout that enabled the company to adopt a matrix structure (Figure 3.1) that utilized the best of both styles of management. Tata Consultancy Services (TCS), the largest outsourcing company and software exporter in India, created a different organizational structure (Figure 3.2). This organization focused more on New Growth Markets and Strategic Initiatives. This chapter builds on the concepts in Chapter 1, particularly those around organizational design and organizational strategy. The Business Diamond reminds students that there are several components to be considered when designing the organization, and the Cash, Eccles, Nohria and Nolan table (Figure 3.3) suggests how IT affects the design specifically. This table builds upon the discussion of managerial levers in Chapter 1. Decision rights indicate the persons designated with specific responsibilities and control. Holding these individuals accountable for results leads to greater effectiveness. Organizational design includes appropriately allocating decision rights. The middle part of this chapter reviews some specific instances of how IT allows organizations to be structured differently. We present a brief overview of 4 classic organization structures: hierarchical, flat, matrix, and networked. These can be embellished in many ways with the use of IT. The resulting organization is often one that feels flat (because everyone can talk with anyone in the organization, and information is easily passed between organizational entities and workers) but has some semblance of structure. Further, IT facilitates easier reconfiguration of organization structures, because the history of the company is embedded in the IT, rather than in file cabinets or other paper artifacts. Reorganization is a completely different activity for an IT savvy company versus a "traditional company." Today, most organizations are a hybrid of the traditional structures. Students will relate to the networked organization, which is well described in the HBR article by Applegate, Cash, and Mills (HBR Nov-Dec 1988). Perhaps more interesting is an extension of networked organization, the T-form organization, described by Lucas (in the book, T-Form Organization, 1996). That organizational design is technology-based, and suggests designs similar to many we see today: easy access to information, electronically-coordinated work, larger span of control, electronically-based business processes, etc. Informal networks are then discussed and their importance on management. Managers must be aware and actively seek to manage these informal networks. Some organizations are clearly able to utilize informal networks – like communities of practice – to get feedback, employee support, and learning groups. Social Business Lens: Social Networks – A Social Network brings together people of similar interests. Within corporations, this directory can be integrated with expertise and work processes to create a more dynamic knowledge repository and information resource. IT's effect on management control is then discussed. Managers are able to use IT as a means of monitoring, evaluating, providing feedback, compensating, and rewarding workers. An interesting discussion here might stem around the bounds of "what is possible" versus "what should be done." How can IT be used to monitor? When is it appropriate to deliver feedback via e-mail? What types of deliverables are appropriate/inappropriate for evaluation over the computer? When is it appropriate to monitor employees? Then the text discusses how planning and IT interact. There are three ways in which IT can play a role in planning. Data can be provided to help in developing a strategic plan, to automate the process, and to be the focus of the strategic initiative. Monitoring work can take on a completely new meaning with the use of information technologies. There are lots of software programs on the market that make it possible for companies to monitor exactly what their employees are doing. What web sites they visit, what keys they press on their keyboards, etc. Companies need to understand what is appropriate to monitor and what monitoring techniques may be perceived as overly intrusive and decrease employee morale. Performance measurement and incentives and rewards are another part of management control systems. Managers can use this data to determine rewards, but they have to be careful to not over analyze data to the point that decisions become bogged down in a glut of data. Some organizations use the 360 degree method of evaluation which can be useful when getting a better and clearer picture from all those that interact with the employee. Students need to clearly understand the importance of keeping evaluation data secret. Incentives and rewards need to be fairly and carefully created. Employees need to be recognized for their hard work and rewarded for a job well done. Technology can support this and managers need to understand how this can be done. The next section presents the relationship between information technology and culture. With the globalization of many businesses this is an important and timely topic. Students need to understand that they cannot apply the same strategies across the board in an organization that may be comprised of many different cultures and cultural norms. What is acceptable in one culture may be extremely offensive in another. This chapter defines Values, Beliefs, and Assumptions. Figure 3.5, “Levels of Culture,” shows the impact of IT issues on organizational values and national values. Make sure to spend adequate time discussing this topic and look for ways for students to share what they have seen in their particular environments (taking care not to demean other cultures). Figure 3.6 gives a summary of national cultural dimensions. Take time to go through and to discuss these with your class. Geographic Lens: Does National Culture Affect Firm Investment in IS Training? This vignette reports the results of a research study that showed that countries with low power distance, high future orientation, and high uncertainty avoidance were more likely to invest in training than countries with the opposite values. Students might be encouraged to explain the logic behind these findings, putting these concepts in their own words. Illustrative Answers to Discussion Questions Below are some sample answers, but expect creative answers from your students that are not represented here (please send us some of your best answers so we can share them with other instructors): 1. How might IT change a manager's job? Answer: Managers are traditionally information managers. They get information from those working for them, they massage it, format it, add interpretations, etc., and pass it upwards in an organization. Likewise they take information from the top managers and pass it downwards. All of this can change with IT. The information system itself will handle the information sharing. Interpretation is still needed, and managers might do some of that. But information coming directly from the source where it is created will always be more valuable than some passed through several layers of people who might distort, change, or even lose some of it. Other managerial tasks will change, too. Managing people who you don't see every day is different than managing people sitting at desks near you. 2. Is monitoring an employee's work on a computer a desirable or undesirable activity from a manager's perspective? From the employees' perspective? Defend your position. Answer: From the manager’s point of view, computer monitoring is a mixed blessing. It is desirable because it is easy. Work done on the computer is accessible, and if it involves repetitive tasks, (such as filling in forms) then it is easily measurable. An example is the traditional call center, where agents answer calls from customers. The duration of the call, the number of screens the agent had to use, the number of handoffs of the customer to other agents, etc. are all easily measurable. However, the numbers don't tell the whole story (not surprising). The quality of the interaction, as measured by how nice the agent was to the customer, how professional, how satisfied the customer was, etc. are not easily measurable. So management can easily fall into the trap of measuring those things that are easily measurable, at the expense of measuring things that are important. Regarding the employees, monitoring work done on a computer is not much different than monitoring any output. Should that monitoring take place covertly, that is without informing employees, then it becomes a different issue from an ethical perspective and in terms of increasing employee stress. Workers tend to work in a way that maximizes what they are monitored and rewarded for. If managers are monitoring them for how quickly they get work done on the computer, managers can expect workers to do things as quickly as possible, even if it means sacrificing quality. 3. Consider the brief description of the elastic enterprise. What is an example of a control system that would be critical to manage for success in the elastic enterprise? Why? Answer: It would be critical to manage just about all the control systems to ensure success of an elastic enterprise, so any example is probably good if it is supported well. For example, it would be important to monitor the people, processes, and technology to ensure that they are all able to respond instantly. It would be important to create evaluation criteria and feedback mechanisms to ensure the success of the people when they respond instantly. 