3 Organizing for Networked Information Technologies
Organizing for Networked Information Technologies
Process Integration and Transformation ArticlesEdited by Jan Damsgaard, Jens Hørlück, Pernille Kræmmergaard & Jeremy Rose
Organizing for Networked Information Technologies Cases in Process Integration and Transformation
First Published in 2001
Copyright The authors
Publisher Process Integration and Transformation based on New Networked Information Technologies (PITNIT), Aalborg University Project number 9900102, the Danish Research Agency
Distribution Aalborg Universitetsforlag
Niels Jernes Vej 6b
DK-9220 Aalborg Ø Phone: +45 96357140 Fax: +45 96350076 E-mail: [email protected] Homepage: www.forlag.auc.dk Print J. Tengstedt
Cover and layout Morten Rask
Table of Content
INTRODUCTION...9
BACKGROUND FOR THE RESEARCH PROJECT...11
THE ARTICLES...12
Group A: Articles primarily related to one organization's perspective on parts of the framework...12
Group B: Articles primarily related to the interconnecting of organizations in a network...13
Group C: Articles related to the overall framework...14
ARTICLES, RELATED TO THE PITNIT PROJECT, BUT NOT INCLUDED IN THIS BOOK....14
ACKNOWLEDGMENTS...16
KNOWLEDGE CREATION ON THE INTRANET...17
ABSTRACT...17
INTRODUCTION...17
INTRANET TECHNOLOGY...18
Intranet technology usage...19
KNOWLEDGE CREATION PROCESSES...20
A Model of knowledge creation...20
A MODEL OF INTRANET-FACILITATED KNOWLEDGE CREATION...22
Socialisation...23 Externalisation...24 Combination...24 Internalisation...24 DISCUSSION...25 CONCLUSION...25 ACKNOWLEDGEMENTS...26 REFERENCES...26
MAKE OR BUY - A TAXONOMY OF INTRANET IMPLEMENTATION STRATEGIES...29
ABSTRACT...29
INTRODUCTION...29
BACKGROUND THEORY...30
Definition of intranet technology...31
Characteristics of intranet technology...31
RESEARCH METHODS...32
CHOOSING AN IMPLEMENTATION STRATEGY...33
Implementation process: In-house or outsourced...33
Intranet architecture: Tailor-made or ready-made...34
A taxonomy of four types of intranets...35
THE FOUR INTRANET IMPLEMENTATION STRATEGIES...36
Type I - Homemade intranet (a.k.a. The Amateur)...36
Type II - Tailor-made intranet implemented by consultants (a.k.a. The Craftsman)...37
Type III - Intranet in-a-box customized by in-house personnel (a.k.a. The Engineer)...38
Type IV - Intranet in-a-box customized by outside contractor (a.k.a. Traveling
Fitter)...39
DISCUSSION AND RECOMMENDATIONS...40
Discussion of results...40
Recommendations...41
CONCLUSION...41
Acknowledgements...42
REFERENCES...42
EVALUATION OF ERP IMPLEMENTATION: A MULTI-PERSPECTIVE APPROACH...45 ABSTRACT...45 KEYWORDS...45 INTRODUCTION...46 Background....46 Methodology...46
ENABLING PROCESS ORIENTATION THROUGH ERP SYSTEMS...47
Industrial Challenges...47
The transformation of the enterprise...47
The role of ERP in transforming the enterprise...48
A NEW PERSPECTIVE ON ERP-IMPLEMENTATION SUCCESS...48
Implementation success...49
A framework for evaluating ERP implementation...50
ALPHA - ORGANIZING FOR AGILITY? ...51
Background....51
ERP implementation...51
The technological perspective...52
The business perspective...53
The organizational perspective...54
DISCUSSION...55
CONCLUSION...56
REFERENCES...56
MANAGING THE ERP JOURNEY...58
ABSTRACT...58
INTRODUCTION...58
RESEARCH METHODOLOGY...59
THE ERP IMPLEMENTATION JOURNEY...60
MANAGEMENT COMPETENCIES FOR ERP IMPLEMENTATIONS...62
THE ERP JOURNEY AT OMEGA...64
Project Chartering...65
The Project...67
Shakedown...68
Onward and upward...69
Discussion...69
COMPETENCIES FOR ERP MANAGERS...71
CONCLUSIONS...73
ACKNOWLEDGEMENT...74
REFERENCES...74 RIGHT SPEED IN NETWORK-BASED PRODUCT DEVELOPMENT AND
ITS RELATIONSHIP TO LEARNING, CONTINUOUS IMPROVEMENT
