Intelligent enterprise
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Intelligent Enterprise is an organizational management concept that leverages knowledge and technology to improve business performance. As articulated in James Brian Quinn's book Intelligent Enterprise,[1] the concept, argues that intellect is the core resource in producing and delivering services. It goes on to say that managers are expected to provide a rewarding work environment through lower friction and energetic conduct, and auxiliary functions should be outsourced to vendors, so that firms may focus on their core components.[2]
Discussion
[edit]Ming Yingzhao and Feng Dexiong stated that "the degree to which the Intelligent Enterprise can be successful depends on the competencies of the people and its operational capabilities",[3] such as structure, policies, and systems. Asif Gill discussed the contemporary information-driven approach that uses data, analytics, and artificial intelligence/machine learning for "architecting intelligent enterprises".[4]
Examples
[edit]Honda
[edit]During its early years, Honda competed with many other Japanese car producers, such as Toyota. Their decision to outsource many of their components to achieve economies of scale and focus more on their manufacturing operations' development and production helped them gain a competitive advantage.[5]
Apple
[edit]When Apple retailed certain products in the highly competitive computer environment, their production costs were less than 25%, as more than 70% of their components were outsourced.[6] Apple focused on design, logistics, software, and product assembly.[7]
Advantages
[edit]Jatinder Gupta, a professor at The University of Alabama in Huntsville and coauthor of a book on the topic,[8] claims that the increased availability of information leads to better decision-making, which can be beneficial from a macroeconomic perspective.[7] Gupta classifies the advantages of Intelligent Enterprises into three distinct levels: Operations, Tactics, and Strategies.[7]
- Operations: In an operational context, intelligent enterprises establish platforms that automate processes and provide seamless access to all data, previously dispersed both physically and logically. This integration ensures that critical information is readily available, enabling more efficient and data-driven decision-making.
- Tactics: Intelligent enterprises enhance their decision-making capabilities by ensuring that information is both readily accessible and easily actionable. By leveraging integrated platforms and advanced technologies, such enterprises break down data silos and provide real-time access to insights. This both enhances decision-making speed and improves accuracy.
- Strategies: The reduction of operating times directly contributes to lower operational costs, enhancing customer service quality. By streamlining processes and increasing efficiency, businesses can allocate more resources towards improving the customer experience. This efficiency enables organizations to make more informed decisions. With faster access to data and real-time insights, businesses can adapt to market dynamics, refine their strategies, and implement actions that drive sustained growth and competitive advantage. Advanced decision-making capabilities allow organizations to respond to current challenges and shape their future trajectory.
Limitations
[edit]Gill Palmer, a doctoral candidate, identified a blind spot[9] among many corporations and businesses: the lack of harmonious integration between internal operations and external interactions.
The internal aspects of a business encompass several key components, including strategic planning, which involves the formulation of long-term goals and the development of actionable plans to achieve them. Resource efficiency refers to the optimal utilization of assets – such as human capital, technology, and finances – to minimize waste and maximize productivity. Additionally, businesses must continuously identify and assess opportunities that arise in the marketplace, allowing them to innovate and adapt to changing conditions.
Effective processes are crucial, as they dictate how tasks are carried out and how information flows within the organization. Lastly, the way a business interacts with its external environment, including stakeholders such as customers, suppliers, and regulatory bodies, can significantly impact its success. Therefore, both the internal dynamics and external relationships must work in concert to foster a truly intelligent enterprise.[4]
It is important to note that humans are the intelligence behind the technological systems, and to affirm the validity is still very limited. Human beings have many qualities that are different from that of a technology apparatus (e.g., psychological and sociological), which need to be taken into account. Therefore, limiting this theory to that of a technological approach should not be the sole focus of a corporation.[4]
References
[edit]- ^ Quinn, James Brian (1992). Intelligent Enterprise: A knowledge and service based paradigm. United States of America: The Free Press.
- ^ Wiig, Karl M. (2007). The Intelligent Enterprise and Knowledge Management. Texas: Knowledge Research Institute, Inc. S2CID 15643503.
- ^ Yingzhao, Ming; Dexiong, Feng. Research on the Intelligent Enterprise Based on Intelligent Behaviour. Proceedings of the 7th International Conference on Innovation & Management. Wuhan, P.R.China: School of Management, Wuhan University of Technology.
- ^ a b c Gill, Asif (August 2022). Adaptive Enterprise Architecture As Information: Architecting Intelligent Enterprises. Intelligent Information Systems. Vol. 08. Singapore: World Scientific Publishing. doi:10.1142/12961. ISBN 978-981-12-6020-9.
{{cite book}}: CS1 maint: date and year (link) - ^ Quinn, James Brian (1999). "Strategic Outsourcing: Leveraging Knowledge Capabilities". MIT Sloan Management Review. Retrieved 21 October 2014.
- ^ Choo, Chun Wei (1995). Information Management for the Intelligent Organization. Medford, New Jersey: Information Today/Learned Information.
- ^ a b c Gupta, Jatinder N. D.; Sharma, Sushil Kumar (2004). Intelligent Enterprises of the 21st Century. London: Idea Group Publishing.
- ^ "Intelligent decision-making support systems: foundations, applications, and challenges | WorldCat.org". search.worldcat.org. Retrieved 22 February 2025.
- ^ Palmer, Gill (1 July 1987). "Human Resource Management and Organisational Analysis". Asia Pacific Journal of Human Resources. 25 (2): 5–17. doi:10.1177/103841118702500202. ISSN 1038-4111.