4. Mary Kay, Inc., sells facial skin care products and cosmetics around the globe. The business model is to provide one-on-one, highly personalized service. More than 500,000 Independent Beauty Consultants (IBCs) sell in 43 markets worldwide. Each IBC runs his or her own business by developing a client base and then providing services and products for sale to those clients. The IBCs were offered support through an e-commerce system with two major components: mymk.com and Mary Kay InTouch. Mymk.com allows IBCs to create instant online sites where customers can shop anytime directly with their personal IBC. Mary Kay InTouch streamlines the ordering process by automatically calculating discounts, detecting promotion eligibility, allowing the IBCs to access up-to-date product catalogs, and providing a faster way to transact business with the company. a. How would organizational strategy need to change to respond to Mary Kay’s new business strategy? b. What changes would you suggest Mary Kay, Inc. managers make in their management systems in order to realize the intended benefits of the new systems? Specifically, what types of changes would you expect to make in the evaluation systems, the reward systems, and the feedback systems? Answer: Organizational changes would need to be consistent with a revised organizational strategy. If no organizational changes were made, we’d expect the systems to be rejected by many of the workers. Managers would expect IBCs to use the systems, but IBCs are independent agents, so they would most likely delay in using the systems unless motivated to do otherwise. Thus the reward and compensation systems would need to be adjusted to accommodate the new system. And unless business processes were also changed to accommodate the new systems, we would expect problems to occur that make it difficult for the new systems to be used (information entered into the system might be just printed out, if the processes are expecting paper-based forms rather than screen shots). a. You might also want to explore business processes that would have to change to accommodate the new systems. The paper-based ordering system would have to be removed, if managers wanted IBCs to only use the new system, since running the older system discourages IBCs from using the new system. Fulfillment and reconciliation processes would be different with the use of mymk.com, since the order information was entered earlier into the system. If customers of IBCs place orders automatically, IBCs lose control over what is ordered, and will have to build new ways to keep track of their sales. If fulfillment processes are done using paper pick lists, then the process either needs to be redesigned to use electronic lists (shown on the screen or such) or to print out paper lists. b. Evaluation systems would include a component of how well the systems were used by the IBCs. There would need to be an evaluation of the frequency and effectiveness of the use of the systems. That may translate into the reward systems, where IBCs are compensated for their use of the systems (direct bonuses, etc.), or where they find that using the systems gives them advantages they didn’t get otherwise (faster orders, better book keeping, etc.). IBCs might need incentive packages to encourage them to buy computers if they don’t have one already (such as discounts from a preferred vendor). Support processes would be needed to help IBCs learn how to use the systems effectively, and to help them identify new ways to do their business better. The results of the evaluation process would have to be used to provide feedback to the employees. Possibly, in discussing an employee’s performance, it may be helpful to share with them average performance levels of other employees. Further Discussion Questions 1. How has the progression of communication technology affected the business environment? For example, discuss how the evolution of standard business communications (from telephone, to fax, to email) has altered the process of doing business. How are capabilities and costs affected? Answer: The progression of communication technology has profoundly impacted the business environment by revolutionizing the way organizations interact and conduct operations. Initially, the adoption of telephones enabled real-time voice communication, improving efficiency and enabling quicker decision-making. The introduction of fax machines further expedited communication by allowing the rapid exchange of documents over long distances. Subsequently, the advent of email revolutionized business communication by providing instant written correspondence, enhancing collaboration, and reducing reliance on physical mail. These advancements have significantly improved organizational efficiency, streamlined workflows, and expanded global connectivity. Moreover, the evolution of communication technologies has led to increased capabilities such as video conferencing, instant messaging, and collaboration tools, facilitating remote work and enabling virtual teams to collaborate seamlessly across geographical boundaries. However, while communication technologies have brought numerous benefits, they also come with associated costs, including initial investments in infrastructure, ongoing maintenance expenses, and cybersecurity risks. Nevertheless, the overall impact of communication technology progression has been overwhelmingly positive, empowering businesses to operate more efficiently, communicate more effectively, and adapt to the rapidly changing demands of the modern marketplace. 2. Business and commerce are activities much older than the microchip (or the phone for that matter). In a similar vein as the previous question, imagine companies in the 1600s through the 1800s and how information was managed in these instances. The East India Company and the Hudson’s Bay Company (which still exists today) were some of the biggest companies of their day. Imagine how simple business tasks such as logistics and employee transfer (from one country to another) might have been accomplished. What might this tell us about how companies use IT today? What lessons can we draw from this knowledge? Answer: In the 1600s through the 1800s, companies like the East India Company and the Hudson's Bay Company managed information through primarily manual methods and relied heavily on written correspondence, ledgers, and physical records. Logistics were coordinated through a combination of human labor, sailing ships, and overland transportation routes, often involving complex supply chains spanning multiple continents. Employee transfers between countries were likely managed through personal connections, letters of recommendation, and contractual agreements negotiated by company representatives. These historical examples highlight the importance of effective communication, documentation, and logistical coordination in business operations, regardless of the era. Today, companies use IT to streamline these processes through digital communication tools, enterprise resource planning systems, and supply chain management software. However, the fundamental principles of efficient information management and coordination remain unchanged. Lessons drawn from this knowledge emphasize the timeless value of clear communication, meticulous record-keeping, and strategic planning in achieving business success, regardless of the technological tools employed. Cases Case Study 3-1: The Merger of Airtran by Southwest Airlines: Will the Organizational Culture Merge? This case study allows the students to explore real world cultural issues related to the merger of two companies that basically offer the same services, but have two very different organizational structures and cultures. 1. Discuss the layers of culture that are evident in this case. Answer: The organizational values of both airlines are discussed. This includes the employees’ foundational values regarding their work processes. It also includes the expectations of customers. Each firm has built a reputation based on its values, so the assimilation of those divergent cultures can create some friction and confusion. 2. What are the similarities and dissimilarities between the cultures, values and beliefs of Southwest and AirTran airlines? Answer: Both airlines include “fun” in their value statements. They both want customers to have a pleasant experience. Southwest Airlines takes it a step further, emphasizing the “over the top” experience the company is noted for providing. AirTran includes safety and more serious notions as part of its value and belief statement. They want to have fun, but there are other things that are more important. 3. What problems could arise due to the different perspectives of both airlines towards online reservation systems? What do you recommend the managers do to solve these problems? Answer: Depending on familiarity with the reservation systems, preference might be given to one system over the others. This could disadvantage some customers if they elected to use the other online system. The outcome could be confusion and frustration for customers. Managers need to ensure that all employees are trained properly. They should also actively monitor the reservation process to check for any disruptions. They might even try pairing employees from the two airlines to work together, thereby overcoming any confusion in processing the reservations. 