Journal ArticleDOI
The Calculus of Reengineering
TLDR
It is argued that organizational payoff is maximized when several factors relating to IT, decision authority, business processes and incentives are changed in a coordinated manner in the right directions by the right magnitude to move toward an ideal design configuration.Abstract:
Advances in new Information Technologies IT and changes in the business environment such as globalization and competitive pressure have prompted organizations to embark on reengineering projects involving significant investments in IT and business process redesign. However, the evidence of payoff from such investments can be classified as mixed as best, a problem we partly attribute to the absence of a strong theoretical foundation to assess and analyze reengineering projects. We seek to apply complementarity theory and a business value modeling approach to address some questions involving what, when, and how much to reengineer. Complementarity theory is based on the notion that the value of having more of one factor increases by having more of another complementary factor. Further, related developments in the optimization of “supermodular” functions provide a useful way to maximize net benefits by exploiting complementary relationships between variables of interest. Combining this theory with a multi-level business value model showing relationships between key performance measures and their drivers, we argue that organizational payoff is maximized when several factors relating to IT, decision authority, business processes and incentives are changed in a coordinated manner in the right directions by the right magnitude to move toward an ideal design configuration. Our analysis further shows that when a complementary reengineering variable is left unchanged either due to myopic vision or self-interest, the organization will not be able to obtain the full benefits of reengineering due to smaller optimal changes in the other variables. We also show that by increasing the cost of changing the levels of design variables, unfavorable pre-existing conditions e.g., too much heterogeneity in the computing environment can lead to reengineering changes of smaller magnitude than in a setting with favorable conditions.read more
Citations
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Journal ArticleDOI
Information technology and the performance of the customer service process: a resource-based analysis
TL;DR: It is found that shared knowledge between IT and customer service units is a key IT capability that affects customer service process performance and moderates the impacts of explicit IT resources such as the generic information technologies used in the process.
Journal ArticleDOI
Information technology relatedness, knowledge management capability, and performance of multibusiness firms
TL;DR: This study proposes that knowledge management (KM) is a critical organizational capability through which IT influences firm performance and develops two hypotheses: IT relatedness of the firm's business units enhances cross-unit KM capability and KM capability, in turn, leads to superior firm performance.
Journal ArticleDOI
The impact of enterprise systems on corporate performance: A study of ERP, SCM, and CRM system implementations
TL;DR: In this paper, the effect of investments in enterprise resource planning (ERP), supply chain management (SCM), and CRM systems on a firm's long-term stock price performance and profitability measures such as return on assets and return on sales was analyzed.
Journal ArticleDOI
From the vendor's perspective: exploring the value proposition in information technology outsourcing
Natalia Levina,Jeanne W. Ross +1 more
TL;DR: This paper uses the economic concept of complementarity in organizational design, along with prior findings from studies of client-vendor relationships, to explain the IT vendors' value proposition and explains how vendors can offer benefits that cannot be readily replicated internally by client firms.
Journal ArticleDOI
Performance measurement of supply chain management: A balanced scorecard approach
TL;DR: It is suggested that a balanced SCM scorecard can be the foundation for a strategic SCM system provided that certain development guidelines are properly followed, appropriate metrics are evaluated, and key implementation obstacles are overcome.
References
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Book
Reengineering the corporation: a manifesto for business revolution
Michael Hammer,James Champy +1 more
TL;DR: In this paper, the authors set aside much of the received wisdom of the last 200 years of industrial management and in its place presented a new set of organizing principles by which managers can rebuild their businesses.
Book
Process Innovation: Reengineering Work Through Information Technology
TL;DR: In this article, Davenport provides numerous examples of firms that have succeeded or failed in combining business change and technology initiatives and highlights the roles of new organizational structures and human resource programs in developing process innovation.
Posted Content
The Economics of Modern Manufacturing: Technology, Strategy, and Organization
Paul Milgrom,John Roberts +1 more
TL;DR: In this article, the authors present a model of a flexible multiproduct firm that emphasizes quality and speedy response to market conditions while utilizing technologically advanced equipment and new forms of organization.
Book
Structure in Fives: Designing Effective Organizations
TL;DR: The Foundations of Organization Design as mentioned in this paper are: 1. Designing Individual Positions. 2. Design as Configuration. 3. Fleshing Out the Superstructure. 4. Fitting Design to Situation. 5. Untangling Decentralization.
Journal ArticleDOI
Minimizing a Submodular Function on a Lattice
TL;DR: General conditions under which a collection of optimization problems, with the objective function and the constraint set depending on a parameter, has optimal solutions that are an isotone function of the parameter are given.
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