INTERACTIVE CONTROLS

INDEX

DEFINITION OF INTERACTIVE CONTROLS

Interactive control is a subset of the Management Control Information that has a bearing on the strategic uncertainties facing the business. Industries subject to environmental changes make use of management control information to provide basis for thinking about new strategies. Thus creating a learning organization is a must.

FEATURES OF INERACTIVE CONTROLS

Strategic uncertainties faced by the business becomes the focal point. Senior executives take this information seriously. Managers at all levels of the organization focus on the information produced. Superiors, Subordinates and peers meet face-to-face to interpret and discuss the implications of the information for future strategies. Face-to-face meetings take the form of debates and challenges of the underlying data, assumptions and appropriate actions. Strategic uncertainties relate to fundamental , nonlinear shifts In the environment thatpotentially can create new business models.

THE FOLLOWING TECHNOLOGICAL DISCONTINUITIES SHOULD BE MONITORED BY FIRMS

1)

Internet and E-commerce growth have potential implication for many firms. Growth in the number of internet users . Roll-out of broadband communications. Emergence of point and click interfaces that are based on open standards, cheap to set up and run. Increasing power of computing and communication technologies. Growth in mobile communications for both voice telephony and internet access. Development and deployment of speech recognition and machine based language translation technologies

2)

Converging technologies will have the following effects Convergence of voice, data and images has impications for firms operationg in consumer electronics (Philips) and computers (IBM) Integration of chemical and digital technologies impacted firms (Eastman Kodak) Blending of hardware and software has impact on firms .(Sony)

3)

4)

Merging of Plant, Engineering and Biotechnology It opens up opportunities for firms in life sciences ( Novartis, Merck, Pfizer) Shift from physical goods to services It is rapidlytransforming the automobile industry (Ford) and Consumer durables (General Electric)

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