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Related Experiment Videos

Beyond business process redesign: redefining Baxter's business network.

J E Short1, N Venkatraman

  • 1Center for Information Systems Research, Massachusetts Institute of Technology.

Sloan Management Review
|March 4, 1993
PubMed
Summary

Business network redesign, focusing on a firm's role within its ecosystem, offers greater strategic advantage than solely internal process improvements. Analyzing Baxter's ASAP system illustrates this concept.

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Area of Science:

  • Business Strategy
  • Information Systems
  • Operations Management

Background:

  • Traditional business process redesign prioritizes internal efficiency.
  • Internal operations improvements are crucial but may not be sufficient for long-term strategic success.
  • The broader business network context is often overlooked in strategic planning.

Purpose of the Study:

  • To argue for the strategic importance of business network redesign over internal business process redesign.
  • To analyze the evolution and impact of Baxter's ASAP system as a case study.
  • To assess the long-term strategic positioning of firms based on their business network integration.

Main Methods:

  • Qualitative analysis of Baxter's ASAP system evolution.
  • Examination of strategic information systems in the context of business networks.

Related Experiment Videos

  • Historical analysis of the hospital supplies market changes in the 1990s.

    • Main Results:

    • Baxter's ASAP system, a strategic information system, demonstrated the potential of business network integration.
    • Internal focus alone may not adequately prepare firms for market shifts.
    • Business network redesign offers a more robust strategic advantage.

    Conclusions:

    • Business network redesign is a critical strategic imperative for firms.
    • Understanding and adapting the firm's role within its network is key to sustained success.
    • The Baxter ASAP case highlights the benefits and challenges of strategic network integration.