Ernst & Young Values

People who demonstrate integrity, respect, and teaming.
People with energy, enthusiasm, and the courage to lead.
People who build relationships based on doing the right thing.

Our values define who we are. They are the fundamental beliefs of our global organization. They guide our actions and behavior. They influence the way we work with each other — and the way we serve our clients and engage with our communities.

I wonder how Repo 105 fits into these values. The main issue here is that firms like E&Y are supposed to ensure the integrity of financial statements. At best, E&Y was negligent in this matter although I fear they were complicit.

Tap the positive core of the organization

The way to do this is to shift the collective investigation process from deficit inquiry (where is the problem?) to appreciative inquiry (what works well?) which is formulated to focus on achievements, assets, potentials, innovations, strengths, elevated thoughts, opportunities, benchmarks, high point moments, lived values, traditions, strategic competencies, memorable stories, and expressions of wisdom.

Zapponians on ABC Nightline

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Tap the positive core of the organization

The way to do this is to shift the collective investigation process from deficit inquiry (where is the problem?) to appreciative inquiry (what works well?) which is formulated to focus on achievements, assets, potentials, innovations, strengths, elevated thoughts, opportunities, benchmarks, high point moments, lived values, traditions, strategic competencies, memorable stories, and expressions of wisdom.

Power of stories

Stories stick like glue…great leaders know it

Why? They make information easier to remember: “Whole brain”

Stories make information more believable than statistics

Narratives create the basis for identity formation and they foster high quality relationships

Story telling is the most powerful human medium for conveying values and visions

Stories paint pictures in the mind

The power of Appreciative Inquiry to transform

At it’s core, Appreciative Inquiry is the study and exploration of what gives life to human systems when they function at their best. It is based on the assumption that every living system has strengths—its positive core---which, when revealed and tapped, provides a sustainable source of positive energy for both personal and organizational transformation.

Business Consulting
Leigh Steiner, Ph.D.

A Framework for Total System Empowerment

By Barry Oshry

Each of us, regardless of our position in the organization, needs to:

see ourself as constantly shifting in and out of Top, Bottom, Middle, and Customer conditions, know that in each condition we have the system power potential for strengthening the system’s ability to survive and develop, to cope with the dangers in its environment and to prospect among its opportunities, recognize that when we’re in the Top condition, our system power potential is to function as Developers, in the Bottom condition as Fixers, in the Middle condition as Integrators, and in the Customer condition as Validators, and, in order to achieve the system power of these conditions, avoid the reflex responses: sucking up responsibility when we’re Top, holding higher-ups responsible when we’re Bottom, losing our connectivity when we’re Middle; and holding delivery systems responsible for delivery when we’re Customers.

These forms of system power enhance one another and together create Total System Power.

How Business Schools Lost Their Way

Fantastic article from Business Week.

By N. Craig Smith and Luk Van Wassenhove , On Tuesday January 12, 2010, 8:08 am EST

Business schools have been blamed for the economic crisis. Their MBA students are said to be responsible for wreaking the havoc in the financial markets we are all now suffering from and business schools are chastised for not training them better, not least in failing to instill a clear sense of right and wrong.

Are they to blame? To the extent that MBA graduates have been closely associated with many of the spectacular failures of financial institutions witnessed over the last 18 months, they may justifiably be criticized for the mispricing of risk in relation to specific financial products and an underestimation of systemic risk more generally. They may also be criticized for failing adequately to question the assumptions of the financial models being used and, with hindsight at least, for following the crowd and gambling that they could continue to dance, to borrow the unfortunate phrase of Citibank's (NYSE:C - News) Chuck Prince (not an MBA), when it was way past time to be off the dance floor.

In some cases, where perverse incentives of compensation systems were at work, the criticism also seems warranted that these individuals focused solely on serving their own self-interest and gave scant regard to their obligations to others, even shareholders. Much like a dodgy second-hand car salesman, it seems, they knowingly sold flawed products -- such as the mortgage-backed securities they knew would blow up because of unsound origination processes. Worryingly, these practices were evident in the financial institutions that have survived -- and some that have prospered -- in the crisis, as well as those that failed.

