Showing papers on "Value chain published in 1999"

Designing the green supply chain

Abstract: The supply chain has been traditionally defined as a one‐way, integrated manufacturing process wherein raw materials are converted into final products, then delivered to customers. Under this definition, the supply chain includes only those activities associated with manufacturing, from raw material acquisition to final product delivery. However, due to recent changing environmental requirements affecting manufacturing operations, increasing attention is given to developing environmental management (EM) strategies for the supply chain. This research: (1) investigates the environmental factors leading to the development of an extended environmental supply chain; (2) describes the elemental differences between the extended supply chain and the traditional supply chain; (3) describes the additional challenges presented by the extension; (4) presents performance measures appropriate for the extended supply chain; and (5) develops a general procedure towards achieving and maintaining the green supply chain.

Strategy and the new economics of information

Abstract: We are in the midst of a fundamental shift in the economics of information--a shift that will precipitate changes in the structure of entire industries and in the ways companies compete. This shift is made possible by the widespread adoption of Internet technologies, but it is less about technology than about the fact that a new behavior is reaching critical mass. Millions of people are communicating at home and at work in an explosion of connectivity that threatens to undermine the established value chains for businesses in many sectors of the economy. What will happen, for instance, to dominant retailers such as Toys "R" Us and Home Depot when a search through the Internet gives consumers more choice than any store? What will be the point of cultivating a long-standing supplier relationship with General Electric when it posts its purchasing requirements on an Internet bulletin board and entertains bids from anybody inclined to respond? The authors present a conceptual framework for approaching such questions--for understanding the relationship of information to the physical components of the value chain and how the Internet's ability to separate the two will lead to the reconfiguration of the value proposition in many industries. In any business where the physical value chain has been compromised for the sake of delivering information, there will be an opportunity to create a separate information business and a need to streamline the physical one. Executives must mentally deconstruct their businesses to see the real value of what they have. If they don't, the authors warn, someone else will.

Defining supply chain management: a historical perspective and practical guidelines

Abstract: Interest in supply chain management has steadily increased since the 1980s when firms saw the benefits of collaborative relationships within and beyond their own organization. Firms are finding that they can no longer compete effectively in isolation of their suppliers or other entities in the supply chain. A number of definitions of supply chain management have been proposed in the literature and in practice. This paper defines the concept of supply chain management and discusses its historical evolution. The term does not replace supplier partnerships, nor is it a description of the logistics function. The competitive importance of linking a firm’s supply chain strategy to its overall business strategy and some practical guidelines are offered for successful supply chain management.

