Flexible Systems Management

Series EditorSushilDepartment of Management StudiesIndian Institute of Technology Delhi,New DelhiIndia

Editorial BoardGerhard Chroust, Institute for Telekooperation, Johannes Kepler University Linz, AustriaJulia Connell, Curtin Business School, Curtin University, Perth, Western Australia.Stuart Evans, Integrated Innovation Institute, Carnegie Mellon University, USATakao Fujiwara, Toyohashi University of Technology, Toyohashi, Aichi, JapanMike C Jackson OBE, University of Hull, UKRashmi Jain, Montclair State University, Montclair, New Jersey, USARamaraj Palanisamy, St. Francis Xavier University, Antigonish, NS, CanadaEdward A. Stohr, Stevens Institute of Technology, New Jersey, USA

The main objective of this series on Flexible Systems Management is to provide a rich collection of research as well as practice based contributions, from different contexts, that can serve as reference material in this upcoming area. Some of these books will be published in association with ‘Global Institute of Flexible Systems Management’.

It will help in cross-fertilizing ideas from different perspectives of flexibility so as to consolidate and enrich the paradigm of flexible systems management. The audience for the volumes under this series includes researchers, management students/teachers, and practitioners interested in exploring various facets of flexibility research and practice.

The series features five types of books:

• Post conference volumes containing peer reviewed high quality research papers around a theme and clustered in sub-themes that can act as good reference material.

• Contributed thematic volumes based on invited papers from leading profession-als, from academia as well practicing world, containing state of the art on an emerging theme.

• Research monographs based on research work making a comprehensive contri-bution to the body of knowledge.

• Books based on novel frameworks and methodologies covering new develop-ments that are well tested and ready for wider application in research as well as practice.

• Business practices and case-based books documenting flexibility practices, strategies and systems in real life organizations.

More information about this series at http://www.springer.com/series/10780

Sushil • Gerhard ChroustEditors

Systemic Flexibility and Business Agility

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ISSN 2199-8493 ISSN 2199-8507 (electronic)ISBN 978-81-322-2150-0 ISBN 978-81-322-2151-7 (eBook)DOI 10.1007/978-81-322-2151-7Springer New Delhi Heidelberg New York Dordrecht London

Library of Congress Control Number: 2014957875

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EditorsSushilDepartment of Management StudiesIndian Institute of Technology Delhi,New DelhiIndia

Gerhard ChroustJohannes Kepler University LinzLinzAustria

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Preface

Flexibility and agility in business are emerging as key dimensions of business ex-cellence that encompass the requirements of both choice and speed. Both flexibility and agility have been used, in literature as well as practice, in multiple ways and often interchangeably. The growing need of flexibility/agility in business can be seen from reactive as well as proactive perspectives. A business enterprise is sup-posed to have reactive flexibility/agility (as adaptiveness and responsiveness) to cope with the changing and uncertain business environment. It may also endeavor to intentionally create flexibility/agility as a strategic change by the way of leader-ship change, reengineering, innovation in products and processes, use of informa-tion and communication technology, learning orientation, and so on.

The proposed book is intended to provide a conceptual framework of “Systemic Flexibility and Business Agility” supported by researches/case applications in vari-ous types of flexibilities and agility in business.

This book presents selected, reviewed, and updated papers of GLOGIFT 12 con-ference on the theme of systemic flexibility and business agility that was held at University of Vienna, Austria during July 30—August 1, 2012. These are organized in the form of an edited volume that can serve as a good reference material in the area of creating and managing systemic flexibility and business agility.

The selected papers from a variety of issues concerning the theme of systemic flexibility and business agility are organized into following five parts:

1. Systemic and strategic flexibility2. Information and business agility3. Flexibility, innovation and business excellence4. Flexibility in value and supply chains5. Financial flexibility and mergers and acquisitions

The first part of the book deals with six chapters on the sub-theme of systemic and strategic flexibility. The first chapter gives an overview of systemic flexibility and agility in business leading to the evolution of a flexibility maturity model. A related concept of managing diversity is treated in Chap. 2 in the context of international in-formation and communication technologies (ICT) project teams. One aspect of stra-tegic flexibility of managing confluence of continuity and change is elaborated in

vi Preface

the context of telecom service providers by delineating elements of flowing stream strategy crystal. Another chapter deals with the interaction of continuity and change with e-government performance. Next two chapters exhibit the implementation of flexible strategy game-card as a performance management framework; one through a case study of a telecom service company and the other one illustrating the effec-tive strategy execution.

