Intelligent enterprise

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Intelligent Enterprise is an organizational management concept that leverages knowledge and technology in an attempt to improve business performance. The concept, as articulated in James Brian Quinn's book Intelligent Enterprise, [1] argues that intellect is the core resource in producing and delivering services. It goes on to say that managers are expected to provide a rewarding work environment through lower friction and energetic conduct, and auxiliary functions should be outsourced to vendors, so that firms may focus on their core components. [2]

Contents

Discussion

Ming Yingzhao and Feng Dexiong stated that "the degree to which the Intelligent Enterprise can be successful depends on the competencies of the people and its operational capabilities", [3] such as structure, policies, and systems. Asif Gill discussed the contemporary information-driven approach that uses data, analytics, and artificial intelligence/machine learning for "architecting intelligent enterprises". [4]

Examples

Honda

During its early years, Honda competed with many other Japanese car producers, such as Toyota. Their decision to outsource many of their components to achieve economies of scale and to focus more on the development and production of their manufacturing operations helped them gain a competitive advantage. [5]

Apple

When Apple retailed certain products in the highly competitive computer environment, their production costs were less than 25%, as more than 70% of their components were outsourced. [6] Apple focused on design, logistics, software, and product assembly. [7]

Advantages

Jatinder Gupta, a professor at The University of Alabama in Huntsville and coauthor of a book on the topic, [8] claims that the increased availability of information leads to better decision-making, which can be beneficial from a macroeconomic perspective. [7] Gupta classifies the advantages of Intelligent Enterprises into three distinct levels: Operations, Tactics, and Strategies. [7]

Limitations

Gill Palmer, a doctoral candidate, identified a blind spot [9] among many corporations and businesses: the lack of harmonious integration between internal operations and external interactions.

The internal aspects of a business encompass several key components, including strategic planning, which involves the formulation of long-term goals and the development of actionable plans to achieve them. Resource efficiency refers to the optimal utilization of assets – such as human capital, technology, and finances – to minimize waste and maximize productivity. Additionally, businesses must continuously identify and assess opportunities that arise in the marketplace, allowing them to innovate and adapt to changing conditions.

Effective processes are crucial, as they dictate how tasks are carried out and how information flows within the organization. Lastly, the way a business interacts with its external environment, including stakeholders such as customers, suppliers, and regulatory bodies, can significantly impact its success. Therefore, both the internal dynamics and external relationships must work in concert to foster a truly intelligent enterprise. [4]

It is important to note that humans are the intelligence behind the technological systems, and to affirm the validity is still very limited. Human beings have many qualities that are different to that of a technology apparatus (e.g., psychological and sociological), which need to be taken into account. Therefore, limiting this theory to that of a technological approach should not be the sole focus of a corporation. [4]

References

  1. ↑ Quinn, James Brian (1992). Intelligent Enterprise: A knowledge and service based paradigm. United States of America: The Free Press.
  2. ↑ Wiig, Karl M. (2007). The Intelligent Enterprise and Knowledge Management. Texas: Knowledge Research Institute, Inc. S2CID   15643503.
  3. ↑ Yingzhao, Ming; Dexiong, Feng. Research on the Intelligent Enterprise Based on Intelligent Behaviour. Proceedings of the 7th International Conference on Innovation & Management. Wuhan, P.R.China: School of Management, Wuhan University of Technology.
  4. 1 2 3 Gill, Asif (August 2022). Adaptive Enterprise Architecture As Information: Architecting Intelligent Enterprises. Intelligent Information Systems. Vol. 08. Singapore: World Scientific Publishing. doi:10.1142/12961. ISBN   978-981-12-6020-9.{{cite book}}: CS1 maint: date and year (link)
  5. ↑ Quinn, James Brian (1999). "Strategic Outsourcing: Leveraging Knowledge Capabilities". MIT Sloan Management Review. Retrieved 21 October 2014.
  6. ↑ Choo, Chun Wei (1995). Information Management for the Intelligent Organization. Medford, New Jersey: Information Today/Learned Information.
  7. 1 2 3 Gupta, Jatinder N. D.; Sharma, Sushil Kumar (2004). Intelligent Enterprises of the 21st Century. London: Idea Group Publishing.
  8. ↑ "Intelligent decision-making support systems : foundations, applications and challenges | WorldCat.org". search.worldcat.org. Retrieved 22 February 2025.
  9. ↑ Palmer, Gill (1 July 1987). "Human Resource Management and Organisational Analysis". Asia Pacific Journal of Human Resources. 25 (2): 5–17. doi:10.1177/103841118702500202. ISSN   1038-4111.
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