Tuesday 7 February 2012

CHAPTER 19 : DEVELOPING A 21ST CENTURY ORGANIZATION

Posted by LNH at 14:42 0 comments
Learning Outcomes
After learning this topic, you will be able to :
19.1 List and describe the four 21st century trends that business are focusing on and  rank them in order of business importance.
19.2 Explain how the integration of business and technology is shaping 21st century organizations.


















Content
Content
Page
19.1 Developing Organizations
4
19.2 21st Century Organizations Trend
6
19.2.1 Increased focus on IT infrastructures
7
19.2.2 Increased focus on security
9
19.2.3 Increased focus on e-Business
10
19.2.4 Increased focus on integration
13


















19.1 Developing Organizations
Nowadays, organizations facing a great challenge since the revolution of modern industrial technology happened in the early 1990s. To survive in this new era, organizations must recognizes the power of technology and accept the changes in the technology. Organizations also must know how to handle their organizations in a new way to avoid them from being out-of-date and in the same time can thrive in this 21st century. This is a few examples on how technology changed the business area:











According to Warren Bennis, organization development is a response to change, a complex educational strategy intended to change the beliefs, attitudes, values, and structure of an organization so that it can adapt to new technologies, markets, challenges, and the dizzying rate of change itself.






19.2 21st Century Organization Trends
According to Baltzan, Phillips and Haag, 21st century organization trends are :
·         Uncertain about environment of future business and economic outlooks.
·         Stress on importance of strategic analysis for reducing the cost and increasing the productivity.
·         Put their target on improving business resiliency via the applications of advanced security.
As an addition, according to Forbes magazine, there are five big trends in business innovation in 2012, which is :
·         Strategy and entrepreneurship will have ever-greater interdependence.
·         Access to assets will be replacing ownership of assets.
·         The trade-off between reach and richness will continually diminish.
·         Mass markets will be micro-fragmenting.
·         Oblique competition will become ubiquitous.

Other than that, the organizations also focusing on four technology areas, which is :
·         IT infrastructures
·         Security
·         E-business
·         Integration








19.2.1 Increased focus on IT infrastructures
What is IT infrastructures?                                                                                        
-       IT infrastructures consists of the equipment, systems, software and services used in common across an organization, regardless of mission/program/project. IT infrastructures also serve as the foundation upon which mission/program/project-specific system and capabilities are build. But, associated people, processes and documentation are not part of IT infrastructure.

-      
Figure 19.2
-       The organization before this has underestimate the importance of IT infrastructure in their organization. IT infrastructures played important roles in many functional areas of organization.

-       In the early days, Internet’s basic infrastructure in terms of protocol and standards was in a low level and it is still in low level now, but the software companies have found a way to overcome this problem. They have managed to improve the Internet level by offer compelling applications for functional business areas.


-       Nowadays, to help achieve the organization goals, organizations are looking for Internet-based cross-functional systems such as :





§  Customer relationship management (CRM)
·         An information industry term for methodologies, software and usually Internet capabilities that help an organization manage its relationship with customers in an organized way.

§  Supply chain management ( SCM)
·         According to Harland, SCM is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers.

§  Enterprise resource planning (ERP)
·         A business management software that allows an organization to use the system of integrated applications to manage the business.

-       From this, we can see that is why must we increased focus on IT infrastructure because IT infrastructure has a big impact on the strategic capabilities of an organization.












19.2.2 Increased focus on security
-       In business, security is one of the topics that gain the highest concerns from the organizations. When the level of security is high, the business can gain benefit from it. The benefits also including disruptions to organizational systems, increased productivity of employees and more.

-       Security is not only involves inconvenience business users, customers and partners but also cost millions dollars in lost revenues and lost market capitalization. So, it is now important for the organization to have update security systems to ensure the organizations will not having any problems in the future business situations.

Figure 19.3
-       Figure 19. 3 have shown the survey concerning both the level of physical security integration and the current security practices used by most organizations.

