A CYBER ORGANIZATION IN THE CYBER WORLD

ICT and e.Total Relationship Management (e.TRM)

Mosad Zineldin

Professor in Strategic Marketing and Management

School of Management and Economics, Växjö University, Sweden

Valiantsina Vasicheva

Minsk State Linguistic University, Belarus

Keywords Cybernization, Cyber world, physical world, Total relationship management, Technologicalship,

Management, Relationship, Organisation, Technology, IT.

Abstract This paper offers suggestions to integrate computer-based technology (CBT) including information and

communication technology (ICT) and inter and intra- organizational functions and relationships from a

holistic e.TRM paradigm embedding the physical and cyber worlds. It is a conceptual study based on the

recent developments of ICT, inter-firm relations: economic (transaction costs economics), socio-

psychological (social exchange; inter-organization; and industrial network) as well as relationship

management and marketing theories and concepts with application in practice. A new concept and model of

Cybernization has been developed and discussed. Some general propositions are presented and some

synergy effects of utilizing the e.TRM are highlighted. The paper suggests how these approaches can add

impetus to successful management issues, as a powerful competitive weapon in connecting the physical

world with the cyber space. This paper provides a model for Cybernity that accommodates the major

manifestations of cybernization of an organization and could potentially provide the means to link diverse

literature that is available in this area.

1 INTRODUCTION

A company that does not learn and adapt to

changing technology can face painful competition

and may fall victim to competitors that switched

their strategies to the more technologically-based

relationships. Douglas C. North (1993), one of the

Nobel Prize winners in the economic sciences,

argues that learning from each other, from past

experience, and from new innovations, enables

organizations to find a common, probably

unexpected, pattern or network of relationships that

works for them. Such learning leads to emergent

strategies.

Although the benefits and impacts of the internet

fostered “e-transformation”, “dis-intermediation”

“reintermediation”, and e. commerce have been

widely discussed within the generic literature, a total

integration and combination of the technology and

Total relationship management has received little

attention. To that end, this paper provides a holistic

perspective of technologization or cybernization of

different organizational relationships.

This paper is part of a long-term research effort,

the ultimate objective of which is to offer

suggestions to integrate computer-based technology

(CBT) including information and communication

technology (ICT) and inter and intra- organizational

functions and relationships from a holistic e.TRM

paradigm embedding the physical and cyber worlds.

It is a conceptual study based on the recent

developments of ICT, inter-firm relations: economic

(transaction costs economics), socio-psychological

(social exchange; inter-organization; and industrial

network) as well as relationship management and

marketing theories and concepts with application in

practice. It emphasizes the inherent a

multidimensionalities of cybernization of the

organization and its various internal and external

118

Zineldin M. and Vasicheva V. (2008).

A CYBER ORGANIZATION IN THE CYBER WORLD - ICT and e.Total Relationship Management (e.TRM).

In Proceedings of the Tenth International Conference on Enterprise Information Systems - HCI, pages 118-123

DOI: 10.5220/0001670301180123

 SciTePress

activities and relationships.

A new concept and a model of Cybernization

have also developed and discussed. Some general

propositions are presented and some synergy effects

of utilizing the e.TRM are highlighted. The paper

suggests how these approaches can add impetus to

successful management issues.

2 @ OR E.TOTAL

RELATIONSHIP

MANAGEMENT (E.TRM)

A Total Relationship Management (TRM) approach

and philosophy was created and developed by

Zineldin (1998, 2000). TRM is viewed as a strategy

and a philosophy. It is ´total´, because it considers

and coordinates ‘all’ activities- including internal

and external relationships, networks, interactions

and co-operation as well as all activities involved in

getting, keeping, enhancing and satisfying customers

throughout quality. It is a strategy because it

emphasizes maintaining high products/services,

internal and external relationships quality, and trying

to keep customers in the long run.

Holm (2006) verified that TRM is a Philosophy

by quoting the following:

Zineldin (2000) argues that total relationship

management, is a philosophy that emphasizes the

communication of the organization’s overall

thinking, as well as specific messages about its

products, services or corporate identity.

It is very obvious that nowadays organizations

and people will find it difficult to separate a

relationship from information technology and other

technological advances. Therefore, Zineldin (2000)

has invented the terminology and management

paradigm shift approach, called Technologicalship

relationship”, emphasizes the inseparability of

modern technologies and all kinds of behaviour,

attitudes and relationships.

A technologicalship partnership is a type of

relationship which offers a natural linkage between

the internal environment and the interaction process

because it emphasizes how ICT, people and

organizations are a function of win-win interaction

(Zineldin 2000).