4. What would you recommend managers do to ensure a smooth integration of the information systems, given the culture differences? Answer: The information systems should focus on efficiency and effectiveness standards. Ease of use would be important when designing the user interface. Retain familiar features, as much as possible, and require the least amount of business process change. Open and constant communication is imperative for a smooth transition. Assess the results at regular intervals, and make changes as required. Case Study 3-2: The FBI The FBI has always been an information intensive organization, but as part of the US Federal Government, IT spending is managed by an extensive budgeting process that can mean funds are not available, or insufficient for the necessary expenditures. There is a webpage on the IT at the FBI (www.fbi.gov/hq/ocio/ocio_home.htm). Recently, the FBI, and its history of IT leadership, has been discussed extensively in the popular press. The interested instructor need only do a Google search on “FBI Information Technology” or “FBI IT” to find several. This is a case about the virtual case file system, which has caused FBI IT leaders many problems. Sample Answers to Discussion Questions: 1. What do you think were the real reasons why the VCF system failed? Answer: Some critics think it failed because there was a misalignment between ‘business goals’ and IT. Others, such as John Ashcroft, suggest it was hurt by deficient IT funding. The case suggests a misalignment between the organization structure and culture and IT. But astute students may suggest other ‘real reasons’ such as an inherent lack of understanding over what the secretive FBI needs and what Congress will give it. 2. What were the points of alignment and misalignment between the Information Systems Strategy and the FBI organization? Answer: While there was some alignment at the top (clearly there was understanding that for the ‘business’ to succeed, they needed to spend significant amounts--$170million-- on a new case management system.) The case describes a problem with culture (everything has to be kept a secret) and org structure (a decentralized amalgam of 56 field offices) and the misalignment with the goals of the IT project (sharing information in a centralized way). 3. What do you think of the CIO’s final comment about how to change attitudes? Do you think it will work? Why or why not? Answer: The final comment by the CIO suggests that the way to change attitudes is to let the agents see that technology can actually enhance their productivity. Some students will agree that showing them the benefits of the technology will change their attitudes about using the technology. Other students may suggest that the technology won’t change the attitudes and that other organizational interventions are needed (for example, directives from the FBI director, examples of successful information sharing or culture change from the top as a way to show that it’s not only acceptable but expected, changing the incentive system to reward sharing, etc.). The CIO's final comment suggests addressing attitudes through a combination of education, exposure, and leading by example. While these approaches have the potential to influence attitudes positively, their effectiveness may vary depending on the organizational culture, leadership commitment, and receptiveness of employees. Education can increase awareness and understanding of the importance of security, while exposure to real-world threats can highlight the consequences of lax attitudes. Leading by example involves modeling desired behaviors and creating a culture of accountability and responsibility for cybersecurity. However, changing attitudes is a complex and ongoing process that requires sustained effort, reinforcement, and alignment with organizational goals and values. Additionally, success may depend on the degree of support from senior leadership, the effectiveness of communication strategies, and the presence of incentives or consequences for compliance or non-compliance. Overall, while the CIO's approach holds promise, its success will ultimately depend on its implementation, reinforcement, and integration into broader organizational initiatives. 4. If you were the CIO, what would you do to help the FBI modernize and make better use of information technology? Answer: As the CIO, you should be a member of the senior executive team of the organization. At least, you should have significant influence with the FBI Director. In that role, your job is broader than just introducing new technologies. To help the FBI modernize, as the CIO, you would have to dive into organizational issues that are walls keeping modernizing techniques from working. You would have to suggest how to break down these walls (by perhaps helping redesign the organizational systems such as the compensation system, the incentive systems, the hiring process, etc.) and the culture to make them more supportive of the goal of modernizing and change. Supplemental Cases GE’s Two-Decade Transformation: Jack Welch’s Leadership by Bartlett, C.A. and Wozny, M., Harvard Business School. 9-399-150, 24 pages, 2005 (revision) (setting: US) This case study provides a historical analysis of the Welch era at GE, including the dramatic turnaround of the 1980s. The six major software initiatives are: Globalization, Redefining Leadership, Stretch Objectives, Service, Business Development, and Six Sigma Quality. Students will discover what it takes for a large corporation to achieve radical, transformational change. Online Marketing at Big Skinny by Edelman, B., and Kominers, S. D., Harvard Business School. 9-911-033, 13 pages, 2012 (setting: US) This case study introduces a wallet maker’s adoption of the following Internet marketing technologies: display ads, algorithmic search, sponsored search, social media, interactive content, online distributions, and A/B testing. Various majors will appreciate the practical application of technology to sales and marketing. R&D Management at Universal Luxury Group: Perfumes and Cosmetics Division by Manuel Sosa, INSEAD; 07/2005; (5 pages) This case describes the challenges faced by the cosmetics division of a large corporation when determining the set of products to develop in 2004. The key players involved are the centralized R&D center and the decentralized brands. The case provides data to estimate the utilization rate of the R&D center. Sun Microsystems, Inc: Web Services Strategy by Eisenmann, T. R., Suarez, F. F. Harvard Business School Publishing. 2005 (20 pages) Microsoft and IBM have excluded Sun Microsystems from the board of the Web Services Interoperability Organization (WS-I), an industry consortium that will shape the evolution of Web services standards. Sun managers must decide whether to join WS-I as a contributing member--a less influential role that lacks the veto and agenda-setting powers of a board position. Sun has recruited leading IT vendors--including several WS-I board members--to create technologies that compete with proposed standards jointly developed by Microsoft and IBM. Technology Strategy at Banco Comercial Portugues by Soumitra Dutta, Paul Verdin & James Howe; INSEAD; 05/2005; (24 pages) This case describes how Banco Comercial Portugues (BCP) has grown to become one of Portugal's largest and Europe's most admired banks by leveraging its technology excellence. BCP's success has been driven by the implementation of an effective strategy of technology-enabled innovations. BCP is also unique amongst most banks in having developed a core competence in integrating banking systems as it has merged with both small and large banks over the years. Volkswagen of America: Managing IT Priorities by Austin, R. D., Ritchie, W. & Garrett, G. Harvard Business School Publishing. 2005 (19 pages) Describes the efforts of Volkswagen of America, the U.S. subsidiary of Volkswagen AG, to arrive at a process for setting IT funding priorities so that they align with business priorities and the company's overall strategy. Given the recent difficulties at VW, this case might capture student attention. Case Study of the St. Paul Companies Virtual Office for Risk Control Division – N. Johnson, Idea Publishing Group Case, 11 pages, IT 5597 (scope: U.S.) This case reports the success of St. Paul Companies with their new virtual office (VO) working environment for their US distributed construction risk control and commercial risk control employees of the past six years. IT Help Desk Implementation: The Case of an International Airline – S. Clarke and A. Greaves, Idea Publishing Group Case, 19 pages, IT 5614 (scope: worldwide) This case study concerns the practical implementation of IT help desk management within an international airline, and illustrates the issues raised by over-concentration on technical factors. An alternative approach is proposed and applied retrospectively to the case, based on constructs drawn from social theory. Systems Development by Virtual Project Teams: A Comparative Study of Four Cases – D. Croasdell, A. Fox and S. Sarker, Idea Publishing Group Case, 17 pages, IT 5682 (scope: worldwide) This case study provides a comparative analysis of four cross-cultural virtual project teams as they analyze, design, and develop information systems, specifically examining the issues organizations face in trying to understand what factors are determinants of success with respect to virtual teams. Additionally the case examines the factors causing managers to reconsider traditional IS development practices. These factors include increasing network bandwidth, continuously improving communication technologies, shifting global economies, and changes in social practices. Supplemental Readings/Articles Thompson, W., and Stolovitsky, N. “Seeing the Big Picture - A Corporate Guide to Better Decisions through IT.” http://www.webbuyersguide.com/resource/resourceDetails.aspx?id=21491&category=88&sitename=webbuyersguide&kc=WBGWPSNL062712&src=WBGWPSNL062712&email=mwbuche%40mtu.edu (last accessed 25 June 2012) This white paper explains how information can be one of the most vital resources for creating and maintaining competitive advantage. The focus on alignment of IT with business strategy supports the IS Strategy Triangle first introduced in Chapter 1. Werbach, K. “Using VoIP to Compete.” Harvard Business Review. 