Strategic Management and the Implementation of New Technology Systems - Coursework Example

Strategic Management and the Implementation of New Technology Systems and # Table of Contents Introduction 3 PartI: Implementation of New Technology 5 Strategic Role in Introducing New Technology 5 Measuring Success and Efficiency 5 The Implementation Process 6 Factors That Can Hinder the Diffusion of New Technology 11 Part II: Corporate Objectives and Pros and Cons in New Technology Adoption Processes 13 The Mobile Device Implementation 13 The Negative Side of the Mobile Device Implementation 17 The Ebola Diagnosis Scare 17 Conclusion 18 Trends in Supply Chain Management 18 Resources 21 Strategic Management and the Implementation of New Technology Systems Introduction With new advances in technology in a continually upgrading flow across the marketplace, harnessing the implementation of such technologies, particularly in multiple formats, can be a daunting task, requiring extensive research. Every business has specific needs, and while some applications will work well for one business, they will not work for another. Careful strategic planning of current and future needs, including future implementations of newer technology, must be developed extensively in the beginning, with continued oversight for future systems review (Bellamy, 2007). Technology implementation will extend to all parts of an organization, regardless of the type of business it is. What will be implemented for a medical system, however, will not work for a tanning salon, except at the very basic level. Whereas a hospital will develop several systems which contain data concerning patients, staff, supplies, and coded medical case histories linked to larger knowledge databases, a tanning salon may only need a small central data system which handles everything in one customer relationship management (CRM) system. Both arrangements must have suitable management systems in place for technological infrastructures to run smoothly and efficiently (Bellamy, 2007; McCarthy & Eastman, 2010). A medical system has many resources for a hospital to find funding for, particularly if the purpose for an upgrade and expansion can be tied to a specialty research project, or as the focus of what the hospital primarily treats its patients for, such as cancer. The tanning salon has limited financial resources and may resort to taking out loans in order to upgrade the business. Whatever the type of business it is, utilizing new media technology and customized software programs, requires a intricate review and planning session, based on needs and how technology, in particular, will advance the business forward in a competitive business environment (Bellamy, 2007). In line with implementing technology, there must be a consideration as to how much is implemented at one time. A step-by-step process may be a better way to begin such an upgrade, such as developing the CRM system first, so that all the information needed for compiling and analyzing the customer base is in place. The next step may be the design of the company web page, and from there, the installment of a company presence on the varied social media platforms. From there, a company must design a process for gathering data from the social media sites, in order to clean, code, and analyze the data for further information, before folding the data into the company’s mainframe database. Alternatively, new technology can also refer to a new piece of machinery that will be installed as part of the production line in a manufacturing company. The goal may be to cut down on manual labor, and improve on mass output returns. In most companies, there is a supply chain (SC) infrastructure, whether referring to material products being made, or intellectual properties being developed. In an effective SC structure, all the departments work together, communicating needs and desired results, so as to have a smooth process towards reaching the company goal of sales and happy repeat customers (Brun, Bolton, & Chinneck, 2013). When one area experiences a failure in operations, such as in the delivery system, then a new solution must be developed quickly. Amazon had one such idea to recover its recent problems in timely deliveries. The idea, seen in television advertisements, was to develop a company-based drone delivery system, thus avoiding the manpower issues the company has experienced with the United Postal Service (UPS), FedEx, and the United States Postal Service (USPS). While innovative in using new technology, there is still more planning to be done before implementing such a solution (Berr, 2014). Part I: Implementation of New Technology Strategic Role in Introducing New Technology Each company has its own organizational climate, or environment, which encompasses company relationship qualities as experienced by the employees, which influences employee behaviors, and can be attributed to a set of organizational attributes and/or attributes (Bellamy, 2007). The company environment concerns qualities of leadership, design of the organization, how decisions are made, and the guiding infrastructure for policies and procedures which everyone follows on a daily basis. If a company environment, usually set by the leadership hierarchy, is resist to change, particularly where high-end technical processes are considered, then it is likely that