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infrastructure - The Organization Design Challenge of the...

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The Organization Design Challenge of the 1990s and beyond Complex Organization Simple Stable Certain Environment Dynamic Uncertain Entrepreneurial (Autonomy) ? Hierarchy (Control)
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Organization “Decentralized Intelligence” Microcomputer (Autonomy) Centralized Intelligence Mainframe (Control) Complex Simple The IT Design Challenge Parallels the Organization Design Challenge Stable Certain Environment Dynamic Uncertain Main Frame Networked Intelligence” (Collaboration)
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Vertically Integrated Firm Which Activities Should We Keep Inside?
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Electronic Market (Many to Many) Supplier Custome Links Links (One to Many) Evolution of American Airlines’ SABRE System Transaction Contract Nature of the Relationships Partnership Market Structure Individual travel link directly to SABREthrough third party networkss Online services (e.g., CompuServe, America On-Line, Prodigy Other airlines AA Travel agents Corporate travel units link directlly to SABRE through their firms* proprietary networks Late 1980s to present 1978 to Late 1980s (after deregulation) 1968 to 1978 (before deregulation) AA Large Travel agencies
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Evolution of IT Architecture IT Paradigm Mainframe Era (1950s to 1970s) Microcomputer Era (1970s to 1980s) Distributed Era (late 1980s to present) Ubiquitous Era Dominant Technology Mainframe/minicomputer
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