Indirect

It would be a mistake to say that business schools are directly to blame, even when their graduates were closely involved; there are more basic drivers. But business schools have played a role indirectly, due fundamentally to their adherence to and perpetuation of an ideology that has contributed significantly to the crisis, albeit unintentionally. That is the ideology of Shareholder Value Maximization (SVM). In most business schools, SVM is the leitmotif of finance teaching and implicit throughout the rest of the curriculum.

Ideologies often appear to be serving society as a whole while advancing the interests of particular sectors. So it is with SVM. The economic theory of the corporation holds that SVM results in the best social outcome: societal wealth maximization. But at the same time it serves the interests of shareholders and the managers who are its adherents and its beneficiaries, at least when their compensation is pegged to shareholder returns. This criticism of SVM is not to suggest shareholders are unimportant; they warrant a return on the capital they provide that reflects the financial risk incurred. However, this is not the same as maximizing shareholder value.

A theory advanced in business schools to justify SVM says shareholders are the "residual claimants." Shareholders, the theory goes, should be uppermost in the minds of management, because they receive their returns only after the claims of other stakeholders have been met. This is evident in companies meeting their contractual and legal obligations to stakeholders such as employees, but it is also evident in companies meeting noncontractual obligations determined by economic factors. For example, these might be obligations beyond legal or statutory requirements to a local community affected by a plant closure, where the company identifies that its reputation might be harmed and it might suffer an economic loss if the obligations are left unattended. As this example might suggest, however, not all ethical obligations would be reflected in a potential economic loss, even in the long term. Consider a management practice of engaging in bribery when one can get away with it. This might be consistent with shareholder value maximization, but not advancing societal welfare.

Faulty

The theory also relies on assumptions amply demonstrated as lacking in recent months. For example, it assumes effective government regulation to ensure everybody plays by the rules and to manage externalities (outcomes not readily susceptible to market sanctions, such as pollution). It also presumes effective corporate governance such that shareholders hold management to account. More technically, it relies on various economic assumptions, such as the efficient market hypothesis (that share prices reflect all relevant information on the stock).

Aside from the assumptions required in subscribing to the SVM model and the potential ethical issues left unaddressed, there are major practical considerations in the teaching and application of the SVM ideology. While professors might explain in detail how the underlying theory of SVM treats shareholders as residual claimants, what matters is the message students take away. That message is shareholder primacy -- that their purpose in business is to make decisions that put the interests of shareholders above all others.

When they go into their jobs -- in finance and elsewhere -- they find an environment that marches to the same tune and is incentivized to do so. The theory of SVM generally translates into practice through the mechanism of the share price. This flawed and often easily manipulated measure of long-term company value is then used as a basis for business decision-making. This has huge potential consequences for the individuals involved (rich bonuses they may not deserve) and their organizations (short-term decisions that harm long-term viability), as well as society.

Differences

If SVM is problematic from a developed world perspective, it can be disastrous from the perspective of the developing economies where global business and MBAs increasingly are to be found -- as well as most of the 1 billion people going hungry in the world. Many large companies today operate in countries with little or no government and a huge potential for corruption, and, given such technologies as the Internet and mobile phones, how they operate can be instantly broadcast worldwide. Today's global business environment is not the simple U.S.-centric world of free-market economist Milton Friedman. It is far more complicated.

What should business schools do? While late in the day, perhaps, Jack Welch was right when he described SVM as "a dumb idea." Business schools need to stop worshipping at the altar of SVM and teach it with greater intellectual honesty and with attention to its many deficiencies, both theoretical and practical. They also need to do a better job of developing its most plausible contending framework: stakeholder theory. This is a more complex but current and realistic view of management, one that recognizes that the task of managers is to serve multiple stakeholders -- giving shareholders their due, but not to the exclusion of others with legitimate claims.