the adoption of new technology will take some time (Overby, Bharadwai, & Sambamurthy, 2006). Due to lack of knowledge, usually due to lack of interest in innovation, the initial plan for development will not be well-thought out or researched properly, because decision makers will not know what, and where, to look for the right information that would effectively build a process towards technology implementation (Bellamy, 2007). Measuring Success and Efficiency When embarking on the road to implementing innovative new technology, the environment must be open, eager to know more, and have a goal in mind, right from the initial stages of the project. In a research project, as conducted by Bellamy (2007), the environment of a business organization, as a variable component, can be described through 17 different dimensions, which have eight sub-items attached, as proposed by the Business Organization Climate Index (BOCI). Four dimensions were used in the research study, based on relevancy to technology implementation: Questioning Authority, Administrative Efficiency, Open-mindedness, and Innovation. In analyzing the data, three individual outcome variables were used as measurements of eight new technological outcomes: Perceptions of unanticipated new technology outcomes, Perceptions of improved morale from improved performances, and Perception of whether the new technology assisted in accomplishing the intended goal. Unintended consequences indicated impact on employee’s job responsibilities, employee work stress, and work processes (Bellamy, 2007). In unintended outcomes, the research showed there was improved productivity, improvement in product or service, that the outcome improved the company’s competitiveness in the marketplace and, finally, employee morale was improved, accordingly. The eight sub-items utilized in crosstabs with the three perceptions of outcomes, were: Assessment, Planning, Questioning Authority, Innovation, Open Mindedness, Administrative Efficiency, Top Management Involvement, and Strategic Plan (Bellamy, 2007). There was also a ninth element included, which was the inclusion of Cross Functional Teams. The last element leads us back to the supply chain infrastructure, where all teams must be involved in preliminary discussions, in order to tie in all the processes that will be affected from the new technology, at least in the beginning (Bellamy, 2007; Brun, Bolton, & Chinneck, 2013). Each department should be heard in order to understand components of the infrastructure, which may affect other departments along the way when changes are made. The Implementation Process The process of beginning a new technology implementation project, begins with the idea that must be approved at the highest level of leadership. Without this support, the project will go nowhere. While it may first be devised in middle management and the user group (employees who will use it), outlining both the problem and initial solutions must then be ‘marketed’ to upper management, so as to get them onboard with how this project will benefit the company and, potentially, save money (Leonard-Barton & Kraus, 1985). Once the idea and initial research is done, the next step is to observe the areas where the new technology will be used and to utilize those employees most likely to use the new process. Observing first how the employees currently do their jobs, is essential for determining the development of the new technology infrastructure, so that it effectively replaces and enhances what the employees are currently doing (Leonard-Barton & Kraus, 1985). The software designers must also be included in visiting the different departments in order to see firsthand, how the operations are currently working, and to also listen to the workers about any complaints, so as to incorporate these findings into the design package. The supply chain operation also is included in the process, as part of determining how the new technology will affect different departments, and also to anticipate where there could be problems if one area goes down, or is missing product to complete a section of the job. Once the job structure is outlined, development of the new technology, as in a software program, begins development. Of great importance, is building a team of users from part of the supply chain, who can test the product along the development path and provide valuable user feedback. During this time, a preliminary training guide can be compiled (Leonard-Barton & Kraus, 1985). Before the implementation point, employees can begin training with a simulation program, thus allowing for a much smaller down time when the program actually does come online. While the new program is being used, the old process can remain online, in case there is a problem and everyone has to go back to the old processes until further notice. There can also be problems such as a component of the software, a tie-in process, may not have arrived yet, causing problems with one section of the supply chain infrastructure (Leonard-Barton & Kraus, 1985). Once the program has come online and is in use, a schedule of system information gathering is set up, whereby information is collected, perhaps once a week, to determine if a portion of the program must be tweaked so it performs better (Leonard-Barton & Kraus, 1985). This part should be ongoing for over a year and, ideally, a process