Organizing for Service Innovation: Best-Practice or Configurations?

In this paper we contrast the notions of best-practice and configurations contingent on environmental conditions. The analysis draws upon our study of 38 UK and 70 US service firms which includes an assessment of the organization, processes, tools and systems used, and how these factors influence variation in the development and delivery of new services. The best-practice framework is found to be predictive of performance improvement in samples in both the UK and USA, but the model better fits the USA than UK data. We analyze the UK data to identify alternative configurations. Four system configurations are identified: project-based; mass customization; cellular; and organic-technical. Each has a different combination of organization, processes, tools and systems which offer different performance advantages. The results provide an opportunity for updating the typologies of operations and adapting them to include services, and begin to challenge the notion of any universal 'best practice' management or organization of new product or service development.service industry, performance improvement, best-practice, alternative system configurations

Unleashing the Effectiveness of Process-oriented Information Systems: Problem Analysis, Critical Success Factors, Implications

Process-oriented information systems (IS) aim at the computerized support of business processes. So far, contemporary IS have often fail to meet this goal. To better understand this drawback, to systematically identify its rationales, and to derive critical success factors for business process support, we conducted three empirical studies: an exploratory case study in the automotive domain, an online survey among 79 IT professionals, and another online survey among 70 business process management (BPM) experts. This paper summarizes the findings of these studies, puts them in relation with each other, and uses them to show that "process-orientation" is scarce and "process-awareness" is needed in IS engineering

Enterprise Resource Planning in Higher Education: A Comparative Case Study

Case study research on enterprise systems in higher education organizations has shown that the challenges associated with implementing enterprise systems in higher education occur when unique organizational characteristics found in universities do not align with the standard characteristics built into the software programs. Based on such findings, the purpose of this study was to further explore the interaction between higher education organizations and enterprise systems during Enterprise Resource Planning (ERP) implementations in order to gain insight into the effects of ERP implementations in higher education. Through the theoretical lens of actor-network theory, the purposes of this comparative case study at three universities were to identify (a) how higher education organizations re-structured to the standards of the enterprise software, (b) how ERP software was customized in order to adapt to the characteristics of higher education organizations, and (c) how the enterprise software and higher education organizations interacted and translated into a unique identity as a result of ERP implementation. The data for the study were collected through semi-structured interviews and institutional artifacts at three universities which were commonly bound by similar institutional characteristics and the same enterprise software. Further, the study was limited to the examination of the interaction between individuals associated with the registrars\u27 offices at the three institutions and the student module found in each instance of the software. The data revealed that, while the institutions did not organizationally restructure or make policy changes in order to adapt their institutions with the infrastructure of the software, the registrars\u27 offices made many reactionary changes in their business processes, procedures, and nature of work as a result of the enterprise system implementation. The data also revealed that the software customizations, developed to account for unique statutory requirements, caused overwhelming implementation challenges during the enterprise software implementation and post-implementation phases

Hospitals as innovators in the health-care system: a literature review and research agenda

This paper aims to improve understanding of the role of hospitals in the generation of innovations. It presents a systematic and critical review of the interdisciplinary literature that addresses the links between the activities of hospitals and medical innovation. It identifies three major research streams: studies of the contribution of medical research and clinical staff to innovation, analyses of novel practices developed and diffused in hospitals, and evolutionary studies of technical change in the context of human health care. This is a highly heterogeneous body of literature, in which comprehensive theoretical frameworks are rare, and empirical studies have tended to focus on a narrow range of hospitals' innovation activities. The paper introduces and discusses a framework integrating different perspectives that can be used to analyze the functions performed by hospitals at the intersection with different partners in the health innovation system and at different stages of innovation trajectories. On the basis of current gaps in the literature, a research agenda is discussed for a relational and co-evolutionary approach to the study of hospitals as innovators.Research for this article was funded by the Research Council of Norway under the project “Synergies and tensions in innovation in the life sciences,” as well as by the South-Eastern Norway Regional Health Authority and the University of Oslo

Inventory drivers in a pharmaceutical supply chain

In recent years, inventory reduction has been a key objective of pharmaceutical companies, especially within cost optimization initiatives. Pharmaceutical supply chains are characterized by volatile and unpredictable demands –especially in emergent markets-, high service levels, and complex, perishable finished-good portfolios, which makes keeping reasonable amounts of stock a true challenge. However, a one-way strategy towards zero-inventory is in reality inapplicable, due to the strategic nature and importance of the products being commercialised. Therefore, pharmaceutical supply chains are in need of new inventory strategies in order to remain competitive. Finished-goods inventory management in the pharmaceutical industry is closely related to the manufacturing systems and supply chain configurations that companies adopt. The factors considered in inventory management policies, however, do not always cover the full supply chain spectrum in which companies operate. This paper works under the pre-assumption that, in fact, there is a complex relationship between the inventory configurations that companies adopt and the factors behind them. The intention of this paper is to understand the factors driving high finished-goods inventory levels in pharmaceutical supply chains and assist supply chain managers in determining which of them can be influenced in order to reduce inventories to an optimal degree. Reasons for reducing inventory levels are found in high inventory holding and scrap related costs; in addition to lost sales for not being able to serve the customers with the adequate shelf life requirements. The thesis conducts a single case study research in a multi-national pharmaceutical company, which is used to examine typical inventory configurations and the factors affecting these configurations. This paper presents a framework that can assist supply chain managers in determining the most important inventory drivers in pharmaceutical supply chains. The findings in this study suggest that while external and downstream supply chain factors are recognized as being critical to pursue inventory optimization initiatives, pharmaceutical companies are oriented towards optimizing production processes and meeting regulatory requirements while still complying with high service levels, being internal factors the ones prevailing when making inventory management decisions. Furthermore, this paper investigates, through predictive modelling techniques, how various intrinsic and extrinsic factors influence the inventory configurations of the case study company. The study shows that inventory configurations are relatively unstable over time, especially in configurations that present high safety stock levels; and that production features and product characteristics are important explanatory factors behind high inventory levels. Regulatory requirements also play an important role in explaining the high strategic inventory levels that pharmaceutical companies hold

Designing Scalable Business Models

Digital business models are often designed for rapid growth, and some relatively young companies have indeed achieved global scale. However despite the visibility and importance of this phenomenon, analysis of scale and scalability remains underdeveloped in management literature. When it is addressed, analysis of this phenomenon is often over-influenced by arguments about economies of scale in production and distribution. To redress this omission, this paper draws on economic, organization and technology management literature to provide a detailed examination of the sources of scaling in digital businesses. We propose three mechanisms by which digital business models attempt to gain scale: engaging both non- paying users and paying customers; organizing customer engagement to allow self- customization; and orchestrating networked value chains, such as platforms or multi-sided business models. Scaling conditions are discussed, and propositions developed and illustrated with examples of big data entrepreneurial firms