Part II, on information and business agility, comprises five chapters. The first chapter in this part takes a case study of Japanese electronics industry to illustrate exploiting economies of scope on 70–30 principle that treats products and services for separate segmented submarkets to be designed 70 % in common with remaining 30 % for customization. The next chapter links the agile management practice with developing personal flexibility; according to which, flexible and agile management methods require one to react to change at any time of a project’s lifecycle. E-learn-ing and knowledge management are important contributors of flexibility that are dealt through a case study of national level repository of knowledge content. The subject matter of the next chapter, in this part, is related to e-governance perfor-mance that aims to empirically relate flexibility of processes with performance of e-governance systems. Finally, the stakeholder engagement methodology is applied for the design and development of a workflow automation process for an account-ing system in reinsurance domain.

Part III covers the issues interlinking flexibility, innovation, and business excel-lence. It consists of six chapters; the first one deals with issues of localization, cul-tural preferences, and global commerce. It discusses cultural differences between nations as per Hofstede’s framework and relates it to seven hierarchical layers of localization. The issue of organization vitality is focused in the next chapter; it elab-orates the pillars of vitalization as learning, innovation, flexibility, and entrepre-neurship illustrated by a caselet-based study. The next chapter deals with designing flexible performance targets and presents a fast innovation model supported by the case study of Toyota as a leader in product development and as a forceful strategic innovator. Building flexibility into product development teams is talked by a new factor named time-bound formulation in the next chapter through a study of 108 teams in public and private sector organizations. Flexibility constructs have not been well represented in business excellence models, which is the subject matter of the next chapter. It captures flexibility dimensions for all the nine criteria of EFQM business excellence framework through semistructured expert interviews. The last chapter in this part takes flexibility as a strategy for reducing cost of renovation in building construction projects.

Flexibility in value and supply chains is the subject matter of Part IV, consist-ing of four chapters. The first chapter, in this part, takes the case of a beverage giant that implemented flexible systems for establishing visibility across the value chain. Next three chapters cover various aspects of supply chain flexibility. One of the chapters applies total interpretive structural modeling and fuzzy interpretive structural modeling for structural flexibility in supply chains. Another chapter also uses total interpretive structural modeling for evaluating flexibility index of a sup-ply chain. The last chapter in this part considers interaction of flexibility and green

viiPreface

perspectives of supply chain. It uses analytic hierarchy process and interpretive ranking process in this context.

Part V, which is the last one, comprises three chapters in the area of financial flexibility and mergers and acquisitions. The first paper in this part seeks to explore the influence of innovative mode of financing like combination of cash and stock or earn-out offer used in the acquisitions. The next chapter gives multiple perspec-tives of mergers and acquisitions performance. The last chapter provides a system dynamics model of post merger integration and analyses the post merger integration of Kelvinator and Whirlpool with its real life validation.

We thank all the authors and reviewers whose efforts have made it possible to create this volume. Special thanks are due to Rejani Raghu who helped at various stages in communicating with authors and reviewers, and also provided support in word processing and formatting the manuscript.

We hope that this volume on “Systemic Flexibility and Business Agility” will generate enough interest in the readers to take up research in this up coming area to further evolve and enrich the paradigm of flexible systems management.

