Organizational flexibility: The seven hypothesized factors of success in e- business environments Professor Paul Phillips Director of Kent Business School University of Kent England, UK

Introduction E-procurement objectives E-organisational dimensions Hypothesized model Findings Narrative study Observations Agenda

Suppliers Organisation Customers Changing business relationships Source: Phillips (2003) E - Organisational dimensions

Areas of Strategic Renewal An Ongoing Strategic Renewal Process

Knowledge Alignment E-organisational dimensions Organisational structure Alliances People and Culture Governance Quality Leadership Evolution to e- organisation takes place along seven key dimensions

Hypothesised Model Factors: Structure Leadership People and Culture Coherence Knowledge Alliances Agility & Decision Making Innovation Organisational Effectiveness Flexibility/Agility

Section 1: Organisational Structures Importance to E-business Success Extent addressed by organisation

Section 2: Leadership Importance to E-business Success Extent addressed by organisation

Section 3: People & Culture Importance to E-business Success Extent addressed by organisation

Section 4: Coherence Importance to E-business Success Extent addressed by organisation

Section 5: Knowledge Importance to E-business Success Extent addressed by organisation

Section 6: Alliances Importance to E-business Success Extent addressed by organisation

Section 7: Agility & Decision Making Importance to E-business Success Extent addressed by organisation

Narratives was used as the main method of eliciting participants' mental constructs and cognitive representations during the scenario planning workshop. Narrative study

Organisation is 'structure' driven Implications Processes are over proceduralised, rigidly contained and thus limited by structure. Processes are inefficient and not actively managed; they 'flow' from structure and are bound also by the limitations inherent to technology…. ……, if that knowledge was available to more people, you could reduce the number of decision makers. It’s back to structure and process because you've got that structure the process will be like that' ….

Structure is nonetheless necessary for reliability Implications The issue is more about how it is used and whether it dictates or is harnessed by process. Structure facilitates effective performance under pressure. Structure can be flexibly used within a process model.

Technology is currently not synchronised Implications There are communication and co-ordination barriers. To achieve a 'synchrony of effects', there needs to be synchronious 'live' communication and information flow Need to be able to harness all of its assets at any one point in time, simultaneously.

Rely too much on technology at the expense of process Implications The key issue is this: process comes first. Processes should be designed to aid effective performance, while having enough structure to provide stability, reliability and security. Any structure that is put in place must be supported by technology, but should not be determined by it…

'IT should be regarded as no more than an artefact so whatever you do should be socially constructed around that artefact'. 'if we focus on process…in fact the investment in the process may mean that the technology will cost less'.

Rely too much on technology at the expense of process Implications Vision is circumscribed by technology and is to this extent dictated by it. The organisational vision needs to be partially uncoupled from the 'digital' form that it has been cast in. Network technologies do not necessarily mean networked organising. Technology should not be the driver.

Culture must be consistent with the process Implications More attention is required to the 'people' side of the process than the technological side of the process, otherwise new IT systems will be not embedded or optimally harnessed by users. 'In the organisational environment, if you put in place a lot of process and technology without looking after the mindset of the employee, the culture, the organisation will collapse'.

Structure, process and technology Implications all need to be “strategically” uncoupled; all should be iteratively and dynamically interrelated within a process framework. "let's not have an idea about structure until we need to".

More distribution of information and trust Implications There needs to be more sharing of information and trust within the decision making process, less 'stove piping‘. By information is meant knowledge about the situation and of intent and decision making practices. Social and cultural issue

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