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Assignment

Student Name

University Name

Operational Excellence

Professor Name

Date
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1. The productivity paradox is a phenomenon in which increased investment in

information technology (IT) does not necessarily lead to increased productivity. It seems

counterintuitive that investing more money and resources into IT would not improve

efficiency, but studies have shown this to be true. One explanation for the productivity

paradox is that many organizations focus solely on implementing new technologies without

considering how they will affect their overall business processes. For technology investments

to truly improve operational excellence, they must be integrated effectively with existing

systems and workflows.

2. Carr argues in Does IT Matter that information technology has become an essential

and ubiquitous part of modern business operations. Still, it no longer provides a competitive

advantage for companies. Carr asserts that IT infrastructure is now readily available to all

businesses at a relatively low cost, so there is nothing unique or advantageous about its

implementation. Carr argues that companies should focus on operational efficiency rather

than investing further resources into their IT systems. Furthermore, Carr suggests that the

rapid obsolescence of technology renders long-term investment strategies futile and

potentially harmful to profitability. Companies are forced to constantly replace existing

hardware with newer models despite enjoying only short-lived benefits from such

investments.

3. The 2008 study by Brynjolfsson and McAfee is different from previous studies in

that it focuses on the impact of technology on productivity, specifically through the adoption

of information technologies. The authors argue that technology has created new opportunities

for businesses to improve operational excellence through process automation, data analysis,

and improved communication. This study also highlights technological advancements such as

cloud computing, big data analytics, and artificial intelligence-powered decision-making

tools as key drivers for increased efficiency and effectiveness. In contrast, with prior
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technological advancements like steam engines or electricity, which had a more tangible

presence in factories or equipment upgrades, modern-day technologies are often invisible yet

profoundly impact organizations.

4. In today's global market, competition is fierce, and businesses must constantly

strive for a competitive advantage to survive and thrive. Competitive advantage refers to the

unique attributes or strategies that give a business an edge over its competitors within the

industry. Operational excellence plays an integral role in achieving this advantage.

Businesses can gain significant advantages over their rivals by optimizing processes,

increasing efficiency, cutting costs, and raising quality standards. They could produce faster

with fewer errors or provide superior customer service at reduced rates than others.

5. Michael Porter coined the Value Chain to describe the systematic process of adding

value to customer products and services. It includes inbound logistics, operations, outbound

logistics, marketing/sales support, and service support. Primary activities in this chain are

receiving raw materials from suppliers while assuring quality standards are met for

production. Operations involve turning these raw materials into finished goods using

assembly/manufacturing processes involving human labour or machines. Outbound logistics

refers to transportation from factories/warehouses directly to retailers/distributors or

customers marketing/sales support may also play a vital role.

6. The Internet's rise has had a lasting effect on industries around the globe, with some

businesses capitalizing on technological advancements to drive profits. In contrast, others

struggled to adapt and remain competitive. When considering industry profitability, its overall

effect has been mixed, while on the one hand, it provided businesses with new growth

opportunities through e-commerce platforms and advertising networks. Some even reached

new audiences while cutting overhead costs associated with traditional brick-and-mortar
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operations. However, not all sectors benefited equally from digitalization. Some industries

that rely heavily on physical storefronts or outdated business models may be disadvantaged in

an increasingly virtual world.

7. Electronic Data Interchange (EDI) is a process in which two or more computer

systems exchange documents automatically. This electronic communication eliminates the

need for human intervention and greatly reduces errors commonly associated with manual

data entry. The EDI system has three main components translation software, communications

software, and message standards. Translation software converts different file formats into one

standard format that can be interpreted by both systems involved in the transaction.

Communications software moves these formatted files between computers using an agreed-

upon protocol such as File Transfer Protocol (FTP). Message standards ensure that

information exchanged between parties uses common definitions of terms to avoid any

misinterpretation which could result from differences in terminology used by various trading

partners.

8. One example of a semi-structured decision is selecting a new software system for

an organization. This type of decision involves some degree of structure, as parameters and

criteria may need to be considered during the evaluation process. However, there can also be

subjectivity regarding how important each criterion is and what trade-offs must be made

between competing options. To assist in making this decision, several inputs are necessary.

Identifying all relevant stakeholders who will use or interact with the software system is

essential. Their requirements should guide which functionalities are prioritized and evaluated

during vendor demos. Technical specifications such as integration needs with existing

systems and compatibility with hardware configurations should also factor into evaluations if

they align closely enough with stakeholders' expectations.

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9. Operational excellence is a management philosophy that strives to achieve higher

efficiency, productivity, and effectiveness by integrating various resources of an organization.

One crucial aspect of achieving success in operational excellence is the ability of business

teams to communicate effectively within themselves and with other relevant parties. This can

only be done through implementing collaborative information systems. Collaborative

Information Systems (CIS) are digital tools used for communication between different

functional areas or departments within an organization and external stakeholders such as

suppliers, customers, or strategic partners. These systems provide evidence-based data which

helps in real-time decision-making aiming at faster priority-setting processes aligned to

operational objectives.