Finally, business schools should give more attention to their input as well as output. With starting salaries for MBA graduates often well in excess of $100,000, business schools need to be careful not to attract narrow-minded, self-centered people who might see a way to get rich quickly by eagerly and unquestioningly embracing an ideology that serves that end. Business schools should look to attract and properly train people to be responsible leaders who are well-rounded and have the capable minds and the courage to ask the critical questions that went unasked for too long.

Class Action

UIS needs to add a program like this. If the university wants to become, in the words of Chancellor Richard D. Ringeisen, "one of the best small public liberal arts universities in the nation.", then UIS will have to lead with bold ideas that build skills that this generation needs to compete in the global economy.

There are plenty of small and medium-sized businesses in this region that could benefit from a program like this.



By SHELLY BANJO
With the U.S. economy softening early last year, the owners of Julian Krinsky Camps & Programs in King of Prussia, Pa., looked for advice on attracting more customers from abroad.

The company, which offers sports, fitness and educational programs, got help from three M.B.A. students. And even better: The advice was free.

"It was helpful to have students with a young, entrepreneurial spirit analyzing our business opportunities from their perspective," says Tina Krinsky, the company's chief executive. And, she adds, it was valuable to have a thoroughly researched plan with hard data to supplement the company's own ideas about expansion.

The Wharton students, whose research included interviews with parents, students, schools and guidance counselors, also offered marketing strategies specific to South Korea. For instance, they suggested the company market itself through hagwons, the after-school study programs that many South Korean students attend. Many hagwons help organize groups of students who would like to travel, and "as these organizations are highly respected by parents and offer convenient access to students, we found it most valuable" to approach them, says Ms. Krinsky. These and other contacts brought a "handful" of Korean students to Julian Krinsky programs last year, she says, and "we expect to see more applicants this year."

Small businesses throughout the country have discovered the benefits of student consulting programs at business schools or at small-business development centers. These programs can help small businesses identify new sources of funding, tap new markets, improve their marketing strategies and find other ways of doing business more efficiently and effectively, all at no cost or for a fraction of what a professional consultant would charge.

Businesses may have to compete for acceptance to some programs. And given the limitations of some students' experience and the time they can devote to any project, companies shouldn't expect too much. But these programs can provide crucial help in weathering the economic downturn or taking advantage of new business opportunities.

Bread Winner
While programs differ in size and scope, typically teams consisting of two to 10 M.B.A. students or undergraduate business students take on semester-long consulting projects for small businesses, including nonprofits. Students' backgrounds vary, but some have years of business and entrepreneurship experience. In any case, they are advised by faculty members or outside professional consultants. Programs offered through small-business development centers, which are affiliated with the U.S. Small Business Administration, typically are free. Fees for programs offered directly by schools vary widely, from about $300 to $10,000 for 500 to 800 hours of consulting, for the most part, though charges can go as high as about $20,000.

The Community FoodBank of New Jersey got help from local students in planning a new line of business. Kathleen DiChiara is chief executive of the food bank, which takes in donated food and distributes it to nonprofit organizations, emergency food pantries and shelters. When she realized hundreds of donated bagels were going stale before they reached hungry patrons, she wanted to find a solution.

Officials of the food bank came up with the idea of using the donated bagels to create a bread-based product they could sell for a profit in bakeries and grocery stores. That not only would prevent waste but also generate income to support increased demand for the food bank's services, and create jobs in the community. But officials quickly realized they didn't have the business knowledge to bring the idea to life.

In September 2007, Ms. DiChiara turned to the MBA Team Consulting Program at Rutgers Business School-Newark and New Brunswick, in New Jersey. The program serves between 40 and 50 businesses a year. Teams of six to 10 students spend about 14 weeks with each business. Fees range from $10,000 to $20,000 per project, depending on the business's revenue.

A semester later, the food bank (which paid $5,000, before the program raised its prices) received a business plan to turn the donated bagels into bagel chips and distribute them across New Jersey. The students researched the costs of new equipment, packaging and labor. They conducted taste tests and surveyed consumers to find out how much they would pay for a bag of bagel chips knowing the profits would go to charity. They researched the competition, outlined production logistics and recommended a marketing campaign.

