Organizational Technology Integration Evaluation Model - AT&T, Inc - Case Study Example

Technology Integration Technology Integration Introduction It is undeniable that technology is one of the most valuable assets of any organization. The purpose of technology integration in any organization is to boost functionality, shrink costs and enhance the effectiveness of the organization’s operations (Putnik & Cruz-Cunha, 2007). A company must continually upgrade its technology to ensure that it remains competitive. The smartest strategies to integrate technology must be made so as to provide the organization with an opportunity for transformation and overall progress (Yee & Oh, 2013). These strategies must be in line with the organization’s goals and objectives. All functional areas and departments must also be involved considerably to guarantee that the model of technology integration selected is beneficial across all functions (Mezgár, 2006). Efficient technology integration can have a myriad of benefits such as increased speed to the market and improved quality of their products and innovations (Iansiti, 2006). All in all, its purpose should be to achieve optimal expansion and profit (Shane, 2009). This essay discusses an efficient model for the evaluation of technology integration in organizations and, this case, at AT&T, Inc. About AT&T, Inc. AT&T, Inc. was established in 1876 with its headquarters in Dallas, Texas (Brautigan et al., 2015). Since then, the company has expanded to be among the Fortune 100 companies and provides telecommunication services and products. It offers sophisticated cellular phone services, next generation TV and swift high-quality internet services and smart solutions for businesses. For this corporation to be successful, immense investment in innovation and technology has been the norm. This is how it has been able to keep up with the fast pace at which technology changes with the needs of the consumer market (Brautigan et al., 2015). AT&T continually integrates new technologies into their functions so as to remain largely competitive. Useful models of the evaluation of their organizational technology integration must be developed so as to maintain a state-of-the-art technology system. Problem and Purpose Statement Problem Statement Technology integration in an organization is supposed to improve its operations. However, without an appropriate evaluation model for technology integration, the company may be faced with regular bottlenecks in their operations, and this may affect their delivery of services. This has also been the case at AT&T. A variety of challenges faces the company regarding the quality of service thus continually bringing its revenues down. This can probably be traced to a less efficient technology integration model. The loss of earnings in the company makes investors shy away from investing more in the enterprise (Cost Problems, 2015). The wireless and wireline services are repeatedly faced with outages resulting to total inconvenience to the subscribers of the service who cannot access the service at that time. These outages are a shame because the company provides near-national wireless coverage. The outages can be as many as 335 at any particular time of the day. The company is somewhat slow to implement technology changes at times. It took too long to implement the 4G network technology while some other companies such as Verizon were already applying it (“Challenges Facing”, 2010). To top it all up, the company is faced with substantial competition from other telecommunication companies such as Sprint and Verizon. The company must redefine its technology integration evaluation model so as to recognize any probable hitches before they occur and also to provide customer-tailored services that are up-to-date. Purpose Statement The overall objective of this study was to come up with the most appropriate technology integration evaluation model. Through it, the best scheme of technology integration will be used thus ensuring efficient operations and improved performance in the Corporation. The overall purpose will be accomplished using three precise purposes. The first one will be to create a culture that promotes only the use of the finest practices of incorporating technology in the organization (Hoque et al., 2006). This may be done by training the research and development team to be more agile when coming up with new technologies that are customer-specific. Coming up with unique innovations could also give them a competitive edge (Hunter & Tan, 2007). The second purpose is to prevent the constant wireless outages and hitches in the delivery of quality service. Proper evaluation of the integration model could help with the adoption of technologies that will not necessarily have to keep going off. The third purpose will be to beat its competitors. By adopting a model that will ensure that only the most cost-effective and innovative technologies are implemented, the company could have an edge over its competitors. It would also enable the business to provide services at cheaper rates making them more preferable. Scorecard Scorecarding technology is used to measure the performance of the organization’s technology (Kaplan, 2015). The Balanced Scorecard is used to manage the technology strategy combined with the business strategy. The scorecard uses four strategic viewpoints. These are financial, customer, internal process and learning and innovation (Kaplan, 2015). Using these perspectives enables organizations to create a model based on how the intangible factors such as creativity, interaction with customers, and