e-Business: Roadmap for Success

Abstract: (All chapters conclude with a Memo to the CEO.) Foreword. Preface. Moving from e-Commerce to e-Business. What Makes This Book Different? Who Should Read This Book? How This Book Is Organized. Acknowledgments. 1. From e-Commerce to e-Business. Linking Today's Business with Tomorrow's Technology. e-Business = Structural Transformation. e-Business Requires Flexible Business Designs. Challenge Traditional Definitions of Value. Define Value in Terms of the Whole Customer Experience. e-Business Communities: Engineering the End-to-End Value Stream. Integrate, Integrate, Integrate: Create the New Techno- Enterprise. Needed: A New Generation of e-Business Leaders. 2. e-Business Trend Spotting. Increase Speed of Service: For the Customer, Time Is Money. Empower Your Customer: Self-Service. Provide Integrated Solutions, Not Piecemeal Products. Integrate Your Sales and Service: Customization and Integration. Ease of Use: Make Customer Service Consistent and Reliable. Provide Flexible Fulfillment and Convenient Service Delivery. Contract Manufacturing: Become Brand Intensive, Not Capital Intensive. Learn to Outsource: You Cannot Be Good at Everything. Increase Process Visibility: Destroy the Black Box. Learn the Trends in Employee Retention. Integrated Enterprise Applications: Connect the Corporation. Meld Voice, Data, and Video. Multichannel Integration: Look at the Big Picture. Wireless Applications Enter the Mainstream. Middleware: Supporting the Integration Mandate. What Is Common to All These Trends? 3. Think e-Business Design, Not Just Technology. Constructing an e-Business Design. The First Step of e-Business Design: Self-Diagnosis. The Second Step of e-Business Design: Reversing the Value Chain. The Third Step of e-Business: Choosing a Narrow Focus. Case Study: Service Excellence at American Express. Case Study: Operational Excellence at Dell Computer. Case Study: Continuous Innovation at Cisco Systems. Business Design Lessons Learned. 4. Constructing the e-Business Architecture. Why Is Application Integration Important? The New Era of Cross-Functional Integrated Apps. Integrating Application Clusters into an e-Business Architecture. Aligning the e-Business Design with Application Integration. 5. Customer Relationship Management: Integrating Processes to Build Relationships. Why Customer Relationship Management? Defining Customer Relationship Management. Organizing around the Customer: The New CRM Architecture. Supporting Requirements of the Next-Generation CRM Infrastructure. Organizational Challenges in Implementing CRM. Next-Generation CRM Trends. Building a CRM Infrastructure: A Manager's Roadmap. 6. Selling-Chain Management: Transforming Sales into Interactive Order Acquisition. Defining Selling-Chain Management. Business Forces Driving the Need for Selling-Chain Management. Technology Forces Driving the Need for Selling-Chain Management. Managing the Order Acquisition Process. Cisco and Selling-Chain Management. Elements of Selling-Chain Infrastructure. The Custom Foot: Transforming Shoe Sales with Technology. 7. Enterprise Resource Planning: The e-Business Backbone. Why Is Management Willingly Paying Millions for ERP Suites? ERP Decision = Enterprise Architecture Planning. The COTS ERP That Keeps on Ticking: The SAP Juggernaut. ERP Usage in the Real World. ERP Implementation: Catching the Bull by the Horns. The Future of ERP Applications. 8. Supply Chain Management: Interenterprise Fusion. Defining Supply Chain Management. Basics of Internet-Enabled SCM: e-Supply Chain 101. Basics of Internet-Enabled SCM: e-Supply Chain 201. e-Supply Chain Fusion: e-Supply Chain 301. e-Supply Chain Fusion Management Issues. The Future: e-Supply Chains in 200X. Supply Chain Management: A Manager's Roadmap. 9. e-Procurement: The Next Wave of Cost Reduction. Structural Transition: From Isolated Purchasing to Real-Time Process Integration. Why Is Procurement a Top-Management Issue? What Exactly Is Operating Resource Procurement? Operating Resource Procurement at Microsoft: MS Market. Procurement Business Problem: Lack of Process Integration. Next-Generation Integrated Procurement Applications. Elements of Buy-Side e-Procurement Solutions. Buy-Side Applications for the Procurement Professional. Elements of Sell-Side e-Procurement Solutions. The e-Procurement Manager's Roadmap. 10. Knowledge-Tone Applications: The Next Generation of Decision Support Systems. Knowledge Apps: Why They Are Important. Knowledge Tone Is an Application Framework. Emerging Classes of Knowledge-Tone Applications. Knowledge-Tone Usage in the Real World. Tech Trends Driving Knowledge-Tone Framework Investments. Elements of the Knowledge-Tone Architectural Framework. Core Technologies: Data Warehousing. Enabling Technologies: Online Analytical Processing. A Roadmap to Knowledge-Tone Framework. 11. Developing the e-Business Design. The Challenges of e-Business Strategy Creation. Roadmap to Moving Your Company into e-Business. Phase 1: Knowledge Building. Phase 2: Capability Evaluation. Phase 3: e-Business Design. e-Business Design in Action: The Case of E*TRADE. 12. Translating e-Business Strategy into Action. e-Business Blueprint Creation Is Serious Business. Basic Steps of e-Business Blueprint Planning. Doing the Right Projects: A Prioritization Blueprint. Putting It All Together: The e-Business Blueprint Case. Key Elements of a Business Case. Communicate, Communicate, Communicate. e-Business Project Planning Checklist. Doing the Projects Right: An Execution Blueprint. Why e-Business Initiatives Fail. Endnotes. Index.

