Technology & Organisational Change
Guy Harley Bachelor of Law (University of Adelaide –
1978) Barrister and Solicitor in Adelaide for 18 years Master of Business (eBusiness) (University of
SA 2001) Contact Information
• (02) 4570 1116• [email protected]
Technology & Organisational Change
Dates for 2nd Semester Classes start 14 July Tutorials start – 21 July Classes finish – 29 September Exams – 9 to 16 October
Technology & Organisational Change
Course Assessment Exam 70% Internal assessment 30%
Essay plan 18th August 2004 - 5% Essay 8th September 2004- 25%
To pass subject, students must 40% or more in exam, and 50% or more overall
Technology & Organisational Change
Course Assessment (cont.) Penalty for late submission of assessments is 5% per
day off maximum possible mark Extension are only granted for serious medical or
personal events. Requests for an extension must be made in advance
and must be accompanied with medical or other evidence.
Students who miss assessments because of illness must provide a medical certificate within 72 hours.
Students must complete an assessment cover sheet (lecturer must sign it).
Technology & Organisational Change
Plagiarism Copying the work of someone else and passing
it off as your own Failing to acknowledge the source of information
you have used Plagiarism is STEALING You will receive a mark of zero for a
substantially plagiarised assignment If you plagiarise more than twice you may have
your enrolment cancelled
Technology & Organisational Change
Text Book Hanson & Dowling, 2003, “Strategic
Management Competitiveness & Globalisation: A Pacific Rim Focus”, Thomas Nelson, Australia
Technology & Organisational Change
Resources www.harley.net.au
Lecture slides Tutorial exercises Notices Course outline including assessment Links Writing guides
Technology & Organisational Change
Resources (cont.) La Trobe IT web site
http://ironbark.bendigo.latrobe.edu.au/courses/subjects/Subjects.html
A.C.N. Website http://resource.auscampus.net
Libraries LaTrobe Online UTS
Technology & Organisational Change
Academic Support Thursdays 12.00pm –2.00pm – help with
planning assignments, study skills, reading & writing
Essay writing for exams Mon 29 March & 5 April, 4.30pm – 6.30pm
Answering multiple choice questions Mon 3 May 4.30pm – 6.30pm
Answering short answer questions Mon 17 May 4.30pm – 6.30pm
Technology & Organisational Change
What is required of you? Spend the same amount of time in private study
as you do in class Read textbook and notes every week Attend lectures and TAKE NOTES Prepare for tutorials in advance Be prepared to ask and answer questions Complete all assessments on time Participate fully in all group activities
Technology & Organisational Change
Do you want to pass this subject? In an Australian university learning is YOUR
responsibility. It is up to you to be self- disciplined and keep up to date
Begin reading your textbook TODAY Attend free classes on essay writing Ask your lecturer to explain if you don’t
understand something. Give priority to your study over part time work
Technology & Organisational Change
Strategic Management & Competitiveness
Hanson & Dowling Chapter 1
Technology & Organisational Change
Strategic CompetitivenessWhere a firm formulates and implements a value creating strategy
Sustainable Competitive AdvantageA value creating strategy that other firms cannot easily duplicate
Strategic Management ProcessThe set of commitments, decisions and actions required for a firm to achieve strategic competitiveness
Technology & Organisational Change
External Environment
Internal Environment
Strategic IntentStrategic Mission
Strategy Formulation
Strategy Implementation
Strategic Competitiveness
Above Average Returns
Feedback Loop
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Strategy - A Continual Challenge 30% of companies in Australia’s top 100 drop off
every 10 years. Andrew Grove - Intel’s former CEO
Only paranoid companies survive Anticipate the unexpected
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21st Century Competitive Landscape Convergence The Global Economy Globalisation Technology
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Convergence Industries Technologies
The Global Economy Goods, services, people, skills & ideas move
freely across geographical borders Europe has replaced USA as world’s largest
single market Countries pursue a national competitive
advantage
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Globalisation The spread of economic innovations, together
with political & cultural adjustments, around the world
Encourages international integration Global corporations Global standards Emerging economies
Challenges Managing diversified operations New skill sets for foreign environments Maintaining concentration on domestic market
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Technology Increasing rate of Change & Diffusion
Shorter product life cycles Promotes first mover advantage Reduces protection from patents
