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Indian Institute of Management, Bangalore

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A Report on the Organizational Structure of Capillary Technologies

Abhilash Mulakala Aditya Bharadwaj Gopi G Konark Panday Mark Pakhoungte

Managing Organizations

Group 7

ABOUT
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Contextual Dimensions
A. Organizational Technology
Capillary Technologies Capillary engagement suite: The technology capillary provide for clientele. In-Touch Campaign Manager Customer Intelligence Social Connect Clienteling Lifecycle Marketer

*The above is from capillary website Characteristics of Service Technology Intangible output Business Analytics - Build a powerful marketing plan with analytics made for Customers and Prompt solutions for your unplanned needs, Consulting. Knowledge intensive - Capillary provide unique solutions depending on business needs. High Customer interaction and Human element There are no standardized products and thus necessary to study and understand customer business scenario. Feedback Management System is used especially for this objective. Quality is perceived and difficult to measure Each service provider varies from other and cannot be compared. Such subjective items cannot be easily measured quantitatively. But capillary try to measure using increase in percentage sales as a result of their technology. Rapid response time is usually necessary A service must be provided when customer wants it and needs it. Solutions must be provided in a timely manner.

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Managing Organizations

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Structural characteristics of Capillary Few Separate boundary roles Unlike manufacturing, technical specifications cannot be conveyed through boundary spanners and there has to be direct interaction between technical core team and customer. Geographical dispersion is much A service firms achieves greatest economies through disaggregation into small units that can be close to customers. Capillary uses cloud technology and doesnt require large physical units and dispersed as small units in various countries closer to the customers. Decision making is centralized with founders of the organization. Formalization is low. Human resources skill level is generally high.

Perrows Framework applied to capillary:

Perrow specified two dimensions of activities that were relevant to organization structure and process. The first is the number of exceptions in the work. This refers to task variety. The second dimensions of technology concerns the analyzability of work activities. Capillary falls under the category of NON ROUTINE technologies in Perrows framework. They have high task variety and conversion process is not analyzable or well understood.

****Whatever on the top needs to be rephrased as some sentences are taken from Textbook******
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Managing Organizations

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Problems cannot be solved by standard algorithms and require a combination of experience and technological skill to address issues. Capillary takes on projects from a plethora of companies spread across different industries, thus adding to high task variety. Also, the nature, scenarios and problems of each company tend to be different from one another rendering the use of common frameworks and algorithms ineffective and resulting in the tasks being low on analyzability. For a non-routine technology the organizational structure is expected to be organic and possess low formalization and centralization, moderate to narrow span and high horizontal communication. In the case of capillary, all the above mentioned except low centralization can be observed. Work-flow interdependence among departments: sequential or pooled??

Figures taken from below sources: http://somanagement.blogspot.in/2011/12/intensive-technology-reciprocal-task.html http://www.aia.org/akr/Resources/Documents/AIAB097619

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