Technologies And Tasks In The Publishing Industry
22-Dec-06
INTRODUCTION
Here we report a message which appeared in a forum of finance from an important Italian Bank call center:
“Is there a financial promoter of the Bank AA in the forum that can help me? I need some information about a new bank account for trading. I have already contacted the call center and I have asked few trivial questions, but if you ask something which is different from the standard, the operators are completely unable to request.”
This anecdotal story shows a weakness of today’s call centres, especially in the financial service industry: customer service quality and responsiveness depend not only on the competencies and skills of the operators, but more and more also on the technologies which support their tasks. The diffusion of information technology has improved the efficiency and efficacy of customer service through web-based technology and other information technologies which have enhanced the ability of operators to quickly respond to customers needs. However, despite these improvements, the technologies which support call centre operators are often planned to help only with simple standardized questions. They are not able to provide answers to more complex, non-routinary questions.
Organizations sometimes fail in choosing the right technologies to support certain tasks or business processes. As in the case of the call center, operators do not handle the right sources of information, in order to respond to customers’ questions.
The problem of the link between IT investments and business performance has been extensively debated both by academics and practitioners. One of the key to understand the impact of IT is to study the link between IT and the organization and, specifically, the link among organizational tasks and processes and IT functionalities. Organizations which understand how to fit technologies and organizational tasks are able to support and improve business processes and to fully exploit the potential of IT. The problem of fitting task characteristics with information technologies is often ignored by firms at micro-level (individual and work group level) because it requires a micro-analysis of the functions of information technologies.
We aim at lighting some shadows on the real effectiveness of IT investments, in order to explain how certain organizations have better performance than others using the more feasible technologies to support their processes.
TECHNOLOGY USAGE: CONTEXT AND CHALLENGES
Many challenges exist for small and medium enterprises and one of the most important is ineffective technology utilization. This theme is common with many other industries. A recent research conducted by Microsoft, for instance, underlines that many small businesses are falling behind in adopting effective technologies and in implementing the right ITs for important business functions. A senior manager of Microsoft has concluded that:
“Over the last five years, business has spent too much of its IT budget on the purchase of ineffective departmentally focused data interrogation tools”
In the next section, we will introduce a framework of research in order to deepen the above issues of technology adoption and usage in the publishing industry. Our research had three objectives: identify the most used technology, identify the role of KM technology, and verify if best performer firms are those with the higher technology usage.
The research focused on the link among organizational processes and technology usage. The task technology fit framework, which has been used as theoretical reference, is a critical construct that highlights the importance of fit between the technology and the task to be performed as predictor of individual and organizational performance.
The framework posits that information technologies, and especially knowledge management technologies, have a positive impact on organizational performance only when technology usage is high, which, in turn, is influenced by the correspondence between technological functionalities and the task requirements of users. This approach considers technology as made up of features and tools which support business processes, and individual or collective tasks. Users seem to view technology and information systems as a set of tools which assist or hinder them in the performance of their task. As information requirements increase, users respond more strongly to those IS features that meet the task demands, needs and preferences.
THE PUBLISHING INDUSTRY
During the last two decades the development and diffusion of information technologies and the rapid growth of the Internet had a strong impact on many service industries. The publishing industry that is actually shaping is a technology-enabled publishing industry made up of technology-enabled media companies.
Traditional editors have to compete with technology-enabled media companies such as Yahoo, Google, AOL, Amazon. IT has profoundly changed the creation, development and selling of publishing products. Digital content, news portals, online subscriptions and e-commerce, but also blog, podcast, and RSS (Really Simple Syndication) have change the roles of the firms and the rules of the market.
The characteristics of the publishing market make it feasible for the commercial Internet.
- The market has very low barriers to entry.
- As market concentration grows, market niches also increases in number and the amount of small and hyper-specialized publishers increases. In the book segment of the Italian market there are still thousands of publishers, ranging in size from those who publish only a single book to those who publish thousands.
- There are not any significant proprietary technologies in the industry and the most common technology, both for production and marketing, are available to every firms.
- The value chain of the industry is large and segmented. It is made up of authors, who produce contents, and of papermaking and printmaking who offers products and service to the publishers. The publishers edit and screen the content to add value, develop marketing campaigns, and build networks of distribution relationships.
- Distribution channels may vary from bookshops, large scale retail outlets, newsstand and e-commerce channels. There appears to be a consolidation of the trend towards ever greater articulation of the bookshop channel among independents, small bookstores, bookshops located in shopping centres and chain stores.
It is noticeable that the growth of internet and e-business applications has three major effects on the structure and size of the market:
- Expands market dimensions through the development of new products,
- Shifts its boundaries through advertising,
- Multiplies selling channels.
HOW FIRMS VIEW TECHNOLOGIES
A rapid technological evolution seems to characterize the Italian publishing industry. Although many CEO, especially among small firms, consider technology as a threat for their actual competitive position more than an opportunity (many of them operates in market niches). The Web is considered by most of the CEOs as an important infrastructure and most of firms have e-commerce application (less firms use e-procurement).
It is possible to use different metrics to assess technology performance.
Some metrics refer to the adoption of common standard, the IS security, the interoperability and the scalability. However, these technological features are often invisible to end-users because are referred to the whole information systems.
During our research, we discover that the perception of users about the capability of the technology refers to different features. Here we named the most significant:
- information seeking capabilities,
- knowledge management capabilities,
- media communication richness,
- presentation richness capabilities,
- process support capabilities.
Based on the above features, we have clustered the most common information technologies into six categories:
- information seeking technologies (for instance: Google, ...),
- knowledge management technologies (KM systems, individual and organizational EPSS, organizational databases, etc.),
- communication technologies (mail, chat, voicemail, videoconferencing, etc.),
- web-based e-business technologies (e-commerce, e-procurement, e-CRM),
- office automation technologies,
- process support technologies (technologies, such as ERP or workflow management systems, which are primarily thought to structure information and work flows).
