Agile Governance- Agility of the Public Organizations in Saudi Arabia - Term Paper Example

Agile governance- Agility of the public organizations in Saudi Arabia Literature review Definitions and drivers of agility The world today faces considerable changes in almost every aspect and particularly technological innovations, marketing competition and customer demands. These developments have resulted in a major revision of strategic vision and business priorities (Sharifi and Zhang, 1999). Most organizations have come to a realization that for them to continue surviving and being competitive, agility is an essential requirement. Apparently, a number of authors have emphasized the diverse facets of agility, leading to varied views about this concept. Gunasekaran (1999), defines agility as the ability of prospering and surviving in a competitive setting of unpredictable and continuous change by reacting effectively and speedily to changing markets, directed by customer defined services and products. According to Kid (1994), agility is the proactive and rapid adaptation of enterprise elements to unforeseen and unexpected changes. The original creators of the concept of agility, the Iacocca Institute of Lehigh University, in the United States described it as a system of manufacturing with the ability to suit the fast changing needs of the markets. Another definition was proposed by Yousssuf et al. (1999), and according to them, agility is the successful employment of competitive bases, for instance, innovation, speed, quality and flexibility through integration of best practices and reconfigurable resources of knowledge rich atmosphere to offer customer driven services and products in a rapidly changing environment. Regardless of the above differences, it is apparent that all definitions lay major emphasis on flexibility and speed as the main attributes of agile organizations (Youssuf, et al, 1999). The concept of agility has been widely researched on since its initiation in the 1990s as a model for enhancing competitiveness. This concept is now recognized as a successful strategy for organizational growth and survival in business environments. It is necessary to note that agility does not only refer to the organization’s ability to react to unforeseen change, but also the ability to proactively act with reference to change. Some of the main drivers influencing the future competitive environments of the business world today include increasing customer expectation, technology acceleration, resource limitation, information availability, job and wage skills shifts and globalized competition and markets (Nagel and Dove, 1991). Sharifi and Zhang (1999) identify key drivers to change as customer requirements, market, social, technological and competitive factors. Therefore, to deal with the unforeseen changes, Giachetti et al. (2003), highlight that agility should be a structural property of the organization’s system. The concept of organizational agility has significant influence on a business environment that is becoming more complex and uncertain. (Liebowitz J.1999). Papp, R (1998) argued that agility was actually changing the structure of industries in the market, changing the rules and allowing organizations to develop competitive advantage in all aspects of the value chain. Keen (1991) noted that agility is becoming a vital aspect of daily business. He highlighted that this concept has key influences on business including image technology, achieving location independence, altering business relationships and online processing. Rockart (1998) highlighted that agility can have significant impacts to business strategy. It actually promotes effectiveness in business undertakings. Keen (1991) predicted that it would be difficult for companies to define an effective business strategy, which does not depend on information technology. Generally, agility has become an important organizational resource for executing business strategy (Rockart, Earl and Ross, 1996) Agility models and approaches Agile organizations are today considered as the winning strategies to counter rapidly changing customer demands and the increasingly competitive markets (Youssuf et al. 1999). Conversely, the capacity to put up and enhance agile organizations, has nt been achieved as fast as expected since the improvement of technology that will control agile organizations is still under operation (Sharp et al. 1999). Therefore, it is essential to consider certain factors in embracing agility such as its precise definition and how it can be measured, how organizations can identify its presence, how to assist organizations in achieving it and obstacles to agility among other factors. A number of researchers have suggested different models that can be implemented to assist organizations attain agility. A few of them are discussed below. Goldman et al. approach Goldman, Nagel and Preiss (1965) came up with the first agility model that identified four main dimensions that define agile organization. Enriching the customer is the first dimension, and it entails understanding individual customer’s requests and satisfying each of the identified requests. The second dimension involves co-operation with both suppliers and competing partners, in order to improve competitiveness. Application of innovative organizational structures is the third dimension, and this is done to master uncertainty and change using techniques such as cross functional teams and concurrent engineering. The fourth dimension concerns the impact of information, technology and people and distinguishes the significance of employees as an organizational asset, emphasizing on their empowerment, training and education. Youssuf and Crocitto model This is a human based model which expands on the existing organizational agility models by integrating the role of employees, organizational characteristics and advance manufacturing technology in the achievement of organizational success (Youssuf and Crocitto, 2003). Their model emphasizes on such elements as organizational membership, culture, leadership, reward system, information technology, customers and suppliers as the key aspects of organizational agility. Inn addition, if an organization implements capabilities such as cost, speed and quality, it can attain agility in an unstable surrounding. Agility of the public organizations in Saudi Arabia Various regional governments