83(3) 2005 VoIP isn't just a new technology for making old-fashioned calls cheaper, says consultant Kevin Werbach. It is fundamentally changing how companies use voice communications. What makes VoIP so powerful is that it turns voice into digital data packets that can be stored, copied, combined with other data, and distributed to virtually any device that connects to the Internet. Gary, Loren. “Network vs. Network: The New Arena of Competition.” Supply Chain Strategy. Harvard Business Publishing,2005 As companies increasingly build value through often far-reaching relationships with other firms--through alliances, outsourcing, deep supplier relationships, and other partnerships--more and more leaders are facing a new reality: to succeed, they and their partners must address the market as one competitive unit. Applegate, L. Cash, J., and Mills, D. Q. “Information Technology and Tomorrow's Manager." Harvard Business Review, November-December 1988, pg. 128-136 This is a very interesting article to use to highlight the role IT plays in the design and implementation of management control systems. It's a bit dated, but it is still relevant to the discussions many managers are having today. Taylor, W. C. “At Verifone It's a Dog's Life (And They Love It!)” FastCompany online at: http://www.fastcompany.com/online/01/vfone.html This article updates the case on Verifone, a company organized from the beginning as a virtual organization. It's a very interesting and relevant article to talk about how IT affects organizational structure, communications, and effectiveness. J. M. J. Loeffen and J. C. Wortmann. “IT challenges organizational design: How to connect manufacturing concepts to IT.” International Journal of Technology Management. 19(6): 630-637. 2000. The complex organizational design of the past century proves to be too slow in adapting to the actual, ever-changing environment. During the past few decades, the distinction between routine and non-routine jobs was used to cope with this problem. Routine jobs are now executed quickly and accurately with the help of information technology (IT). Non-routine jobs make use of specific organizational structures in order to simplify coordination between people; organizational design now focuses on unity of time, place and action; teamwork has become a central issue. Markus, M. L., B. Manville and C. E. Agres, “What Makes a Virtual Organization Work?” Sloan Management Review, Fall 2000, 42(1), pp. 13-26. This article addresses how traditional management tasks of motivating and directing employees change in the face of increasing virtuality of organizations. The authors answer this question by examining an example of an economic enterprise that acts in many ways like a voluntary organization: the open-source software movement. Books B. Gates with C. Hemingway. Business @ the Speed of Thought. NY: Warner Books, Inc., 1999. This book describes the factors that influenced the development of the Information Age and the key role of Microsoft in that rapid evolution. Take a tour of the digital nervous system, integrating the information flows within corporations. H. Lucas, Jossey. The T-Form Organization: Using Technology to Design Organizations for the 21st Century. NY: Bass Publishers, 1996. This book is the in-depth description of the T-form organization. It was written before the Internet was in full swing, but contains interesting ideas and suggestions for managers thinking about organizational impacts of IT. R. Yeh, K. Pearlson and G. Kozmetsky Zero Time: Providing Instant Customer Value--Every Time, All the time. NY: John Wiley and Sons, 2000. This book describes the vision of how companies must organize in order to be instantly responsive to dynamic customer expectations. The focus is on business strategy for the new economy and the organizational systems and information systems that must match the business strategy. It is useful for discussions of how to design organizations with the internet and other current technologies in mind. S. Davis and C. Meyer. Blur. NY: Perseus Books, 1998. This book is about the blurring of lines and delineations in life: business and personal life, on-line and off-line, social and private, etc. It is an interesting book for fueling the discussions of how IT is changing organizations in general. Websites www.brint.com/EmergOrg.htm This is one of the BRINT websites. It contains a very comprehensive list of other websites, articles, and references for the virtual organization, change management, and other emerging organizational forms. Most of these articles and links are about forms enabled by the use of information technology in general. www.cio.com CIO and CIO.com are published by CXO Media Inc. to meet the needs of CIOs (Chief Information Officers) and other information executives. CIO is read by more than 140,000 CIOs and senior executives who oversee annual IT budgets in excess of $175 million. CIO.com serves over 12 million pages annually. www.cognizant.com From the corporate website: “Cognizant is a global leader in business and technology services that helps clients bring the future of work to life – today – in a business environment that is being transformed by accelerating globalization, virtualization, and the shift toward cloud technologies.” The company highlights shows that Cognizant recently (2011) joined the Fortune 500 listing. News August 16, 2015: An article about Amazon's internal corporate culture appeared on many news broadcasts this week. Read the CNN summary of the five cultural components of working at Amazon (at http://money.cnn.com/2015/08/15/technology/amazon-new-york-times/index.html?iid=SF_LN), and answer the following: (1) If these allegations are true, how would you describe how you would feel working at Amazon? (2) If they are true, how does Amazon seem to use incentive or reward systems to promote performance? (3) Do you think it is likely that anyone would continue working at Amazon if the allegations are true? Why would they stay, or, stated another way, why would they hesitate to leave Amazon? January 19, 2015: An eWeek survey demonstrates that people believe that technology has improved the ability of small business to start and develop. Show the students the http://www.eweek.com/small-business/technology-improving-lives-around-the-world-survey-suggests.html and ask the following: (1) What business benefits are provided by technology according to the survey? (2) Do the personal benefits the respondents mention seem to agree with the business benefits? (3) Do you believe these benefits will continue as technology advances? Which technologies do you think have the most benefits? Chapter 4: Digital Systems and the Design of Work Chapter Overview This slightly renamed chapter is complementary to chapter 3. Chapter 3 is focused on organizational level issues, and manager's issues, and chapter 4 is focused on individual worker level issues. Individual level issues include how work is performed, the design of work, satisfaction, and effectiveness. IT affects the work of employees by creating new work and new working arrangements, and by presenting new challenges. This chapter also includes a discussion of telecommuting and alternative work arrangements, as well as a discussion of IM, VoIP, and other tools used in collaboration. The impact of IT on collaboration and communication issues is presented. The topic of virtual teams is discussed, including culture challenges associated with globally distributed groups. Discussion Opener: See the slide show for questions to ask the class about the American Express case BlueWork opener (and answers in the Notes section). Alternate Discussion Opener: Why is an organization’s culture important when discussing information systems? Isn’t technology culturally independent? Explain. Key Points in Chapter Work design is traditionally the job of the manager. A simple framework (Figure 4.1) can be used to assess how emerging technologies may affect work, and that framework is discussed in this chapter. This simplistic framework makes clear the point that some work is best done by computer, and other work is best done by a person. The manager must make that decision, although today many managers seek the input of the workers as part of the design process. And while computers continue to get increasingly more sophisticated, there is still a set of tasks that are best done by people. For example, interactions with people, particularly when the interaction involves an emotional situation such as a system failure, product return, etc., are best done with other people, not with computers. IT is changing the nature of work. There are three primary ways IT affects employee life: 1) by creating new types of work, 2) by creating new ways to do traditional work and 3) by supporting new ways to manage talent. Creating new type of work: new positions have been created due to the unique skills required by IT-enabled work processes. Changing traditional work: many tasks are now automated, especially data entry or clerical work. Changing communication patterns: employees should learn the appropriate communication medium based on the receivers’ preferences. IT enables more group work (collaboration). Organizational strategies increasingly require higher levels of collaboration -- collaboration between workers, with workers in various departments, and with customers, suppliers, and others outside the organization. IT strategies increasingly involve the use of collaborative tools, such as groupware, videoconferencing, and web-based chat rooms, intranets etc. Figure 4.2 (new to the sixth edition) offers a classic framework to understand technologies for teamwork, supporting communication at different times and different locations. Figure 4.3 illustrates ways in which supervision, evaluations, compensation, and hiring have been changed by IT. Social Business Lens: Activity Streams – An activity stream is a list of actions taken, allowing participants to track what has happened. An example is the News Feed on Facebook. Students might be able to provide other examples from their own experiences. Managers