INFORMATION UBIQUITY AND

ORGANIZATION

CONUNDRUMS AND NEW

CAPITAL

DAVID FORQUER

ASSISTANT DEAN

ROBINSON COLLEGE OF BUSINESS

GEORGIA STATE UNIVERSITY

TOPICS AND QUESTIONS

• The Impact of Inter and Intra Firm Information

Sharing Capacity on Value Creation

• Impact of Information Sharing on Customer

Loyalty

• Value Co-Creation and Customer Governance

• The Open Organization, Adaptive Capacity and

New Capital

• Q&A

AN ONGOING

DILEMMA

Strategy Structure ?

Structure Strategy ?

Information Flows Structure ?

Software Information Structure Strategy?

What is the Role of Information in Organization?

A SIMPLIFICATION

Strategy

Resources Information

Structure

Customers

and

Markets

AND CONUNDRUM

Strategy

Resources Information

Structure

Customers

and

Markets

Information, However

Disrupts Hierarchy

Has substitution and

complementary effects

Influences Internal and

External Market

Efficiency

Is an integral

part of most goods

and services

Cornerstone capability

For efficiency and

innovation

Case Study

Customer Loyalty

HOW MANY COMPANIES PURSUE

CUSTOMER LOYALTY?

Revenue

Growth

Customer

Retention

Customer

Profitability

WHAT DRIVES

LOYALTY?

Initial Product-Service

Quality

Ongoing Service Quality

Relationship Quality

Brand Awareness &

Equity

DO OUR INFORMATION FLOWS SUPPORT AN INTEGRATED APPROACH?

AND…

Not All Loyal Customers are Profitable

NOR…..

Are all Disloyal Customers Unprofitable!

Customer Loyalty & Referral

Initial Product- Service Quality

Ongoing Service Quality

Relationship Quality

Brand Awareness and Equity

Revenue

Growth

Reliability: Dependable and Accurate

Assurance: Inspire Trust

Tangibles: Appearance

Empathy: Caring Attitude

Responsiveness: Prompt Resolution

Strong Internal Organization

Service Quality

Service Quality Orientation Leadership High Levels of Productivity Employee Commitment

Not all loyal customers are profitable,

Disloyal customers can be profitable

All SQ outcomes are relative to competition;

Relative Competitive Position is a key driver of profitability and market share

Service Value

Key SQ Outcomes Customer

Requirements

Customer

Outcomes

The Service Profit Model

Customer

Retention

Customer

Profitability

Business Processes

Team/Unit Leadership

Service Orientation

Operational

Excellence

Brands

Ma

rke

ts

Customer Loyalty & Referral

Initial Product- Service Quality

Ongoing Service Quality

Relationship Quality

Brand Awareness and Equity

Revenue

Growth

Customer

Retention

Customer

Profitability

Business Processes

Team/Unit Leadership

Service Orientation

Operational

Excellence

Brands M

ark

ets

WHERE DO WE FOCUS, AND FAIL?

• What Defines a High Quality Relationship, and Good Customer Governance?

• What ‘Informational Steps’ Can you take to Promote One?

• Can You Achieve these Goals within the Boundaries of the Organization?

• How much of customer relationship quality relies on unstructured data?

At their very Heart, Good Customer Relationships and Customer

Governance Require a Clear Understanding of How Your Product

or Service Helps Your Customer Create Value for Their Customers.

We are Drawn into their Value System.

This Reality makes Value Co-Creation a Requirement.

Relationships are DYNAMIC.

IT Resources are Critical to Inter Firm Coordination and

Cooperation and Intra Firm IT Effectiveness

A CONTINUOUS RENEWAL OF VALUE CO-

CREATION REQUIRES BOTH….

Efficiency,

Effectiveness Innovation

Source: Arun Rai

IT-ENABLED PROCESS CAPABILITIES FOR

COORDINATION

Rai, Patnayakuni, Patnayakuni, MIS Quarterly, 2006;

Rai and Tang, Information Systems Research, 2010

X X

Integrated/Reconfigurable B2B IT Resources

X

Lo

we

r

Sw

itch

ing

Co

sts

Lo

we

r

Co

ord

ina

tion

Co

sts

Source: Arun Rai

DISRUPTIVE TECHNOLOGIES

REDEFINING COORDINATION

16 Source: Rai

IT CAPABILITIES: INTELLIGENCE X PROCESS

• Multi-channel coordination

• Womb-to-tomb processes

• Visibility at varying levels

Synchronized Processes

• Alerts

• Business rules

Real-time Business

Intelligence

• Data transfer standards

• Partner interface processes (PIPs)

• Service oriented architectures

Reconfigurable

Processes

• Data mining

• Process mining

Reflective Business

Intelligence

Inte

llig

en

t

Inte

gra

tio

n f

or

Eff

icie

ncy

Inte

llig

en

t

Rec

on

fig

ura

tio

n f

or

Inn

ov

ati

on

Source: Rai

ORCHESTRATING ECOSYSTEMS

Value Creation

Efficiency

Novelty

Complementarities

Value Appropriation

Bundling

Lock-in

Barriers to Imitation

Rai & Tang, IT-Enabled Business Models, Information Systems Research, in press

X

DIFFERENCES IN LEARNING

REQUIREMENTS

Nature of Interfirm Collaboration Objectives

Business Opportunity

Goal Orientation Risk Scope

Learning

Orientation New Existing

Short Term

Long Term

High Low End-to-

End Narrow

Efficiency

Innovation

Dual

Im and Rai, Management Science, 2008

Rai, Im and Hornyak, MISQ Executive, 2010

N = 238 buyer-supplier logistics relationships

CONSEQUENCES OF LEARNING ORIENTATION

The dual segment—where IT is used for both learning about

efficiency and innovation—outperforms the other segments on all

performance parameters Im and Rai, Management Science 2008

Rai, Im and Hornyak, MISQE, 2010

3.50

4.50

5.50Operational cost

Revenue

Service qualityOrder fulfillment

New products

Dual EfficiencyInnovation Mkt. Exchg

IS THIS ENOUGH?

ADAPTIVE CAPACITY IS A

CRITICAL IT ENABLED RESOURCE

QUESTIONS?

DAVID FORQUER

DFORQUER@GSU.EDU