Value Configurations of Organizations

Value Configurations of Organizations

Petter Gottschalk (Norwegian School of Management, Norway) and Hans Solli-Saether (Norwegian School of Management, Norway)
DOI: 10.4018/978-1-60566-648-8.ch002
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Abstract

To comprehend the value that information technology provides to organizations, we must first understand the way a particular organization conducts business and how information systems affect the performance of various component activities within the organization. Understanding how organizations differ is a central challenge for both theory and practice of management. For a long time, Porter’s (1985) value chain was the only value configuration known to managers. Stabell and Fjeldstad (1998) have identified two alternative value configurations. A value shop schedules activities and applies resources in a fashion that is dimensioned and appropriate to the needs of the client’s problem, while a value chain performs a fixed set of activities that enables it to produce a standard product in large numbers. Examples of value shops are professional service organizations, as found in medicine, law, architecture and engineering. A value network links clients or customers who are or wish to be interdependent. Examples of value networks are telephone companies, logistic and postal services, retail banks and insurance companies.
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1. Value Configurations Of Organizations

To comprehend the value that information technology provides to organizations, we must first understand the way a particular organization conducts business and how information systems affect the performance of various component activities within the organization. Understanding how organizations differ is a central challenge for both theory and practice of management. For a long time, Porter’s (1985) value chain was the only value configuration known to managers. Stabell and Fjeldstad (1998) have identified two alternative value configurations. A value shop schedules activities and applies resources in a fashion that is dimensioned and appropriate to the needs of the client’s problem, while a value chain performs a fixed set of activities that enables it to produce a standard product in large numbers. Examples of value shops are professional service organizations, as found in medicine, law, architecture and engineering. A value network links clients or customers who are or wish to be interdependent. Examples of value networks are telephone companies, logistic and postal services, retail banks and insurance companies.

This chapter presents the three value configurations – the value chain, the value shop, and the value network. Then, the three different value configurations are compared according to some key characteristics, for example use of information systems. Nine design parameters are presented as building blocks of organizational structure. Finally, this chapter shows how organizational culture might influence organizations.

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Table of Contents
Foreword
Terje Grimstad
Acknowledgment
Chapter 1
Petter Gottschalk, Hans Solli-Saether
Digital government, E-Government, and E-governance: all are terms that have become synonymous with the use of information and communications... Sample PDF
Electronic Government Interoperability
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Chapter 2
Petter Gottschalk, Hans Solli-Saether
To comprehend the value that information technology provides to organizations, we must first understand the way a particular organization conducts... Sample PDF
Value Configurations of Organizations
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Chapter 3
Petter Gottschalk, Hans Solli-Saether
The resource theory of organizations is an influential theoretical framework for understanding how efficiency and effectiveness within organizations... Sample PDF
Resource Theory of Organizations
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Chapter 4
Petter Gottschalk, Hans Solli-Saether
If a region or nation is to make the best use of its information assets and reduce duplication in gathering data, information sharing across the... Sample PDF
Information Resource Integration
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Chapter 5
Petter Gottschalk, Hans Solli-Saether
Improved interoperability between public organizations as well as between public and private organizations is of critical importance to make... Sample PDF
Stages of E-Government Interoperability
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Chapter 6
Petter Gottschalk, Hans Solli-Saether
Alignment is the adjustment of an object such as a system, a procedure or a process in relation with other objects so that they work better... Sample PDF
Frameworks for Aligned Development
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Chapter 7
Petter Gottschalk, Hans Solli-Saether
Developing a strategy for E-Government interoperability is taken to mean thinking strategically and planning for the effective long-term application... Sample PDF
Strategic Planning for Alignment
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Chapter 8
Petter Gottschalk, Hans Solli-Saether
Given the political nature of back-office integration, should cross-organizational back-office integration be seen as a command and control... Sample PDF
Governance Structure for Alignment
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Chapter 9
The Role of the CIO  (pages 190-216)
Petter Gottschalk, Hans Solli-Saether
The CIO can be defined as the highest-ranking IT executive who typically exhibits managerial roles requiring effective communication with top... Sample PDF
The Role of the CIO
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Chapter 10
Petter Gottschalk, Hans Solli-Saether
An investigation is an effective search for material to bring an offender to justice. Knowledge and skills are required to conduct an effective... Sample PDF
The Case of Police Investigations
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Chapter 11
Petter Gottschalk, Hans Solli-Saether
The most challenging of all interoperability issues seems to be related to organizational interoperability. While technical interoperability... Sample PDF
Levels of Organizational Interoperability
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Chapter 12
E-Government Dynamics  (pages 261-276)
Petter Gottschalk, Hans Solli-Saether
It was Sterman’s (2000) book entitled “Business Dynamics: Systems Thinking and Modeling for a Complex World” that introduced the term business... Sample PDF
E-Government Dynamics
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About the Authors