need to adapt to the new working arrangements by finding different ways to measure performance other than through personal observation. It is important for managers to assess performance based on outcomes and quality, rather than physical presence. Another method is to use an electronic employee monitoring approach. However, that might lead to negative morale and violations of employee privacy. Figure 4.3 provides a comparison between traditional and newer approaches for supervision, evaluation, compensation, and hiring. IT changes where work is done. Work can be done in a variety of places rather than only from the office. Telecommuting has become a popular concept which includes workers who work from home or other remote locations, and mobile workers perform their work from a variety of locations rather than from one, remote location. Factors affecting the trend towards more telecommuting and mobile work are 1) work is increasingly knowledge-based, 2) new technologies enable working from remote locations, and 3) workers increasingly desire to "time-shift" their work to accommodate their lifestyle. Disadvantages include difficulty in managing remote workers, increased worker stress, difficulty in coordinating with remote workers, and difficulty in feeling connected to the organization for the remote workers. One warning is the blurring of lines between work and personal life. It would be easy to reach “burn out” if boundaries are not respected. Another caution is that jobs designed for telecommuting are often equally vulnerable to offshoring, outsourcing overseas to lower cost providers. Geographic Lens: How Do People Around the World Feel About Working Remotely? This vignette can lead to a rich class discussion on personal attitudes towards telecommuting. Students can reflect on their own attraction/aversion to this type of work arrangement. What does it take to be a successful telecommuter? Is it appropriate for the job he or she is preparing to enter? A key component of today’s virtual organization is the virtual team. The section describes what virtual teams are and distinguishes them from more traditional teams. Students should relate well to this topic since at school; they are members of multiple virtual teams (just about every course they take requires team projects and those teams don’t reside together; this is a good jumping off point for a discussion about the benefits and drawbacks of virtual teams. Maybe start with a question like, “Think about the teams you are on for your work at school. What are some of the benefits of a team structure like this? What makes this type of team difficult to work on?”). Take time to discuss the managerial issues of telecommuting and mobile work. Ask your students to consider how they would manage, evaluate, and reward these workers. Figure 4.5 describes the drivers for remote work and virtual teams and their effects. Advantages and disadvantages of remote work are described, and summarized in Figure 4.6. Figure 4.7 compares virtual teams and traditional teams. How to manage communication, technology, and diversity challenges are also described. The next section is about gaining acceptance of Information Systems. Figure 4.8 presents eight steps in change management proposed by John Kotter (1996). To explain factors leading to actual system use, the Technology Acceptance Model is presented, then depicted in Figure 4.9. The TAM is a useful way for managers to think about how to help their organizations accept any change, but particularly those changes motivated by IT. Illustrative Answers to Discussion Questions 1. Why might an employee resist the implementation of a new technology? What are some of the possible consequences of asking an employee to use a computer or similar device in his or her job? Answer: Resistance might come because the worker is afraid his/her job will significantly change and he/she will be unprepared for the new requirements. Resistance might come because the change is distasteful (like having to do more repetitive work, rather than the thinking work). Resistance may also come because new skills are needed but compensation is not altered to reward the use of new skills. The possible consequences of using a computer are numerous. The opening case in this chapter discusses how IT created confusion and distanced workers from the work process itself. In effect, the workers were just watching numbers and data, whereas before the computers they were actually doing the "art" of the work itself. The newer job required more interpretation of the numbers and different skills in judging and decision making. As a note to the instructor: Zuboff's work also described a paper mill, where workers used to mix paper by hand, using smell and feel as key aids in making just the right mix. When automation was introduced, these same workers were put in a control room and asked to use their computers to monitor the process and make the paper. Needless to say, using the information on the computer was significantly different to the workers than mixing a vat of paper. Many such examples exist. To overcome resistance to change (by applying the Technology Acceptance Model), managers need to combat negative perceptions about the system’s usefulness and system developers need to design systems that are easy to use. 2. How can IT alter an individual's work? How can a manager ensure that the impact is positive rather than negative? Answer: IT can alter an individual's work by changing the work itself, changing where the work is done, changing communication and collaboration patterns, changing the ways that organizational decisions are made, or by changing how work is managed (these are topics from the chapter). A manager can help ensure a positive impact through traditional management processes (as discussed in Chapter 3) such as the way individuals are rewarded, evaluated, compensated, etc. Training is an important factor in ensuring success. And communication is important. Managers cannot communicate enough about changes that will take place in an individual's job. 3. What current technologies do you predict will have the most impact on the way work is done? Why? Answer: This is a very open-ended question, designed to let students consider the most current technologies and their potential impact. At the time of the writing of this book, a sample answer might be the Internet, which has the potential to change just about every job done. It might be used to change who is working with whom. It might be used to change how knowledge and learning are delivered to workers (using e-learning). It might be used to remotely control equipment. Also, a number of individual technologies such as blackberries, iPods, etc. are increasingly popular. Students may focus on these technologies. Students might also focus on specific application domains on the Internet, such as blogs. Several current technologies are poised to have a significant impact on the way work is done in the near future. Firstly, artificial intelligence (AI) and machine learning technologies are expected to automate routine tasks, improve decision-making processes, and enhance productivity across various industries. Secondly, the Internet of Things (IoT) will revolutionize workplace efficiency by connecting devices and sensors to gather data, monitor processes, and optimize resource utilization. Thirdly, augmented reality (AR) and virtual reality (VR) technologies will transform training, collaboration, and remote work experiences by creating immersive environments and enabling virtual simulations. Fourthly, blockchain technology has the potential to revolutionize data security, transparency, and trust in business transactions, supply chains, and financial systems. Additionally, 5G technology will enable faster data transmission speeds, lower latency, and greater connectivity, facilitating seamless communication and collaboration in distributed work environments. Furthermore, advanced robotics and automation technologies will continue to evolve, augmenting human capabilities and transforming manufacturing, logistics, and service industries. Moreover, quantum computing holds promise for solving complex problems and performing computations at unprecedented speeds, opening up new possibilities for data analysis, cryptography, and scientific research. Additionally, biometric authentication and wearable technology will enhance security, access control, and personalization in the workplace. Lastly, edge computing will enable real-time processing and analysis of data closer to its source, reducing latency and improving responsiveness in IoT applications. Overall, these technologies have the potential to reshape work processes, enhance efficiency, and drive innovation across diverse industries in the years to come. 4. Given the growth in telecommuting and other mobile work arrangements, how might offices physically change in the coming years? Will offices as we think of them today exist by 2020? Why or why not? Answer: Offices in the future might look significantly different. The objective of this question is to let students have a chance to practice visioning. One such vision might be that all offices are gone, and people just work from wherever they are. Another vision might be that offices as we know them today are more like hotels, with workers checking into cubicles when they need to work someplace. With the widespread use of cellular phones and personal digital assistants (PDAs) with access to the internet, people may be carrying access to their entire office in their shirt pocket (or purse), making a physical office less important. However, offices provide places to go, locations for gathering people with common objectives, and a physical space for a company to exist. These are harder to replicate in the virtual world. So while offices will most likely exist in 2020, they may look more like a place for groups to meet, for companies to provide a common cultural experience, and for occasional drop-in workers, rather than like they do today, where people have a specific desk they report to daily. Many companies already have sites that are purely meeting space for employees who are mobile and work from home, or wherever they happen to be (IBM is a good example of this new office philosophy). The students might also be familiar with Regus (http://www.regus.com/), a company that provides virtual office space for individuals needing temporary office accommodations. 