talent interrelate with the tangible factors such as revenues to come up with an innovative and flexible business (Biazzo & Garengo, 2012). When designing an evaluation model for AT&T, this is how these perspectives will apply: Finance: AT&T has numerous investors and owners who depend on the corporation to be a financial system and to provide a return on their investment. AT&T has in the past being in the trouble of spending too much and not hitting targets with revenues. It spends billions of dollars building its brand and expanding its investments (Hall, 2013). Coupled up with all its operating costs, the costs can be quite overwhelming. If the costs exceed the revenues or do not match up with the desired expectations, then the technology measures put in place have to be changed. Customers: The balanced scorecard will contain all explicit measures to improve customer satisfaction, improve the quality of products and services, and set reasonable prices for their products (Knight, 2015). If the desired levels of customer satisfaction are not achieved while using the technology integrated into the business, then measures are put in place to improve these standards (Tidd & Bessant, 2009).. Internal process: The internal process activities are those that the corporation must do exemplary in to ensure that value is provided for customers, stakeholders, and the owners of the company. The internal management of AT&T continually works to improve all operations, introduce the latest technologies and provide innovative quality products. In the end, the clientele increases, the innovative products sell and the revenue continues to rise. If after integrating a certain technology the outcomes are contrary to this, then the corporation has to either abandon the technology or look into its improvement (Olsen et. al, 2009). Learning and Innovation: This is the basis of all other perspectives in the organization needed to create, plan, create blueprints, and deliver products and services to customers and stakeholders. These include physical infrastructure, culture, tools and technology, knowledge and skills, and information systems. It is an assortment of tangible and intangible assets of the corporation that provide insight and stimulate innovation (Backer & Cervantes, 2008). AT&T is a hub of ideas and with a massive intellectual property, which can indeed be employed to assess the usefulness of every new or integrated technology. After a careful diagnosis of the current business situation and identification of the problems at AT&T, the scorecard design process begins. The first step in creating this scorecard will be to construct strategic linkages. In this step, a strategy map will be established in which the existing strategies are documented in a new way. AT&T’s strategy is having it entirely together for their customers, from innovative Smartphones to TV services and sophisticated solutions for global businesses (“AT&T Business”, 2015). The strategy map will describe what AT&T needs to do to become successful through its strategies (Figure 1). The map will be an instrument to communicate the redefined strategies to all the members of the organization. Figure 1: Strategy Map (Knight, 2015) The next step is to establish the key performance indicators. The primary reason for doing this is to set metrics that will show whether the technology integrated is working for the best of the company or not. AT&T’s key performance indicators will be to provide reliable network services, to ensure product safety, pumping up innovation by having increased number of patents received per day, and the overall increased customer satisfaction. Once these performance indicators are achieved through the integration of a certain technology, then the company should continue to use the technology (Bansal, 2009). Step three will be to identify processes, projects and measures that are critical to each strategic objective (Knight, 2015). The processes and day to day projects should be linked to the organization’s strategies and objectives. During this step, the core processes are shortlisted and then ranked from the most critical to the least critical to each goal. Any projects that do not link to the strategic objectives are abandoned so as to focus resources on only things that will help execute strategies. The fourth step is to build the scorecard processes and draft the scorecard (Knight, 2015). To make sure that AT&T has a performance-based culture, it is important that its scorecard processes are integrated with other existent processes such as financial planning (Knight, 2015). The scorecard design will include several categories such as perspective, goal, objective, measure, target and actions. This step will be used to finalize the key performance indicators and capture the beginning measure (Knight, 2005). After the scorecard is drafted, it is then passed on to the executive for approval and at a final step, it is implemented. The following is the scorecard that will be used to evaluate technology integration at AT&T: PERSPECTIVE GOAL OBJECTIVE MEASURE TARGET ACTIONS Financial To increase its profit. To reduce costs and maximize revenues. To utilize cheaper technologies but still make sophisticated products. To reduce overhead costs by 16%. To attract more investors to the company. To grow by an impressive 20%. To eliminate its debts by 10%. To enjoy a higher listing at the New York Securities Exchange. Utilizing cheaper technologies and increase the utilization of the company’s intellectual property. Increasing its revenues by an impressive 8% half-yearly. Strengthening partnerships so as to mitigate financial risks. 