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Challenges in e-commerce strategy - the case of ambient organization

Challenges in e-commerce strategy - the case of ambient organization. Niels-Bjørn Andersen Professor Center for e-Commerce Copenhagen Business School. The Laurentian library. The demise of the traditional hierarchy. The inflexible, rule-determined, mass production

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Challenges in e-commerce strategy - the case of ambient organization

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  1. Challenges in e-commerce strategy - the case of ambient organization Niels-Bjørn Andersen Professor Center for e-Commerce Copenhagen Business School Niels Bjørn-Andersen

  2. Niels Bjørn-Andersen

  3. The Laurentian library Niels Bjørn-Andersen

  4. The demise of the traditional hierarchy The inflexible, rule-determined, mass production organization is being replaced by the flexible, porous, adaptive, fleet-of-foot organization of the future. In this organization, every person is ‘paid’ to be obstrepous, to disrespect formal boundaries, to hustle and to be engaged fully with engendering swift actions, constantly improving everything. Peters, 1988 Niels Bjørn-Andersen

  5. ‘So the great dream of the machines have come to an end’ Scott, Southpole 1911 Niels Bjørn-Andersen

  6. Organizational characteristics Niels Bjørn-Andersen

  7. IT enabled organizational change Organizational impact Organizational design Inter-organizational design Organizational re-invention Virtual Impact on clerks Shamrock Modular Borderless Impact on managers Business excellence Virtual eco system Flexible Scandinavian model Networked Hour-glass shaped Agile Ambient Responsive Just in time 21 century Delayered Lattice Postmodern Learning Innovative Niels Bjørn-Andersen

  8. Vision for General Electric ‘Our dream for the 1990s is a boundaryless company, a company where we have to knock down the walls that separate us from each other on the inside, and separate us from our key constituencies on the other side’ Jack Welch, 1990 Niels Bjørn-Andersen

  9. Definition of a Virtual Organization ..temporary network of independent companies - suppliers, customers, even erstwhile rivals - linked by information technology to share skills, costs, and access to one another’s markets. It has neither a central office nor organizational chart. It has no hierarchy, no vertical integration Byrne & Brandt 1993 Niels Bjørn-Andersen

  10. Transition to becoming a Networked Virtual Organization Niels Bjørn-Andersen Cisco: The bridge, 2003

  11. The Networked Virtual Organization is the most fundamental and significant change in organizational structure, we have ever experienced John Chambers, CEO, Cisco August 2002 Niels Bjørn-Andersen

  12. NVO drivers in Cisco • Customer centric • Self service and support via web-site • On-line sales • Customer segmentation and optimization • Focus on core processes instead of context • Out-tasking of service/repair and e-learning • Continuous standardization • Standardized processes and data (e.g. Virtual close) • Standardized IT-infrastructure Niels Bjørn-Andersen

  13. Marketplace-to-Marketplace (M2M) relationships Logistics Exchange (horizontal) Customer Exchange (B2C) PrivateeMarket (vertical) VirtualManufacturers VirtualDistributors Public eMarket (B2B) e-Supply Networks 3P Logistics Manufacturers Retailers Engineering/ Design Partners Raw MaterialsSupplier B2B relationships Consumer Component Supplier Distributor/Reseller Corporate Customers Subcontractor Manufacturer/ OEM Product/Goods Flow Logistics Providers Information Flow Niels Bjørn-Andersen (Adapted from Forrester, 06/2000 & AMR SCM Report Jan 2000)

  14. Types of Collaborative Processes & Modelsin eMarkets Viewed from the manufacturer’s perspective 3P Logistics Distributors Engineering/ Design Partners Manufacturers Collaborative Logistics Planning Collaborative Transportation Mgmt Collaborative Distribution Services eMarket / Private Hub Collaborative Product Engineering & Design Subcontractors Collaborative Supply Planning Collaborative Supply Procurement Synchronized Production Scheduling Suppliers Collaborative Demand Forecasting Collaborative Replenishment Collaborative Promotion Planning Collaborative Life Cycle Planning Manufacturers Retailers Retailers CPFR Collaborative Planning, Forecasting & Replenishment CSUP Collaborative Supply & Production Planning CTM Collaborative Transportation Management CED Collaborative Engineering & Design Niels Bjørn-Andersen

  15. Definition of an Ambient Organization • This refers to an organization which is enabled by • the emerging Ambient Intelligence Technologies, • exploits virtual resources, communication and • collaboration schemes, • in order to redefine its organisational structure and • redefine its business model • in order to obtain sustainable value and utilize • technological opportunities for meeting increasingly • complex and ever more competitive environments. Niels Bjørn-Andersen

  16. Dream or reality? • Development of WWW and Linux • Cisco and others have shown the direction of development for traditional organizations • Customers become part of your organization • Pfizer soliciting research assistance • Mobile broadband with pattern recognition, voice recognition brings new promises Niels Bjørn-Andersen

  17. Please stay tuned for next chapter on Ambient Organizations! Niels Bjørn-Andersen

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