The chips aren't on retail shelves yet, but the food bank conducted three sales tests last summer at local farmers' markets, selling out 300 of the $4 bags each time, Ms. DiChiara says. Using projections from the Rutgers study, the food bank hopes to make $100,000 a year in profit through bagel-chip sales.

Pickiness and Eagerness
To be sure, acceptance to these programs can be competitive. The schools, after all, are looking for situations where their students can learn the most. Generally, that means universities are looking for small businesses that have been operating for at least three years and may have "plateaued, so a strategic business plan becomes a growth plan," says Paul Belliveau, director of the Rutgers program.

Schools prefer local businesses, to facilitate face-to-face meetings with students, but will sometimes consult for out-of-town projects. Some may also favor businesses that could offer employment opportunities for students after they graduate. And programs often require frequent interaction with the companies' senior management and access to the firm's financial information, both of which may make some potential clients uncomfortable.

Paul Kedrosky, a senior fellow at the Ewing Marion Kauffman Foundation, a nonprofit based in Kansas City, Mo., that fosters entrepreneurship, says the student programs are cheap and effective -- if properly managed by the client. He says business owners should keep in mind that students are "often tail-waggingly agreeable to do all sorts of stuff that they often have no business doing."

Mr. Kedrosky suggests asking students to stick to tactical, manageable tasks such as conducting surveys and product research, where the business owner can set clear deadlines and expectations. Students generally have only a semester to complete tasks, he notes, and may not have deep knowledge of a client's particular industry. So while a "strategic analysis of your industry is sexy and fun, they might not have the chops to do it," he says.

Small businesses can also take advantage of other, noncompetitive but less-personalized programs at many small-business development centers. The SBA offers free or low-cost consulting sessions on a variety of broad topics such as cash-flow analysis and accounting. A list of development centers and their contact information and Web sites can be found on the SBA's site, sba.gov. In the "Services" menu, click on "Counseling & Assistance."

—Ms. Banjo is a reporter for Dow Jones Newswires in Jersey City, N.J.
Write to Shelly Banjo at shelly.banjo@wsj.com

Goodbye SAAB

This was a great car company with a long and regal history that was destroyed by GM. It's like GM has an inverse Midas touch and everything they acquire turns to scrap.

Great example of poor service

I think customer service is dead. Lot of companies talk a big line but fail because they are not really taking great service seriously. Here is an example from SPSS:

Thank you for using our Internet site to submit your question. We hope that this provides you with a convenient method of communicating with us. Our goal is to respond to you within five business days.

Way to go! Set your goals high! The next five business days??

J.M. Smucker Profit Nearly Triples on Folgers Addition

Sweet products brew up fresh dollars!

The importance of good contract administration

With ever increasing levels of outsourcing excellent contract administration is a key component of an organizations purchasing function that can add substantial cost savings over competitors.

Contract administration describes the process for ensuring that all the party's performance and execution of the agreed contract terms are met according to the defined requirements. This involves sitting down and discussing with the vendors and explaining what is expected beforehand and that there will be several monitoring and milestone reviews throughout the contract phases. Also, the contractor will be measured by some means such as EVM or budget analysis to evaluate their performance.

Good contract administration also involves risk monitoring and control activities to assess the varying risk events and mitigate any adverse effects. Project changes also will affect the vendors so a change management process will be executed alongside the contract. Finally, performance related to cost and schedule conformity will be rated during the contract life and milestone reviews will take place to ensure that the contract is progressing satisfactorily.

Some best practices to consider is to employ a standardized contract administration methodology with specially trained experienced staff. Also the utilization of cross-functional teams to measure contractor performance is recommended. Additionally, a formal integrated change control process and a standardized performance measurement process should be a part of contract administration.

Risk management

Risk management is important because risk exists in every area of our lives and something must be done to address risk. Some types of general risks include uncertain financial markets, project failures, legal liabilities, credit risk, accidents, and natural disasters to name a few.

