Strategy and Practice 5 - Innovation-Based Strategy
Innovating forms of organizations
- Innovation in terms of organizational strcuture 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 voetile buying patterns
- faster diffusion of technology
- New Technologies
- organizing to exploit information
Technology is a driver of these changes
- The internet
Galbraith 6 Shapers of Organizational forms
- Buying power
- variety
- The internet ans an integrating force
- Change - more decisions need to made more frequently - needs collaboration and departmentalism
- Speed
- Multiple channels
!!Ideal Forms or Organizational structures Ashkenas has argued for organizations without boundaries hamel says that organisations arent designed for innovation Bennton has broken away from silo structrie 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 Denison's process-based theory of organizational design A focus on value chain and networks
- More mkt driven than hierarchy driven
- focus on external relations
Firm strategy - increasingly about devloping core competences Hierarchy structure - is still present from ad admin view but not crucial determining capbilities 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 Chandlers structure follows strategy
Globalization is affecting structure Ghoshal Technology means that firms are not constrained by geography New Manufcaturing systems - Japanese Continuous Improven Kaisan- has an affect on org 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 prximity of govt and social agencies
Innocvation - 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 vertcal structures, excess capacity, m&a, trading blocks, volatility of customers buying patterns
6 Shapers of tomorrows orgs
- structures around customers segments
- internet as a integrating force
- Variety amd mass customization
- Speed
- multiple distribution channels
- decentralization and netwroks to make deciosn quickly
Vitual orgs - without boundaroe4s - Beenetton
Changes in structure - to reduce costs, bpr, TQM Chnages in process - CI, learning organizations ""externally focused = customer service
Denison process-based theory of Org Design - Value chain and networks, alliances and inter-form networks
Myerson - //swift trust// - trust is a key requirement of new org 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