(CIM), AND CONTINUOUS INNOVATION (CI)...76
ABSTRACT...76
INTRODUCTION...76
RESEARCH METHODOLOGY...77
EMPIRICAL ANALYSIS RESULTS AND FINDINGS...78
UNDERSTANDING "THE FIELD OF NETWORK-BASED HIGH SPEED PRODUCT DEVELOPMENT"...79
RIGHT TIME IN PRODUCT DEVELOPMENT - THEORETICAL BACKGROUND...85
RIGHT SPEED IN NETWORK-BASED PRODUCT DEVELOPMENT...86
PRODUCT DEVELOPMENT LEADERSHIP (PDL) AND PRODUCT DEVELOPMENT MANAGEMENT (PDM) ...87
SHORT TERM AND LONG TERM SUCCESS CRITERIA OF PDL ...89
CONTRIBUTION TO THEORY...90
CONCLUSIONS AND FUTURE DEVELOPMENTS...90
ACKNOWLEDGEMENT...91
REFERENCES...91
A SCANDINAVIAN APPROACH TO INTERNET PORTALS: GENESIS, ADOLESCENCE AND MATURATION...93
ABSTRACT...93
INTRODUCTION...94
PORTALS AND THEIR MANAGEMENT...94
Portal lifecycle and business model...95
FIELD STUDY...96
Field study design...96
Data collection and analysis...97
ANALYSIS...97
Netdoktor.dk - a Danish health portal...98
Netdoktor.se - a Swedish health portal...98
Verkkoklinikka - a Finnish health portal...99
Jippii - a Finnish based mobile service portal...100
Telia Mobile/MyDoF - a Swedish mobile service portal...101
Mobilstationen - a Danish mobile service portal...101
DISCUSSION AND CONCLUSION...102
ACKNOWLEDGEMENT...105
REFERENCES...105
APPENDIX A - INTERVIEW GUIDE...107
ERP II - NEXT-GENERATION EXTENDED ENTERPRISE RESOURCE PLANNING...108
ABSTRACT...108
INTRODUCTION...108
THE EVOLUTION OF ENTERPRISE SYSTEMS...109
LOGISTICS AND SUPPLY CHAIN MANAGEMENT...112
THE EXTENDED ENTERPRISE AND BEYOND...113
DISCUSSION...114
CONCLUSION...116
REFERENCES...117 AN INTRODUCTION TO EXPORT ASSISTANCE IN THE INTERNET AGE Organizing for Networked Information Technologies 7
...119
INTRODUCTION...119
METHODOLOGY...121
STRUCTURE OF THE PAPER...121
SUMMARY OF OUR WEB SITES REVIEW...121
CONCEPTUALIZING INTERNET BASED EXPORT ASSISTANCE ...123
IMPLICATIONS OF INTERNET BASED EXPORT ASSISTANCE FOR PRACTICE.126 Export Assistance Targeting....126
Increasing Assistance Program Awareness...126
Facilitating Market Intelligence Sharing...127
From an Expense Oriented Activity towards a Profit-Oriented Activity! ...127
IMPLICATIONS OF INTERNET BASED EXPORT ASSISTANCE FOR THE RESEARCH COMMUNITY...128
CONCLUSION...128
REFERENCES...129
INTERNET SITES...131
A TYPOLOGY OF SUPPLIER-INVOLVED INTERFACES BETWEEN NEW PRODUCT DEVELOPMENT AND PRODUCTION...132
ABSTRACT...132
INTRODUCTION...132
Differences between NPD and Production...134
A STRUCTURAL VIEW ON PRODUCT INNOVATION...135
A TYPOLOGY OF RELATIONSHIPS...136
Lead partner type 1: Lead partner has NPD and production...136
Lead partner type 2: Lead partner only has production and no NPD....138
Lead partner type 3: Lead partner only has NPD and no production...139
Lead partner type 4: Lead partner has no NPD and no production...140
CASE COMPANY BETA...141
Critical roles...142
DISCUSSION...144
CONCLUSION...144
REFERENCES...145
INTER-ORGANIZATIONAL PROJECT MANAGEMENT...146
ABSTRACT...146
INTRODUCTION...147
PROJECT AND PROJECT MANAGEMENT...148
MANAGING CONFLICT...152
CASES...152
Case one...153
Case two...153
Case 3...154
DISCUSSION OF CONFLICT THEORY AND INTER-ORGANIZATIONAL PROJECT MANAGEMENT...155
CONCLUSION...157
Introduction
This book comprises a number of research articles that share the common topic of how companies' implement new networked IT to transform their internal and external business processes. It is the hope that the reader of the articles will gain an overview of some of the challenges and pitfalls that face modern organizations when putting various types of advanced IT to use. The idea is to share some of the practical challenges that companies face but cast in a traditional research article manner. The audience for this book are researchers and graduate students that wish to understand, reflect upon, and learn about the implementation of new networked information technologies.
