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Faced with the constant pressure from internal customers, who want answers to their problems on increasingly short order, based on the best possible expertise and at the lowest cost, Hydro-Quebec's IT Solutions Department (ITSD) decided to undertake a twofold structural change aimed at: 1) decentralizing the IT specialists to the IT business units; and 2) establishing a horizontal approach to knowledge management, which would allow the now decentralized specialists to maintain and develop their collective expertise remotely. This case study is written in three parts: (A) the issue that led ITSD to such a change; (B) the solution chosen; and (C) the implementation of this significant change.

Describes the company's year-long efforts to transition from a medical device company selling products to physicians for use with patients suffering chronic end-stage disease, to a medical technology company providing life-long solutions for people with chronic diseases. With the new vision setting direction, the CEO calls for business plans to implement that vision. Enables readers to analyze the business plan and make recommendations for funding.

Defines platform-mediated networks and introduces concepts central to their study. First, it defines networks and network effects; explains how network effects influence users' willingness-to-pay for network access; describes factors that determine the strength of network effects; discusses how a network's success may depend upon users' expectations about its growth prospects; defines network externalities and their significance; presents a taxonomy of networks based on the number of distinct user groups--sides--that they encompass; and explains why network effects should be viewed as demand-related rather than supply-related scale economies. Second, it defines platforms; describes different roles that firms play in platform creation and maintenance; discusses platform boundaries, for example, the distinction between platform providers and network users; and presents schemes for categorizing platforms based on their principal function, the structure of the networks they serve, and who controls them.

Engineer John Harrison must determine why motorcycle racer Marco Presto does not feel that his motorcycle is providing enough power as it comes out of corners. Harrison uses engine simulation software to help him in his work.

The advent of superior connectivity and integration technologies is paving the way for flexible electronic partnering options. Such flexibility is essential if a company wants to attract a large number of partners (with varying connectivity needs and preferences) to its supply chain network. This article conceptualizes 12 electronic partnering options. It then discusses the various types of sensemaking and conversion challenges that companies encounter in developing this critical electronic business (e-business) capability and proposes a multi-pronged approach to effectively deal with them. This approach involves four distinct but synergistic campaigns of digitization--strategic congruency, organizational design, technology infrastructure, and relational campaigns. The utility of this approach is illustrated by examples of successful business-to-business (B2B) digitization initiatives.

Logistics services and their providers are helping intermediaries add value to Internet supply chains in ways that are not always immediately obvious. Thus, it is not surprising that there is confusion among academics and practitioners about how best to extract value from such services and providers. Reports the results of a study of the role and value of logistics services and their providers. Reveals that Internet sellers establish relationships with logistics service providers in order to extract value from the providers' network of logistical resources and better fill their customers' orders. Internet sellers establish these relationships to lower the costs they would incur if they attempted to carry out the logistics services internally. They also seek such providers in order to access strong networks that bundle many complementary logistics services among Internet sellers, their customers, and their vendors.

Customers have proven to be a precious source of new solutions in various product categories and, by becoming directly involved in the innovation process, they can help companies better anticipate market changes. The Web can greatly simplify these activities by making it easier to manage systematic interactions with a select group of customers at a low cost. However, empirical evidence regarding the actual diffusion of Web-based tools supporting collaborative innovation remains weak. After reviewing the past findings on Web-based tools for customer integration, this article presents an exploratory analysis of over 200 brand and corporate sites. It highlights the tools that firms mainly use and identifies some relevant industrial and firm specificities.

The Oracle acquisition of PeopleSoft in 2005 seems like ancient history (at least in technology years). In fact, the PeopleSoft acquisition is not even Oracle's latest major acquisition (Siebel was acquired in September 2005). One of the primary reasons that Oracle acquired PeopleSoft was to gain access to the 10,000+ customer base of PeopleSoft (and JD Edwards), which provides more than $1 billion in annual revenue. This customer base is a gift that keeps on giving in the form of a lucrative maintenance stream. Discusses options that PeopleSoft customers and, by extension, other enterprise software owners pursue to minimize enterprise resource planning (ERP) ongoing costs of ownership. Encourages students to evaluate several criteria that can be used to lower ERP costs.

Explores the various aspects of information technology that can be outsourced. Cathay Pacific outsourced a significant part of its vital operations from Hong Kong to Sydney, Australia.

This is an MIT Sloan Management Review article. The author re-examines the role of IT as a commodity and considers whether IT can still be used to provide strategic advantage. In discussing regulation, outsourcing relationships and corporate dependence on IT, this article further clarifies the argument that IT will soon be handled by larger corporate utilities. While agreeing that most IT functions can be outsourced to utility-style providers, the article suggests that in-house corporate computing can still provide a strategic advantage. By examining failed IT outsourcing relationships, the author identifies key aspects of IT, including auditing and reporting procedures and customer-facing resources, that are too important to a firm's success to outsource. The author argues that to better exploit these advantages, managers should embrace the fact that IT is no different than any other corporate function, instead of placing it in its own silo separate from other business practices. Only then will the real commoditization of IT be complete and the long-promised benefits be seen.

'It's only a web site. What could be so difficult about that?' This quote is from the cafeteria of a start-up business funded by a North American retailer, after the disastrous 'Black Friday' of 2000, during which its web site experienced systemic failure. This case describes the dynamics, complexities and consequences of fast tracking an e-business start-up. This consumer electronics retailer created one of the most visited retail web sites, from concept to operation in 6 months. Market analysts were predicting a major increase in online sales while consumers were adopting the Internet at a rate faster than any previous technology. Meeting the multi-channel demands of the dynamic and competitive environment required operational balance, stability, innovative flexibility, organizational fit and the alignment of resource capabilities with technology. This case challenges the reader to comment on how a large company positioned itself and integrated the necessary competencies to compete successfully in a developing market by establishing a spin-off operation, separate from the main company.

