02. Management Paradigm Shift & MITsRev: Mar, 2014

Euiho (David) Suh, Ph.D.

POSTECH Strategic Management of Information and Technology Laboratory(POSMIT: http://posmit.postech.ac.kr)

Dept. of Industrial & Management EngineeringPOSTECH

Contents1. Management environment

2. Motivation of Management Paradigm Shift

3. Evolution of Management

4. Paradigm Shift

5. Components of Paradigm Shift

6. Management Innovation Technique

3

Management Environment

New Trade Trend(WTO, FTA)

New Trade Trend(WTO, FTA)

Information-driven Society

Information-driven Society

RapidEconomic

Growth

RapidEconomic

Growth

ShortenedTechnologyLife Cycle

ShortenedTechnologyLife Cycle

InterdisciplinaryIndustrial Structure

InterdisciplinaryIndustrial Structure

Open Domestic

Market

Open Domestic

Market

Increased Customer Demand

Increased Customer Demand

Increasing Global

Competition

Increasing Global

Competition

Skyrocketed Importance of

Strategic Management

Skyrocketed Importance of

Strategic Management

Globe-driven

Customer-driven

Information-driven

Technology-driven

4

Motivation of Management Paradigm Shift

■ Main motivations leading to management paradigm shift

ManagementParadigm

Shift

ManagementParadigm

Shift

Technology-driven

Information-driven

Customer-driven

Globe-driven

5

Evolution of Management

Taylor: “Scientific Manage-ment”

Fayol:“Administra-

tive Man-agement”

Ford:“Mass Pro-duction”

Mayo:“Human Re-lations Ap-proach”

1900

6

Evolution of Management

Taylor: “Scientific Manage-ment”

Fayol:“Administra-

tive Man-agement”

Ford:“Mass Pro-duction”

Mayo:“Human Re-lations Ap-proach”

Computer“ENIAC”

Efficiency

Automation(Productionand Work)

Function- Oriented

1900 1946

7

Evolution of Management

Taylor: “Scientific Manage-ment”

Fayol:“Administra-

tive Man-agement”

Ford:“Mass Pro-duction”

Mayo:“Human Re-lations Ap-proach”

Computer“ENIAC”

Efficiency

Automation(Productionand Work)

Function- Oriented

1900 1946

Database

TQM

JIT

KANBAN

Effectiveness

1970

8

Evolution of Management

Taylor: “Scientific Manage-ment”

Fayol:“Administra-

tive Man-agement”

Ford:“Mass Pro-duction”

Mayo:“Human Re-lations Ap-proach”

Computer“ENIAC”

Efficiency

Automation(Productionand Work)

Function- Oriented

Database

TQM

JIT

KANBAN

Effectiveness

PC

StrategicManagement

DecisionSupport

ExecutiveInformation

1900 1970

19811946

9

Evolution of Management

Taylor: “Scientific Manage-ment”

Fayol:“Administra-

tive Man-agement”

Ford:“Mass Pro-duction”

Mayo:“Human Re-lations Ap-proach”

Computer“ENIAC”

Efficiency

Automation(Productionand Work)

Function- Oriented

Database

TQM

JIT

KANBAN

Effectiveness

PC

StrategicManagement

DecisionSupport

ExecutiveInformation

ERP

BPR - Reengineer-ing

Process-Ori-ented

Learning Organiza-tion

1900 1970

1981 19901946

10

Evolution of Management

Taylor: “Scientific Manage-ment”

Fayol:“Administra-

tive Man-agement”

Ford:“Mass Pro-duction”

Mayo:“Human Re-lations Ap-proach”

Computer“ENIAC”

Efficiency

Automation(Productionand Work)

Function- Oriented

Database

TQM

JIT

KANBAN

Effectiveness

PC

StrategicManagement

DecisionSupport

ExecutiveInformation

ERP

BPR - Reengineer-ing

Process-Ori-ented

Learning Organiza-tion

Internet

KnowledgeManagement

Customer PowerCRMSCM

ECMCUC

1900 1970

1981 19901946 2000

11

Evolution of Management

Taylor: “Scientific Manage-ment”

Fayol:“Administra-

tive Man-agement”

Ford:“Mass Pro-duction”

Mayo:“Human Re-lations Ap-proach”

Computer“ENIAC”

Efficiency

Automation(Productionand Work)

Function- Oriented

Database

TQM

JIT

KANBAN

Effectiveness

PC

StrategicManagement

DecisionSupport

ExecutiveInformation

ERP

BPR - Reengineer-ing

Process-Ori-ented

Learning Organiza-tion

Internet Power

KnowledgeManagement

Customer PowerCRMSCM

ECMCUC

SNS

Smart phone

Global Net-work

ServiceManagement

1900 1970

1981 19901946 2000 2010

12

Paradigm Shift

Old Paradigm New Paradigm

Product-driven Customer-driven

Function-oriented Process-oriented

Regionalization Globalization (Glocalization)

Efficiency Effectiveness

Product Quality Conformance Quality

Sequential Engineering Concurrent Engineering

Reactive Proactive

Quality-based Time-based

Internal Benchmarking Functional Benchmarking

Automation Reengineering

Economies of scale Hi-tech

Mass production Mass customization

13

Management Innovation Technique(MITs) (1/2)

■ Definition– Various Techniques for Management Innovation to Accommodate the Paradigm Shift

and the Business Environmental Changes

■ Management innovation changing ways of business– Business Process Reengineering(BPR)/ Enterprise Resource Planning (ERP)– Downsizing: Resizing, Rightsizing– Restructuring: Spin-off, Spin-out, Outsourcing– Benchmarking: Internal, Functional– Concurrent Engineering(CE) vs. Sequential Engineering– Logistics Innovation– EIS/DSS/ESS– Time-based Competition vs. Quality-based Competition

14

MITs (2/2)

■ Management innovation using mind building in organization– Strategic Management / SIS– Value Engineering (VE)– Corporate Identity (CI)– Vision Making (VM)– Knowledge Management (KM)

■ Management innovation using Technology innovation of IT – Supply Chain Management (SCM)– Customer Relationship Management (CRM)– Electronic Commerce (EC)– Mobile Commerce (MC)– Ubiquitous Computing (UC)– Social Network Services (SNS)– Smart Phone Evolution