FROM PRODUCTS TO PRODUCT-SERVICE SYSTEMS: IT DRIVEN TRANSFORMATION OF A MEDICAL EQUIPMENT MANUFACTURER TO A CUSTOMER-CENTRIC SOLUTION PROVIDER

Meditec is a German manufacturer of instruments for surgeries. The company is quality leader in this sector and supplies many German and international hospitals. However, the opportunities for differentiation against competitors decrease continuously. New competitors from emerging markets are challenging the market position of established companies in this industry. Meditec is therefore forced to change its strategy and business model in order to survive in this novel competitive environment. The management of Meditec has decided to traverse from a pure product manufacturer to a customer-centric solution provider. This transformation requires the development of new processes, competencies and capabilities – especially with respect to IT and IT services. This teaching case helps in understanding the role of IT in product-service systems (PSS) and PSS-based business models. Therefore the case illustrates why IT is necessary to establish a PSS-based business model and why a customer-centric view is important for this kind of business model

owards a reference model for grassroots enterprise mashup environments

Health care services in German hospitals are causing immense expenses. Successful IT Governance might help to support specific challenges for every organization with an adequate use of IT. The market structure of hospitals in Germany is very heterogeneous, e.g. in size and sponsorship. This paper analyses the state of the art of IT Governance based on a survey among 220 IT executives in German hospitals. The quantitative analyses of collected survey data reveal that hospitals govern their IT differently according to size and sponsorship. In addition, our analyses show that decision-making authority for the IT budget rises with hospital size and is positively correlated with the fraction of IT projects in the overall IT budget. We also show that the investments in innovative IT projects increase with hospital size. Our study revealed that a high number of private and larger hospitals lack a systematic IT Governance approach within the decision domain on IT projects. This study is the first to shed light into the empirical situation of IT Governance in German hospitals

MANAGING AN IT CARVE-OUT AT A MULTI-NATIONAL ENTERPRISE

Mergers, acquisitions and divestments, including the carve-outs of business units or parts of them, are standard strategies used by multi-divisional organizations to adjust their business portfolios. Carveout projects are critically dependent on their management of IT. Systems, which have been integrated in order to deliver seamless and efficient IT operations, must now be pulled apart under demanding time and compliance constraints. In 2007, Delta IT Consulting (DIC), one of France’s biggest ITservice provider, sold one of its three service provider divisions, IT Product Services (IPS). This division employed about 3,500 employees in 20 countries and previously generated 0.7 billion of DIC’s 3.8 billion euro revenues. DIC itself is a division of Delta Corporation - a French high-tech company and leading player in a wide array of businesses, industries and countries around the world. This teaching case challenges the reader to analyse and manage the IT carve-out as a critical component within the divestment project. The case includes insights into strategic and organizational challenges of planning and managing an IT carve-out projec

IT CHALLENGES IN M&A TRANSACTIONS – THE IT CARVE-OUT VIEW ON DIVESTMENTS

Carve-outs belong to the most disruptive events companies – especially IT departments – are subject to. Yet the impact of these events on the IT alignment of the involved business units is largely unknown. This paper utilizes an alignment model to analyze specific IT-related challenges of divesting a strategic business unit (SBU). Hereby it focuses on the functional alignment between business strategy and IT at SBU level as well as on the organizational alignment between corporate and SBU. Based on five in-depth case studies of carve-outs taken place between 2004 and 2008, IT related challenges could be identified due to interdependent SBU information systems, a lack of IT governance, changing strategic scopes and the inability to preserve competencies. Dynamic capabilities were discovered as possible determinants for carve-out success. Carve-out management teams can utilize the analytical framework to make a SBU carveout ready, to guide IT due diligence and to prioritize IT issues

