15.566 Information Technology As An Integrating Force in Manufacturing

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15.

566

Information Technology as an Integrating

Force in Manufacturing

Session 5 of 24

MASSACHUSETTS INSTITUTE OF TECHNOLOGY


Sloan School of Management
Class Slides

Prof. Brian Subirana

Prof. Brian Subirana, MIT Sloan School of Management


THE MIT VIEW OF THE FIRM

ORGANIZATION’S VALUE PROPOSITION


INFORMATION
INFORMATION PROCESS
PROCESS MATERIAL
MATERIAL
VALUE
VALUE VALUE
VALUE VALUE
VALUE

ORGANIZATION’S ARCHITECTURE

DEEP STRUCTURE
OF
BUSINESS PROCESSES

DESIGN
COMPUTER BUY MAKE SELL
HUMAN
ACTIVITIES MANAGE
ACTIVITIES

TECHNOLOGY

MACHINES & MATERIALS PEOPLE


(Prof. Brian Subirana
and Prof. Thomas
Malone, 2002.)
ENVIRONMENT
Prof. Brian Subirana, MIT Sloan School of Management
PROGRAM PROCESS
Read label length Get # parts

X=label length X=# parts

Read character Assemble next


Append to string part

X=x-1 X=x-1

X=0? X=0?

Print string label Print label and


Ship assembled product

Prof. Brian Subirana, MIT Sloan School of Management


GENERIC IT ARCHITECTURE ABSTRACTION STACK

SOFTWARE
Coordination activities
FRAMEWORK
PROCESS MANAGEMENT
WORKFLOW

Base activities
PROGRAMMING LANGUAGE
APPLICATION & SERVICE
PROTOCOL
DATA
OPERATING SYSTEM

HARDWARE
NETWORK
MACHINE
COMPONENT

Prof. Brian Subirana, MIT Sloan School of Management


ENVIRONMENT
A “Real” Computer Architecture

Keyboard Clock

Mouse
CPU
001
Instructi on
Counter

0101

1101

Registers

Monitor Memory

Laser printer

Prof. Brian Subirana, MIT Sloan School of Management


Enterprise Networking Architecture

See: Laudon & Laudon, Management Information Systems:

Organization and Technology, Prentice Hall, 1998

Prof. Brian Subirana, MIT Sloan School of Management


Baxter 1996 spin-off

• 20,000 people
• $4,5B sales 1995
• up to 80% of hospital supply needs
• American leading provider of “healthcare products and cost management systems”
• Relationships with hospitals saved up to 20% per surgical procedure

1999(*)
• Also in the laboratory segment and other non-hospital segments with special fees for value
added services and delivery options
• built 6 supercenters (NY, Texas, Illinois, Georgia and California)
• 50 other facilities
• Through valuelink, 60 percent of deliveries were low unit (even to hospitals)

(*) Source: Interview with Larry Rohrer, Allegiance

vice president, Medicaldistribution.com 1999

Prof. Brian Subirana, MIT Sloan School of Management

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