Sushil Gerhard Chroust

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Contents

Part I Systemic and Strategic Flexibility

1 Diverse Shades of Flexibility and Agility in Business ............................. 3Sushil

2 New Research Perspectives on Managing Diversity in International ICT Project Teams .............................................................. 21Christina Böhm and Renate Motschnig-Pitrik

3 Elements of Flowing Stream Strategy Crystal for Telecom Service Providers........................................................................................ 33S. B. Khare

4 Interaction of Continuity and Change Forces and E-Government Performance ..................................................................... 63Saboohi Nasim

5 Development of Flexible Strategy Game-card: A Case Study ............... 83Neetu Yadav and Sushil

6 Flexible Strategy Game-card Framework for Effective Strategy Execution ..................................................................................... 97Amit Srivastava and Sushil

Part II Information and Business Agility

7 Strategic Flexibility in Exploiting Economies of Scope on 70–30 Principle: A Case Study of Japanese Electronics Industry ......... 115Ushio Sumita and Jun Yoshii

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8 Developing Personal Flexibility as a Key to Agile Management Practice .............................................................................. 131

Renate Motschnig-Pitrik

9 Flexibility in E-learning through Knowledge Management Practices: A Case Study ........................................................................... 143

Kalyan Kumar Bhattacharjee, Ravi Shankar and M. P. Gupta

10 Examining the Influence of Flexibility of Processes on E-Governance Performance .................................................................... 165

P. K. Suri

11 Workflow Automation Process for a Reinsurance Company Using BPM Tool: A Stakeholder Engagement Perspective ................... 187

Anuradha Alladi and P. H. Anantha Desik

Part III Flexibility, Innovation and Business Excellence

12 Localization, Cultural Preferences and Global Commerce—Software Like a Cooperative Partner .................................................... 205

Gerhard Chroust

13 Critical Processes for Organization Vitality: A Conceptual Study ...... 223 Sumant Kumar Bishwas and Sushil

14 How Flexible is the Strategic Innovative Performance Target Design without Sacrificing Lead Time? ..................................... 235

R. C. Pathak, Rajesh Pathak and Shreya Virani

15 Time-Bound Formalization and its Role in Building Team Flexibility in Product Development Organizations ............................... 249

K. Srikanth and K. B. Akhilesh

16 Next-Generation Business Excellence Model: Integrating Flexibility Dimension ............................................................................... 257

Rakesh Kumar Gupta and Sarita Nagpal

17 Flexibility as a Strategy for Reducing Cost of Renovation in Building Construction Projects............................................................... 271

Rashmi Shahu, Ashok K. Pundir and L. Ganapathy

Part IV Flexibility in Value and Supply Chains

18 Establishing Visibility Across the Value Chain of a Beverage Giant by Implementing Flexible Systems ............................. 285

Kamal Karnatak and Arnab Mitra

xiContents

19 Structural Flexibility in Supply Chains: TISM and FISM Approach ... 305 P. R. S. Sarma and V. R. Pramod

20 TISM-Based Model to Evaluate the Flexibility Index of a Supply Chain ............................................................................................ 323

R. K. Singh and P. B. Sharma

21 Decision Modeling Approach for Eco-Driven Flexible Green Supply Chain ................................................................................ 343

Jitendra Madaan and Sachin Mangla

Part V Financial Flexibility and Mergers and Acquisitions ...................... 365

22 Innovative Mode of Financing and Abnormal Returns to Shareholders of Indian Acquiring Firms ............................................... 367

Neelam Rani, Surendra S. Yadav and P. K. Jain

23 Multiple Perspectives of Mergers and Acquisitions Performance ...... 385 Anshu Agrawal, Sushil and P. K. Jain

24 A System Dynamics (SD) Model of Post-Merger Integration .............. 399 Shyam Sethi

Index .................................................................................................................. 413

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About the Editors

Prof. Sushil (Series Editor) is Abdulaziz Alsagar Chair Professor (Professor of strategic, flexible systems and technology management), and Chair, Strategic Management Group at the Department of Management Studies, Indian Institute of Technology Delhi. He has served as a visiting professor and delivered seminars in many leading universities; some representative ones are University of Minnesota, Minneapolis, MN, Stevens Institute of Technology, NJ, University of Lethbridge, Alberta, Université Paris 1 Panthéon-Sorbonne, Paris, among others. He is an active researcher and supervised more than 60 doctoral dissertations. He has 18 books to his credit in the areas of flexibility, strategy, systems thinking, and technology management. He has over 300 papers in various refereed journals and conferences. He has pioneered the area of “flexible systems management” and made original contributions to the field of knowledge in the form of interpretive approaches in management. He is the founder editor-in-chief of Global Journal of Flexible Systems Management and serving on the editorial boards of leading international journals. He is the founder president of the professional body, “Global Institute of Flexible Systems Management.” Currently he is serving as an independent director on the boards of Rashtriya Ispat Nigam Ltd (RINL), HSCC, and River Engineering.