should be overlaid on the program that collects data for review over a series of time. This helps to catch issues that may be silently occurring, but are not seen by the workers at any point. The final handoff of the new technology program cannot be completed until everything has been fine-tuned to meet each department’s needs, including the linking between groups, as part of maintaining the supply chain. Communication is essential for getting across the ideas to the leadership group, but it is also equally important during the development state of new technology design, particularly for those who are part of the testing teams and who must provide useful information. Gathering the right operations people from each department who can effectively communicate process needs, provides the technology developer the right paths of construction in linking each group. Whatever company that designs the new technology will, most likely be part of sustaining and further development needs as upgrading opportunities come along in the future (Leonard-Barton & Kraus, 1985). The qualification supply chain model shown below (Fig. 1), provides a look at how one is indexed for qualification in a coordinating infrastructure. Performance levels are set for each part of the supply chain, which also allows for easy tracking and analyses on a regular basis to ensure that each component is meeting the set standards. In initial stages of setting up the supply chain throughout the different departments, including third party suppliers, several different scenarios are run to determine the best practices for maximum efficiencies in each department. While the figure mainly concentrates on the supply chain itself, it is also a good model to use in the initial stages of designing a technological apparatus that will work through the supply chain as well (Arshinder, Kanda, & Deshmukh, 2008). Quantification Model for Supply Chain Coordination Indexing (Fig. 1, Arshinder et al., 2008, p. 76) The importance of the supply chain, as part of any design and implementation of new technology, is added here because without the supply chain structure, figuring out how to implement any new technology systems would be nearly impossible in terms of a connection between the departments in the company. The coordination of the supply chain, therefore, must be in place first before proceeding with any form of new technology implementation. The following figure shows how a supply chain can be connected within each of the departments on a basic level that would be suitable for most types of businesses (Arshinder, Kanda, & Deshmukh, 2008). Supply Chain Coordination (Fig. 2, Arshinder et al., 2008, p. 43) The coordination box begins at the top, branches to four themes within coordination infrastructure policy, splits out on one side to further coordinated lines, while the other side addresses uncertainty in the supply chain that could disrupt the coordination process. In the third level down, contracts with the business and third party suppliers (deliveries, product components, etc.), make up the base of supply chain expectations and, at the center base of the funnel is the information technology infrastructure from which all information is funneled in and out (Arshinder, Kanda, & Deshmukh, 2008). The right side box shows other collaborative initiatives which may be possible projects that can be implemented in the future, sometimes related to the products being made for the company, and in other circumstances, entirely new products that may enhance the company’s bottom line, including moving the company into a more viable competitive position in the marketplace. The agility and responsiveness of the supply chain is measured by the ability to change processes quickly in order to accommodate unexpected problems, therefore the supply chain must have a solid working and communicative infrastructure already built before the technology can be even designed, and then implemented (Arshinder, Kanda, & Deshmukh, 2008; (Overby, Bharadwai, & Sambamurthy, 2006)). Factors That Can Hinder the Diffusion of New Technology There are any number of factors that can hinder the diffusion of new technology: lack of suitable funding to develop a system to its fullest capabilities; stressed-out and over-worked employees who do not want to learn new operations, particularly new technical systems; a leadership group that does not think in innovative ways, and finally, a lack of communication in the supply chain between departments and managers, third party suppliers and the new technology group building the system infrastructure. (Leonard-Barton & Kraus, 1985; Fersht et al., 2011). Lack of effective training is a major issue for new technology implementation, as employees may learn just enough to get them by in the process line, yet not enough to know when something is going wrong, or have the ability to fix the problem. At the very least, the training manual or guide book, should show why a process is done a certain way, aside from just learning how to do it. The training manual should be installed online at the company’s intranet center, where everyone can access it at will. If supply chain managers see that employees are struggling with the new technology, then extra training should be scheduled so that employees can build their skill levels, thus reducing stress while working the new