Power, value and supply chain management

Abstract: Explains some of the thinking that informs both the case study articles that appear in the same issue of Supply Chain Management: An International Journal and the EPSRC funded research project currently being undertaken at the Centre for Business Strategy and Procurement. A review is provided of the dominant ideas that currently inform “supply chain management thinking”. This paradigm is characterised as operational effectiveness and efficiency. A case is made for understanding supply chains from a strategic as well as from an operational perspective. Current supply chain management thinking is criticised for being atheoretical and descriptive, and a case is made for an analytical approach to supply chain thinking based around the concepts of power and value appropriation. A more analytically robust way of understanding supply chains is laid out.

Cooperation and competition in relationships between competitors in business networks

Abstract: Traditionally the relationships between competitors in the industrial market have been based on competition. The network approach and literature about strategic alliances have provided new insights into cooperation between firms based on the value chain. The empirical findings from two in‐depth studies, the rack and pinion industry and the lining industry, show that a firm can be involved in four different types of horizontal relationships at the same time. Apart from relationships consisting of competition or cooperation, a firm can live in symbiosis by coexisting with other relationships, or being involved in a relationship simultaneously containing elements of both cooperation and competition. Consequently, a successful firm needs to focus on relationship management in order to achieve a portfolio consisting of the four types of relationships to other horizontal firms.

Managing Customer Value

Abstract: This paper builds the framework for linking the established work of competitive advantage with the emerging discipline of value marketing. The outcome of this linkage is the concept of strategic value management. Strategic value management focuses on the right combinations of product quality, customer service and fair prices as the key to selling to today’s value conscious consumers. The core of the strategy stresses the firm’s ability to combine and manage these dimensions of value in a way that a strategic value advantage is created and maintained. This advantage provides long‐term profitability for the firm and satisfaction for the customer segment. Three companies that excel at strategic value management, Southwest Airlines, Hewlett‐Packard, and Nordstrom, illustrate how this advantage provides long‐term profitability for their firm and satisfaction for their customer segment. Value oriented actions have been developed to support a strategic value approach.

Supply Chain Strategy: Its Impact on Shareholder Value

Abstract: In the last few years there has emerged a strongly held view that the ultimate purpose of the firm is to maximize shareholder value, that is the long run worth of the business to its owners. Many influences clearly impact upon shareholder value, but there is a growing recognition that the supply chain strategy employed by the firm can have a significant effect. This paper examines the concept of shareholder value and the related organizational framework of Value Based Management (VBM) and explores the connections with supply chain strategy.

Manufacturing-based relatedness, synergy, and coordination

Abstract: This paper explores the basic question of whether manufacturing-based relatedness between business units within a multibusiness firm serves as a basis for a competitive advantage at the business unit level. We developed a system for describing manufacturing relatedness that combines the study of value chain activities with 4-digit SIC codes, then we assessed presence of manufacturing synergies. We found no evidence that, on average, organizations involved in manufacturing-related businesses are reaping financial benefits from shared resources in manufacturing. However, some firms, through explicit commitment to coordination, do realize performance benefits from such involvement. Copyright © 1999 John Wiley & Sons, Ltd.

Advanced Supply Chain Management: How to Build a Sustained Competitive Advantage

Abstract: Companies all over the world are utilizing supply chain management to develop a competitive edge. Rich in case studies, Charles Poirier's book takes readers through a four-stage process to building an effective supply chain.

The Impact of Agile Manufacturing on Supply Chain Dynamics

Abstract: Traditional supply chains can greatly amplify changes in end‐customer demand and thereby produce their own internally generated boom‐and‐bust scenarios. Improvement in supply chain performance is often greatly separated by time (many months) and distance (many miles) from the action taken to trigger better customer service coupled with lower stockholdings. A global long‐term view must therefore be taken if we are to be sure that enhancement is real and permanent. This paper outlines the problem areas associated with supply chain dynamics and reviews a set of Supply Chain Material Flow Principles originally based on established results from simulation models and observation of good industrial practice. The paper further shows that these Principles were embedded in an Agile Manufacturing Program undertaken in order to re‐engineer a real‐world mechanical precision products global supply chain. Subsequent improvements in supply chain dynamics recorded include a 45 per cent reduction in global inventory and the damping of supply chain amplification patterns by up to 58 per cent.

