View source for Strategy and Practice 5 - Innovation-Based Strategy

==Innovating forms of organizations==
*''Innovation in terms of organizational structure like m-form''
*''Innovation as novel combination of processes'' - new combination of structures using BPR
*''Innovation as novel re-combination of previous structures'' - recombining previously new structures differently using BRP, or HR v Personnel Customer service rather than Sales
*''Innovation as an organisational initiative - may not be new'' - but new for that industry

==Why new forms?==
*Dismanatling of vertical forms
*deregulation
*M&A
*Less protectionism
*JV's
*more volatile buying patterns
*faster diffusion of technology
*New Technologies
*organizing to exploit information

Technology is a driver of these changes
* The internet

[[author::Galbraith]] - 6 Shapers of Organizational forms
* Buying power
* variety
* The internet as an integrating force
* Change - more decisions need to made more frequently - needs collaboration and departmentalism
* Speed
* Multiple channels

==Ideal Forms or Organizational structures==
[[author::Ashkenas]] has argued for organizations without boundaries
[[Author::Hamel]] says that organisations arent designed for innovation
Benenton has broken away from silo structure and has 350 suppliers manufacturing for them

==Novel Combinations or recombinations of processes==
*Reducing costs
*Changing structures
*BPR
*Continuous Improvement
*Customer service

==A unified perspective [[author::Denison]]'s process-based theory of organizational design==
A focus on value chain and networks 
* More market driven than hierarchy driven
* Focus on external relations

Firm strategy - increasingly about devloping core competences
Hierarchy structure - is still present from an administrative view but not crucial determining capabilities
A move towards defining organizations in terms of relations
Firm boundaries - more blurred - much larger constituency of interests

==Duality of structure and process==
Communications and relations more important than structure and cintracdicts [[author::Chandler]]'s ''structure follows strategy''

Globalization is affecting structure [[author::Ghoshal]] Technology means that firms are not constrained by geography
New Manufacturing systems - Japanese Continuous Improven Kaisan- has an affect on organizational structure
Managaing business process not depetament - x-functional teams

Global firms as inter-organisational networks - HQ ''Parenting values''

Organising to exploit knowledge and not capital and distributing knowledge - social capital becomes a form of competitive advantage


Modularity - interconnecting coordinating self organizing networks

n-form comes from the hypercompetitive environments


Success is no longer determined by economic success but cooperation and proximity of government and social agencies

Innovation - is doing or thinking something new
Creativity - something that might already done but in a new context

Much thinking around organizing organizations to meet information needs, hyper-competitiion, globalization

Recent effects - breakdown in vertical structures, excess capacity, M&A, trading blocks, volatility of customers buying patterns
==6 Shapers of tomorrow's organizations==
* structures around customers segments
* internet as a integrating force
* Variety amd mass customization
* Speed
* multiple distribution channels
* decentralization and networks to make decision quickly

==Virtual organizations==
- without boundaries - Benetton 

*''Changes in structure'' - to reduce costs, bpr, TQM
*''Chnages in process'' - CI, learning organizations
*""externally focused'' = customer service

''Denison process-based theory of Organizationa Design'' - Value chain and networks, alliances and inter-form networks

''[[author::Myerson]] - ''swift trust'' - trust is a key requirement of new organizations forms

Organizations structure will be less about reducing transaction costs but gaining access to new mkts

*[[Structure follows Strategy Follows Structure]]
*[[Operations Strategy 6 - Organization]]

[[Category:Strategy]]
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