The casebook is an output from the interdisciplinary research project called PITNIT. The PITNIT project was supported by the Danish Research Agency under grant number 9900102. The articles document a co-operative effort to research the merger and interplay between novel industrial and marketing concepts, and new complex, standard-based and networked technologies. The goal of PITNIT was to describe, analyze and offer practical guidelines for the integration and transformation of industrial processes enabled by networked IT innovation. The project integrated researchers from production engineering, social sciences and computer science departments from Aalborg University and from the department of economics at Aarhus University (see table 1 for an overview of researchers in PITNIT). In addition many national and international researchers visited the PITNIT project. Table 2 lists the principal visitors.
Table 1: Researchers in PITNIT (1999 - 2003)
Jan Damsgaard Associate Dept. of Computer Science Aalborg University
Project manager Professor
Poul H. K. Hansen Associate Dept. of Production Aalborg University Professor
Jens Hørlück Associate Dept. of Management Aarhus University Professor
Charles Møller Associate Dept. of Production Aalborg University Professor
Pernille Kræmmergaard Assistant Dept. of Production Aalborg University Jensen Professor
Morten Rask Assistant Dept. of International Business Aalborg University
Professor Studies
Jeremy Rose Associate Dept. of Computer Science Aalborg University Professor
Jan Karlsbjerg* Ph.D. Dept. of Computer Science Aalborg University student
Peter Lindgren* Ph.D. Dept. of Production Aalborg University student
Somasundaram Ph.D. Dept. of Computer Science Aalborg university Ramanathan* student
Table 2: PITNIT Visitors (1999 - 2003)
Ellen Christiaanse Associate Department of University of
Professor Accountancy and Amsterdam Netherlands
Information Management
Jan Kristensen Ph.D. Dept. of Information The Aarhus
student Science School of Denmark
Business
Kalle Lyytinen Professor Department of Information Case Western
Systems Reserve USA
University
Ojelanki K. Professor Dept. of Information Virginia
Ngwenyama Systems Commonwealth USA
University
Knut Rolland Ph.D. Dept. of Information University of Oslo Norway
Student Systems
Rens Scheepers Senior School of Information Swinburne
Lecturer Technology University of Australia
Technology
Duane P. Truex Assistant Computer Information Georgia State USA
Professor Systems Department University
Detlev Zwick Ph.D. Dept. of Marketing University of USA
Student Rhode Island
__________________________
* Ph.D. scholarship financed by the PITNIT project
* Ph.D. scholarship 50 per cent financed by the PITNIT project. Peter has completed his Ph.D. (2003) * Ph.D. scholarship financed by the PITNIT project
Background for the research project
The background of the PITNIT project was our observation that established industrial structure was besieged by new networked IT innovations that challenged the status quo and forced a total rethinking of the traditional industrial value chain. As a consequence, the conception of a single organization was, and still is shifting towards a united and highly interrelated value network consisting of suppliers, production units, and customers and consumers. This network of semi-autonomous business units together comprises a complex network of integrated business processes that is constantly reconfiguring itself in response to changes in the market and in the technology or in the management thereof.
