Rise and Fall of an Information Technology Outsourcing Program: a qualitative Analysis of a Troubled Corporate Initiative
Anomaly #1: supply chain development emerges as a differentiating capability
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Rise and Fall of an Information Technology Outsourcing Program A
Anomaly #1: supply chain development emerges as a differentiating capability.
ComTech began onboarding contractors to Icarus and transitioning systems knowledge from its employees in the middle of 2013. At this same time, more IT executives began to challenge the notion of Supply Chain software development as non-differentiating. Here Brenda outlined the central role Supply Chain was by then playing in Icarus’s overall business strategy: In the course of the last couple of years, as Icarus as an organization has stepped more overtly into the idea of being a multi-channel [retailer], of being an organization where we have to integrate the assets we have that are digital assets, like our dot com and our mobile properties, with our physical properties. Leveraging the [Supply Chain] has become a profound strategy of the company. It was one of the early realizations of what it meant to be successful in the [new] multi-channel [i.e. digital retailing in the early 2000’s] days…and it is one of the cornerstone strategies that we’ve landed on for [2014], and beyond, [which] is to optimize our [Supply Chain]. 167 What that means is [having] the ability to manage inventory back and forth, to have a customer be able to order something in one place and pick it up from another. Essentially, [we want to] leverage [all of the] inventory efficiencies and . . . customer experience opportunities that we can get out of our [Supply Chain]. Now, the agenda for the [Supply Chain] space is a pretty large agenda. It involves re-platforming our warehouse management systems across the board. It involves flexible fulfillment, which is the initiative we have to be able to order something online and fulfill it within a store and manage the inventory across those two properties. (Brenda, personal communication, August 29, 2013) By 2013, Icarus’s traditional physical store business was threatened not only by the other large rivals in their field, but also by smaller firms competing for market share via the disruptive online and mobile sales and distribution channels. This competitive threat was not entirely new, but the company-wide focus on leveraging its supply chain in innovative and differentiated ways had become thrust into the forefront of the corporation’s strategies. Thus, the software development work deemed “non-differentiated” via the Global Staffing Model (GSM), and being outsourced to ComTech, was by then considered essential to the entire organization’s business model. Without directly stating it, Brenda’s comments highlight that the GSM was nothing more than a flawed ouija board game—it was both susceptible to the manipulations by the players of the game, and its implied logic (see Figure 6.1) was also faulty as it reflected executives’ infocentric assumptions (Brown & Duguid, 2000) that managed services outsourcing would be successful at Icarus, despite the fact that it had not been so during the Phoenix Era. Surprisingly, this, in and of itself, was not enough to knock SSP off course, but it had invited open speculation over the validity of the non-differentiated assessment of the Supply 168 Chain application development work. In turn, the growing number of executives who opposed SSP used the renewed strategic importance of the Supply Chain as political ammunition to argue against SSP. This anomaly became a growing liability for Richard and Donald. Yet, as occurs with embattled scientific paradigms, Richard, Donald, and their team members followed the puzzle-solving rules among a current paradigm’s adherents (Kuhn, 2012). The anomalies they encountered were initially discounted, ignored, or set aside for later resolution. However, unlike a scientific paradigm such as global warming, in which scientists argue climate changes have been taking place over numerous decades, the executives’ change in perception of Supply Chain’s differentiating happened swiftly. Some executives were more direct and acknowledged stark differences in Supply Chain’s importance as a competitive advantage to the organization by this point in time: Quite frankly, our priorities in [Supply Chain] have changed dramatically which is going to introduce yet another set of challenges I think. Just in terms of eighteen months ago, or even twelve months ago, we were still viewing [Supply Chain] largely as a commodity that we wanted to just find a way to run as efficiently as possible. (Executive, personal communication, March 13, 2013) Brenda added her dissenting opinion: I think the core premise of [Supply Chain software development] being one of those places that just maintenance of it is the focus and the energy is not quite the core assumption anymore. I think it’s a strategic asset. We’ll find ourselves in the spot, again [my] opinion only, that we’re headed down the [managed services] path for a core capability of the organization, which is typically not what I perceived to be where IT goes 169 and does [managed services] partnerships. (Brenda, personal communication, August 29, 2013) The division of perspectives that emerged over the Supply Chain’s differentiation became a significant point of friction among executives. The debate over whether Supply Chain had become differentiating highlighted the importance of recognizing anomalies in any endeavor. Recall from Chapter Six, that viewing Supply Chain as non-differentiated never really made sense nor had any supporting data. In hindsight, Supply Chain had always been differentiating and critical to Icarus. Yet IT executives were convinced of the capacity problem, but were restricted from adding additional employees to increase their “software factory’s” output. Their cultural thinking led to the creation of the Global Staffing Model and the faked consensus that outsourcing “non-differentiated” work would create capacity. Unclear and protracted decision- making combined with Richard’s “big chance” led to the IT executives’ leap from the infocentric Global Staffing Model to the creation of the ill-fated Strategic Staffing Program. Download 1.05 Mb. Do'stlaringiz bilan baham: |
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