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2b. Managing Complexity using IT
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IT in Productivity: Complementary organisational changes (1)
The OLD factory The NEW factory Designated equipment Flexible CB equipment Large inventories Low inventories Pay tied to amt produced per individual Flat pay rate for all operators Keep line running continuously Stop line if not running at speed Thorough final quality inspection Operators responsible for quality Raw materials made in-house All materials outsourced Narrow job functions Flexible job responsibilities
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IT in Productivity: Complementary organisational changes (2)
The OLD factory The NEW factory Areas separated by machine type Areas organised in work cells Salaried employees make decisions All employees contribute ideas Hourly workers carry them out Supervisors can fill in on line Functional groups work independently Concurrent engineering Vertical communication flow Line rationalization Several management layers (approx. 6) Few management layers (approx. 3 – 4) IT is associated with substantial increases in output and productivity in the long term
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IT in Tourism IT as strategic and operational resource
Enhance interactivity with marketplace Improve service quality Increase customer satisfaction More information and greater choice Reduction in bureaucracy ad paper-work frees time for customer service Customising product Establishing one-to-one marketing using data mining results Enhanced services (in-flight entertainment) Enhancing operational tasks Personalised services (telephone operator acknowledges guest by name) better integration of departments and functions of organisations towards better service Narrows gap between consumer’s expectations and perceived experiences Computer Reservation and Booking Systems Global Distribution Systems Travel + accommodation + car rentals + train/ferry ticketing + entertainment + connection to each airline systems &/tourism/travel agents &/service providers.
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IT in Transportation GPS navigation systems
Digital interfaces in personal vehicles Integrated with electronic sensors Impact/barrier/reversing notification systems In-car mobile and satellite communication systems Satellite/mobile tracking systems Logistics management systems Lowering total logistics costs Increased mutual trust between shipper and carrier. Increased interdependence between carriers
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IT in Science & Engineering
Bioinformatics Imaging Security CAD/CAM Simulation and Modelling Artificial Intelligence
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Conclusion NOT overnight changes Influenced by
Still moving FORWARD?? BACKWARD?? Depends on which side you are on. User Implementer/Technologist Funder/Investor Receiving (donated to) society Donor society Influenced by Changes and growth of IT Changes of user perceptions, demands and needs Changes in business models Visions of technologists
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References Brynjolsson E. And Hitt L.M. (2000) Beyond Computation: Information Technology, Organizatinal Transformation and Business Performance, Journal of Economic Perspectives 14:4, pp23-48. Bharadwaj A.S. (2000) A Resource-Based Perspective on Information Technology Capability and Firm Performance: an Empirical Investigation, MIS Quarterly 24:1, pp Buhalis D. (circa 2008) Strategic Use of Information Technologies in the Tourism Industry, University of Westminster, 22 pages. Buhalis D. and Law R. (2008) Twenty Years on and 10 Years After the Internet: The State of eTourism Research, Tourism Management 2008. Golob T.F. and Regan A.C. (2001) Impacts of Information Technology on Personal Travel and Commercial Vehicle Operations: Research Challenges and Opportunities, Transportation Research, Part C – Emerging Technologies 9(April 2001), pp
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