Week 4: The Business Enterprise: A Sociotechnical Infrastructure Perspective

As you further reflect upon your discussion entries, consider the following.

IT Impact upon Business Operations.

Information Technology (IT) is shaping the structure, process and environment of business. A quick examination reveals:

More sophisticated information systems and collaboration processes, including technological infrastructure.
• Business enterprise as an intelligent, knowing and learning organization.
• Integrated IT infrastructure is critical component of business structure.
• Integration of functional units.
• Lowering cost of operations.
• Cloud computing tools and resources

Expanded Information Access and Information Processing:
• Organization as knowledge ecologies, linking people with information and experienced people with practical wisdom.
• Timely information with increased accuracy and depth.
• Quicker dissemination of information.
• Easy networking of internal and external talent and knowledge sources.
• More up-to-date and informed decision making.
• Improved recruiting, evaluating references, and hiring of personnel.

Nationally and Internationally Distributed or Dispersed Organizations and Worldwide Supply Chain:
• More adaptive and flexible business and workplace structures and practices.
• The breaking down of distance as a barrier to business operations, customer service, worker collaboration, sales and marketing, etc.
• Business enterprise is a web or network of organizations—collaborations, partnerships and alliances, etc.
• Exploitation of system in a manner that mutually benefits all members.
• Outsourcing and Off Shoring.

24/7 Business Operations and Accessibility for Customers and Clients:
• Follow the sun mentality with businesses continuously in operation.

Telework Work Environments and Processes:
• Wherever the employee is is his/her workplace.
• Telepresence .
• 24/7/365 Connectivity with Professionals and Team Members.

Global Workforce:
• Access to worldwide professional expertise, knowledge and talent.

Internet Marketing and Global Markets:
• Increased in depth knowledge of target markets—demographics, preferences, etc.
• Marketing information more global and accessible to potential customers.
• More informed customers.
• Customers become employees: Offloading of business/operational tasks to customer.
• B2B and B2C business ventures and configurations.
• Personalized products and marketing practices, and customized customer service.
• More accessible and convenient shopping venues.
• Customer feedback aid in refining or designing new products and services.

In many ways IT in it many forms is improving industries, the human experience, living and working standards, and national and global economies.


Technology Integrated in Business Structure.

When thinking about a business enterprise one must keep in mind that business enterprises have a structure (e.g., roles, responsibilities, lines of authority, etc.), are comprised of human resources (e.g., personalities, workforce dynamics, motivation, etc.), have power systems (e.g., politics, negotiation systems, conflict resolution processes, etc.), utilize communication processes (e.g., way of self-organizing as a business, social networking, information flow, knowledge sharing, etc.), and have a culture (e.g., world view, beliefs, values, rituals, taboos, etc.) . When understanding an enterprise one must not only critically understand the basic functional units (e.g., management, human resources, manufacturing, finances) but also its behavior as an organization. So there are organizational dynamics to take into account as well as business principles and operational processes when developing an understanding of ebusiness.

So, when developing your vision and practice of the business enterprise keep in mind that it is a complex sociotechnical entity, an adaptive living network that weaves people and technology, creating a dynamic web of relationships and conversations so it can achieve its strategic goals and mission. This web is comprised of many stakeholders: business owners, shareholders, employees, business partners, external resources, suppliers, customers, and the civic community, to name a few. There are evolving relationships and conversations with each of these entities. Information is flowing throughout the organization, knowledge is being generated, decisions are being made, activities are occurring, and transactions are taking place in these relationships.

It can be said that organizations are: sociotechnical systems, diverse societies with cultures, and dialogical networks that are continuously evolving and learning in order to provide a product or serve a segment of the local or global community. Organizations exist as a tension between being a static entity with a clear identity and an emerging process of formal and informal, planned and spontaneous conversations and relationships.

This holds true for “brick/click-and-mortar” enterprises and virtual organizations. So, when developing your vision of enterprises and their structures, business processes and IT infrastructures ground them in a sociotechnical model. The IT infrastructure and human resource infrastructure when operating are actually one integrated infrastructure. Information systems are people and digital technology woven together so information flows, knowledge is generated, problems are solved, decisions are made, and action taken. Managers and teams are networked so collaboration takes places and tasks completed. Vendors, suppliers and logistic providers are linked with the business enterprise, forming a consistent collaborative information-driven supply chain or system so all the needed functions are provided and “raw materials” supplied. In this manner the business enterprise actually is a network of organizations and internal and external human resources created into a dynamic web of agreements, partnerships and alliances that function as one entity.

IT network systems help create the needed organizational structure, business processes, and work environment. They are to reflect and facilitate the human dialogue and work dynamics of the organization, the need to manage operations, share knowledge, make decisions, innovatively think and problem solve, make decisions and collaborate with whomever is needed whenever needed. In this process people interact with people, people interact with various types of data repositories and through digital systems, and digital systems interact with digital systems. In this manner, the “organization as an entity” is actually the database where information is stored and accessed. Databases are just one component of the organization’s overall “information processing and knowledge sharing system.”

