Last, but not least, the redesign of processes requires restructuring the organization. This is more than substituting technology for people; it's about evolving into an adaptive learning organization by building the organization around the restructured information and value chain.
This involves an interwoven organization consisting of the front office to take care of customers, the back room to handle internal processes and a group to take care of partnerships. Sharing information among the groups is essential for the organization to function properly. As part of the restructuring the company will also need new management skills such as the ability to understand the impact of new technologies, strategies and channels on customer behavior.
Technology experts can no longer be isolated in a separate it group; they must be distributed throughout the organization....
Management of vendor and partner relationships becomes even more important. Further, management must be able to adapt to a global and diverse workforce and be an expert in change management.
In summary, Karmarkar's three R's, realignment, redesign and restructuring, highlight that technology is changing the way service companies must conduct business. While technology is fueling the necessity for change, it is also the answer if companies understand that more is needed that just technology implementation. A change in strategy and an overhaul of business processes and the organizational structure hold the key to survival in an increasingly dynamic environment.
Bibliography
Karmarkar, Uday. (2004, August 9). Boot Camp for Service Operations. Harvard Business School. Retrieved June 19, 2005, at http://hbswk.hbs.edu/item.jhtml?id=4308&t=operations