Risk is especially present when new elements are introduced such as a new IT project that will alter how things have been done before. Some risks involved in projects are market, financial, technology, people and process risks. All these changes represent new risks to the organization and must be managed alongside the project implementation. Risk management is the process to recognize the inherent risks and utilize practices that will help mitigate the risks by increasing certainty and minimizing the unknown, managing the change process more effectively, using resources better, and improving the overall management of the project which creates a better working environment.


By effectively managing risk, organizations can avoid potentially costly product failures that may be embarrassing and harmful. The strategies to manage risk mentioned in the text include transferring the risk to another party such as through an insurance policy, avoiding the risk altogether, reducing the negative effect of the risk through outsourcing a riskier element to a third-party specialist, and accepting the consequences of risk. Often not doing anything is a risk that may be too big to take.



The international standard board, ISO, defines risk management in the following way:

Risk management should create value.
Risk management should be an integral part of organizational processes.
Risk management should be part of decision making.
Risk management should explicitly address uncertainty.
Risk management should be systematic and structured.
Risk management should be based on the best available information.
Risk management should be tailored.
Risk management should take into account human factors.
Risk management should be transparent and inclusive.
Risk management should be dynamic, iterative and responsive to change.
Risk management should be capable of continual improvement and enhancement

The Digital Divide

1. What is the digital divide? How can mobile computing be used to solve some of the problems of the digital divide?


I think this is a great question. For one the digital divide is defined as the gap between those who have substantial access to digital and information technology and those that do not. The divide includes limited physical access to computing devices and imbalances in training or skills that further enable the digital divide. The digital divide exists in some form throughout the world and can be classified along age, income, race among other factors. This is a real problem for those that have very limited access to digital resources and skills. Ways that have been used to alleviate this problem are putting computers in public libraries, computer loan programs, One laptop per child (OLPC) program, computer training and other similar types of outreach to historically disadvantaged populations.

For example, imagine someone with no digital access going to shop for a used car. They have no detailed way to get timely comprehensive information about what cars are available at their preferred dealership and compare to the competition. Also, the same goes for their financing options. What about the user reviews and car history reports we have become accustomed to consulting? What is their trade worth? All those resources are more difficult, time-consuming, or out-of-reach for someone without good IT resources. This digital divide puts them at a real disadvantage if they are needing this car. Likely they will go to the most convenient dealership and have only the limited choices on the lot. Not knowing the going price for the type of vehicle they are interested in puts the buyer on the defense and there is a greater chance that they will overpay for a unsatisfactory model that was financed at a greater cost because of the limited knowledge and options.

However, the mobile computing movement largely through wireless phone companies have helped to incrementally bridge the gap. I have seen people that would not touch a computer quickly send a text or email a picture via the increasingly more powerful wireless phone. As new models of smart phones continue to take the place of feature phones (dumb phones), the digital divide can be largely overcome. First, most people take phone access for granted. As wireless phones become ubiquitous and inexpensive an entry level model is usually offered free with a contract and serves as a gateway to a wireless connection, than a desire for better features, next comes a keyboard, and and finally a data plan. As these phones become inexpensive mini-computers with many of the features of a full desktop the digital divide can become a relic of the past. Additionally, there is no need to have expensive wired infrastructure investments in developing countries since wireless is now the future global standard and that is where the investments are being made.

Quality Assurance

QA is absolutely necessary for companies and organizations to take very seriously. Everyone expects some baseline of quality, even in low-cost products. There is no more luxury of allowing poor quality products or services to hit the market. The intense competition will take advantage of the weakness and quickly fill the gap with better products. Many talk a good quality line, but are unable to implement a culture of quality such as Toyota and Hyundai have done. GM has talked about quality for 30+ years but have not caught up to their rivals and based on their current troubles are unlikely to bridge the quality gap. Also, once a company has a reputation for weak quality it is very difficult to overcome that perception.