@total relationship management (@TRM)

highlights the interrelationship between the

efficiency and effectiveness, the productivity as well

as the profitability of the organization’s operations

and activities. @TRM philosophy, if it results in

greater people satisfaction (partners, employees,

customers, investors and other stakeholders), is seen

as a way of improving the profitability of the

organization’s operations.

3 ICT, INTERNET AND E.TRM

A key way to build a strong competitive position is

through @ TRM management (we refer to @ TRM

as total relationship management which is based on

IT and the Internet), IT and “product/service quality

and differentiation” which creates a clear image of

the an organization and its products/services in the

eyes and minds of people and can lead to distinctive

positioning in the global environment. Building

barriers to competitive action can develop strong

competitive positions by various means (Zineldin

2002).

Yet information technology (IT) and without

information partnership and information sharing

(relationship based on information), Tom Peters

emphasizes,”… all other aspects of partnership

remain stuck at the stage of lip service or less”

(Konsynski and McFarlan, 1990). Venktraman

(1997) states the following:

”How to best extract value from

information technology (IT) resources is a

major challenge facing both business and IT

managers, particularly as they turn their

focus from searching for the competitive

benefits of strategic information systems and

striving for benefits beyond process

reengineering.”

Computer-based technology (CBT) including

ICT is fundamentally concerned with digital

approaches to representing and processing

knowledge of various types and in various

gradations. For descriptive knowledge the

gradations – raw data to structured information

to problem solutions for decisions – mirror the

evolution of CBT from data processing systems

to management information systems to decision

support systems. All of these systems have

dramatically changed the way knowledge work

is done in organizations, releasing tremendous

human resources, enabling organizational growth

(and necessitating organizational restructuring),

and facilitating improved performance

(Holsapple,2005)

The Intranet serves as an easily accessible

repository for corporate information; anything from

strategic targets to health plans (Frost and Strauss,

A CYBER ORGANIZATION IN THE CYBER WORLD - ICT and e.Total Relationship Management (e.TRM)

119

1997). One of the most significant changes in ICT in

recent years has been the emergence of Electronic

Data Interchange (EDI). Quick-response (QR)

logistics and inventory systems use EDI applications

to automatically replenish stock as it is sold. By

operating on the real-time transmissions of sales and

other logistics data between the channel parties

operating at different levels in distribution systems,

JIT eliminates the need for excess inventory.

e.TRM is about a systematic and efficient

coordination and communication between for

example an individual human's ability to process his

own considerable tacit knowledge and a computer

system's ability to process collectively constructed

explicit knowledge. Organizations can use e. TRM

to capture and reproduce tacit knowledge of their

workers, to be reused at different times, in different

locations, through different media, to create business

solutions more efficiently. This allows more time for

individuals to use their intuitive strengths, defining

and solving problems more creatively.

4 CYBER ORGANIZATIONS (CO)

AND THE INSEPARABLE

NATURE OF THE CYBER AND

PHYSICAL SPACE

1940, A, Azimov, started in his story “Robbie”

about Robots to explore the ideas of how the

synthetic mind “or machines” (ICT tody) created to

serve human beings, evolved and take over the

world of men. His vision of 1940 is now true and

not imagination any longer. Computers and

technology already took over the mind of human

being.

Technology is constantly changing. The advent

of the CBT and ICT, of course, has revolutionized

just about every facet of business and non-business

life, whilst the merging of telecommunications and

computer technology is causing a fundamental

reappraisal of a whole host of industries, with new

ones springing up to replace those that do not keep

abreast of changing technology. However, it can

fairly be said that management today faces a greater

number of challenges of a more complex nature and

from a wider number of sources. As Shown in figure

1, the cyber world requires new theory and moving

from relationship management to e.total relationship

management, e.TRM.

Figure 1: Inseparable nature of Cyber and physical space

e.TRM connecting Physical and Cyber world.

The impact of technology business and non-business

relationships is one of the most serious challenges.

Cyber organization (CO) is not a virtual

organization (VO). Virtual organization has been as

“a temporary network of independent companies”,

or as opportunistic alliance of core competencies”

and as an “organization in which workers are not

physically but electronically connected”.VO is also

defined as imaginary organization (IO) which exist

in your mind. On the other hand, A Cyber

Organization is any organization efficiently utilizing

the ICT and other technologies to pool resources,

communicate, facilitate, coordinate and integrate

different business, political, social and financial

activities in both physical world and cyberspace

outside its boundary or environment to foster,

improve and enhance relationships with its

stakeholders.

