Technology & Organisational Change Guy Harley Bachelor of Law (University of Adelaide – 1978) Barrister and Solicitor in Adelaide for 18 years Master

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]


Dates for 2nd Semester Classes start 14 July Tutorials start – 21 July Classes finish – 29 September Exams – 9 to 16 October


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


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).


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


Text Book Hanson & Dowling, 2003, “Strategic

Management Competitiveness & Globalisation: A Pacific Rim Focus”, Thomas Nelson, Australia


Resources www.harley.net.au

Lecture slides Tutorial exercises Notices Course outline including assessment Links Writing guides




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


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


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


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


Strategic Management & Competitiveness

Hanson & Dowling Chapter 1


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


External Environment

Internal Environment

Strategic IntentStrategic Mission

Strategy Formulation

Strategy Implementation

Strategic Competitiveness

Above Average Returns

Feedback Loop


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


21st Century Competitive Landscape Convergence The Global Economy Globalisation Technology


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


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


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


Technology (cont.) Knowledge Management

Capture Transform Distribute Exploit


Strategic Agility Ability to respond quickly to changes in the

environment Requires organisational learning


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


Industrial Organisation Model Challenges firms to

find most attractive industry in which to compete then develop internal skills


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


The Industrial Organisation Model of Above Average Returns

Study External Environment

Select Attractive Industry

Strategy Formulation

Acquire Assets & Skills


Feedback Loop

Strategy Implementation


Industrial Organisation Model (cont.) Promotes strategies of:

Cost-leadership Differentiation Focus-differentiation

Uses 5 forces model to analyse external environment


Traditional Competitors

The firm

New Entrants

Substitute Products

Suppliers Customers

Porter’s 5 forces


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


The Resource Based Model of Above Average Returns

Resources

Capabilities

Competitive Advantage

Attractive Industry


Feedback Loop

Strategy


Resources 3 types

Physical Human Organisational

Capability The capacity for a set of resources to

integratively perform a task


Dimensions

Technology People

Task

Structure


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


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


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


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


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


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


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


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


Organisational Culture Definition:

The complex set of ideologies, symbols and core values

Shared throughout the firm That influences the way it conducts business

Includes organisational ethics

Documents

Technology & Organisational Change Guy Harley Bachelor of Law (University of Adelaide – 1978) Barrister and Solicitor in Adelaide for 18 years Master