The text mentions QA departments within an organization whose sole purpose is to check and test for quality, but I think truly that the quality responsibility must be placed into the hands of each and every employee in the organization. Everyone must be able to address quality problems at the source and not wait until the issues make their way to the QA team. Quality must be everyone's responsibility and not just shifted to a QA department.

Should there even be a QA department is a question that was posed during my Operations class over the summer. The argument was that a QA team effectively absolves the other employees of the quality responsibility by shifting the QA analysis and decisions to the QA department. Not that there shouldn't be benchmarking, quality audits, or statistical analysis done by a specific team, but ultimately the responsibility for the overall quality must be at the highest priority for the management all the way down to the line staff. Only this way will the culture of the organization be truly quality focused in practice and not just in slogans.

Introduction to Systems Thinking by Daniel Aronson

My article summary is on Introduction to Systems Thinking by Daniel Aronson. In this article he outlines some of the key concepts that defines systems thinking such as seeing the "big picture", looking at recurring problems differently, considering the consequences of actions, and analysing problems where solutions are evasive and complex. The goal of systems thinking is to ultimately view problems and solutions in the totality of the whole system not just the individual part.

The traditional way to solve problems is break them down into constituent parts and work from that level, but the systems approach is to take into account the system as a whole and study the complex interactions between the parts of the system. For an example Aronson uses the problem of insect damage to a crop. The standard way to solve this type of problem is to find out what will reduce to insects to the level that will ensure the crop's integrity will be protected. The typical approach is to apply a pesticide to kill the insects and then the crops will be safe. However, this is not the system approach.

The systems way of thinking is to analyse this problem from many more facets. Other factors that need to be considered are the short-term and long -term orientation of this system, what purpose does the invader insect currently serve that will be eliminated after the pesticide application, and the historical effects that may occur such as soil damage and water pollution. Aronson further elaborates this scenario by examining what has often happened in practice; the main effect of eliminating the problem insect is only a short lived solution because the insects that were previously controlled have grown into another problem that needs to be addressed. By looking at this problem through an integrated long-term manner this costly and potentially damaging action could have been addressed correctly the first-time by truly considering the whole system that would be affected by the specific action.

IT projects also can benefit from the system approach. Often solutions are offered through many differing perspectives, but tend to be biased toward the views, experience and culture to such a degree that the solution itself does not really address the entire problem and the organization in which it will be deployed, but only a small and narrow slice that is seen by the proposer.

The complexity of systems today make the systems approach ideal for project management as was discussed in the textbook in chapter two. Aronson proposes system thinking as a method to manage this complexity and address the type of one-dimensional thinking that has plagued organizations in the past. He states that an effectively implemented approach of system thinking can elevate our thinking when we begin the problem analysis.

I believe that systems thinking is needed to address many of the complex problems that we face today. Too often a quick political solution is proposed and is implemented without total systems consideration. For example, in Illinois the smoking ban was implemented without much forethought. Questions such as who will enforce the ban, how will businesses be affected, is the timing correct, how will tax revenue be impacted, who will gain or lose from this ban, were not addressed in the beginning and many resources such as police, health, and court systems have had to try to address some of the oversights of the law as written. Many other types of shortsighted decisions could have be avoided with a systems thinking approach.

Article URL:
http://www.thinking.net/Systems_Thinking/Intro_to_ST/intro_to_st.html

How can IT enhance mass customization?

IT has played a pivotal role in the mass-customization industry that is common today. Without the technology that enables customers to visualize their options through a website and the globalization 3.0 infrastructure that allows companies to manage their products and offerings, mass-customization would be difficult and costly to deploy in the ubiquitous manner now experienced.

Mass-customization is the method of "effectively postponing the task of differentiating a product for a specific customer until the latest possible point in the supply network." (Chase, Jacobs, Aquilano, 2006, p.419).