5. How is working at an online retailer different than at a brick and mortar retailer? What types of jobs are necessary at each? What skills are important? Answer: Again, this question is designed to get students thinking differently about business today. There are similarities between online and brick and mortar retailers. Both must deal with end-user customers, both have inventories to manage, sell, and distribute. Both have the same basic business functions including marketing, finance, accounting, sales, and administration. And clearly, working at the online retailer means you need web skills, whereas you may not need them for the brick and mortar retailer. But there are other examples of different skills. For example, whereas a brick and mortar retailer must get goods to the store where customers come to buy them and take them home, online retailers only need to get goods as far as a warehouse, but need significantly different logistics to get them to their customers' home. Working at an online retailer might be different in that facing the customer must be done electronically, rather than face to face. That requires one to have different communication skills. For example, working in customer service for an online retailer would mean being able to write (e-mail) significantly well, whereas customer service at a brick and mortar retailer would mean handling face-to-face interactions very well. Sales skills for the online retailer mean proactively thinking about how to build the website, instead of how to talk a customer into buying your goods. 6. Paul Saffo, director of the Institute for the Future, noted, “Telecommuting is a reality for many today, and will continue to be more so in the future. But beware, this doesn’t mean we will travel less. In fact, the more one uses electronics, the more they are likely to travel.” Do you agree with this statement? Why or why not? Answer: On one hand, the students can argue that electronic communications obviates the need to travel. One of the motivating factors for initially starting telecommuting programs was to reduce the travel required by organizational workers. Instead of driving in to work five days a week, telecommuters may travel only one or two days a week (or less). On the other hand, many telecommuters work at locations that are very distant from their employer’s headquarters: that is, they may live out of state, or even across the country. Thus, though they may travel to the office only a few days every other week, the total distance may increase dramatically. Further, it could be argued that communication and information technologies open a business’s horizons to include the entire world. As the world shrinks through the use of technology, the need for some face-to-face communications may increase global travel overall. 7. (This long question is about information-driven self-service options and the predicted backlash.) Does this mean the end of doing business the “old-fashioned way?” Will this put a burden on the elderly or the poor when corporations begin charging for face-to-face services? Answer: This is an opinion question. One perspective would say “Yes, this is the end of doing business the old-fashioned way,” but that is a good thing. Evolution always means survival of the fittest, and self-service must be the preferred way to do business or else more businesses would abandon it for other alternatives, maybe even the old-fashioned way. Another perspective would say “No, there is room in the business community for both. Companies will pick the best alternative for their customers. It’s not the end of the ‘old-fashioned way.” There may be a burden placed on the elderly and poor if corporations begin charging for face-to-face service. Elderly who have not grown up in a self-service environment may not be comfortable with the lack of personal assurances that the business transaction has occurred. They might not be able to do the service themselves (my father can’t read a computer screen so he can’t do the internet-based self-service options offered by many). The poor also might be burdened, if they do not have access to the self-service outlets (for example, if they require a computer and the individuals can’t afford one). It’s up to the businesses to ensure that their customers have access to their business. The alternative is that they will lose that business to some other company who does pay attention to these issues. Further Discussion Questions 1. Provide a description of a job ideally suited for telecommuting. Explain. Answer: A job ideally suited for telecommuting is that of a software developer. Software development often involves tasks that can be performed independently, such as coding, debugging, and testing software applications. Additionally, software developers typically require access to digital tools and resources rather than physical equipment or materials, making it conducive to remote work. Communication with team members and stakeholders can be facilitated through email, instant messaging, and video conferencing platforms, minimizing the need for in-person meetings. Moreover, the flexible nature of telecommuting allows software developers to work during their most productive hours and from locations of their choice, improving work-life balance and job satisfaction. Telecommuting also eliminates commute times and associated costs, reducing stress and environmental impact. Furthermore, remote work enables companies to access a global talent pool, allowing them to hire the best candidates regardless of their geographical location. The autonomy afforded by telecommuting empowers software developers to manage their time effectively, prioritize tasks, and maintain focus without distractions commonly found in traditional office environments. Additionally, telecommuting encourages a results-oriented approach to performance evaluation, emphasizing productivity and deliverables rather than hours worked. Lastly, remote work arrangements can contribute to cost savings for both employees and employers, including reduced overhead expenses for office space, utilities, and commuting allowances. Overall, telecommuting offers numerous benefits for software developers and their employers, making it an ideal arrangement for this profession. 2. Describe the characteristics of an employee ideally suited for telecommuting. Explain. Answer: An employee ideally suited for telecommuting possesses several key characteristics. Firstly, they demonstrate strong self-discipline and motivation, able to work independently and manage their time effectively without direct supervision. Secondly, they exhibit excellent communication skills, adept at conveying ideas, asking questions, and seeking clarification through digital channels such as email, instant messaging, and video conferencing. Thirdly, they are highly organized and adaptable, capable of juggling multiple tasks and priorities while maintaining productivity in a remote work environment. Fourthly, they possess technical proficiency and familiarity with digital tools and platforms relevant to their job role, ensuring seamless collaboration and efficient workflow. Additionally, they demonstrate accountability and reliability, consistently meeting deadlines and delivering high-quality work regardless of their physical location. Moreover, they exhibit a strong sense of initiative and problem-solving ability, able to troubleshoot technical issues and overcome obstacles independently. Furthermore, they value work-life balance and prioritize their well-being, recognizing the importance of setting boundaries between work and personal life in a remote work setting. Additionally, they are comfortable with ambiguity and ambiguity, adaptable to changing circumstances and able to thrive in dynamic, virtual work environments. Lastly, they demonstrate a high degree of trustworthiness and integrity, maintaining confidentiality and adhering to company policies and procedures even when working remotely. Overall, employees ideally suited for telecommuting possess a unique combination of traits that enable them to thrive and contribute effectively in a remote work setting. 