The Indian Software Services Industry

Abstract: This paper provides an analytical description of the Indian software industry, with a special focus on the software exports from India. We use a variety of sources, including a questionnaire survey of Indian software firms, and field visits and interviews with industry participants, observers, and US based clients. The Indian software industry is remarkable in a number of respects. It is service rather than product oriented, heavily export oriented, and is largely managed by professional and entrepreneurial managements. Also, domestic market experience and expertise appears to have had only limited benefits for successful importers. Although the industry has grown in spectacular fashion, sustaining this performance will pose a number of challenges. In order to counteract the widely reported shortages of skilled software professionals and the possible competition from other low wage, human capital rich countries, Indian firms are trying to move up the value chain by acquiring deeper knowledge of business domains and management capability, and to reduce costs by developing superior methodologies and tools. Whether and how many firms will be a key test of the management skills and willingness to invest along a number of dimensions. From a social perspective, the disconnect between domestic and export markets is a major challenge, but one that the growing diffusion of computers and the improvement of the communication infrastructure should make easier to confront. In the end, the greatest impact the software industry is likely to have on the Indian economy is indirect, in its role as an exemplar of the new business organisational form and as an inspiration to other entrepreneurs.

The Indian Software Industry

Abstract: This paper reports on the results of research on the Indian software industry, carried out at Carnegie Mellon University. We use a variety of sources, including a questionnaire survey of Indian software firms, and field visits and interviews with industry participants, observers, and US based clients. The Indian software industry is remarkable in a number of respects. It is service rather than product oriented, heavily export oriented, and is largely managed by professional and entrepreneurial managements. Also, domestic market experience and expertise appears to have very little benefits for successful importers. Although the industry has grown in spectacular fashion, sustaining this performance will pose a number of challenges. In order to counteract the widely reported shortages of skilled software professionals and the possible competition from other low wage, human capital rich countries, Indian firms are trying to move up the value chain by acquiring deeper knowledge of business domains and management capability, and to reduce costs by developing superior methodologies and tools. Whether and how many firms will be a key test of the management skills and willingness to invest along a number of dimensions. From a social perspective, the disconnect between domestic and export markets is a major challenge, but one that the growing diffusion of computers and the improvement of the communication infrastructure should make easier to confront. In the end, the greatest impact the software industry is likely to have on the Indian economy is indirect, in its role as an exemplar of the new business organisational form and as an inspiration to other entrepreneurs.

An empirical assessment of the organization of transnational information systems

Abstract: The objective of this study is to aid our understanding of the organization of information systems in organizations whose activities cross national boundaries. The increasing globalization of business has led firms to seek new, and more appropriate, organizational structures, processes, and cultures. This has required the establishment of appropriate information technology platforms to coordinate business processes and to provide coalition mechanisms.This study is based on five important dimensions of transnational strategy--the configuration of value chain activities, the coordination of value chain activities, centralization, strategic alliances, and market integration--that define a comprehensive taxonomy of transnational strategy. A basic proposition is that a firm's transnational strategy will be reflected in the design of its information systems. To address this proposition, a two-stage questionnaire study was conducted. Respondents included 150 multinational corporations from 20 countries and 25 industries. The five dimensions of transnational strategy were operationalized, and the analysis established the validity of a taxonomy that is better suited to the study of systems-related issues in MNCs. This taxonomy was used to test hypotheses related to the organization of transnational systems. These hypotheses were stated in terms of IS organizational, strategic, architectural, and personnel dimensions.The results of the study support the proposition that the organizational characteristics of centralization, dispersal, and coordination are differentially reflected in the IT configurations of various kinds of MNCs. In a centrally coordinated business structure, IT is also globally centralized. In addition, local autonomy was shown to affect the deployment of IT in global firms.

Value and information – concepts and issues for management

Abstract: The notion of what is meant by “value” is explored and summarised in terms of its involvement in delivering the product/service attributes, considered necessary to create customer satisfaction. Investigates the business system in relation to the value chain, as well as citing the conflicting views of a number of authors upon this topic. A specific company is used as a template to bring out many of the notions that have been put forward. Concludes with the fact that the traditional value chain begins with the company’s core competences, whereas evidence suggests that modern value chain analysis reverses this approach and uses customers as its starting point.