16% revenues by the end of the fiscal year. Increasing investors by 5% by the end of 12 months. To eliminate all debts in a two-year debt repayment program. Buying telecommunications and TV companies so as to facilitate greater efficiencies with U-verse and reduce costs. Intensive advertising to increase purchases thus increasing revenues. Making regular lump-sum payments of debts so as to be eventually debt-free thus increasing profits. Customer To win over the customers of its competitors such as Verizon. To make longer contracts with Smartphone manufacturers such as Apple, Inc., so as to increase its customer base. To improve service delivery through U-verse and its mobile and internet service. To increase customer satisfaction. To increase its market share to above 70% in both the US and Mexico. Creating new and innovative solution to businesses and individuals. Increasing efficiencies and reducing wireless and wireline outages. Increasing the percentage sale of new products. Making sure that service deliveries are efficient. Creating a regular feedback system with the customers so as to know the changes to make. Attaining a global market share of over 50%. Receiving quality positive feedback from customers. Winning over 10% of consumers subscribed to other service providers. Partnering with some of their competitors so as to improve its chances of gaining a market share that they would otherwise not have achieved. Improving product quality. Advertising so as to market the brand. Increasing the number of households that use U-verse and its wireless network services. Internal Process Technology capability. Design productivity. New product introduction. Manufacturing excellence. Ensuring total quality management. Reducing cycle time by 50%. To respond quickly to changes in the market (Tidd & Bessant, 2009). Creating products that beat those of its competitors completely. Ensuring efficiency in the engineering process. Reducing cycle time and unit cost. To improve the efficiencies of the entire internal process by 50%. Establishing teams so as to come up with the best practices to improve the internal processes. Creating a continuous improvement program while incorporating technology. Creating a synchronized collaboration in implementing efficient processes (Hoque, et. Al 2006). Learning and innovation To be the leaders in technology and innovation. To employ technology that is product focused. To reduce the time to market of products through efficient innovation processes. To increase the company’s intellectual property. To lead in innovation in the communication and entertainment industry. To produce competent and skilled employees. To keep on developing next generation products. Learning and coming up with technologies that reduce process time to maturity. Adopting new technologies that are easy to learn. To receive more than three patents a day. To invest more than $35 million a year in innovation. Creating a training program to increase the employees’ innovative skills. A constant motivation of workers and rewards for the employees with the best creative ideas. Consistent and coordinated use of the integrated technology (Hoque, et. Al 2006). Recommendations Based on the AT&T’s vision to connect everybody around the world and to execute it better than any other company around the world (“AT&T Labs”, 2015), an efficient technology integration system should be established. This system should continually be evaluated using an effective model. The above scorecard will ensure that the organization evaluates it technology integration based on the meeting of the set targets. If the technology does not in any way help to meet these targets, then it should be abandoned, and another technology adopted. The scorecard should be regularly updated so as to keep up with the current situation in the market and to satisfy its needs and those of the market. References AT&T Business Strategy: Strategic Management. (2015). Retrieved from http://www.123helpme.com/att-business-strategy-view.asp?id=158342 AT&T Labs - About AT&T Labs - Mission and Vision| AT&T Labs| AT&T. (2015). Retrieved from http://www.corp.att.com/attlabs/about/mission.html Backer, K., & Cervantes, M. (2008). Open innovation in global networks. Paris: OECD. Bansal, S. (2009). Technology Scorecards: Aligning IT investments with business performance. Hoboken, NJ: Wiley. Biazzo, S., & Garengo, P. (2012). Performance measurement with the balanced scorecard. Berlin: Springer. Brautigan, B., Furchtgott-Roth, H., Chowdhry, A., Bloomberg, J., Chen, L., & Chen, L. et al. (2015). AT&T on the Forbes Worlds Most Valuable Brands List. Retrieved from http://www.forbes.com/companies/att/ Challenges Facing AT&T - GuruFocus.com. (2010). Retrieved from http://www.gurufocus.com/news/100850/challenges-facing-att Cost Problems, A. (2015). AT&T Might Be Facing Some Operating Cost Problems. 247wallst.com. Retrieved from http://247wallst.com/telecom-wireless/2013/07/23/att-might-be-facing-some-operating-cost-problems/ Hall, C. (2013). AT&T Is Spending Millions To Get It Can Wait Message Across. Retrieved from http://www.dallasnews.com/business/columnists/cheryl-hall/20130921-att-spending-millions-to-get-it-can-wait-message-across.ece Hoque, F., Sambamurthy, V., Zmud, R., Trainer, T., & Wilson, C. (2006). Winning the 3-legged race: When business and technology run together. Upper Saddle River, NJ: Prentice Hall. Hunter, M., & Tan, F. (2007). Strategic use of information technology for global organizations. Hershey, PA: IGI Pub. Iansiti, M. (2006). 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