-       Every organization must have appropriate levels of authentication, access control and encryption in  place which can help to ensure :
·         That only authorized individuals can get access to the network
·         That they only can access to the applications which they are allowed
·         That they cannot understand or alter information while in transit

-       So, it is now important for the organization to have well-rehearsed and frequently updated processes and procedures to insure against a variety of adverse situations.



19.2.3 Increased focus on E-business
- New E-business upcoming trends include :
·         Mobile commerce (m-commerce)
v  The ability to purchase goods and services through a wireless Internet-enabled device such as smart phones, Personal Digital Assistant and mobile phone.
v  With this new technology, it is available at anywhere you are, give you the easier way to search for a nearby restaurant and also pay for items in store.








·         Telematics
v  Blending computers and wireless telecommunications technologies with the goal of efficiently conveying information over vast networks to improve business operations.
v  This technology refer to the automobile systems that combine GPS tracking and other wireless communication for automatic roadside assistance and remote diagnostics.


·         Electronic tagging
v  A technique for identifying and tracking assets and individuals.


v  It consists electronic device attached to a person or vehicle, especially certain criminals, allowing the other party to monitored them.

·         Radio frequency identification (RFID)
v  Chips or smart labels that can store unique identifiers and relay this information to electronic readers. It is use active or passive tags in the form of chips or smart labels.
v  It contains electronically stored information which can be read from up to several metres.
What is e-Business?
-       Electronic business, commonly referred to as "eBusiness" or "e-business", or an internet business, may be defined as the application of information and communication technologies (ICT) in support of all the activities of business.

-        This type of technology will be able to help the organization to extend its edges in areas. It also can give benefit to the organizations in the term of improved information accuracy, reduced costs, increased productivity and others.





19.2.4 Increased focus on integration
The integration of business and technology
Figure 19.4
-       The integration of business and technology has allowed organizations to increase their share of the global economy, transform the way to conduct business, and become more efficient and effective.

-       The core business relationships and models are dramatically changing and cause shifts from :

·         Product-centricity to customer-centricity
·         Mass production to mass customization
·         The value in material things to the value of knowledge and intelligence

-       From this, a new series of business success factors and challenges has emerged that is helping to determine marketplace winners and losers :

·         Organization agility, often supported by a “plug and play” IT infrastructure
·         A focus on core competencies and processes
·         A redefinition of the value chain
·         Instantaneous business response

·         The ability to scale resources and infrastructure across geographic boundaries
                      
-       These new development has made the environment become more  complicated than before. Because of this, organizations increased straining new business models.

-       In this new environment, organizations must focus externally on their  business processes and integration architecture. This also cause a sharp increase in the number of business partners and the closeness of integration between them.

-       As long as business strategies continue to survive in this new global world, the distinction between “the business” and IT will virtually disappear.

















References
Baltzan, P., Philips, A., & Haag, S. Business driven technology. (3 ed., pp. 258-262).
Crm (customer relationship management) . (n.d.). Retrieved from http://searchcrm.techtarget.com/definition/CRM
Electronic tagging. (n.d.). Retrieved from http://en.wikipedia.org/wiki/Electronic_tagging
Erp - enterprise resource planning. (n.d.). Retrieved from http://www.webopedia.com/TERM/E/ERP.html
Five big trends in business innovation in 2012. (2011, December 19). Retrieved from http://www.forbes.com/sites/forbesleadershipforum/2011/12/19/five-big-trends-in-business-innovation-in-2012/
Organization development. (n.d.). Retrieved from http://en.wikipedia.org/wiki/Organization_development.
Supply chain management. (n.d.). Retrieved from http://en.wikipedia.org/wiki/Supply_chain_management
What is it infrastructure: A definition and a taxonomy. (2008, September 11). Retrieved from http://www.galorath.com/wp/what-is-it-infrastructure-a-definition-and-a-taxonomy.php





 

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