and especially those in the Western countries have taken a major step and formalized comprehensive collaborative e-governance transformation programmes. Indeed, Information Technology Governance has become a significant element of success for many organizations, since it provides the structure that connects modern resources, information and technologies to the organization’s objectives and strategies. Furthermore, it institutionalizes and integrates best practices of organizing and planning, obtaining and implementing, supporting and delivering, and monitoring performance, to ensure the information and technology of the organization support the objectives. In Saudi Arabia, efforts are being done to incorporate the concept of agility in major public corporations in the country. However, the country still faces major challenges as it strives to increases the adoption of agility. One of the key challenges is the country’s inability to reconcile the current position of their organizational practices with the need for improved and greater speed. Interested developers often encounter overbearing compliance procedures that deter them from effecting agility. However, there have been considerable efforts in embracing agility in most public corporations such as the banking sector, which has had major innovations, which are largely distinct from the ancient hawala system. Basically, some of the problems Saudi Arabia faces today that deter it from attaining agility include lack of enabling resources, transitory funding and inadequate infrastructure. Suggested projects to facilitate agility in Saudi Arabia’s public organizations One of the projects that have been suggested to facilitate the improvement of agility in the country’s public organizations is the Saudi Rail project. The Saudi Land bridge project is a nine hundred and fifty kilometer line between the country’s capital and the Red Sea Port, as well as a one hundred and fifteen kilometer link between the oil hub, Dammam, on the Golf Coast and the industrial city of Jubail. This project basically aims at developing tourism, infrastructure and industry in the country. It aims at tapping a regional economic boom in the country. Four groups of international and Saudi firms are contending for the contract to construct and operate the railway project. The first group, which is headed by Saudi Binladin Group, includes India’s Ircon International, Deutsche Bank, Japan’s Mitsui and Company and the German’s Siemens. The second group headed by the Rajhi Investment consists of Mada Company for Industrial and Commercial Investment, Samba Financial Group of Saudi Arabia and SNC-Lavalin of Canada. The third consortium is the Saudi Railways Organizations which expects the winning bid is lower than six billion dollars while the fourth group led by the Saudi family owned business Al-Muhaidib and sons and comprises of the French bank BNP Paribas and the Samsung Engineering and Construction of Korea. However, this is one of the rail projects the country is planning. The second project aimed at facilitating agility in Saudi’s public organizations is the smart ICT services for Saudi real estate market. The project is being initiated by the Riyadh- Etihad Etisalat (Mobily), which is the country’s principal Orange Business Services and telecommunication operator. The service is meant to develop and deliver next generation information technology projects and conveyed communications and managed operations services to the mounting real estate market in the Saudi Arabia kingdom. Mobily will deliver market foremost telecommunications services incorporated with inventive worth added services through striking business replicas to developers of economic cities and real estate projects. In the next decade, sophisticated ICT services will be the chief providers to increased ease to most real estate developments. Mobily is well positioned to provide innovative ICT e-services and telecom data to partners and developers. In developed cities IP broadband services are significant as they provide business communications, entertainment, public information, environmental services and building management. Work Cited Giachetti, R., Martinez, L., Saenz, O., and Chen, C. (2003), “Analysis of the Structural Measures of Flexibility and Agility Using a Measurement Theoretical Framework”, Journal of Production Economics, Vol.86, No.1, Goldman, S.L. and Nagel, R.N. (1993), “Management, Technology and Agility: The Emergence of a New Era in Manufacturing”, International Journal of Technology Management, Vol.8, No.1-2, pp.18-38. Goldman, S., Nagel, R., and Preiss, K. (1995), “Agile Competitors and Virtual Organizations”, Kenneth: Van No Strand Reinhold. Keen, P.G.W. (1991) Shaping the future- Business design through information technology, Harvard Business School Press, Boston, MA Kid, P.T. (1994), “A 21 Century Paradigm in Agile Manufacturing: Forging New Frontiers”, Addison-Wesley, Wokingham. Liebowitz, J. "Information Systems: Success or Failure?" Journal of Computer Information Systems, 40:1, 1999, p. 17. Papp, R. "Alignment of Business and Information Technology Strategy: How and Why," Information Management, 11:3/4, 1998, pp. 6-11. Reuters (2007). Agility eye $10bln Saudi rail project: report. Source http://www.reuters.com/article/idUSL0290394520071202. viewed on September 24, 2010 Rockart, J.F., Earl, M.J. & Ross, J.W. (1996): Eight imperatives for the new IT organization, Sloan Management Review, Vol 31 No 1, pp 43-55 Saudi Gazette: Mobily, Orange to create smart ICT services for Saudi real estate market. Sourcehttp://www.saudigazette.com.sa/index.cfm?method=home.regcon&contentID=2009102752715. viewed on September 24th 2010. Sharifi, H. and Zhang, Z. (1999), “A Methodology for Achieving Agility in Manufacturing Organizations”, International Journal of Production Economics, Vol.62, pp.7-22. Sharifi, H. and Zhang, Z. (2000), “Agile Manufacturing in Practice: Application of a Methodology”, International Journal of Operations and Production Management, Vol.21, No.5-6, pp.772-794. Sharp, J., Irani, Z., and Desai, S. (1999), “Working Towards Agile Manufacturing in The UK Industry”, International Journal of Production Economics, Vol.62, pp.155-169. Youssuf, Y., Sarhadi, M., and Gunasekaran, A. (1999), “Agile Manufacturing: The Drives, Concepts and Attributes, International Journal of Production economics, Vol.62, pp.33-43. Read More