General arguments on those issues will be mentioned first in each section below. However, NTT DoCoMo, a Japanese telecommunication company, will be employed as a case study to further demonstrate the implementation on each issue. As a result, it concludes how NTT DoCoMo has responded to its Information System into their business paradigm. Japanese telecommunication company called NTT DoCoMo is chosen as the case study in this report. Why chose NTT DoCoMo?
On the list of “World’s 400 Best Big Companies” published by the Forbes.com, (Forbes.com April 10th, 2003) NTT DoCoMo is 11th after Cisco Systems. It is interesting because Japan is the only Asian country that ranks in the top fifteen. Other than the United States and United Kingdom companies, Japanese company is the first that stands a place on the list. For a small nation like Japan with approximately 127 millions of population (People Facts December 30th, 2001), NTT DoCoMo has a market cap of $94,341 mil, which is more than one third of the top 1 company, Microsoft.
Thus, it is decided to choose NTT DoCoMo and look into how it responded to the Information Systems into its business archetype and leads to its success. These points conclude that IT has reduced a large amount of time that managers use in the decision-making process. For instance, a manager of NTT DoCoMo might need two personal assistances to do a market research for two weeks on the new i-mode project before setting it up to the actual market. Through the help of web-based intelligent agent, the manager can now do it by himself with a shorter scale of time. As well, during the awaiting of information gathering process, the manager is able to work on the other new research and development project. Cost and time on work undoubtedly decline because the resultant job efficiency by the implementation of Information Technology in this scenario.
However, IT may have negative impacts on another major duty of managers. The leadership style in old time might through the interpersonal communication such as face-to-face channel. In 2004, it is more likely that a manager of NTT DoCoMo communicate with subordinates through e-mail and computerized conferencing. The lack of physical appearance might lessen the effectiveness during the communication process nowadays. As Goleman mentioned that “interpersonal skills… emotional intelligence-the capacity to manage emotions well-is twice as important to success in the workplace as IQ and expertise” (Goleman, 1998). Therefore, it is recommended that the managers pay attentions on their leadership qualities because interpersonal skills on workplace determine the success in the workplace.
Structure, Authority, Power, Job Content, Employee Career Ladders & supervision A list of impacts of IT from Turban, Mclean and Wetherbe’s theory (2004, Chapter 16) is summarized below. This list is able to demonstrate quickly the meaning of IT may change organizations in its structure, authority, power, job content, employee career ladder and supervision. Many of those impacts in organizations ignite chain reactions on individuals at work. Thus, the scenario of NTT DoCoMo will be brought in on Section 3.3 to best draw the relationship between them.
Flatter organizational hierarchies IT increases span of control (more employees per supervision), increases productivity, and reduces the need for technical experts (due to expert systems). Fewer managerial levels will result, with fewer staff and line managers. Reduce in the total number of employees, reengineering of business processes, and the ability of lower-level employees to perform higher-level jobs may result in flatter organizational hierarchies.
Centralization of authority Centralization may become more popular because of the trend toward smaller and flatter organizations and the use of expert systems. On the other hand, the Web permits greater empowerment, allowing for more decentralization. Changes in power and status Knowledge is power, and those who control information and knowledge are likely to gain power. The struggle over who controls the information resources has become a conflict in many organizations. In some countries, the fight may be between corporations that seek the use information for competitive advantage and the government (e.g., Microsoft vs. the Justice Dept.).
Changes in job content and skill sets Job content is interrelated with employee satisfaction, compensation, status, and productivity. Resistance to changes in job skills is common, and can lead to unpleasant confrontations between employees and management Shorter career ladders In the past, many professionals developed their abilities through years of experience and a series of positions that exposed them to progressively more complex situations. The use of IT, and especially Web-based computer-aided instruction, may short-cut this learning curve.
Changes in supervision IT introduces the possibility for greater electronic supervision. In general, the supervisory process may become more formalized, with greater reliance on procedures and measurable (i.e., quantitative) outputs and less on interpersonal processes. This is especially true for knowledge workers and telecommuters.