A research agenda for supply chain and business management thinking

Abstract: Summarises the key learning points in supply and value chain mapping. It demonstrates that there is no best way to manage supply chains. Concludes that the key to success in business is based on recognising the types of supply chains that exist and aligning strategy and operational practice with the specific properties of the supply chain that the company is positioned within. It is argued that some supply chain structures do not lend themselves to effective value appropriation, so that entrepreneurial rents may not be achievable in all circumstances. It is argued, in conclusion, that this way of thinking about supply chains and supply innovation – referred to here as procurement and supply competence – is underdeveloped in business management thinking.

Explaining cybermediation: an organizational analysis of electronic retailing

Abstract: Early in the information age, it was widely thought that wholesalers, distributors, and other intermediaries would be removed from the value chains of many businesses. This disintermediation offered the prospect of more efficient supply and marketing channels. The early forecasts proved to be shortsighted, however, for instead new cybermediaries have lodged themselves in the value chain between manufacturer and customer. This paper explains the phenomenon of cybermediation by looking beyond transaction-cost economics toward newer theories of consumer economics and several theories drawn from institutional theory, social exchange theory, social network theory, and theories of organizational knowledge creation. Researchers who utilize the contributions of these diverse theoretical perspectives will be better able to explain the emergence of cybermediaries in electronic commerce.

The general principles of value chain management

Abstract: Explores the principles of value chain management, as they apply to both public and private products, and explores the impact of e‐commerce and collaborative planning through the Internet on reducing costs and uncertainty in supply chains. Drawing on experience from global initiatives with e‐centreuk, and recent applications within Nestle UK, makes a plea for simplicity and standardisation in electronic commerce, to support speedy and certain value chain management across the globe.

