Capstone IP 5 - Research Paper Example

Capstone IP 5 The basic legal, social, and economic environment of the organizations CA Technologies, Inc., was initially called CA, Inc. and Computer Associates International, Inc. and it is among the greatest independent corporations dealing in software globally. It engages in the creation of system software which runs in distributed computing, mainframe, cloud computing, and virtual machine environment (Kane & Alavi, 2007). Even though the company previously sold Internet security commercial software programs and antivirus for personal computers, when it ventured in business-to-customer market, it is renowned for the business-to-business mainframe, as well as distribution of infrastructure for information technology applications, since the time of their security product spin off into Total Defense (Ambos, Andersson & Birkinshaw, 2010). Therefore, the company engages in IT management software and solutions, and it facilitates optimization of IT by their customers with the aim of achieving enhanced business results. The company’s goal is to become a strategic partner upon whom the customers can rely as far as the adoption of new technologies is concerned, and at the same time, realize maximum value from the existing investments in IT (Ambos, Andersson & Birkinshaw, 2010). In this respect, therefore, the company has sought to employ a customer-centric strategy where the customer is at the center stage of the business, in which the company believes it can best achieve its goals. With this, the technical support of the CA Technologies has been made the lynchpin that helps the customers realize maximum value of the CA Technologies investment (Ambos, Andersson & Birkinshaw, 2010). The International Business Machines Corporation (IBM) is a multinational corporation for technology and consulting based in the United States. The company deals in manufacturing and marketing of computer software and hardware, in addition to offering infrastructure, consulting and hosting services in a wide range of areas, beginning from the nanotechnology to mainframe computers (Kane & Alavi, 2007). IBM boasts of over 12 research laboratories all over the world, and is also the leading company in patent generation for over 20 years. Managerial, operational, and financial issues New services and products are important to the performance and survival of any organization. The introduction of new products, as observed by both IBM and AC Technologies, enhances the firm’s ability to meet the new demands on the market and facilitate the establishment of new generations of technology (Ambos, Andersson & Birkinshaw, 2010). A major logic within innovation in these companies is the fact that the pace of new product development and introduction is the function of identification and search of new information and knowledge. AC technologies’ top management is instrumental in the search process. In this respect, therefore, the management team in this company has been made in a structure that facilitates effectiveness in the searching and acquisition of new information and knowledge, which is then used for strategic decision making, enhancing innovation and general growth of the firm (Ambos, Andersson & Birkinshaw, 2010). Both CA Technologies and IBM employ the proactive and controlled process where they attend to, evaluate, and examine new information and knowledge. For instance, the CA as relies greatly on search as a means of arriving at the new products organically (Newell, Robertson, Scarborough & Swan, 2009). The unfamiliar and distant search terrains, for instance, have significant level of innovation for both organizations. This means that both IBM and CA Technologies search for their information further from the information already in their possession. However, the research potential exhibited by the IBM Company gives it extremely high ability and a competitive edge on all other competitors in the field since it is able to produce new products at a fast rate than the rest. Both IBM and CA Technologies are well-established multinational organizations which attract employees from variable world regions. In this case, both companies have sought to employ diplomatic styles of leadership, where the employees are part of decision making processes of the organization. Within this form of management, employees’ views and suggestions are considered by the management for the purposes of making decisions on matters that affect them directly and indirectly. In IBM Company, the employee participation has been the key factor in enhancing innovation and creativity in the organization (Kane & Alavi, 2007). The employees of the organization have collected numerous individual awards for their exceptional performances on global fronts. The IBM has set its vision on infusing global intelligence through the available working systems. They acknowledge the growing interconnectivity of the world, and this has been aided by intelligent application of knowledge. The organization has since embarked on producing complex systems for smarter operations. For instance, the widespread use of Smartphone gives power to all individuals, well demonstrated through