Information Technology Reference
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ability to visualize the entire work process, create products in a flexible and real-
time environment, collaborate virtually, and conduct what-if scenarios (Zammuto,
Griffith, Majchrzak, Dougherty, & Faraj, 2007). Advances like these in network-
ing and communication technologies make information more widely and readily
available, reduce the use of a hierarchy to manage information flows, and coordi-
nate activities more easily and swiftly. As a result, newer technologies decrease
the need to move information through a hierarchical process and instead allow
collaborators to organize around work and determine what can be done with the
information obtained (Zammuto et al., 2007). While new technologies increase
knowledge capacity and provide more opportunities for knowledge application, they
may also decrease reliance on closed innovation teams and propel the shift to newer,
more open forms of organizing.
7.4.2 Intra- and Inter-firm IT Applications and Benefits
Competitive advantage does not emerge from technology itself but rather through
the adoption of new business paradigms that harness the capabilities these technolo-
gies seek to provide. IT enables networked members to process, share, and transform
information and has the added potential of increasing the timeliness, accuracy, and
comprehensiveness of information obtained. However, these IT-related capabilities
and the knowledge created are not the single source of innovation. It is the swiftness
with which information is distributed and the repositioning of resources that provide
the best use for networked collaborative members.
The Internet and related technologies provide companies with the ability to
harvest the talents of individuals working outside organizational boundaries. For
example, P&G uses a secure IT platform to link its R&D professionals with top
suppliers who employ over 15,000 scientists from all over the world. These net-
worked individuals then discuss technology briefs, project particulars, and transform
information into successful innovations. As a result of such collaborative efforts sup-
ported by IT, P&G now boasts a 30% increase in innovation projects shared with its
network of suppliers (Huston & Sakkab, 2006).
In addition to its effect on shaping team communication, IT now has the ability
to facilitate co-creation. By delegating portions of control to outsiders, firms may
take advantage of cost efficiencies, minimized risk, and shortened time-to-market
by eliminating bottlenecks that often come with total control (Manyika, Roberts, &
Sprague, 2008).
Some firms have developed and perfected savvy IT development practices, such
as joint application development and rapid application development and are signif-
icantly able to reduce both costs and time-to-market. Majchrzak and Rice (2000)
determined that collaborative technologies were responsible for improvements in
quality ratings, fewer parts utilized, lower costs, and reduced time-to-market when
compared to previous design efforts. Hewlett Packard attributes its ability to reach
across inter- and intra-organizational networks to its strong IT human and technical
infrastructure, infrastructures that are integrated with its innovation strategy.
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