Figure 1: The world according to PITNIT
Instrumental in this transition is the pervasive emergence of complex, standard- based, and networked technologies. Examples of such technologies are the Internet, Intranet, Extranet, Electronic Data Interchange (EDI), and Enterprise Resource Planning (ERP) systems. Each of these offers new possibilities for extensive business process reengineering of the enterprise, but also posses a significant threat if left unattended.
In recent years many researchers have concentrated on understanding these IT innovations individually, and with good reason since they are innovative and different from traditional IT innovations. However the technologies are networked and therefore interconnect previously separated business processes. Consequently there is a natural and urgent need to integrate previously segregated research activities into a more holistic view of complex, standard based, and network technologies and their impact on the totality of industrial processes both inside and outside of the company.
The articles
We have selected 10 articles from the PITNIT related production. They can be grouped into three, partly overlapping groups, covering different topics within the framework of PITNIT. Except for one, all articles have been published - or are about to be published - elsewhere.
Group A: Articles primarily related to one organization's perspective on parts of the framework
1. Damsgaard, J. and R. Scheepers (2001). " Knowledge Creation on the Intranet." Australian Journal of Information Systems, 9(Special Issue on Knowledge Management, December).
Organisations implement intranets with the intent of harnessing the technology to support knowledge management. The article defines a model, rooted in Nonaka and Konno's well-known framework of knowledge creation, combined with a taxonomy of five intranet use modes. For each of Nonaka's knowledge creating activities a corresponding primary intranet use mode can foster that particular knowledge creation process. It is illustrated by empirical intranet field studies in Denmark and South Africa.
2. Karlsbjerg, J. and J. Damsgaard (2001). Make or buy - A taxonomy of intranet implementation strategies. The 9th European Conference on Information Systems, "Global Co-operation in the New Millennium", Bled, Slovenia.
This speculative paper is initiated by the fundamental question "how should intranets be implemented?" The discussion uses a framework describing four different intranet implementation strategies based on who implement the intranet (in-house vs. outsourced project) and the technology used (development tools or shrink-wrapped intranet packages). Each of the four strategies has advantages as well as disadvantages. The empirical analysis suggests that the appropriate strategy must be chosen in accordance with the level of internal technical expertise, core competence, and maturity of the technology.
3. Kraemmergaard, P. and C. Møller (2002). "Evaluation of ERP implementation: A multi-perspective approach." Journal of Enterprise Resource Management 4(4). ERP-implementation is a critical activity for industrial enterprises. We have seen many disastrous implementation projects leaving companies with delivery problems and frustrated employees. This is one of the reasons why the management of ERP-implementation is a significant challenge to both practice and academia. The article argues that a multi-perspective framework for studying ERP-implementation must be used, including the different stakeholders and using at least three different perspectives from which an implementation can be evaluated: organizational, business and technological.
4. Kræmmergaard, P. and J. Rose (2002). "Managing the ERP Journey." Information Systems Frontiers 4(2).
In many cases ERP implementations are late, over budget or fail to meet the desired business outcomes. The list of factors influencing implementation is long and mostly relate to the technical implementation - until the system goes live. After that it is an ongoing journey where new functionality, modules, updates,