Exploring E-Commerce, Global E-Business, and E-Societies

Abstract: I. WHAT IS E-COMMERCE? 1. E-commerce: An Historical Perspective. The Internet Used for Business. Internet History. The Internet's potential for e-commerce. 2. The Internet Evolution and Social Changes. A Fifth Paradigm in Computing. Industrial Changes with the Internet. 3. The Distinction: E-commerce and E-business. E-Business within a World of E-commerce. E-business Design Quality Aspects. Building e-business, Increasing Business Values. Building an e-business. Network Planning. Systems Management Planning. Performance and Capacity on Demand. Hacker-Proof e-businesses. Scalable, Reliable, and Secure e-business Sites. Customer Retention. Customer Care in e-business Environments. Business Continuity Requirements: An Imperative for E-businesses. 4. The Importance of Advanced Research. Experimental Epistemology. The Practitioner's Viewpoint. 5. Businesses That Leverage E-commerce. Significant Research of e-commerce Contenders. The Costs of Internet Trading. Industrial E-commerce Market Share Increases. 6. E-commerce, Management, and Organizations. Transforming Business. Managing and Leveraging Knowledge. Infrastructure Management. Building Internet Commerce Applications. 7. New Channels That Intensify Competition. Conducting E-business and E-commerce. E-business Factors to Consider. Global E-commerce Communities. II. E-COMMERCE CHANNELS TO GENERATE PROFITABLE REVENUES. 8. E-business Life-Cycle Patterns. Life-Cycle Strategies Will Be Challenged. Virtual Commerce. Business Change. 9. Challenges Surrounding E-banking. e-banking Leverages e-commerce. Notion of Mass-Market and E-banking. e-banking Competition. Content Aggregators. E-banking Dependencies on Technologies. Established Brands. E-banking within the Community Interest Site. 10. E-business Enablers. e-business Catalyst. Lead from the Front. The E-business Effect. Market Dynamics. Internet Thought Continuum. A White-Heat Pace. III. STRUCTURED TRANSFORMATIONS THROUGH E-COMMERCE. 11. Manufacturing: E-commerce, E-societies, and E-governments. e-governments and e-commerce. Business Intelligence Models. Manufacturing Strategies Leverage e-commerce. Information as a Commodity. Business-to-Business Growth. Virtual Intermediary Communities. 12. E-business Sites That Enhance the User Experience. Few Internet Site Owners Measure Usability. Quantify Your Internet Site's Design Quality. Design Challenges for the Effective Site. Focusing and Holding the Customer's Attention. Site Redesign for Design Excellence. 13. Utilizing the Internet to Extend Market Reach. Business Partners Linked via Technologies. Distribution Channels Linked via Technologies. Maintain Unique Relationships. 14. E-business in Financial Industries. e-commerce and Insurance Companies. e-commerce, Insurance, and Business Change. Cross-Channel Selling-Another Shift. Subsidiaries versus Agent Selling. Open-Finance Specialists. 15. E-commerce Crossing Several Dimensions. Internet Service Providers. The Global E-commerce Theater. Global E-business Services Add Value. Speed is a Barrier. Internet Electronic Bill Presentment and Payment. Banc One. First Union and TransPoint Announce Internet-Based Bill Delivery and Payment. First Union. TransPoint. Mellon Bank. CheckFree to Provide Processing for EDS' Electronic Bill Paying Service. IV. GLOBAL SEGMENTATION. 16. Customer Relationships: E-contracts, E-bills, E-payments, E-care, E-trust. e-bill Presentment. Online Contracting: e-contracts. Financial Services-Trusted Authentication. 17. Examples of E-business Solutions. Background on Boeing's Spare Parts e-business. A Few of the E-business Challenges. Boeing's E-business Solution. 18. Automotive Industry E-business Solutions. Background on the Manufacturer's Problem. The Automotive Business Problem. The Automotive E-business Solution. E-business Solution Results. 19. Internet E-business Value Chain Management. Procurement e-business Solutions. E-procurement Business Problems. e-procurement Business Solutions. E-business Solution Results. 20. E-business Enhances the Supply Chain. Supply Chain e-business Challenge. Supply Chain E-business Problem. Supply Chain E-business Solution. Supply Chain e-business Solution Results. V. UNIQUE MANAGEMENT AND ORGANIZATIONAL CHALLENGES. 21. E-insurance: Reduces Costs and Increases Revenue. E-business Challenge Overview. Background on the E-business Problem. The E-insurance E-business Problem. The E-business Solution. Critical Issues in the E-business Path. The E-business Solution Results. 22. Security and Privacy. Digital Signatures. Establishing Security Policies. 23. The Extended E-business Enterprise. Travelocity's e-commerce Design Overview. The Travelocity Logical Architecture. Legacy and Internet Engines Are Complementary. Transactions: The Internet to Legacy Systems. Performance and Speed. Testing. Firewall Systems. System Reliability and Availability. 24. Conclusion. Appendix A. Appendix B. Appendix C. Index.

Using the Internet as a channel for commerce

Abstract: Proposes the idea that as the Internet is a new channel for commerce, a structured approach is necessary in order to identify opportunities and threats. Looks at the ways in which value can be added throughout the process, from product development to every part of the value chain. Examines the information‐based approach as a way of adding value and concludes that it is only by pursuing a logical approach to the integration of information management into the strategy process that firms can become effective, world‐class competitors.

Using value reengineering to implement breakthrough solutions for customers

Abstract: It is evident from examples such as Dell that successful shapers of the supply chain really do change the game, but how can your company do it? Value reengineering is a new approach for how a company can systematically implement breakthrough solutions for its customers. The key is finding the right value offering point in the customer:s demand chain. A company can then carve‐out a new business model that offers better value to the customer in a way that also helps lower costs.

CSCAT: the Compaq Supply Chain Analysis Tool

Abstract: In today's business environment, the dynamics of the business drive many decisions in the supply chain. Companies buffer their inventory, carry excess capacity and head-count, and have costly marketing initiatives in order to handle the dynamics of the business. In order to better analyze the business dynamics and define supply chains that are robust to changes in the business environment, Compaq has developed an internal package, called the Compaq Supply Chain Analysis Tool (CSCAT). CSCAT is an ARENA/sup (R)/ discrete-event simulation that allows for the easy configuration of a supply chain and the analysis of the dynamics of a supply chain. CSCAT has been used by Compaq to address strategic supply chain issues and certain product-specific supply chain issues. This paper gives an overview of CSCAT.