3. What are some issues you might face while collaborating on a virtual team? How could you mitigate the negative impact of those challenges? Answer: Some issues that might arise while collaborating on a virtual team include communication barriers, lack of trust among team members, difficulties in managing time zones and schedules, potential for misinterpretation of messages, feelings of isolation, unequal participation, and challenges in building team cohesion and rapport. To mitigate the negative impact of these challenges, it's essential to establish clear communication protocols, utilize various communication channels effectively, and foster open and transparent communication among team members. Additionally, building trust through regular check-ins, virtual team-building activities, and opportunities for informal interactions can help alleviate concerns and foster a sense of camaraderie. Implementing flexible work schedules, accommodating different time zones, and leveraging collaborative tools and technologies can facilitate seamless coordination and ensure everyone feels included. Providing training and resources on effective virtual collaboration techniques can also empower team members to navigate challenges proactively and maximize productivity. Moreover, creating a supportive team culture that values diversity, encourages collaboration, and celebrates achievements can strengthen team cohesion and motivation. Lastly, addressing conflicts and concerns promptly, soliciting feedback from team members, and continuously evaluating and adjusting virtual team processes and workflows can help maintain a positive and productive virtual work environment. Cases Case 4-1: Trash and Waste Pickup Services, Inc. This is an interesting case about using IT to monitor employees. In this case, it’s a GPS system used to monitor the location of trucks and company cars. Ultimately, however, it plays out as a system to monitor drivers and salesmen. Management must walk a fine line as they build a process to implement such a system in an organization. As an extension to this discussion, the instructor might ask, “Would it be easier for management to implement a GPS system in an existing company (which previously didn’t have one) or in a new company (where all employees are just learning the processes and systems)? Sample Answers to Discussion Questions: 1. What are the positive and negative aspects of Andersen’s use of the GPS-based system to monitor his drivers and salespeople? Answer: Positive aspects might include the ability of Andersen to know where his trucks are at any given time. If someone has to go into an ‘unsafe’ area and/or is not where they are supposed to be at a given time, Andersen can help them by knowing where they are. The case also mentions the money savings that accrued due to the reduction in overtime, presumably because the drivers knew they were not only ‘on the clock’ but being watched. The negative aspects might include the cultural impacts: his drivers feel big brother is watching, which may make them resent the system or in the worst case, sabotage it. It might drive unintended consequences such as drivers speeding or taking unsafe risks because they know their management is watching and they have certain time restrictions and milestones to make. 2. What advice do you have for Andersen about the use of the system for supervising, evaluating and compensating his drivers and salespeople? Answer: It’s one thing to use the system to monitor behavior and correct it. It’s another thing entirely to use it as part of the evaluation and compensation system. Andersen must be very careful how he introduces that to the workers. If they are unionized, he must make sure to have buy-in from the union. But in any case, he should start by letting the drivers get used to the system without fear of it impacting their compensation. After they are used to it and have changed their behavior, he can slowly introduce a plan to use the information for evaluation and compensation. Should he not do it slowly, he can expect some employees to not only complain, but possibly sabotage the systems, breaking them (and claim it was an accident or something they know nothing about). Astute students will use the TAM model to structure their response to this question. 3. As more and more companies turn to IS to help them monitor their employees, what do you anticipate the impact will be on employee privacy? Can anything be done to ensure employee privacy? Answer: This is an opinion question. The impact on employee privacy is clearly an issue when IT is introduced to monitor behavior and activities. We’ve seen lots of legal action regarding monitoring of e-mail, but usually the courts come down on the side that company e-mail systems are the property of the company, and therefore monitoring the emails is not an invasion of individual privacy. On the other hand, monitoring individuals such as the drivers in this case study can uncover some information that may be deemed private (like visiting their girlfriends, their local bar, or other private activity). What the company does with that information is the key here. To ensure employee privacy, companies need very clear guidelines on what information they plan to collect, what they will do with that information, and what consequences result if the guidelines are not followed. These guidelines must be clearly communicated to both management and monitored employees, so that all is out in the open and the monitoring is not seen as a spying operation or subversive management activity. Case Study 4-2: Social Networking: How Does IBM Do It? This is a unique example of social networking employed by IBM to support programmers and developers. This case shows how technologies, particularly collaborative and Web 2.0-based systems, can help to develop software solutions. Sample Answers to Discussion Questions: 1. How does My developerWorks leverage changes in the way people work? Answer: The social network allows individuals to share information, ask questions, and support each other over this online collaboration environment. Software developers prefer to work independently while having access to other experts anytime, anywhere. The online access provides the network they need to be productive without being geographically co-located with other developers. 2. Why do you think Alice Chou carefully monitors the My developer Works site? What would be an example of an insight she would gain from the data she’s collecting? Answer: Alice Chou would montior the site for accuracy of information being shared, unique contributions by participants, and complaints about the products IBM supports. She would be alerted immediately to any flaws, which would allow IBM to respond proactively to the problem. She might also be watching for the presence of competitors attempting to gain access to protected intellectual property. 3. Why do you think Alice Chou thinks a rewards program is necessary for My developer Works, given that so many profiles have already been developed. Do you agree that a reward would be necessary? Answer: A rewards program will provide incentive for developers to return and share their knowledge in the future. Rewards can be nominal or simply recognition. The developer community is generally motivated by challenging projects and recognition. This is a simple way for IBM to acknowledge developers who take the time to visit the social networking site. Supplemental Cases 1-888-JUNK-VAN by Jimenez, L.L., Richard Ivey School of Business. W11145, 15 pages, 2011 (setting: Canada) The company is a small, waste-collection firm in Ontario, Canada. The owner considered the following five options: database upgrade, contracting for a newly developed application, using Google Docs, adopting a Platform-as-a-Service solution, and an ERP system for small companies. This case requires critical thinking skills, assessing the strengths and weaknesses of each opportunity. Dropbox: “It Just Works” by Eisenmann, T.R., Pao, M., and Barley, L., Harvard Business School. 9-811-065, 22 pages, 2012 (setting: Silicon Valley) Founded in 2006, Dropbox provides online storage and backup ideal for collaboration. The case introduces the concept of the “freemium” pricing model: free + premium offers. Students will help to assess the new product features being considered by the founder and CEO, Drew Houston. Amagansett Funds (A) by A.P. McAfee, Harvard Business School Publishing; 2005 Amagansett Funds has had a troubled history with its customer relationship management (CRM) system. Sales agents feel that they derive no value from it and that it is a "tax on their jobs." Amagansett is investigating whether CRM can be improved by making its data available wirelessly to Blackberry devices. These devices will also provide mobile phone and e-mail capability. R&D Management at Universal Luxury Group: Perfumes and Cosmetics Division by Manuel Sosa, INSEAD 2005 This case describes the challenges faced by the cosmetics division of a large corporation when determining the set of products to develop in 2004. The key players involved are the centralized R&D center and the decentralized brands. The case provides data to estimate the utilization rate of the R&D center. Kemps LLC: Introducing Time-Driven ABC by Robert S Kaplan, Harvard Business School Publishing; 08/03/2005; (10 pages) Managers use the information to enhance process efficiencies, negotiate new terms with customers, and attempt to win new business. The company now faces some crucial decisions about how to forge new relationships with key customers. An Internet-Based Workflow System: The Case of Lawrence Livermore National Laboratories’ Zephyr Project, J. Gebauer and H. Schad, Idea Publishing Group, 12 pages, IT 5544, (setting: U.S.) This case enumerates how Lawrence Livermore National Laboratories’ Zephyr System demonstrates how emerging technologies can help streamline procurement processes and improve the coordination between participants in engineering projects by enabling new ways of collaboration. The Telecommuting Life: Managing Issues of Work, Home and Technology, G. Kelly and K. Locke, Idea Publishing Group, 11 pages, IT 5553, (setting: U.S.) This case introduces one company that has decided to experiment with the telecommuting arrangement. Through the eyes of one teleworker, many of the benefits and challenges of telecommuting are explored. The Lonely Comate: The Adoption Failure of an Intranet-Based Consumer and Market Intelligence System, P. Hendriks and W. Jacobs, Idea Publishing Group, 21 pages, IT 5562, (setting: U.S.) The case study concerns the disappointing reception of an intranet application at TopTech, a prominent player in the field of electronics. The application in question, called Comate, which stands for ‘Consumer and Market Intelligence Technology Environment’, was conceived and built by the central staff department for Consumer and Marketing Intelligence (CMI) at the company. This case study focuses on the organization’s decision to form a project team to investigate why users did not accept the system change. Supplemental Readings/Articles Stein, Mari-Klara, et al. "Coping with information technology: mixed emotions, vacillation and non-conforming use patterns." MIS Quarterly, Vol. 39, No. 2, June 2015. Laumer, Sven, et al. "User personality and resistance to mandatory information systems in organizations: a theoretical model and empirical test of dispositional resistance to change." Journal of Information Technology (2015). Hwang, Yujong, Mohanned Al-Arabiat, and Dong-Hee Shin. "Understanding technology acceptance in a mandatory environment A literature review." Information Development (2015): 0266666915593621. Cheng, Shuang, Sang-Joon Lee, and Kyeong-Rak Lee. "A Study on Chinese User Resistance of Mobile Banking." Journal of Digital Convergence 12.1 (2014): 105-114. Shin, B., Omar A. El Sawy, Olivia R. Liu Sheng and Kunihiko Higa. “Telework: Existing Research and Future Directions.” Journal of Organizational Computing and Electronic Commerce, 2000. 