3.3 Business Process IT Ambidexterity
Highly competitive environment and need of innovation, the companies are facing high pressures to innovate and improve the business process. As IT budgets are limited, process owners and IT departments need to decide how to divide their spending on efficiency and flexibility enhancing IT capabilities to optimally support the execution of business processes. The limited IT budgets put pressure on IT process owners to find the perfect mix to achieve the efficiency and flexibility to support smooth execution of business processes (Heckmann, 2015). IT departments need to find the right balance to use IT budget and decision making ability and play their role in maximizing the organization’s revenue. Ambidexterity
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This sounds easier than done, Business Process Ambidexterity is something a lot of the organizations have failed to achieve. Too much focus on the exploitative capabilities and the short term results look good and changes in the industry will blindside the organization. Google Orkut, was once top notch social media platform available but management was too keen to use the existing resources to maintain the platform and satisfied with the growth of the user base overlooking the need for innovation. The management from Orkut was blinded by the short term success of the platform and did not realize and plan for the future. Similarly, too much focus on the explorative capabilities, and organization loses the short term benefits. Firms cannot plan future at the cost of today. Ericsson invested heavily in the future by employing over 30000 researchers and developers for the development of the first analog mobile systems. The company was doing well overall so the problem was not reflected in the numbers but with the crash in the telecom sector means, Ericsson was hit harder than anyone else as they invested mostly in the future at the cost of the today (Brikinshaw & Gibson, …show more content…
I am introducing a new term in this thesis, this new third concept of Business Process ambidexterity is called Hybrid BPIT capabilities. Exploitative business process IT capabilities are set of IT activities and operations to support and sustain the business activities. Exploiting the extremes of the existing IT and the technology to support the business processes and operations. If we look at exploitative business process IT capabilities in terms of the online Media industry, all the activities of supporting the business process and maintaining the ongoing IT operational processes e.g. maintain the websites, improving the layouts, servicing the customers, and even starting up a new business process based on existing technology and support. On the other hand, explorative process IT capabilities are more innovative and out of the box IT activities to support and grow businesses. In the online Media industry, launching a new platform i.e. moving from web streaming to mobile app or development and integration of a new module into existing platforms. Exploitative and explorative IT capabilities help the organization to sustain and grow the businesses, measured in terms of the final outcome of the process i.e. Revenue Optimization Process. In the highly competitive online
I have experiences organizations that lacked consistency and thought around their goals and as a result constantly restructured. Organizations that are constantly running after new ideas lack focus therefore can’t achieve their goals.
A great deal of information was covered this week such as, the necessity in which businesses need to effectively plan and set objectives, the strategies utilized and how they are executed to obtains results, and how managements decisions can potentially affect those results. Although each topic covered was found to be interesting and informational, there was something in particular that struck a chord, which was how business establishments have to be flexible and adaptable and in many instances plan and change their strategies of today, in order to keep up with the evolving technology of tomorrow. Something that one often thinks about is how individuals use technology today and how companies that provide that technology are adapting. For instance, author Richard Daft of the textbook, Management, 12th ed. brings to light the potential issues that Intel is facing explaining “As another example of an external threat, Intel, whose microprocessors power most PCs, is being hurt by the decline in demand for personal computers as more people turn to tablets and smartphones.” (Daft, 2016, pg. 259). After reading this, one wanted to take a deep look into what it is exactly that Intel intends to do to overcome this obstacle and found some
In today's competitive marketplace, all firms are seeking ways to improve their overall performance. One such method of improvement, recently adopted by many firms, is benchmarking. Benchmarking is a technique used to evaluate internal business processes. "In this analysis, managers determine the firm's critical processes and outputs, baseline those processes, then compare the performance of each process against a standard outside the industry" (Bounds, Yorks, Adams, & Ranney 1994). To effectively improve a business process to world-class quality, managers must find a firm that is recognized as a global leader, not just the industry standard. Successful benchmarking requires tailor-made solutions, not just blind copying of another organization. Measurement and interpretation of data collected is the key to creating business process solutions.
Harkness, W. L. (1996, Sep). Process Improvement and Innovation in the Information Services Function: Lessons Learned at the Bose Corporation. pp. pp.349-368.