This is largely made possible through IT systems that allow the customer to order a base product that is mass-produced such as a My-Touch from T-Mobile and add a personalized design to the phone exterior, selected apps, or other features, and it is through the same IT system which enables customers to "try out" a design at their convenience before committing to the order. For example, the website invites you to "Imagine being able to create a phone as individual as you are. One that you can make completely your own —inside and out—with dynamic apps, one-of-a-kind home screen themes and exterior shells and gel skins." The advertisements for the phone emphasize this personalization by showing such diverse personalities as Whoopi Goldberg and Phil Jackson that have each customized their own phone.

Another company that has employed the mass-customization concept is Disney. Instead of a product, Disney mass-customizes the type of experience you are willing to design. When you buy your ticket to the park it is a base ticket. Then you can add features just as you would to a Dell laptop or a Nissan Cube. Maybe you would like to stay on one of the many resorts or add a dining plan to better suit your vacation dreams. There are many other additional choices you can make such as stay length, park-hopper, in-room flowers, have a cake ordered or a special fireworks cruise. You can even have lunch with one of the Imagineers. The options for customization are quite vast and are limited only by your fiscal resources. This gives each customer the ability to design the vacation package that will extract the most value for their families needs, which helps Disney provide the experience that each guest is expecting.

A third example is the new Coke vending machine, Freestyle, that can hold more than 100 sodas. The new fountain is like an ink printer with space for hundreds of cartridges. Each cartridge contains a concentrated formula of ingredients. When you press your choice, say Diet Coke, the machine will tell cartridge 12 to release three squirts, cartridge 81 two squirts and so on, then it combines it with carbonated water and you get the same drink as old machines. According to Fast Company, Freestyle machines are currently being tested in Georgia, California, and Utah and Coca-Cola has said it plans to place 60 test dispensers around the country by the end of the summer.

Finally, mass-customization has allowed business to hold on to the product rule, Hotelling’s Law, that states it’s natural and rational for businesses to make their products as similar as possible for cost effective reasons, while also taking these very similar base products and allowing the customer to "make it their own" by adding features they want at the moment of purchase. As technology continues to advance, I think that we will soon have something like a replicator as featured in STTNG.

What role does the organizational culture play in IS investments?

I think organizational culture plays a very large part in any aspect of an organization including IS investment. Organizational culture is the psychology, attitudes, experiences, beliefs and values that are shared by the people within the organization and may or may not mirror the corporate culture. The culture that is present in an organization should be reflective of the strategy and goals of the organization and be supportive of the corporate culture, however this is not always the case. Organizational culture is not easy to change quickly as it has developed over many years, so it would be difficult to suddenly value some attribute that wasn't highly thought of before even if it is suddenly supported by management and business needs.

For example, I'm currently working on a project with a company that does not have a culture that supports and values innovative approaches to its operational challenges. The result is that there is an extra hurdle to overcome to justify new improvements like a computerized purchasing system because these types of improvements are not seen as necessary by the culture. The IS change is viewed with disdain and skepticism among the staff and even some management. The result is that it is going to be much more challenging to obtain buy-in and wide support for the project, and this could have negative impact and may delay implementation or impair the success of the system overall.

However, in companies like Harrah's, which has a culture that is innovative and technologically astute, it becomes much easier to deploy new technologies such as the interactive mobile gaming platform or the customized CRM capabilities metioned in the video that provide individualized content and special offers based on the customers preferences and spending habits. Harrah's is continuously striving to provide richer gaming experiences for their guests over the entire enterprise and must be innovative to differentiate themselves from other entertainment providers, even testing new innovations internally to obtain feedback from guests and employees. This aspect is part of their organizational and corporate culture and supports and welcomes new IS ideas and investments.

Another example come from Jonathan Heiliger, vice president of technical operations at Facebook when he mentions a way that innovation is supported institutionally by conducting nighttime "hack-a-thons" every other month to encourage new applications or features during off hours. Through this process a new chat app was developed and added to FB which allows users to conduct chat sessions during their time online. It is through the supportive organizational culture which embraces new IS investments and innovations that has enabled Facebook to grow to over eighty million users today.

In short, organizational culture provides an great deal of influence in any business decision including IS investments. It is very important for management to consider the culture and how it will impede or assist the IS investments within the organization.