The level or degree (individual, project,

organization, internal, external or meta level) and

context of utilization of the ICT and other

technological advances is determine factor of the

degree of the cybernization of the organizational

activities. Cybernization in the context of

organizations can be viewed either as just a

technology-facilitated phenomenon or as a strategic

tool. The degree of Cybernization (DoC) by using

of e.TRM of an organization is largely a measure of

the technological phenomenon of cybernity. Only

when the outcomes (value creation, flexibility,

growth, customization, better quality life, higher

trust, commitment, satisfaction and loyalty, etc.) are

analyzed to see whether e.TRM and cybernization

has resulted in the intended objectives do they

provide insights into whether cybernity has indeed

been used as a strategic tool, providing thereby a

measure of cyber organizational maturity.

e.TRM Managers have to look to the

marketspace to create added-value. They have to

integrate the activities of the physical world with

those of the marketspace (virtual world) in order to

create and extract value in the most efficient and

effective manner. We employ the term

technologicalship relationship to show the

inseparable nature and impact of ICT on all kinds of

e.TRM

Cyberspace

Virtual world

Physical world

ICEIS 2008 - International Conference on Enterprise Information Systems

120

markets and relationships. Therefore, efficient

e.TRM should tightly connecting Physical and

Cyber world.

Finally, e.TRM is an unforgiving and very

demanding process. One weak link and the whole

effort can be wasted. If the stockholders can be

integrated into the product/service development

process, through cooperation and collaboration in

real time, an intense relationship can begin.

5 E. TRM AND THE POTENTIAL

TECHNOLOGICALSHIP

PARTNERS

Through efficient e.technologicalship management,

human resources and skills, and the use of the

relationship marketing mechanisms of mutual

benefits, respect, confidence, trust, trusting

behaviour, commitment and adaptations, a company

can establish, enhance and sustain ongoing business

relationships with its different customers.

When creating and analyzing the relationship

strategies, managers should consider nine primary

candidates for such a technologicalship (Figure 2):

5.1 Workforce Technologicalship

Management (WFTM)

This is one of the areas in which e.TRM appears to

have more controversial implications, in particular,

in terms of the changes in the role of shop floor

employees and intermediate managers as a

consequence of increased levels of automation.

e.TRM should facilitated team working because of

better communications and reduced physical

presence in meetings (e.g. e-mail).

5.2 Employee Attitudes and Behaviour

(EAB)

Within a e.TRM organization, a new organizational

restructure is implied. The common argument that

IT applications will lead to a reduction in the

number of employees as its protagonists (e.g.

Brynjolfsson et al., 1994). Some resistance of

employees to this change is expected and that may

reduce autonomy and commitment to company goals

and objectives as well as the motivation.

5.3 Product design Process

Technologicalship Management

(PDTM)

Implementing effective e.TRM should lead to

increasing the innovation capability and capacity

because the computer-aided design (CAD)

technologies are a fundamental aid in the design

process because of faster response to consumer

needs and greater innovation. An effective new

product design and development process requires

coordination and effective flow and disseminating of

information between different departments

(production, marketing and R&D) and ICT. ICT is

also useful in design of experiments, failure mode

and effects analysis (FMEA) as well as quality

function deployment (QFD).

5.4 Process Flow Technologicalship

Management (PFTM)

e.TRM is also useful in effective implementation of

the process flow management. Well planned

automation reduces process variance, because

machines usually demonstrate less variability than

workers and results in increased speed of production

processes with a significant quality enhancement

(Freund et al., 1997). Automated machines require

components and raw materials of high quality.

Therefore e. TRM with components and raw

materials suppliers is crucial.

5.5 Supplier Technologicalship

Management (STM)

ICT systems improve communication links with

suppliers through EDI systems. EDI can be used to

place orders, send product specifications, design

details, etc., along with confirmation of invoices and

paying for suppliers (Teague et al. (1997).

Companies can access the inventory systems of their

suppliers and place orders automatically and there

can also be access to production scheduling systems.

5.6 Customer Technologicalship

Management (CRM)

e. TRM emphasizes the speed and extent of the shift

to electronic commerce conducted between

businesses, homes and countries and starts to put

into place the means of controlling such invisible

processes. The development of ICT improves

relationships with customers in several ways. ICT

A CYBER ORGANIZATION IN THE CYBER WORLD - ICT and e.Total Relationship Management (e.TRM)

121

TTQM

PDTM

CRM,

STM

ICT

CBT

e.TRM

WFTM

EAB

DTM

OSTM

CED

QFD

CNC

GSC

EDI

Figure 2: Zinekdin’s Model of e.TRM & Cybernization.

leads to direct companies-customers relationships,

enabling the interchange of information. ICT

enables organizations to reach customers who are

geographically remote.