Bjerke, Juel M. "Week 2 Lecture Notes - Achieving Business Process Excellence and Process Re-engineering." MFGO 601 - The Globally Integrated Manufacturing Company. 2 Nov. 2011.
to determine if the team members were on the right team, and if they could work
...eral Electric and Others Turned Process into Profits. John Wiley. 2001. Ellis j & Williams D (1993) Corporate strategy and financial analysis. Pitman Grundy T (1998) Exploring strategic financial management. Prentice Hall. Johansson, Henry J., Patrick McHugh, A. John Pendlebury and William A. Wheeler III. Business Process Reengineering: Breakpoint Strategies for Market Dominance. Wiley, 1993. Johnson j & scholes k (2002) Exploring corporate strategy 6th ed. Financial times-Prentice hall. Kubeck, Lynn C. Techniques for Business Process Redesign: Tying It All Together. Wiley-QED Publication, 1995. Price Waterhouse Change Integration Team. Better Change: Best Practices for Transforming Your Organization. Irwin, 1995. Rummler, Geary and Alan Brache. Improving Performance: How to Manage the White Space on the Organization Chart. (2nd Ed.) Jossey-Bass, 1990.
In a detailed look, ITIL processes can be linked to the organization’s strategy, internal business environment and IT strategy to contribute to business service excellence. At the strategic level, the organization’s mission feeds into the vision, and together they set the strategic goals and key result areas as detailed in the strategic plan. The IT strategy has to be aligned with the strategic plan through effective performance management and reporting. At the tactical level, the business objectives and core business activities are used to determine the key performance indicators and are detailed in the business plan. At the operational level, IT infrastructure management includes operational management, operational level agreements, event and fault management, and element management. These four operational components ensure activities and processes support the business requirements and provide performance metrics to feed back
Ford Motor Company is the world’s second largest manufacturer of cars and trucks with products sold in more than 200 markets. The company employs nearly 400,000 people worldwide, and has grown to offer consumers eight of the world’s most recognizable automotive brands.
According to Chang, (2016), Business Process Management (BPM) is a systematic approach of attaining organization’s goals by improving its management in addition to controlling the essential business processes. Moreover, a business process is defined as a set of activities that aid in accomplishing definite organizational goals. One of the aims of BPM is to trim down human fault and miscommunication as it can be seen in Mike’s Dynatrix Pty Ltd business. It is due to poor infrastructure management, which is significant for maintaining and optimizing an organization’s equipment along with core operations. It is important to note that business process management entails analysis, modeling, design and measurement of an organization’s workflow and are technology enabled. This implies that it is always the point of connection within an organization between the line-of-business and the information technology department.
In past few years, companies and industries of various sizes have become aware that they need to improve business processes such as product development, order fulfilment, planning, distribution, and customer service. So everybody is now focusing on doing process improvement or redesigning.
What's e-business? It is the transformation of every business process through using the internet and associated technologies. In this transformation, each part of the business becomes a part of an intrinsic network, which enables employees, suppliers and customers of a given enterprise to conduct their tasks. People usually try to make a point in differing e-business from e-commence, but as I see, e-commerce is a part of the e-business category, and an important one.
A key function directly related to the business process reengineering is the information system process of information technology. The concept of business process reengineering is often discussed in management circles seeking to improve the way things are done within an organization. If you are looking to redesign the functionality of business process you are in fact taking a business reengineering approach. Ultimately this idea is “an approach for redesigning the way work is done to better support the organization’s mission and reduce costs” (“BPR”, 2011). If we analyze this process improvement change within the context of information technology we find that “IT is considered one of the most important enablers of process change” (Paul & Serrano,...
Besides, BPM is committed to the integration of the three pillars of an enterprise architecture - people, processes and information - into a single management and discipline to manage, control, and dominate innovation (Scheer & Nüttgens, 2000). One of the values of BPM is its ability and commitment to exploration, design, deployment, interaction, operation, optimization and analysis of complex, long-life, multi-company business processes. BPM is also the trade process to IT infrastructure, which provides a platform for the implementation of part of their identity and application design cycle. All in all, BPM’s goal is to develop and achieve a constant value generation cycle, the value of which is enhanced by the continuing process, and strive to maintain competitive advantage and dominance. in almost all
Effectively integrating information technology (IT) into an organization’s business processes is critical if the organization wants to increase productivity and remain profitable. IT includes items such as the systems software, application software, computer hardware, and the networks and databases that help manage the organization’s information. When implementing quality standards and processes that are forever changing in the IT world, organizations must balance these changes while continuing to rapidly implement new systems technologies in order to stay competitive.