10(2). Economist “Solving the Paradox,” Economist.com, Sept 21, 2002, http://www.economist.com/displayStory.cfm?Story_ID=375522 This article provides a concise presentation of indicators supporting and arguing against the productivity paradox. Brynjolfsson, E. J., T. Malone, V. Gurbaxani & A. Kambil. “Does Information Technology Lead To Smaller Firms?”MIT working paper, CCS-TR #123 September, 1991 (available at: http://ccs.mit.edu/papers/CCSWP123/CCSWP123.html) The primary goal of this paper is to assess the hypothesis that the rapid growth of information technology (IT) is at least partially responsible for one important organizational change: the shift of economic activity to smaller firms. This paper uses industry-level data on IT capital and four measures of firm size, including employees per firm. It finds broad evidence that investment in IT is significantly associated with subsequent decreases in the average size of firms and that the effects of IT on organizations are most pronounced after a lag of two to three years.

Karsten, H. “Collaboration and collaborative information technologies: A review of the evidence.” Data Base for Advances in Information Systems. 30(2): 44-65. 1999 Collaborative information technologies have been claimed to enhance collaboration in organizations, under certain conditions. This claim was found problematic in several respects, also in the light of the results of 18 case studies of Lotus Notes usage. The cases may be split into three groups: 1. exploratory, conservative or cautious use, 2. planned and expanding use, and 3. extensive and engaged use of Notes. A number of issues emerged in the review that could help to understand the relationship of collaborative information technologies and changes in work and organization. Zuboff , S. “New Worlds of Computer-Mediated Work.” Harvard Business Review, reprint. 82513. 9/1/82. This is a very early, but still relevant, HBR article on computer-mediated work and its implications for managers and workers. Information technology alters the individual's relation to the task. The new relationship is called "computer-mediated." The computer mediation of simple jobs creates tasks that are routine and unchallenging, while demanding focused attention and abstract comprehension. Computer mediation shifts the overall shape of the organization from a pyramid to a diamond because managers will perform a variety of tasks that others once did for them, thereby diminishing clerical support staff and swelling the number of professionals and middle managers. Reynolds, C. “Global compensation and benefits in transition.” Compensation & Benefits Review. 32(1): 28-38. 2000. In the millennium, international human resources will undergo a rapid transformation. Expatriate compensation once consumed most of the time and resources of international HR. Today, strategic areas such as the integration of compensation, global staffing and business strategy, and a variety of other international HR challenges are taking over. This article describes the evolution of the field of international compensation and benefits, the forces shaping its development, and its prospects for the future. It also explores information technology, outsourcing and other issues that will shape careers in the field. Sedam, S. “E-Dreams for the new millennium.” Professional Builder. 65(1): 69-70. 2000. A few predictions are offered on the Internet and information technology's impact on the home building industry. Predictions include: 1. Scheduling suppliers and trades via the Internet will become routine for both initial building and service. 2. The tool of choice for all field personnel wi11 be a hand-held digital assistant that includes voice, paging, and data in a single unit. 3. Purchasing everything from lumber to plumbing fixtures to office supplies will be Internet-based and highly automated. 4. A majority of customer-selected colors and options and virtually all of the related paperwork will be done via the Internet. 5. Traditional real estate brokerages will change or die. Comerford, R. “An interview with John Patrick.” IEEE Spectrum. 37(1): 49-50. 2000. John Patrick is vice president for Internet technology, IBM Corp., and chairman of the Global Internet Project, an international group of senior executives committed to fostering continued growth of the Internet. In a brief interview, he discusses the challenges facing information technology. The Internet is the one advance in information technology that will likely have the most impact on the way people live and work in the future. Supplemental Books L. Bossidy and R. Charan, Execution: The Discipline of Getting Things Done, NY: Crown Business, 2002. B.Travica, New Organizational Designs: Information Aspects NY: Ablex, 1999. P. A. Strassmann. Information Productivity: Assessing Information Management Costs of U. S. Corporations. NY: Information Economics Press, 1999. A statistical analysis of the productivity paradox researched in over 1500 firms. It provides a nice way to quantitatively study this problem and a set of diagnostics to evaluate additional companies. S. Zuboff. In the age of the Smart Machine: The future of work and power. NY: Basic Books, 1988. This is a great book for those who like well-written academic prose about key managerial topics. The book goes into great detail about how IT is changing the work done by individuals. It is based on extensive research at a number of organizations around the world. Difficult for the average person to understand, but worth the effort for students of IT and job design. R.E. Walton, Up and Running : Integrating Information Technology and the Organization. MA: Harvard Business School Press, 1989. This book presents a framework for managers to follow as they design and implement IT in their organizations. C. Alan. The Inmates Are Running the Asylum : Why High Tech Products Drive Us Crazy and How To Restore The Sanity. NY: SAMS, 1999. This book highlights the darker side of how IT is changing our lives and our jobs. It is a humorous and well-written book about the many impacts, intentional and unintentional, of IT. Websites www.dropbox.com The website includes a video tour and links to history and press releases. Students might not be familiar with this free product. Encourage students to explain the advantages and possible disadvantages of using this free product. (For instance, some external grant contracts do not allow sensitive data to be stored on servers located outside of the United States.) www.ibm.com The IBM website provides a wealth of information about the history and innovations of the corporate giant. “Let’s build a smarter planet” is the familiar motto, emphasizing innovative thinking as the company continues to re-invent itself. www.brint.com/EmergOrg.htm This @Brint web portal has a number of interesting links to articles, sites, and other information portals related to the use of IT and the design of work. www.simnet.org SIM has inspired the minds of the most prestigious IT leaders in the industry. Highly regarded as the premier network for IT leadership, SIM is a community of thought leaders who share experiences and rich intellectual capital, and who explore future IT direction. News Items September 25, 2015: A futuristic project at the University of Washington shows brain researchers finding a way for people to communicate telepathically through the internet. Have students read the medium-sized article (focusing for our purposes only on the telepathic capabilities) at http://www.informationweek.com/healthcare/brain-to-brain-interface-a-bold-first-step/d/d-id/1322336 and ask them to answer the following: (1) What capabilities are available right now? For example, how accurate is it? (2) Based on your answer to #1, would work change based on what the researchers are able to do now? (3) The article talks about phone replacement in the distant future. What do you think work would be like in that case? (4) Hacking is named as a concern for the motion control, but what do you think hackers could do with the telepathic functionality? Jan 16, 2015: A new article in CIO Magazine reports that employees are trying to argue that wearable wrist devices would help their productivity. See the article at http://www.cio.com/article/2871753/wearable-technology/workers-want-employers-to-hand-out-wearables.html and ask students the following: (1) What are the arguments that workers are using to persuade employers to provide wearable devices? (2) Which arguments are plausible? (3) Which arguments are not plausible? (4) What would you do if you were in a position to make that decision in an organization? Why? Solution Manual for Managing and Using Information Systems: A Strategic Approach Keri E. Pearlson, Carol S. Saunders, Dennis F. Galletta 9781119244288, 9781118281734