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Business Plans for Non Profit Organizations

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Business Plans for Non Profit Organizations Powered By Docstoc
					From Information Management
  to Knowledge Management

        Yale Braunstein
          June 2004
                Background - 1
 Information management is central:
     to the collaboration of groups of individuals
     to the mission of organizations of all types
      (businesses, education, and government)
     to geographically centralized and
      distributed communities
     and to society as a whole.
 While this predates modern information
 technology, computing and especially
 networking have vastly expanded the
 importance of information to these social
 contexts.
              Background - 2
 Largely as a result of these technologies,
 information has become:
   less centralized
   more widely distributed
   chaotically organized
   overwhelmingly plentiful.

 This places a premium on ways to distribute
 the management of information, to turn chaos
 into organization, to identify targeted or useful
 information.
           Background - 3
While IT is responsible for creating
 problems, it is also a major hope for
 solutions.
Both centralized and distributed
 information collections can be much
 more effectively organized.
This allows individuals, groups,
 organizations, communities and society
 to leverage their information assets.
Putting this into Historical Perspective




                                                        TIME         
    Complete autonomy
        Self-sufficiency
    Serfs & guilds
        Role of trade
          – necessary for improved standard of living
          – Hanseatic league as early form of
            decentralization
    Mass production
    Multi-plant / multi-market mass production
    Decentralization
    Virtual offices
    Virtual organizations
       Where to firms come from?
          (Modern theories)
 Coase: ―Theory of the Firm‖
     Role of transactions costs
 Stigler: ―Economies of Scale is Limited by the
 Extent of the Market‖
  Interplay of production technology and mass
   market possibilities
     Markets vs. Hierarchies

Internal production

External production (out-sourcing)

      Role of information and IT
    Information Management:
     Themes and Challenges
1. Digital networks and organization

2. Information management and
  knowledge management.
3. Business planning for the introduction
  of IT to organizations
4. Managing change
       1. Digital Networks
How are digital networks changing the
 organization and management of
 systems (e.g., information flows and
 publication) and enterprises (e.g., for-
 profit business and non-profit
 organizations—NGOs)?
Case study: How does decision making
 by groups meeting face-to-face differ
 from decision making by virtual
 groups?
       2.    IT and Organization
 How is information technology changing:
     information management = the basic
      information process of organizations
      (e.g., budget, inventory, personnel, etc.)?
      knowledge management = the basic human
      skills and social relationships of
      organizations (e.g., collaborative work,
      career management, communication with
      customers)?
     the structure of organizations, and
      relations between them?
        3.   Business Planning

 The introduction of IT to organizations
  implies change, therefore the need for
  strategic planning, management and
  communication.
     New business models for organizations
     Methods for gathering information
     Building for-profit & non-profit budgets
     Creating business plans
       4. Managing Change

How can the implementation of
 information technologies be managed:
   To avoid stress and conflict?
   To encourage innovation?
   To optimize career development?
    Information Management
     As Part of Management
 Venkatraman’s postulate: Management is
 evolving from a command paradigm to the
 communications paradigm. This leads to:
   flatter organizations
   more local autonomy
   management by coordination rather than
    command and control
 Information management has rationalized the
 organization, but real time network
 communication is changing it fundamentally:
   from hierarchy to enterprise (networks of
    self managed enterprises that operate like
    an internal market system).
       Networks Are Strategic
 Walter Powell’s argument:
     Networks are changing the firm and its
      environment, such as from from EDI to
      B2B
 Different ways to focus on the network:
     Rosegger: strategic alliances
     Powell: networks and firms
     Cisco: “web enterprises”
   New Models of Management



All of the above has led to the design
 and analysis of new approaches to
 management
The Firm As an Experimental Machine.
  Eliasson: Key knowledge is ―know how,‖
   tacit knowledge that cannot be
   communicated, but is based upon
   experimentation in the marketplace.
  The organization of this experimental
   learning is the key to innovation:
     ―the competent team‖ is the key
     the market is being continuously
      reinvented
  Rosegger: knowledge acquisition has
   become the heart of enterprises
Eliasson’s Entrepreneurial Model of
         Decision Making
  Strategic selection by top competent team,
  answering “What?,” based on career
  experience knowledge
  Control & coordination by executive staff,
  answering “In what order?,” based upon
  expertise from professional education
  Operations, by managers, answering
  “How?,” based upon training and
  experience.
            Competency (Eliasson)

 The competency of organizations is a function of
 knowledge management, e.g., entrepreneurial
 vision, experimental attitude towards markets,
 career management
     Sense of direction (intuition)
     Daring (risk-willingness)
     Efficiency in identifying mistakes (analysis)
     Effectiveness in correcting mistakes (activity)
     Effectiveness in managing (coordinating) successful
      experiments
     Effectiveness in feeding acquired experience back into a sense
      of direction.
                “The Career”

 Eliasson’s model of the firm requires a theory of
 the career, since tacit knowledge acquired by
 experience is the basis of entrepreneurship.
 One of the key tasks of management is to
 provide a logical sequence of jobs to develop
 this capability.
      Fahey: Three Dimensions
      of Strategic Management


Competitive environment = Marketplace strategy
Managing the organization = Making & executing
                            choices
Strategic Management   = Balancing the two
              Investment

IT involves investment. Understand the
 business model, culture, and decision
 making process of your organization to
 figure out the politics of IT investment.
 (a) internal reallocation
 (b) loans
 (c) venture capital formation
          KM is broader than IM
 Relation to "flows" and "stocks" ?
     IM = managing flow of information
     KM = managing stock of knowledge
 KM is "the task of developing and exploiting an
 organization's tangible and intangible knowledge
 resources" (J. McCune, 1999)
   Tangible assets = patents, licenses, customer
    lists, competitive info, etc.
   Intangible assets = knowledge possessed by
    employees (experiential, etc.)
(Others distinguish between explicit and tacit knowledge)

				
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