Although many technologies obviously fall into more than a category, it is possible to choose one category, according to users’ perception of their core function. Thus, these categories has been compared with those used by professional portals such as Computer World[1], Technology Evaluation Center[2] and ITAA[3] and has been discussed with the CIOs of two publishing firms and with the research study of AIE (the Italian Publishing Association).
THE ROLE OF THE TASK TO BE ACCOMPLISHED
Organizational processes can be classified according to their nature. Here we refer to six broad and common business processes of publishing firms, as it can be seen in Table 1. We have discussed the nature of the processes with managers of publishing firms. Thus, we have classified these business processes according to three variables: the equivocality of information required to accomplish the process, the uncertainty of the workflow, and the degree of variety of the activities. This procedure can help to identify those technologies which can primarily support process performance.
|
|
Equivocality |
Uncertainty |
Variety |
|
Administrative Process |
Low |
Low |
Low |
|
New content development |
High |
Low |
High |
|
Logistic & Distribution process |
Low |
High |
Low |
|
Event organization (e.g. book-fair) |
High |
High |
High |
|
E-commerce & e-marketing activities |
High |
Low |
Low |
|
Copyright management process |
High |
High |
High |
Table1. Process characteristics
EMPIRICAL EVIDENCE
Here in the following we have reported the process-technology matrix which has been used to understand the results. As shown in Table 2, we aim at building a process-technology matrix for each firm, in order to identify those technologies which are extensively used to support certain process. We have collected data from different managers of each firm (al least two per firm) and, according to the data they have provided us, we have build the matrix. Data has been collected with a five-point like scale (from 1 if technology has very low utilization to 5 if technology is indispensable to support the process)
In the matrix, we have marked as “high” the process-technology dyads which report a technology utilization above the average.
|
|
Administrative Process |
New content development |
Logistic & Distribution process |
Event organization (e.g. book-fair) |
E-commerce activities |
Copyright management process |
|
Communication technologies |
high |
|
high |
|
|
|
|
Knowledge management technologies |
|
high |
|
high |
|
high |
|
Information seeking technologies |
|
high |
|
high |
|
|
|
Office automation technologies |
high |
high |
|
|
|
high |
|
Webserver & web-based applications |
|
|
|
|
high |
|
|
Process support technologies |
high |
|
high |
|
|
|
Table 2. Process – Technology Usage Matrix
Performance assessment
We have measured the contribution of IT to the competitive position of the firms as a two-dimensional variable which depends on the satisfaction for the actual competitive position and the perceived contribution of IT to the competitiveness of the firm.
Low perception of the contribution of IT to the competitive position
The 62% of the firms is satisfied for their actual competitive position while only the 47% of the firms affirm that IT has a positive contribution for their competitive position.
Moreover, only the 25% percent of the firms consider the contribution of IT at least the same level of the actual competitive position of the firm (e.g. those firms that perceived a positive contribution of IT compared to their actual competitive position). Two result can be interpreted in two way: IT doesn’t matter, e.g. IT is not a competitive weapon but rather a new competitive infrastructure which is common for the whole industry; second reading is that, despite the important contribution of IT, managers have few and inaccurate tools to evaluate the return of IT investments and tends to undervalue the contribution.
THE ROLE OF KM TECHNOLOGIES
The role of KM technologies appears to be predominant for best performers firms.
Best performers use KM to support complex, non-routine processes
It is interesting to compare the firms that perceived a positive contribution of IT (which we consider the “IT best performers”) with the others, in order to find out differences in technology utilization (especially KM technology). Empirical evidence shows that best performer firms make more intensive use of KM technologies for three categories of processes: new content development, book-fair and events organization, and intellectual property right management. These three process have high information equivocality and variety. This means that the activities performed often vary because it is difficult to establish a standard procedure for the task. Moreover, information and signals that comes from markets and from the environment, are often equivocal and difficult to interpret. KM technology offer a special support to this task because of their flexibility and their ability to act as an organizational memory.
Lessons from evidence: Knowledge of the process versus task programmability
The results show that when tasks are programmable and measurable, process support technology and office automation are extensively used by most of the firms.
But when uncertainty increase, activities can not be programmed and outcomes are unclear and equivocal, organizations which perform better are those which use KM and information seeking technology in order to reduce equivocality and uncertainty.
Best performers firms of our sample make a more intensive use of KM technologies for those processes which are difficult to plan. Far for programming complex tasks, they seem to develop a knowledge of their processes, which let them have superior performance. KM technologies strengthens or accelerates the comprehension of the target work processes.
On the contrary, many other firms of our sample seem to use the same technologies to support both programmable and non-programmable tasks.
There’s a significant practical difference between task programmability and knowledge of the process. Task programmability refers to the ability of an organization to develop tools, procedures and control systems in order to plan and control certain business processes. Task programmability can require process support technologies which aim at controlling information flows across the organization. On the contrary, knowledge of the process refers to ability of an organization to understand and support tasks which are, by nature, complex, uncertain and equivocal, with KM technologies.
Cost and benefits
Our results refine our managerial knowledge about the value of IT.
The costs that decision makers face to retrieve information, the necessity for senior managers to better justify the cost complex KM infrastructures can be pay off by an improved competitive position which is essential to survive in an industry that is facing great changes. The growth of its use is essential to create new strategic and value creating opportunities for the firm while enhancing cost and risk management controls.
References
Details
- Author:
- Fulvio Iavernaro
- Publisher:
- KnowledgeBoard
- Date:
- 22-Dec-06
- Categories:
- Technology
- Sections:
- Home
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