Intelligent enterprise

This article is about the management approach. For the magazine, see Intelligent Enterprise (magazine).

Intelligent Enterprise is a management approach involving technology that is aimed at improving business performance. The concept, as articulated in James Brian Quinn's seminal book Intelligent Enterprise, posits that intellect is the core resource in producing and delivering services. This approach is referred to as Knowledge Management.

Paradigm

In the Intelligent Enterprise paradigm, managers are expected to provide a rewarding work environment through lower friction and an energetic conduct. It also suggests outsourcing the more auxiliary functions to vendors, so that firms may become more focused on their core components. 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." such as structure, policies and systems. Asif Gill discussed the contemporary information-driven approach that uses data, analytics, and AI/ML for "architecting intelligent enterprises".

Real life examples

Honda

During its early years, Honda competed with companies such as Toyota and other Japanese producers - however, outsourcing many of its components to achieve economies of scale and focusing more on the development and production of its manufacturing operations helped it gain a competitive advantage.

Apple

Apple when introduced to the highly competitive computer environment retailed for about $2000 but cost less than $500, as over 70% of its components were outsourced. Instead, Apple focused on the design, logistics, software and product assembly.

Stated Advantages

Gupta claims that more available information will lead to better decision-making and thus, be beneficial in a macroeconomic sense.Gupta classifies the advantages of Intelligent Enterprises into 3 different levels: Operations, Tactical and Strategies:

• Operations: In an operative view, intelligent enterprises set the platform in which automates processes and allows the access to all data information which may have been physically and logically dispersed at one time.

• Tactical: An Intelligent Enterprise may have better and faster decision-making as information is easily accessed.

• Strategies: The reduction of operating times promotes the reduction of operating costs thus leading to better customer services. In addition, advanced business decision-making follows from better tactical strategies.

Limitations

However, as with all business theories, there are limitations. Palmer, a PhD student, has found that corporations and businesses are blind to the fact that in order for intelligent enterprises to work, both the inner and outer of businesses need to work hand in hand. The inner of a business includes the following: strategic planning, resource efficiency, opportunities, processes and interaction with the environment.

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 (psychological and sociological), which needs to be taken into account. Therefore, limiting this theory to that of a technological approach should not be the sole focus of a corporation.

External links

• Intelligent Enterprise consultants website Archived 13 December 2009 at the Wayback Machine
• Intelligent Enterprise software Engineers website