system. Additionally, as part of the marketing aspect in selling the new system to company leadership, marketing should also show to employees how their part of the supply chain will be made easier for them, so that they are encouraged to learn the processes rather than fighting the changes (Leonard-Barton & Kraus, 1985; Davis, 2011). If not everyone is on board with the new technology implementation, then effective results will be much harder to come by. Additionally, new technology should be implemented as part of a need for a better way to do things, rather than just because it is the latest new technology on the market. An example would be branching out into social media, working out the marketing strategy for various platforms, and learning how to pull data behind the scenes for further analyses on the customer base. Mobile marketing might not be included in this venture in the beginning, because it is a slightly different platform from the Internet and social media sites. Therefore, adding components a step at a time, may be a better strategy, so as to spend time setting operations into place in the marketing infrastructure of processes (Leonard-Barton & Kraus, 1985). Communications between departments are crucial, but more important is the contact point between the company (a supply chain manager or technological implementation manager) and the new technology company designing the new system for the company. The ability to be able to connect as new questions arise, means that issues can be solved before the system is finalized in implementation. When there is no contact point, or if there are several contacts, then information may be diffused between several people, yet not one person knows all the problems and questions currently being addressed. Consequently, there is a lack of focus on the solutions needed (Leonard-Barton & Kraus, 1985). Part II: Corporate Objectives and Pros and Cons In New Technology Adoption Processes The medical industry utilizes a large amount of new technology, starting with medical databases, which can be tied within the hospital intranet, or through medical libraries and other information repositories, accessed by many nurses, doctors, and medical researchers (Leonard-Barton & Kraus, 1985). One the needs fulfilled in recent years was how to get information quickly and efficiently, when working with patients who need solutions immediately while being examined at the medical clinic. A nurse must be able to provide an informative solution for a lifestyle adjustment for the patient, diagnose what is wrong with a patient, and prescribe medicine before the patient leaves the clinic that day. The Mobile Device Implementation Mobile devices were implemented into the medical system in 2002, notably the Blackberry, then the Apple iPhone in 2007. Nurses and doctors now could easily access information from many different sources in order to come up with those solutions. Along with this, software developers began devising applications (apps) which would provide immediate access to whichever database was needed, to obtain the right solution (Ventola, 2014). Some of these apps are attached to time management, health records and maintenance, communications and consulting, reference and information gathering, patient management and monitoring, information and decision-making central areas, and medical training and education sites. Rather than having to run back to the office where the computer is installed, the medical staff can now take a moment aside to access the needed apps, compile notes, and obtain the latest relevant information that fits the criteria of the patient, and provide a solution, accordingly. In a fast-paced environment, encompassing hundreds of patients seen daily, the mobile device has proven to be a very successful new technology implementation. That has also caused growth in other areas, such as coding and categorizing medical information more effectively, so that search terms can be used to find what is needed. The figure below shows the numerous applications that can be applied to the clinical infrastructure that reduces time (and stress) when trying to find the right information, and for filling out forms in patient records. Now, the information is entered into the mobile device and sent immediately into the records system, bypassing laborious hours spent doing everything by hand (Ventola, 2014). Mobile Devices and Apps for Health Care Professionals: Uses and Benefits (Table 1, Ventola, 2014, p. 358) Apple created a special division called the ‘Apps for Healthcare Professionals’ in 2011, which could be accessed through the iTunes Appstore, and was later developed into subcategories, which included references, medical information, nursing information, patient education and personal care, patient monitoring, and emergency medical response (EMR) access (Ventola, 2014). Google has also branched into medical apps, which can be accessed through its Google Play store and can be downloaded onto android phone and pad devices, as well as Apple platforms. Some of the time management and information apps used are Evernote and Notability, two programs which capture screen shots, photographs, and also notes capabilities. E-books can also be accessed, which have interactive capabilities for highlighting and underlining text. Collected information can be stored on a cloud service, along