the social networking, which interconnects people across the globe. Social networking has greatly impacted on people’s intelligence and forms of relationships, interactions, making of decisions, as well as the manner of working and product purchasing. The revolutions in the market have thus prompted installation of social tools within organizations for relevance and competitiveness within the market. Like IMB and many other business organizations across the globe, CA has embraced social business, which is the connection of social business to expertise. This facilitates an inter-party connection, and eventual generation of new innovations, creativity, as well as enhanced exposure and reach for the business (Newell, Robertson, Scarborough & Swan, 2009). In addition to this, the social business bears high level of transparency, through outdoing the unnecessary barriers between the market and organizations. The free communication network enables easy sharing of product related opinions and information for better business. Customers are the most important people who ensure the existence of the organization. In this respect, IBM Company places great importance on the feedback from the customers, which is done through social media. The avenue is ideal in influencing the brand and consumer interactions, hence the need for organizational understanding of the customers’ demands and interests. It is never enough to simply push offers and messages to the market in the modern business. Marketing today is more interested in customer integration and creating vocal avenues through which customers can give their preferences for the nature and manner of service and goods required (Newell, Robertson, Scarborough & Swan, 2009). The companies strongly focus on R&D which facilitates maintenance of technological edge over other competitors, and this serves as their major competitive advantage. On the other hand, the companies are able to differentiate the products from those of the competitors. Despite this, there exist immense competition that threatens the competitive position of CA Technologies , and this could greatly affect the financial condition, business, cash flow, as well as the operating results of the company (Brass, Galaskiewicz, Greve & Tsai, 2004). Just like in IBM, CA Technologies has a strong research and development capabilities. For instance, the product development by the company is strictly based on the research done on the customers, and the feedback obtained used in influencing the product development. The customer-based product development has thus enhanced the product differentiation and competitiveness in the market, especially due to the high level of customer satisfaction. The impact of potential change to the functions of management Both IBM and CA have adopted strategic partnership between them and other major brands on the global stage. CA Technologies commands a broad partner’s base that enables the organization to reach a great number of customers, maintain high trend of customers, attain expertise complementing in the nice areas, as well as offering distribution and fulfillment. Majority of the CA revenue is generated by the enterprise customers who are capable of making substantial level of commitment to implementation of software and hardware (Brass, Galaskiewicz, Greve & Tsai, 2004). On the other hand, the CA and IBM are all collaborators with other integrators of the system, where they combine their respective global knowledge, experience and skills towards delivering innovative services and solutions for greater management of IT with the aim of attaining superior satisfaction of customers. Among the system integrator partners for the company are Deloitte, Accenture, PwC, and Protiviti. Ideally, CA is constantly pursuing its global goal in the market through the numerous strategic management practices (Brass, Galaskiewicz, Greve & Tsai, 2004). IBM remains one of the ideal organizations in the technology industry upon which CA looks in order to enhance its competitiveness in the market. Employee motivation remains the major managerial challenge in CA Technologies, and if given the deserved approach like it is in IBM, the company is bound to improve its global performance through cut costs of new employee recruitment and training, and maintaining high levels of productivity through retaining of talented employees in the company. References Ambos, T. C., Andersson U., & Birkinshaw, J. (2010). What are the consequences of initiative taking in multinational subsidiaries? Journal of International Business Studies; 41, 1099-1118. Brass, D. J., Galaskiewicz, J., Greve, H. R., & Tsai, W. P. (2004). Taking stock of networks and organizations: A multilevel perspective. Academy of Management Journal, 47(6), 795- 817. Conway, C., & Steward, F. (2009). Managing and Shaping Innovation, .Oxford: Oxford University Press. Kane, G.C., & Alavi, M. (2007). Information Technology and Organizational Learning: An Investigation of Exploration and Exploitation Processes. Organization Science; 18(5), 796-812. Newell, S., Robertson, M., Scarborough, H., & Swan, A.J. (2009). Managing Knowledge Work and Innovation. London: Palgrave. Read More