James A.O'Brien Introduction to Information Systems Eleventh Edition 6 The e-Business Organization Traditional Organization E-Organization Organization Structure Hierarchical Horizontal,networked Leadership Centralized focus Everyone is a leader People and Vertical decision making Delegated authority Culture Individuals rewarded Collaboration rewarded Coherence Internal relevance Customer relevance Knowledge Individualistic Institutional Ally with distant partners Ally with competitors,customers Alliances Complement current gaps and suppliers Create new value Governance Top-down Distributed James A. O’Brien Introduction to Information Systems Eleventh Edition 6 Business Quality Improvement Traditional Organization Business Reengineering E-Organization Organization Structure Target Leadership Potential Payback People and Culture Risk Coherence What Changes? Knowledge Primary Alliances Incrementally Improving Existing Processes Hierarchical Radically Redesigning Business Systems Horizontal, networked Any Process Centralized focus Strategic Business Processes Everyone is a leader 10%-50% Improvements 10-Fold Improvements Low High Same Jobs - More Efficient Big Job Cuts; New Jobs; IT and Work Simplification Major Job Redesign IT and Organizational Customer relevance Institutional Delegated authority Collaboration rewarded Governance Internal relevance Individualistic Ally with distant partners Complement current gaps Top-down Vertical decision making Individuals rewarded Distributed Ally with competitors, customers and suppliers Create new value The e-Business Organization