with file-sharing capabilities, thus providing medical staff the opportunity to confer on a case simultaneously, offer opinions and knowledge immediately, from any part of the world. Cloud services, such as Dropbox, Google Drive, Google Docs are free services, but while they have reasonable security, not all cloud services are suitable for such information as patient records and other sensitive information (Ventola, 2014). X-rays and other medical images can also be accessed, using Mobile MIM, which is approved by the Food and Drug Administration. Texting or calling medical personnel on their mobile devices has also saved on critical time lost, when doctors are being accessed for emergency cases. Medical personnel can also meet online to discuss a patient and his or her symptoms, rather than trying to meet up in an office, saving valuable time that can be spent elsewhere. In some cases, patients with mobility problems who cannot get into the clinic immediately, can send pictures and information in to the health care provider (HCP), to get help (Ventola, 2014). Databases, such as MEDLINE, Medscape, PubMed and PubSearch, along with a few other journals, are easily accessed, although in some cases, there must be a subscription which many clinics and hospitals maintain for the staff. Drug references are also available at a tap on the mobile screen, including recommended dosages and the drug’s ingredients, to ensure there is no allergic reaction. There are even apps, such as Diagnosaurus, that help diagnose an illness, based on the symptoms imputed into the search form. Some of those apps that help drive efficiency in the medical industry today, are list in Table 2 below (Ventola, 2014). Medical Apps for HCP Patient Management and Monitoring Diagnosaurus Differential diagnosis Pocket Lab Values Laboratory reference Lab Pro Values Laboratory reference Archimedes Medical calculator MedCalc Medical calculator Mediquations Medical calculator Calculate Medical calculator AHRQ ePSS Screening and prevention tool Medical education and training MedPage Today Continuing medical education QuantiaMD Continuing medical education (Table 2, Ventola, 2014, p. 360) The implementation of the mobile device, now in several different technological platforms, has meant that the medical industry works more efficiently and accurately, has less room for errors and makes better clinical decisions. The mobile device is also a great convenience, saving time and unnecessary travel, and the ability to keep better records, to be accessed as needed (Ventola, 2014). The Negative Side of the Mobile Device Implementation While a majority of HCPs have adopted the use of mobile devices, there are also those who refuse to integrate the device into their systems. Some of the reasons stated against the implementation is whether the device is reliable enough to assist in making medical decisions, whether there is enough patient-doctor privacy when records can be accessed on the device, and whether the device and its applications meet appropriate standards for the healthcare industry (Ventola, 2014). Training is essential in properly using the device to its fullest capabilities and also to know how to ensure privacy should the device be lost or stolen. It is not clear whether standard practices may require that mobile devices be locked up at the clinic or hospital at the end of the working shift, rather than letting the device leave the area for further use in a private setting. Also of concern, are whether the apps are designed to be hack-proof and whether privacy is still maintained outside the medical infrastructure? While hackers normally prefer to attack bank and the financial systems of large retail corporations, there can be a time when medical systems are hacked and data are destroyed or altered, thus highlighting, perhaps, the over-reliance on a technological system rather than regular brain-oriented know-how. The Ebola Diagnosis Scare In 2014, the first Ebola case was diagnosed in the United States, but not until it was initially overlooked during the patient’s first visit several days earlier. When the patient, Thomas Eric Duncan came back several days later in an ambulance, it was then discovered that there had been a breakdown somewhere along the chain of information flow, whereby the fact he came from Africa, should have triggered an alarm (McCann, 2014). To date, it still has not been determined where the failure lay: a medical personnel interpretation problem or a misconnection with the electronic health record system. Many in the medical professor who work with similar information systems in their own hospitals, claim that there are sufficient alerts, along with reminders and task notifications, which would mean that the problem lay elsewhere in the chain of communication. If it was a human error issue, then this means that further steps must be taken to ensure that all personnel know how to work effectively with incoming data in a potential diagnosis situation. As noted, the physician’s workflow was also available for review, from which the hospital administration could determine if the diagnosing doctor was heavily booked, did the diagnosis in a hurry, and to also determine the process he or she used to make that wrong diagnosis (McCann, 2014). The issue could also be as simple as someone in the IT department or on the system building