Gerhard Chroust is the Professor Emeritus for systems engineering and automation, Institute of System Sciences, Johannes Kepler University of Linz, Austria. From 1992 until 2007 he was the professor for “systems engineering and automation” at the Kepler University of Linz and department head of the Department (in 2004 transferred into an Institute) of systems engineering and automation from 1992 until 2007. He is the editor-in-chief of the IFSR Newsletter, chairperson of the editorial board of the book series of the Austrian Computer Society (OCG), and editorial board member of several journals. He has written, coauthored, and edited a dozen books and over 400 articles, papers, and other publications. His research interests are in the fields of software engineering (representation and enactment of software process models, quality and improvement of development processes), systems science and systemic aspects of engineering, emergence, history of computers and information technology, and human aspects of software development.

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Contributors

K. B. Akhilesh Department of Management Studies, Indian Institute of Science, Bangalore, India

Anuradha Alladi Tata Consultancy Services, Hyderabad, Andhra Pradesh, India

Anshu Agrawal Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

Christina Böhm Faculty of Computer Science, University of Vienna, Vienna, Austria

Kalyan Kumar Bhattacharjee Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

Sumant Kumar Bishwas Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

Gerhard Chroust Johannes Kepler University Linz, Austria and International Federation for Systems Research, Linz and Vienna, Austria

P. H. Anantha Desik Tata Consultancy Services, Hyderabad, Andhra Pradesh, India

L. Ganapathy National Institute of Industrial Engineering (NITIE), Mumbai, India

M. P. Gupta Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

Rakesh Kumar Gupta ACE1 Consulting, Noida, UP, India

P. K. Jain Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

Kamal Karnatak R J Corp, New Delhi, India

S. B. Khare Regulation & International Business, Bharat Sanchar Nigam Limited, New Delhi, India

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Jitendra Madaan Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

Sachin Mangla Department of Mechanical Engineering, Ganpati Institute of Technology and Management, Bilaspur, Haryana, India

Department of Mechanical Engineering, Indian Institute of Technology Roorkee, Roorkee, India

Arnab Mitra KPMG, Gurgaon, India

Renate Motschnig-Pitrik Faculty of Informatics, Masaryk University in Brno, Brno, Czech Republic

Sarita Nagpal CII, New Delhi, India

Saboohi Nasim Department of Business Administration, Faculty of Management Studies and Research, Aligarh Muslim University, Aligarh, India

R. C. Pathak Imperial College of Engineering and Research, Pune, India

Rajesh Pathak PRTM, London, UK

V. R. Pramod Department of Mechanical Engineering, NSS College of Engineering,Palakkad−8,Kerala,India

Ashok K. Pundir National Institute of Industrial Engineering (NITIE), Mumbai, India

Neelam Rani Post Graduate Govt. College, Chandigarh, India

P. R. S. Sarma Indian Institute of Management Raipur, Raipur, India

Shyam Sethi Life time Associate, Whirlpool Corporation, New Delhi, India

Rashmi Shahu Shri Ramdeobaba College of Engg. & Mngt, Nagpur, India

Ravi Shankar Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

P. B. Sharma Delhi Technological University, Delhi, India

R. K. Singh Mechanical and Production Engineering, Delhi Technological University, Delhi, India

K. Srikanth Department of Management Studies, Indian Institute of Science, Bangalore, India

Amit Srivastava Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

Ushio Sumita Graduate School of Systems and Information Engineering, University of Tsukuba, Tsukuba, Ibaraki, Japan

xviiContributors

P. K. Suri Delhi School of Management, Delhi Technological University, Shahbad Daultpur, Delhi, India

Sushil Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

Shreya Virani JSPM’s Jayawantrao Sawant College of Engineering, Pune, India

Neetu Yadav Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

Surendra S. Yadav Department of Management Studies, Indian Institute of Technology Delhi, New Delhi, India

Jun Yoshii Graduate School of Systems and Information Engineering, University of Tsukuba, Tsukuba, Ibaraki, Japan