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Value Through Business Model Innovation

Could your company benefit from a new business model? Raphael Amit of the Wharton School and Christoph Zott of IESE looked at 59 post-IPO e-business companies in Europe and the U.S. and found that business model choices often go unchallenged for long periods. Innovation can include adding new activities, linking activities in novel ways or changing which party performs an activity. Read more »
ALSO IN THIS ISSUE: A $1 increase in IT expenditures per employee is associated with a $12.22 increase in sales per employee, a significant impact on profits.

WINTER 2000 VOL. 41 · NO. 2

How To Be a CEO for the Information Age

Increasingly, information technology isn’t just for supporting the strategy, it is the strategy. Unfortunately, many CEOs send their managers negative signals about IT’s role. Only the “believer CEO,” who demonstrates through daily actions a belief in the strategic value of IT, can help others manage effectively in the Information Age. The authors offer examples of such CEOs and give some techniques for addressing blind spots to improve an organization’s competitiveness. Free to premium subscribers
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Leading Laterally in Company Outsourcing

As companies rapidly expand the use of outsourcing, executives are discovering that the management of outsourcing projects requires a new blend of leadership qualities. Firms involved in outsourcing are seeking managers with capacities for lateral leadership — the ability to negotiate results “outward” across boundaries rather than issue orders “downward” through a hierarchy. The authors interviewed 54 managers and surveyed 423 managers working at diverse firms and organizations from 1997 to 1998, and they present their findings in this article. Free to premium subscribers
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Avoid the Pitfalls in Supplier Development

As manufacturing firms outsource more parts and services to focus on their own core competencies, they increasingly expect their suppliers to deliver innovative and quality products on time and at a competitive cost. When a supplier is incapable of meeting these needs, a buyer has three alternatives: (1) bring the outsourced item in-house and produce [...] Free to premium subscribers
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Defining the Social Network of a Strategic Alliance

Strategic alliances are assuming an increasingly prominent role in the strategy of leading firms, large and small. Such cooperative relationships can help firms gain new competencies, conserve resources and share risks, move more quickly into new markets, and create attractive options for future investments.1 Yet, despite their promise, many alliances fail to meet expectations because [...] Free to premium subscribers
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Knowledge Diffusion through “Strategic Communities”

Several years ago, Chase Manhattan Bank embarked on an ambitious plan to develop a common back-office processing system for its overseas branches.1 The bank established at headquarters a cross-functional team of information systems, finance, and operations professionals to develop the design and lay out the implementation approach. Later, the bank added branch operations managers to [...] Free to premium subscribers
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Corporate Responsibility Audits: Doing Well by Doing Good

Many companies spend significant time and effort developing a mission statement — complete with vision, values, goals, and strategies. Ask managers whether their firm’s mission statement lives in the company day-to-day or whether it lies neglected in someone’s desk drawer. In too many instances, the truthful answer is: “The vision is more rhetoric than real.”This [...] Free to premium subscribers
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The Synergism of Telecommuting and Office Automation

Despite considerable research, many managers remain ambivalent about introducing telecommuting as a business strategy.1 Should the strategy be aimed directly at solving business problems or be integrated into the reward structure of the organization? These and other questions persist. Although a few detailed case studies address telecommuting, analytical frameworks for examining cost/benefit issues are rare.In [...] Free to premium subscribers
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FROM THE MAGAZINE

Spring 2012: Cover Story
Innovation

Achieving Successful Strategic Transformation

How companies successfully make major changes — without sacrificing financial performance.