team, did not activate a link that would supply doctors with a valuable travel history linkup. Out of any type of supply chain infrastructure, the medical profession is the most extensive, most complex type of supply chain, and vulnerable to human error, because even if the right information is given, the human factor of the doctor or nurse makes the final decision, as the last leg in the information chain (McCann, 2014). In retrospect, ongoing testing, evaluation and validation of all components of the health information system, must always be at the forefront of the medical community, including the IT group that maintains the technical side of the processing system (Ventola, 2014). It also means that medical personnel must check, and double-check, the operations and information they deal with on a daily basis. While it is wonderful to have access to so much knowledge, the missed diagnosis of Ebola highlights the heavy reliance on systems and how things can go wrong when there is a disconnect between a patient and the diagnosing doctor. Mobile devices have shown that they provide a valuable service, as it is the gateway to a wealth of information which can be accessed at will, when needed. Systems can only improve further and take advantage of new technologies as they are designed, particularly when they are created for the medical profession to address, and to overcome issues as they occur. Conclusion As shown in this paper, the introduction of new technology and processes within a company’s infrastructure, is far more complex than just saying that it should be done. There are many issues to be researched, the supply chain infrastructure must be addressed on all its levels and departments, and current processes must be evaluated to help set the initial design of the new technology system and implementation. The ability to share resources and information across multiple systems, and even across the world, provide an expansion of business through the use of technology, that could not have even been imagined 20 years ago (Fersht et al., 2011). Many companies also conduct joint ventures with other companies, in order to achieve goals, and some of what was once in-house functions, are now being outsourced to third parties. Planned Adoption of Shared Services and Outsourcing Drives (Fig. 3, Fersht et al., 2011, p. 3) To some degree, this cuts back on the opportunities of a company to know all the components of its business, and to determine new innovative ways of accomplishing goals. The opportunity for new technology implementation may be delayed a few years if the jobs are outsourced instead. Cost considerations and evaluation should be done to determine whether savings are more evident in outsourcing some of the jobs, as opposed to bringing the jobs back into the company and implementing a new technology system and process to handle the work instead. The following figure below shows only modest gains by using outsourcing engagements (Fersht et al., 2011). Business benefits beyond cost reductions, have been modest with outsourcing enagements (Fig. 4, Fersht et al., 2011, p. 4) However, in a global marketplace, outsourcing certain components, such as warehouses, production facilities, and delivery systems in other countries, may prove more effective, so long as everything is still connected at a central point through a technological supply chain system, whereby all information is readily at hand for review and analyses at any given time. The most important concept of innovation and new technology implementation, is being connected in all ways possible (Fersht et al., 2011); Resources Arshinder, K., Kanda, A., & Deshmukh, S.G. (2008). A review on supply chain coordination: Coordination mechanisms, managing uncertainty and research directions. International Journal of Production Economics (IJPE), 115(2), pp. 316-335. DOI: 10.1007/978-3-642-19257-9_3 Bellamy, A. (2007). Exploring the influence of new technology planning and implementation on the perceptions of new technology effectiveness. The Journal of Technology Studies (JOTS), 33(1), pp. 32-40. Retrieved from http://eric.ed.gov/?id=EJ847357. Berr, J. (9 December 2014). Why Amazon’s drone delivery service is a long way away. CBS Money Watch Online. Retrieved from http://www.cbsnews.com/news/why-amazons-drone-delivery-service-is-a-long-ways-away/. Brun, A., Bolton, S., & Chinneck, C. (2013). Benefits of aligning design and supply chain management. 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Retrieved from http://www.healthcareitnews.com/news/epic-pushes-back-against-ebola-ehr-blame-shifting. McCarthy, C., & Eastman, D. (2010). Change management strategies for an effective EMR implementation. Chicago: Healthcare Information and Management Systems Society (HIMSS) (Electronic). Retrieved from http://himss.files.cms-lus.com/himssorg/content/files/changemanagement.pdf. Overby, E., Bharadwaj, A., & Sambamurthy, V. (2006). Enterprise agility and the enabling role of information technology. European Journal of Information Systems, 15, pp. 120-131. Retrieved from http://www.palgrave-journals.com/ejis/journal/v15/n2/pdf/3000600a.pdf. Ventola, C.E. (2014). Mobile devices and apps for Health Care Professionals: Uses and benefits. Pharmacy and Therapeutics, 39(5), pp. 356-364. Retrieved from http://www.ncbi.nlm.nih.gov/pmc/articles/PMC4029126/pdf/ptj3905356.pdf. Read More