Information Age Speed & Reach of dissemination Networking eBusiness
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Technology (cont.) Knowledge Management
Capture Transform Distribute Exploit
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Strategic Agility Ability to respond quickly to changes in the
environment Requires organisational learning
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Strategic Models Industrial Organisation Model
Emphasises influence of external environment
Resource Based Model Emphasises firm’s internal resources
Research 20% of profitability comes from industry 36% from firm’s characteristics & actions
Use both together
Technology & Organisational Change
Industrial Organisation Model Challenges firms to
find most attractive industry in which to compete then develop internal skills
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Industrial Organisation Model (cont.) 4 underlying assumptions
External environment imposes pressures & constraints that determine strategy
Firms in an industry have similar resources & strategies
Resources used to implement strategies are mobile across firms
Organisational decision makers are rational
Technology & Organisational Change
The Industrial Organisation Model of Above Average Returns
Study External Environment
Select Attractive Industry
Strategy Formulation
Acquire Assets & Skills
Above Average Returns
Feedback Loop
Strategy Implementation
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Industrial Organisation Model (cont.) Promotes strategies of:
Cost-leadership Differentiation Focus-differentiation
Uses 5 forces model to analyse external environment
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Traditional Competitors
The firm
New Entrants
Substitute Products
Suppliers Customers
Porter’s 5 forces
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Resource Based Model Assumes
Each organisation is a collection of unique resources and capabilities
Differences in firm’s performance are driven by differences in firm’s resources and capabilities
Over time firms develop different resources and capabilities
Not all firms in an industry possess the same resources and capabilities
Resources may not be highly mobile across a firm
Technology & Organisational Change
The Resource Based Model of Above Average Returns
Resources
Capabilities
Competitive Advantage
Attractive Industry
Above Average Returns
Feedback Loop
Strategy
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Resources 3 types
Physical Human Organisational
Capability The capacity for a set of resources to
integratively perform a task
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Competitive Advantage Occurs when resources and capabilities are:
Valuable, Rare, Costly to imitate, and Non-substitutable
They are valuable when they take advantage of opportunities or neutralise threats
When all 4 criteria are met they become core competencies
Technology & Organisational Change
Strategic Intent The leveraging of a firm’s internal resources,
capabilities and core competencies to accomplish the firm’s goals in a competitive environment
Exists only when all levels of the firm are committed to a specific and significant performance criterion
A firm must also identify its competitors strategic intent
Technology & Organisational Change
Strategic Mission A statement of a firm’s unique purpose and
scope of operations in product and market terms Flows from Strategic Intent It is externally focused
Technology & Organisational Change
Stakeholders Individuals and groups that
Affect or are affected by the strategic outcomes achieved, and
Have enforceable claims on a firm’s performance
Firm’s depend on stakeholders Stakeholders can influence a firm’s operations
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Classification of Stakeholders Capital Market Stakeholders
Shareholders Suppliers of capital (e.g. banks)
Product Market Stakeholders Customers Suppliers Host communities Unions
Organisational Stakeholders Employees Managers
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Managing Stakeholders Firm must manage and prioritise competing
stakeholder demands Society’s standards influence the weightings
allocated amongst the 3 stakeholder groups Different cultures have different weightings A Transnational firm must have a global mind-
set
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Strategy Success Factors Hard work Thorough analysis Brutally honest Common sense Speed & Flexibility Acceptance of change & innovation A desire for the firm and its people to accomplish more Encourage others to think and enquire what firm is doing
and why
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Strategy Pitfalls Changes in strategic assumptions Strategic mission may become a strategic
blinder Operational routines create strategic inertia Established relationships prevent change Shared beliefs become dogmas that prevent a
change in organisational culture
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