10. The role of Information Technology (IT) in gaining a competitive advantage has

become increasingly important as organizations strive to improve their operational

excellence. According to the 2008 article by Brynjolfsson and McAfee, IT can play various

roles in increasing an organization's competitive advantage. Firstly, by automating tasks and

processes, IT can streamline operations and reduce costs, ultimately leading to higher

productivity. Moreover, IT enables an organization to collect vast amounts of data that could

be used for business analysis purposes. By analyzing this data with sophisticated tools such

as artificial intelligence or machine learning algorithms, patterns can be identified at micro or

macro levels, enabling organizations to make informed decisions supported by real-time

statistically proven analyses.

Exercise 1

In the article IT Doesn't Matter, Nicholas Carr argues that technology has become a

commodity and offers no strategic advantage to firms. He believes companies should focus

on operational excellence to gain an edge over their competitors rather than invest in
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expensive IT systems. Carr's position regarding PC vs. Mac, Open Office vs. Microsoft

Office, and Microsoft PowerPoint vs. Tableau would likely align with this belief of focusing

on operational excellence rather than the latest technology trends. While he acknowledges

that new technologies may offer some advantages, he views them as short-term benefits that

do not translate into a sustained competitive advantage. Regarding PC versus Mac, Carr

would argue that both platforms are essentially interchangeable for most business functions.

Such as email communication or word processing tasks, and therefore, businesses should

choose the platform which is more cost-effective for them based on total cost of ownership

(TCO) considerations.

Regarding Open Office versus Microsoft Office, Carr might point out how both

software has nearly identical features when it comes to basic applications like word

processors or spreadsheet editors. Still, while mentioning its added extended features unique

according to each type of user group/module, they belong to based upon industry practices or

market needs. Therefore, again advocating choosing whichever option provides a better value

proposition regardless if it is proprietary solutions offered by the MS Office suite via TCO

Vs. Open-source, a free solution provided by OOS under GNU/GPL licenses. Carr's position

regarding PC vs. Mac is rooted in this belief. While some may argue that Apple's sleek design

and user interface offer a superior product, Carr would contend that the differences between

PCs and Macs are minor compared to the importance of streamlining operational processes.

(Li & Kumar, 2022).

Exercise 2

The author of IT Doesn't Matter, Nicholas Carr, has long been associated with the idea

that information technology (IT) cannot provide a sustainable competitive advantage for

businesses. Carr claims that as IT becomes more commoditized and widely available to all
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players in an industry, it no longer provides organizations with any meaningful edge over

their competitors. However, In recent years, Nicholas Carr's position on this issue seems to

have evolved somewhat. While he still maintains that IT alone is not enough to create

substantial differentiation between companies. Carr now argues that businesses can gain a

competitive edge if they use technology strategically with other factors, such as

organizational capabilities or unique business models.

Carr's position has evolved somewhat since then. He still maintains that IT

infrastructure is becoming commoditized and standardized across industries, meaning that

investment in new technologies will not necessarily provide a lasting edge over competitors.

However, he also acknowledges that there are strategic ways for businesses to leverage

technology for competitive success by using data analytics to inform decision-making or

creating proprietary software systems tailored specifically to their needs. Carr advocates for a

balanced approach where executives should keep technological and non-technological drivers

at play while making strategic decisions about leveraging modern tools (Distanont &

Khongmalai, 2020). Only then will companies be able to take full advantage of emerging

trends like big data analytics or artificial intelligence without becoming complacency due to

these advantages becoming mainstream. Overall, Carr's current view seems less absolute than

the earlier thesis. While he asserts that IT alone cannot guarantee competitiveness in today's

market, he allows for nuance based on how tools are used strategically within an

organization.

Exercise 3

Operational excellence has become an essential component of modern business

practices, resulting in the need for efficient collaboration tools. One such tool is WebEx, a

web conferencing platform that offers various features to facilitate communication among
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team members even if they are located remotely. WebEx provides several advantages that

contribute to effective collaboration. Firstly, it allows participants from different locations to

join using any device with internet connectivity and communicate via high-quality video or

audio calls. This feature ensures inclusivity within teams despite geographical barriers.

Secondly, users can share their screens during meetings for better visual aid and

understanding of complex ideas quickly. Thirdly, a virtual whiteboard makes brainstorming

sessions easier where every member participates equally regardless of location-based

challenges.

When comparing Webex with other platforms like Skype or Google Hangouts as

communication channels used mostly by casual individuals rather than enterprises. One thing

that sets them apart is scalability versus simplicity, which directly affects how many people

want to be involved. While Skype may be more suitable for smaller groups due to its simpler

interface, making quick conversations easy to navigate without needing advanced features

like webinar functionality in unified solutions. Google's wider range of options but limited

outlook customization gives enterprise creativity no matter what magnitude is being aimed

towards each project individually tailored trend-setting connective implementation success

desired accordingly (Amin & Sundari, 2020). In conclusion, operational excellence requires

seamless teamwork between employees, both internally and externally, across distances far-

reaching beyond boundaries through digital means. Tools such as WebEx offer these services

enabling flexibility while ensuring productivity remains unharmed.

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Reference

Li, B., & Kumar, S. (2022). Managing Software‐as‐a‐Service: Pricing and operations.

Production and operations management, 31(6), 2588-2608.

Distanont, A., & Khongmalai, O. (2020). The role of innovation in creating a competitive

advantage. Kasetsart Journal of Social Sciences, 41(1), 15-21.

Amin, F. M., & Sundari, H. (2020). Efl students' preferences on digital platforms during

emergency remote teaching: Video conference, LMS, or messenger application?

Studies in English Language and Education, 7(2), 362-378.