5.7 Distributor Technologicalship

Management (DTM)

In most industrial and service sectors, old-line

channel structures have been weakened by the

introduction and rapid growth of the cyber world

tools such as Internet and other third-party

information service providers such as CompuServe,

Prodigy and America Online. Late twentieth century

retailers are now able to quickly gain accurate

information regarding items which are or are not

popular with their customers. IT is making change

the only constant in channel

5.8 Technologicalship TQM (TTQM)

e.TRM provides autonomy and ease the accesses

and capabilities of the entire employees of different

department and function to implement the principle

of TQM. The work of the TQM can be made easier

because ICT and the management enable better

ability to coordinate the different web of activities

and relationships, collect, analyze, transfer and

disseminate the information within and outside the

organization. e. TRM, therefore, facilitates TQM

implementation and dissemination.

5.9 Others: Facilitators (Stockholders)

Technologicalship (OSTM)

It is not unusual for facilitators outside the firm’s

boundary or market environment to foster

relationships. Actions by government and academic

institutions influence a firm’s activities. Politicians

can play key roles in helping organizations secure

foreign markets. In addition, many government

agencies are large existing and potential buyers, and

creating a long-term relationship with them can be a

competitive force for a company. e.TRM or cyber

organizations need to create and maintain good

cyber relationships with political parties and other

regulatory agencies.

Finally, the examples outlined above, however,

provide us with an insight of how creating value

with e.TRM and its technologicalship relationships

can be conducted faster, better, and less expensively

than treating ICT as a mere supporting activity.

ICEIS 2008 - International Conference on Enterprise Information Systems

122

6 CONCLUSIONS AND

MANAGERIAL

IMPLICATIONS

It is obvious that nowadays organizations and

people will have difficulties in separating a

relationship from ICT. In this article, the e.TRM,

cybernization and the technologicalship concepts are

introduced to indicate the close and almost

inseparable partnership between the physical and

cyber worlds. In short, such a cybernization of the

organization and people minds can be considered as

a new paradigm. This paper emphasizes the inherent

a multidimensionalities of cybernization of the

organization and its various internal and external

activities and relationships. Thus, we argue, in this

paper that technologicalship relationship and e.TRM

should incorporate both physical and cyber worlds.

We integrate these two worlds to show the

inseparable nature and impact of the ICT on all

kinds of relationships.

A cyber organization is a type of offers, via the

e.TRM a natural linkage between the internal and

external environments and the interaction processes

because it emphasizes how technologies, people

(including consumers and other stakeholders) and

other organizations are a function of a win-win

interaction. This combined perspective yields

comprehensive insight into the impact of the

technologies on relationship management of toady’s

cyber world.

By failing to utilize e.TRM and

technologicalship philosophy, organizations risk

being isolated, while successful organizations move

ahead together toward the rest of the 21

century

with its borderless or virtual reality.

Finally, the issue of the cybernization of the

organization and its relationships deserves more

comprehensive theoretical and empirical research.

REFERENCES

Brynjolfsson, E., Hitt, L. (1996), "Paradox lost? Evidence

on the returns to information systems spending",

Management Science, Vol. 42 No.4, pp.541–58.

Frost, R, Strauss, J., 1997, The Internet: A New Marketing

Tool, Prentice Hall.

Freund, B., Konig, H., Roth, N. (1997), "Impact of

information technologies on manufacturing",

International Journal of Technology Management,

Vol. 13 No.3, pp.215–28.

Holm, O. (2006), Communication processes in critical

systems: dialogues concerning communications,

Marketing Intelligence & Planning, Vol. 24 N. 5, pp.

493-504.

Holsapple, C.W. (2005), The inseparability of modern

knowledge management and computer-based

technology, Journal of Knowledge Management, V. 9,

Nr. 1, pp. 42-52.

Konsynski, B, McFarlan, F., 1990, "Information

partnership - shared data, shared scale", Harvard

Business Review, 114-20.

North, D.C (1993), "Economic performance through

time", Stockholm, The Nobel Foundation, Prize

Lecture

Teague, P.E. (1997), "Suppliers: the competitive edge in

design", Purchasing, Vol. 122 No.7, pp.32S5–32S23.

Venktraman, N., 1997, "Beyond outsourcing: managing

IT resources as a value center", Sloan

Management Review, 51-64.

Zineldin, M, 1998, "Towards an ecological collaborative

relationship management", European Journal of

Marketing, 32, 11/12, 1138-64.

Zineldin, M. (2000), "Beyond relationship marketing:

technologicalship marketing", Marketing Intelligence

& Planning, Vol. 18 No.1, pp.9–23.

Zineldin, M. (2002), Managing in the @ age, Banking

service quality and strategic positioning, Measuring

Business Excellence, V. 6 Nr, 4, pp. 38-43

A CYBER ORGANIZATION IN THE CYBER WORLD - ICT and e.Total Relationship Management (e.TRM)

123