Lastly, markets and the customers that comprise them, are conversations. While dialogue occurs among them, there is also two-way communication taking place—information gathering and knowledge sharing—taking place between the business and the clientele that they serve. In this manner ecommerce is not just about sales transactions, it is about customer relationship management (CRM)—identifying markets, gathering information, developing relationships and loyalty, plus customers sharing ideas that they have about product/service evolution and the creation of new products/services.

Thus, the technological infrastructure of an business venture not only has to be appropriate for the business goals, but also the employees and customers. Further, the IT aspect must also be understood in light of information systems, communication, and collaboration needs and processes. Human resources management, customer relationship management, supply chain management and information systems must be woven into one sociotechnical infrastructure.

Weeks 2-3: The Contemporary Business Enterprise: The Sociotechnical Knowledge-Powered Organization

As you can see form the initial weeks' readings, as well as from your professional experience, the business climate, organizational structures, and workforce dynamics are radically changing. Not only is there a different way of conducting business and, thus, performing, there is a different way of perceiving business strategy, organizational structure, operational procedures, leadership, and employees.

This is the era of the knowledge work and the knowing organization.

People are hired for their ability to generate and apply knowledge. An organization is intelligent; i.e., contains valuable knowledge that must be able to be accessed when needed. It needs to be managed strategically for information drives and organizations and knowledge powers it.

This does not merely mean storing data that can be turned into useable information when needed. It means structuring the business organization as a vibrant social network, a dynamic web of knowledge sharing relationships that enable creativity, innovative problem solving, and decisive decision making and action taking.

As discussed in the first blog, organizations are a network of internal and external people, teams, and organizations. They are a system of interactive and collaborative partnerships. The organization is a knowing organism. The knowing organization is a learning organization. For more on this subject consult C. W. Choo's work on the knowing organization as the learning organization.

Knowledge, though, resides primarily in people, and work gets done in social networks.

Work is performed in a significantly different manner than in past decades due to technological applications and the emphasis on knowledge sharing. Thus, the notion of employee has been reshaped and the definition of workforce. Now, both people and technology are intrinsically necessary for organizations to function; i.e., to operate and to partner with outside organizations and groups in order to reach their goals. If either are removed from a business enterprise (or not performing properly)the organization does not function well.

Think about it. People make up organizations. Organizations are social entities with a culture and common purpose, diverse talented people networked in order to achieve a stated mission. If a team member is absent or not understanding the project, the team can under perform or even fail.

But an organization is not just people, because they cannot perform their jobs without a set of tools.

Some form of information, communication and collaboration technology is a part of every aspect of today's work. If the organization's computer system goes down, employees, including managers, cannot do their job. Work ceases.

So, the workforce today is people and techology woven into one consistent system. Employees do not merely use digital tools as in the past. The "actual employee" is the human person and the digital tool as one entity. This means that the human resource infrastructure and the technological infrastructure must be in sync with each other.

One could say they must be one infrastructure, a sociotechnological networking, information processing, knowledge management, and decision making infrastructure. This is the 21st century's competitive business enterprise.

Week 1: Just Having Technology Is Not Enough

In the 1990s and early 2000s, just having information technology (IT)gave a buisness competitive advantage. That is no longer the case. Why? Because every company has IT business applications. They are affordable, scalable, and now standard components of every organization. So, what gives IT its value add? Strategic use in a sustainable manner.
In today's globalized marketplace and highly competitive business environment, the key is not having technology, but how one uses it. It is about having "technological capital" so one can create "sustainable partnerships or networking capital." It is about having the ability to strategically use IT in innovative ways a)to establish and maintain networks, b)to create vibrant relationships and conversations to knowledge is shared, c)to link the organization with suppliers and logistic operators so work gets done and products get delievered in a timely and cost efficient manner, d) to form lasting, personalized realtionships with customers, and to e) create a sustainable enterprise that does not harm either the community or environment.

This requires that there be a well thought out plan, a strategic IT vision aligned with the enterprises mission and goals, and compatible with the organization's culture, values, leaders' management styles, and employees' work styles.

Companies are now distributed and information-driven, creating various types of hybrid—virtual and face-to-face (F2F) knowledge commons. They are a complex system of networks and partnerships, a dynamic web of internal and external people, teams, and organizations. Organizations operate in a world environmrnt being dispersed locally, nationally and/or globally.

Competitive advantage is now grounded in a company being agile and being innovative in decision-making and product/service development, and in how it utilizes partnerships. While doing this, it cannot lose focus of ethical business practices, exploit or harm its workforce, or deplete natural resources or damage the earth’s environment which is essential for it’s, and all people’s survival.

Realistic, continuous innovation. Networking. Collaborative partnerships. Integrity, ethical professionalism, and sustainability. All are essential for private, public and governmental organizations to be successful and be respected in today’s world.

Thus, conducting business in a manner where new ideas and decisions “add value” to each step of the business planning process, product/service development, organizational operation, marketing, and customer relationship management and service process is critical. When choosing to implement a new concept, technoloical application, business process, policy, etc. an essential question to ask is: “Does this idea, practice, etc. improve the organization and/or enhance the way the customer is served?