1. 02. Management Paradigm Shift & MITs Rev: Mar, 2014 Euiho (David) Suh, Ph.D. POSTECH Strategic Management of Information and Technology Laboratory (POSMIT: http://posmit.postech.ac.kr) Dept. of Industrial & Management Engineering POSTECH

2. Contents 1.Management environment 2.Motivation of Management Paradigm Shift 3.Evolution of Management 4.Paradigm Shift 5.Components of Paradigm Shift 6.Management Innovation Technique

3. 3 Management Environment New Trade Trend (WTO, FTA) New Trade Trend (WTO, FTA) Information -driven Society Information -driven Society Rapid Economic Growth Rapid Economic Growth Shortened Technology Life Cycle Shortened Technology Life Cycle Interdisciplinary Industrial Structure Interdisciplinary Industrial Structure Open Domestic Market Open Domestic Market Increased Customer Demand Increased Customer Demand Increasing Global Competition Increasing Global Competition Skyrocketed Importance of Strategic Management Skyrocketed Importance of Strategic Management Globe-driven Customer-driven Information-driven Technology-driven

4. 4 Motivation of Management Paradigm Shift ■Main motivations leading to management paradigm shift Management Paradigm Shift Management Paradigm Shift Technology -driven Information -driven Customer -driven Globe -driven

5. 5 Evolution of Management Taylor: “Scientific Management” Fayol: “Administrative Management” Ford: “Mass Production” Mayo: “Human Relations Approach” 1900

6. 6 Evolution of Management Taylor: “Scientific Management” Fayol: “Administrative Management” Ford: “Mass Production” Mayo: “Human Relations Approach” Computer “ENIAC” Efficiency Automation (Production and Work) Function- Oriented 19001946

7. 7 Evolution of Management Taylor: “Scientific Management” Fayol: “Administrative Management” Ford: “Mass Production” Mayo: “Human Relations Approach” Computer “ENIAC” Efficiency Automation (Production and Work) Function- Oriented 19001946 Database TQM JIT KANBAN Effectiveness 1970

8. 8 Evolution of Management Taylor: “Scientific Management” Fayol: “Administrative Management” Ford: “Mass Production” Mayo: “Human Relations Approach” Computer “ENIAC” Efficiency Automation (Production and Work) Function- Oriented Database TQM JIT KANBAN Effectiveness PC Strategic Management Decision Support Executive Information 1900197019811946

9. 9 Evolution of Management Taylor: “Scientific Management” Fayol: “Administrative Management” Ford: “Mass Production” Mayo: “Human Relations Approach” Computer “ENIAC” Efficiency Automation (Production and Work) Function- Oriented Database TQM JIT KANBAN Effectiveness PC Strategic Management Decision Support Executive Information ERP BPR - Reengineering Process- Oriented Learning Organization 19001970198119901946

10. 10 Evolution of Management Taylor: “Scientific Management” Fayol: “Administrative Management” Ford: “Mass Production” Mayo: “Human Relations Approach” Computer “ENIAC” Efficiency Automation (Production and Work) Function- Oriented Database TQM JIT KANBAN Effectiveness PC Strategic Management Decision Support Executive Information ERP BPR - Reengineering Process- Oriented Learning Organization Internet Knowledge Management Customer Power CRM SCM EC MC UC 190019701981199019462000

11. 11 Evolution of Management Taylor: “Scientific Management” Fayol: “Administrative Management” Ford: “Mass Production” Mayo: “Human Relations Approach” Computer “ENIAC” Efficiency Automation (Production and Work) Function- Oriented Database TQM JIT KANBAN Effectiveness PC Strategic Management Decision Support Executive Information ERP BPR - Reengineering Process- Oriented Learning Organization Internet Power Knowledge Management Customer Power CRM SCM EC MC UC SNS Smart phone Global Network Service Management 1900197019811990194620002010

12. 12 Paradigm Shift Old ParadigmNew Paradigm Product-drivenCustomer-driven Function-orientedProcess-oriented RegionalizationGlobalization (Glocalization) EfficiencyEffectiveness Product QualityConformance Quality Sequential EngineeringConcurrent Engineering ReactiveProactive Quality-basedTime-based Internal BenchmarkingFunctional Benchmarking AutomationReengineering Economies of scaleHi-tech Mass productionMass customization

13. 13 Management Innovation Technique(MITs) (1/2) ■Definition –Various Techniques for Management Innovation to Accommodate the Paradigm Shift and the Business Environmental Changes ■Management innovation changing ways of business –Business Process Reengineering(BPR)/ Enterprise Resource Planning (ERP) –Downsizing: Resizing, Rightsizing –Restructuring: Spin-off, Spin-out, Outsourcing –Benchmarking: Internal, Functional –Concurrent Engineering(CE) vs. Sequential Engineering –Logistics Innovation –EIS/DSS/ESS –Time-based Competition vs. Quality-based Competition

14. 14 MITs (2/2) ■Management innovation using mind building in organization –Strategic Management / SIS –Value Engineering (VE) –Corporate Identity (CI) –Vision Making (VM) –Knowledge Management (KM) ■Management innovation using Technology innovation of IT –Supply Chain Management (SCM) –Customer Relationship Management (CRM) –Electronic Commerce (EC) –Mobile Commerce (MC) –Ubiquitous Computing (UC) –Social Network Services (SNS) –Smart Phone Evolution