Articles

Although few would deny that vision serves a critical role in today's organizations, in practice, most managers are intimidated and frustrated by the challenge of developing one. The author explores the notion of vision by first explaining how and why visions work. He presents a template, tested in organizations representing the corporate, nonprofit, and public sectors, that outlines the principal themes necessary for an effective vision. Because not all great visions succeed, the author analyzes why they sometimes fail.

Are traditional reengineering approaches appropriate for improving knowledge work processes? In a study of thirty organizations, the authors found that improvement methods for knowledge work ranged from the classical top-down approach to a more laissez-faire philosophy that allowed professionals to design and execute their own work. Companies should probably choose an intermediate approach that reflects the type of knowledge work, the organizational culture, and the project's business requirements. They must recognize that the nature of knowledge work is different from administrative and operational work and that the people who perform it resist structured approaches.

In a study of the predictors of success and failure in implementing technology, the author examines the introduction and use of profiling, an expert system intended to aid the insurance sales process at four insurance companies. Lutheran Brotherhood, National Mutual, Prudential, and Sun Alliance tried to get more than 5,000 field salespeople to implement Profiling. The study results indicate that in implementing a radically new technology, managers need to assemble "constellations" of actions, consider the political ramifications throughout the organization, manage the momentum of the project, and work to achieve economies of scale.

Managers need to recognize the potentials of software in their development processes and change their approaches to utilize the full potentials of software-based innovation. By doing so, they can improve innovation quality, shorten cycle times, cut costs, lower risks, enhance the results of innovation, and increase its diffusion to customers. The authors explain the powerful possibilities of software-based innovation and provide many examples of how companies develop and manage software most successfully.

What lessons do IBM's failure in the 1980s and early 1990s and its apparent successful comeback have for other large corporations? In an extensive study of the company's history (only part of which is covered here), the author finds two factors that contributed to IBM's difficulties: it ignored its commitments to customers to provide effective, high-quality technology and service support, and it broke its implied promise to employees to provide job security. Large corporations will survive only if they can avoid some of the hazards that IBM has faced.

Companies that produce information in printed or electronic form can learn much from research on physical products, including the development of product and process platforms to enhance design and development. The authors provide a framework for the architecture of information products and apply it to two companies that are creating competitive advantage by refining information through product and process technologies. The authors also consider ways that companies can design information products in the future to focus on customers' implied needs and to take advantage of new interactive technologies.

Is the Internet just another marketing channel like direct mail or home shopping? Or will it revolutionize global marketing? Will large multinationals lose the advantages of size, while small start-ups leverage the technology and be-come big players internationally? The authors discuss the different opportunities and chal-lenges that the Internet offers to large and small companies worldwide. They examine the impact on global markets and new product development, the advantages of an intranet for large corporations, and the need for foreign government support and cooperation.

Although large corporations continue to outsource it services, the issues of whether and how to outsource generate strong emotions on the part of managers. Many practitioners and academics now argue for selective or "smart" sourcing. According to this author, this is probably a sensible approach to balance efficiency and effectiveness in providing IT services. However, the author argues that companies should first ask why they should not insource IT services. His perspective is based on an analysis of eleven risks of outsourcing that he identified in discussions with both buyers and vendors in the IT outsourcing marketplace.

Why does the outsourcing of IT frequently fail to produce the expected cost savings or other benefits? Perhaps because managers don't carefully select which IT activities to outsource. The authors examined sixty-two sourcing decisions at forty organizations through interviews with senior business executives, CIOs, consultants, and vendor account managers. From their data, they developed a set of frameworks to clarify sourcing options and aid managers in deciding which IT functions to contract out and which to retain in-house.

Positioning products in a complex market can be one of a company's most difficult decisions. In determining whether to combine or maintain separate product lines, Hewlett-Packard used an approach it calls strategic market modeling (SMM) to design "what if" scenarios and run simulations to predict market behavior. SMM combines demographic, user needs, and competitive perception data into a database for testing alternative positioning strategies. The author describes HP's development of SMM and the lessons learned.