challenges in e-commerce strategy - the case of ambient organization

Niels Bjørn-Andersen 1

Challenges in e-commerce strategy

- the case of ambient organization

Niels-Bjørn AndersenProfessor

Center for e-CommerceCopenhagen Business School


The Laurentian library


The inflexible, rule-determined, mass production organization is being replaced by the flexible, porous, adaptive, fleet-of-foot organization of the future. In this organization, every person is ‘paid’ to be obstrepous, to disrespect formal boundaries, to hustle and to be engaged fully with engendering swift actions, constantly improving everything.

Peters, 1988

The demise of the traditional hierarchy


‘So the great dream of the machines have come to an end’

Scott, Southpole 1911


Organizational characteristics

Traditional Virtual forms

Structure Hierarchical Fluid

Direction Management Self-managing

Requirement Management Leadership

Prime resource Capital People

State Static/stable Dynamic

Basis of action Control Empowerment

Key drivers Rewards/punish Commitment

Relationships Ind competition Collabor. teams


Organizational impact

Organizational design

Inter-organizationaldesign

Organizationalre-invention

IT enabled organizational change

Impact on clerks

Impact on managers

Hour-glass shaped

Delayered

Flexible

Just in time

Shamrock

Scandinavianmodel

Responsive

Postmodern

Innovative

Agile

VirtualModular

Business excellence

Learning

Borderless

Networked

Ambient

21 century

Lattice

Virtual eco system


‘Our dream for the 1990s is a boundarylesscompany, a company where we have to knockdown the walls that separate us from each otheron the inside, and separate us from our key constituencies on the other side’

Jack Welch, 1990

Vision for General Electric


..temporary network of independent companies - suppliers, customers, even erstwhile rivals - linked by information technology to share skills, costs, and access to one another’s markets. It has neither a central office nor organizational chart. It has no hierarchy, no vertical integration

Definition of a Virtual Organization

Byrne & Brandt 1993


Transition to becoming a Networked Virtual Organization

Traditional Leading Ideal futureCentralized Distributed Collaborative

Org size Org value Core focus

Positional power Information power Intellectual power

Vertical integration Extended integration Virtual integration

Predictability Responsive/flexible Proactive

Long-term planning Near-term planning Adaptive planning

Labor/management Workforce Intellectual capital

Cisco: The bridge, 2003


The Networked Virtual Organization is the most fundamental and significant change in organizational structure, we have ever experienced

John Chambers, CEO, CiscoAugust 2002


NVO drivers in Cisco

• Customer centric– Self service and support via web-site– On-line sales– Customer segmentation and optimization

• Focus on core processes instead of context– Out-tasking of service/repair and e-learning

• Continuous standardization– Standardized processes and data (e.g. Virtual close)– Standardized IT-infrastructure


Corporate Corporate CustomersCustomers

Distributor/Reseller

Manufacturer/ OEM

Retailers3P Logistics

Raw MaterialsSupplier

Logistics Providers

ConsumerConsumer

ComponentSupplier

ManufacturersEngineering/Design Partners

Subcontractor

PrivatePrivateeMarketeMarket (vertical)(vertical)

PrivatePrivateeMarketeMarket (vertical)(vertical)

Logistics Logistics Exchange Exchange (horizontal)(horizontal)

Logistics Logistics Exchange Exchange (horizontal)(horizontal)

Public eMarket

(B2B)

Public eMarket

(B2B)

Product/Goods FlowProduct/Goods Flow

Information FlowInformation Flow

Customer Customer Exchange Exchange

(B2C)(B2C)

Customer Customer Exchange Exchange

(B2C)(B2C)

(Adapted from Forrester, 06/2000 & AMR SCM Report Jan 2000)

VirtualManufacturers Virtual

Distributors

Marketplace-to-Marketplace

(M2M) relationships

B2B relationships

e-Supply Networks


Types of Collaborative Processes & Models in eMarkets

eMarket / eMarket / Private HubPrivate Hub

eMarket / eMarket / Private HubPrivate Hub

Collaborative Logistics PlanningCollaborative Logistics PlanningCollaborative Transportation MgmtCollaborative Transportation MgmtCollaborative Distribution ServicesCollaborative Distribution Services

Collaborative Logistics PlanningCollaborative Logistics PlanningCollaborative Transportation MgmtCollaborative Transportation MgmtCollaborative Distribution ServicesCollaborative Distribution Services

Collaborative Demand ForecastingCollaborative Demand ForecastingCollaborative ReplenishmentCollaborative ReplenishmentCollaborative Promotion PlanningCollaborative Promotion PlanningCollaborative Life Cycle PlanningCollaborative Life Cycle Planning

Collaborative Demand ForecastingCollaborative Demand ForecastingCollaborative ReplenishmentCollaborative ReplenishmentCollaborative Promotion PlanningCollaborative Promotion PlanningCollaborative Life Cycle PlanningCollaborative Life Cycle Planning

Collaborative Supply PlanningCollaborative Supply PlanningCollaborative Supply ProcurementCollaborative Supply Procurement

Synchronized Production SchedulingSynchronized Production Scheduling

Collaborative Supply PlanningCollaborative Supply PlanningCollaborative Supply ProcurementCollaborative Supply Procurement

Synchronized Production SchedulingSynchronized Production Scheduling

CSUPCSUP

Collaborative Supply & Production PlanningCollaborative Supply & Production Planning

CTMCTM

Collaborative Transportation ManagementCollaborative Transportation Management

CPFRCPFR

Collaborative Planning, Forecasting Collaborative Planning, Forecasting & Replenishment& Replenishment

Collaborative Product Engineering & DesignCollaborative Product Engineering & DesignCollaborative Product Engineering & DesignCollaborative Product Engineering & Design

3P Logistics

Suppliers

ManufacturersEngineering/Design Partners

Subcontractors

Retailers

Distributors

CEDCED

Collaborative Engineering & DesignCollaborative Engineering & Design

Retailers

Manufacturers

Viewed from the Viewed from the manufacturer’s manufacturer’s

perspectiveperspective


This refers to an organization which is enabled by the emerging Ambient Intelligence Technologies,

exploits virtual resources, communication and collaboration schemes,

in order to redefine its organisational structure and redefine its business model

in order to obtain sustainable value and utilize technological opportunities for meeting increasingly complex and ever more competitive environments.

Definition of an Ambient Organization


Dream or reality?

• Development of WWW and Linux

• Cisco and others have shown the direction of development for traditional organizations

• Customers become part of your organization

• Pfizer soliciting research assistance

• Mobile broadband with pattern recognition, voice recognition brings new promises


Please stay tuned for next chapter on Ambient Organizations!

challenges in e-commerce strategy - the case of ambient organization

Documents

organizational structure

organizational changeimpact

organizational chart

mass production organization

virtual closestandardized

foot organization

core processes

great dream