It's conventional wisdom that the Internet has made the world flatter. But we're not necessarily smarter, and many people have been left behind.

This is an MIT Sloan Management Review article. There is a new wave of business communication tools, including blogs, wikis, and group messaging software (which the author collectively calls "Enterprise 2.0") that allow for more spontaneous, knowledge-based collaboration. These new tools, the author contends, may well supplant other communication and knowledge management systems with their superior ability to capture tacit knowledge, best practices, and relevant experiences from throughout a company and make them readily available to more users. This article offers a paradigm that highlights the salient characteristics of these new technologies. The resulting organizational communication patterns can lead to highly productive and highly collaborative environments by making both the practices of knowledge work and its outputs more visible. Drawing on case studies and survey data, the article offers managers a set of ground rules for implementing the new technologies. First, create a receptive culture to prepare the way for new practices. Second, create a common platform to allow for a collaboration infrastructure. Third, plan an informal rollout of the technologies rather than a more formal procedural change. And fourth, secure managerial support and leadership. Even when implanted and implemented well, these new technologies will certainly bring with them new challenges. These tools may well reduce management's ability to exert unilateral control and to express some level of negativity. Whether a company's leaders really want this to happen and will be able to resist the temptation to silence dissent is an open question. Leaders will have to play a delicate role if they want Enterprise 2.0 technologies to succeed.

This is an MIT Sloan Management Review article. Global information technology networks can lower costs, increase quality, reduce response times, and disperse risks. But agile IT networks require an immense amount of hands-on management, and micromanagement can significantly increase transaction costs and erode any potential savings. Much of the micromanagement is a result of the learning curve and the labor-intensive nature of managing budding relationships with new partners. The authors use data derived from interviews with clients and suppliers to identify 15 emerging best practices in dealing with offshore suppliers of IT throughout each of the phases of development. In the early stages of developing an offshore IT network, the authors suggest that selecting the appropriate location for your offshore activities is critical and that it may be best to begin with several smaller pilot programs. As offshoring efforts become more mature, the authors recommend diversifying your supplier portfolio to spread risk and maximize competition. They also discuss how to structure contracts and break up projects in ways that provide incentives and protect intellectual property. The article describes several practices that allow for more value-added practices once a full and mature global network exists, including how to overlap networks to best facilitate supplier-to-supplier knowledge transfer.

The MGM Grand Hotel in Las Vegas had detailed information on loyal gaming customers, but could its information systems also be tailored to nongaming customers? As the nongaming business sectors became increasingly profitable both at the MGM Grand and in Las Vegas generally, understanding the nongaming customers appeared to be of critical importance to the continuing growth of the resort.

Despite increased concerns about security, most government, private, and public information systems remain vulnerable to terrorist and hacker attacks. To examine this potentially catastrophic problem, the authors study another infamous, expensive failing in information systems: the year 2000 (Y2K) problem. They argue that many of the same drivers of the Y2K problem now impede the security of information systems and identify groupthink as a root cause of the continuing inability of organizations and IS (information systems) teams to learn from past mistakes in managing information systems. They also identify measures to help organizational team leaders and members prevent future IS-related threats.

The objective of the CIM (Credit Insurance Management) project was the complete restructuring of the IT systems that supported the management and marketing of the Credit Insurance products offered by CanLife, a major Canadian life insurance company. The project was scheduled to run over a period of two years. During the development phase, two new sub-projects were added without apparent difficulty. The system was finally delivered in October 1998, on time and on budget. It was not long, however, before flaws began to surface: system overloading, innumerable defects, inadequate architecture, and an inaccurate estimation of processing and storage capacities. Added to all these problems was the complete absence of a global system overview due to an ill-conceived decentralization policy that resulted in a system that was managed by an assortment of independent modules. Confronted with an imminent catastrophe, the company was forced to rapidly diagnose the situation and come up with appropriate solutions.

The objective of this case is to allow students to: determine the main characteristics (from a project management point of view) of a large-scale ERP implementation project; identify the criteria that should inform the selection of a project leader (in relation to the nature and characteristics of the project); better understand the role and potential contribution of consultants in this context, and; define solutions to overcome difficulties that arise with respect to project management. This case will help students better understand the challenges associated with choosing a project leader. It will also allow them to explore the roles of the various actors in this process, particularly that of external consultants in relation to the management approach chosen for the project. An analysis of this case makes it possible to introduce students to theoretical concepts related to the choice of a project leader.

The objective of this case is to allow students to: determine the main characteristics (from a project management point of view) of a large-scale ERP implementation project; identify the criteria that should inform the selection of a project leader (in relation to the nature and characteristics of the project); better understand the role and potential contribution of consultants in this context, and; define solutions to overcome difficulties that arise with respect to project management. This case will help students better understand the challenges associated with choosing a project leader. It will also allow them to explore the roles of the various actors in this process, particularly that of external consultants in relation to the management approach chosen for the project. An analysis of this case makes it possible to introduce students to theoretical concepts related to the choice of a project leader.

The objective of this case is to allow students to: determine the main characteristics (from a project management point of view) of a large-scale ERP implementation project; identify the criteria that should inform the selection of a project leader (in relation to the nature and characteristics of the project); better understand the role and potential contribution of consultants in this context, and; define solutions to overcome difficulties that arise with respect to project management. This case will help students better understand the challenges associated with choosing a project leader. It will also allow them to explore the roles of the various actors in this process, particularly that of external consultants in relation to the management approach chosen for the project. An analysis of this case makes it possible to introduce students to theoretical concepts related to the choice of a project leader.