Information Technology Reference
In-Depth Information
For example, Silicon Graphics, a leading manufacturer of workstations and
servers, makes extensive use of the company's intranet to coordinate development
activities. Lead users in target application segments, who are also known as “light-
house” customers, are linked directly to internal development teams. This feedback
mechanism allows teams to get fast and effective guidance on critical decisions as
the project evolves (Iansiti & MacCormack, 1997). This combination of people and
technology provide for easy and rapid flow of information (Nambisan & Sawhney,
2007). Cambrian House, a software development firm housed in Calgary, Alberta,
hosts an online suggestion board in which interested parties can post potentially
successful and in demand ideas. In this way, ideas are generated and screened, and
winning ones are tested. If an idea is commercialized by Cambrian, then winners
partake in some portion of future profits.
In addition to using existing IT applications, firms also continue to search for new
technologies to meet the demands of the open innovation model. Communication
technologies integrate an organization and facilitate knowledge generation, sharing,
and application. The newest generation of communication tools and networking
technologies often fall under what many refer to as Web 2.0, the second gener-
ation of the Web which is perceived as a participation platform versus a statistic
information-only resource.
Web 2.0 technologies such as wikis, blogs, and peer-to-peer and social network-
ing represent a new internet-based digital platform. The movement to adopt Web 2.0
technologies by organizations is frequently referred to as Enterprise 2.0 (McAfee,
2006). By fostering creativity, enhancing collaboration, facilitating coordination,
and smoothing out the process of information sharing and application, these tools
can be key to implementing and enhancing open innovation models. More impor-
tantly, Web 2.0 technologies provide an architecture of participation in which
systems, mechanisms, and processes allow participants to engage in knowledge
creation, value-added innovation, and value appropriation. The resultant impact is
more focused and enriched innovation leading to increases in revenues. Firms may
also create internal Web 2.0 infrastructures by purchasing platforms and including
add-on features. The toolkit usually includes technologies like messaging software,
blogs, and wikis, which are used to create a more transparent vehicle for viewing
firm practices and output of knowledge workers.
Dresdner Kleinwork Wasserstein (DrKW), an investment bank headquartered in
London and Frankfurt, implemented a Socialtext wiki organization-wide in 2004
(Socialtext, 2006). The tool thus far has had a significant impact on idea generation
and exchange, problem resolution, and the strengthening of interpersonal relation-
ships. DrKW has noted that since adoption, “meetings run more smoothly and are
more productive; unnecessary barriers between teams are being broken down; the
quality of product specifications and documentation is improving; presentations are
written faster and more effectively; and the risks posed by staff leaving are reduced”
(Socialtext, 2006).
Workers at companies like Walt Disney, Eastman Kodak, Yahoo!, and even
the US military are ditching traditional technologies in favor of software tools
that function as real-time virtual workspaces (Conlin, 2005). Intel is an example
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