Modelling supply chain management processes in engineer-to-order companies

Abstract: This paper describes the characteristics, competitive factors and supply chain management issues of an engineer-to-order company engaged in the supply of capital goods. Structured Systems Analysis and Design Methodology is used for modelling the internal processes of organisation, as well as interactions with customers and suppliers. Supply chain management decisions are clearly differentiated between tendering and contract execution. The case study demonstrates a requirement to integrate these supply chain management processes. The management of knowledge throughout the supply chain was identified as critical to achieving competitive advantage.

Real Estate Value Chain Connections: Tangible and Transparent

Abstract: Real estate plays a fundamental connecting role in the value chain. This research addresses the application of the value chain concept to how real estate facilitates the connection of inputs to the...

A general methodology for determining a fit between supply chain logistics and five stages of strategic management

Abstract: A framework for comparing supply chain logistics and the strategic orientation of the firm is explored. Seventeen attributes of supply chain logistics management are investigated along with five stages of strategic evolution of firms. Specific findings note management challenges when it is either below or beyond the strategic level of the firm. In addition, this research highlights how supply chain logistics managers can prioritize training, development, and purchasing activities.

Executives' Perspectives on IT: Unraveling the Link between Business Strategy, Management Practices and IT Business Value

Abstract: Executives’ Perspectives on IT: Unraveling the Link between Business Strategy, Management Practices and IT Business Value 1 Paul P. Tallon (ptallon@uci.edu) Kenneth L. Kraemer (kkraemer@uci.edu) Center for Research on Information Technology and Organizations, Graduate School of Management, University of California, Irvine, CA 92697–4650 Abstract Executives’ perspectives on realized IT payoffs are clearly important in IT investment decisions. In this paper, we investigate the link between business strategy, management practices and IT business value. Our results indicate that corporations with more focused goals for IT achieve higher payoffs from IT throughout the value chain. We also find that management practices contribute to IT payoffs and that a corporation’s use of management practices relates to their strategic intent or goals for IT. impact of IT on different aspects of firm performance. By considering the goals behind a firm’s IT investments, we can provide a more meaningful assessment of IT payoffs. For example, we can evaluate payoffs in specific areas such as sales and marketing or customer relations, areas that have traditionally eluded objective measures of IT payoffs. Finally, evaluating IT payoffs against a set of underlying goals for IT can generate insights into whether a firm’s IT investments are providing direct support for the business strategy. Introduction Although previous research suggests that investments in information technology (IT) have a positive impact on firm performance, many business executives remain skeptical about the payoffs from IT. Already frustrated by an inability to quantify certain intangible benefits from IT, executives cite frequent delays and budget overruns to support their claim that IT is not delivering on its promise. As decentralization continues to place business executives in a position of authority and control over IT, these sentiments will have an impact on the scale and direction of future IT investment decisions. As a consequence, executives’ perspectives are clearly relevant to the debate on IT payoffs and beyond that, to a broader discussion of how IT can support the business strategy. In this paper, we present findings from a global survey of business executives in “Fortune 1000” firms. Faced with conflicting views of IT payoffs, we asked business executives to reveal their strategic intent or corporate goals for IT, and to then assess (in perceptual terms) the A Process Model of IT Business Value Insights into IT payoffs at the firm-level can be gleaned from research on the “productivity paradox” (Brynjolfsson and Hitt 1996; Dewan and Min 1997; Lichtenberg 1995). However, as the primary focus of these studies has been on the productivity impacts of IT, a wide variety of impacts in areas such as improved inventory management, greater product variety and enhanced customer service, have been excluded from a broader analysis of IT payoffs. Therefore, in response to calls for a more inclusive and comprehensive assessment of IT payoffs, we introduce a process-oriented model of IT business value (Figure 1). While there are many ways of depicting the processes within a corporation, the value chain is perhaps the most widely used (Porter 1985). A process-oriented model also provides a mechanism for representing goals for IT in the sense that different business strategies emphasize different parts of the value chain. Therefore, by using the value chain to identify key business processes, we can construct a framework within which to evaluate IT payoffs. Management Practices Realized IT Value Strategic Intent for IT Focused Goals Value Chain Unfocused Figure 1. Conceptual Model of IT Business Value Firm Performance