WAHRNEHMUNG DES WERTBEITRAGS VON INFORMATIONSTECHNOLOGIE IN DEUTSCHEN KRANKENHÄUSERN – EINE EMPIRISCHE STUDIE

Der Durchdringungsgrad von IT nimmt in Krankenhäusern stetig zu. Hierbei lässt sich grundsätzlich zwischen administrativen und medizinischen IT-Systemen unterscheiden. Die vorliegende Studie untersucht den wahrgenommenen Wertbeitrag von IT in Krankenhäusern aus Perspektive von drei wichtigen Entscheidungsträger in deutschen Krankenhäusern: Administrative, Medizinische und IT-Leitung. An der in dieser Art einmaligen Studie für den deutschen Krankenhausmarkt beteiligten sich 106 kaufmännische, 167 medizinische und 206 IT-Leiter. Die Ergebnisse zeigen, dass die positive Wahrnehmung des Wertbeitrags von IT in öffentlichen Krankenhäusern am höchsten ist und mit der Krankenhausgröße steigt. Die Wahrnehmung wird insbesondere durch die Anpassungsgeschwindigkeit der IT-Systeme sowie dem Schulungs- und Supportangebot beeinflusst

How German hospitals govern IT - An empirical exploration

Health care services in German hospitals are causing immense expenses. Successful IT Governance might help to support specific challenges for every organization with an adequate use of IT. The market structure of hospitals in Germany is very heterogeneous, e.g. in size and sponsorship. This paper analyses the state of the art of IT Governance based on a survey among 220 IT executives in German hospitals. The quantitative analyses of collected survey data reveal that hospitals govern their IT differently according to size and sponsorship. In addition, our analyses show that decision-making authority for the IT budget rises with hospital size and is positively correlated with the fraction of IT projects in the overall IT budget. We also show that the investments in innovative IT projects increase with hospital size. Our study revealed that a high number of private and larger hospitals lack a systematic IT Governance approach within the decision domain on IT projects. This study is the first to shed light into the empirical situation of IT Governance in German hospitals

IT Governance and Types of IT Decision Makers in German Hospitals - An Empirical Study Among IT Decision Makers

Growing expenses for health care services in hospitals stress the potential of a well applied IT governance for cost reduction, productivity gains and a possible source for competitive advantages. The underlying explorative study analyzes the current status of IT governance through a survey among 206 IT decision makers in German hospitals. The quantitative analyses show that the most important requirements of IT managers for IT are the optimization and standardization of processes, that IT investments shift from administrative to medical IT applications, and that private hospitals display relatively higher IT budgets than do non-profit or public hospitals based on financial turnover. Further, two types of future IT decision makers are empirically identified. The types differ regarding their future role as initiators for process optimization and regarding the degree of involvement in strategic decision making

MANAGING AN IT CARVE OUT AT A MULTI-NATIONAL ENTERPRISE\R\NA TEACHING CASE

Mergers, acquisitions and divestments, including the carve-outs of business units or parts of them, are standard strategies used by multi-divisional organizations to adjust their business portfolios. Carveout projects are critically dependent on their management of IT. Systems, which have been integrated in order to deliver seamless and efficient IT operations, must now be pulled apart under demanding time and compliance constraints. In 2007, Delta IT Consulting (DIC), one of France’s biggest ITservice provider, sold one of its three service provider divisions, IT Product Services (IPS). This division employed about 3,500 employees in 20 countries and previously generated 0.7 billion of DIC’s 3.8 billion euro revenues. DIC itself is a division of Delta Corporation - a French high-tech company and leading player in a wide array of businesses, industries and countries around the world. This teaching case challenges the reader to analyse and manage the IT carve-out as a critical component within the divestment project. The case includes insights into strategic and organizational challenges of planning and managing an IT carve-out projec

Managing the IT Carve-Out in a SBU Divestment

This paper presents an alignment model to analyze the specific IT-based challenges of divesting a strategic business unit (SBU). The model identifies the interdependences among SBU application portfolios, undocumented local system customization, and other intra-organization links that a carveout must identify and resolve. For large organizations that frequently buy and sell SBUs, four guidelines are proposed: 1) a SBU that will be sold - the so called carve-out object - should be autonomous, 2) the SBU IT application portfolios should be independent, 3) IT standards should be implemented in both the corporate IT platform and IT application portfolios, and 4) the intellectual property embedded in human resources needs to be replicated, and both retained in the vendor organization and divested to the buyer with the IT carve-out object. Complying with these guidelines is complex and difficult because they are frequently in conflict with vendor IT and line management goals. Carve-out management teams should consider and address these differences when structuring, designing and resourcing the IT work stream