Draw a diagram of 7-S framework. Discuss how you can apply the 7-S framework that manifests (exhibit/demonstrate) the business make-up of an IT/IS related organization of your choice. (16 marks)
ABC Sdn. Bhd is a well-known software company that develop Payroll software for all sizes of Business Company in Malaysia. Payroll software product that provides by ABC Company such as commission calculation, overtime calculation, income tax calculation, part time calculation and etc.
Currently, the software sales in ABC Company are decreasing as the competition in Malaysia market is getting more competitive. The main competitor of ABC Sdn. Bhd is now providing value package on their payroll software and provides cheaper payroll package to its customer.
Based on the scenario above, the CEO of ABC company can apply 7-S framework to overcome the sale drop problem in ABC Company.
1. Strategy, The CEO have to identify the payroll software that most saleable among others payroll software, such as commission calculation and income tax calculation Then, the CEO should only focus on their top sales payroll software and develop additional feature on it, such as customization and reporting features. From this, the CEO has changed its business strategies to products differentiation to compete with their competitor.
2. Structure, The CEO should flattened the organization structure and decentralised decision-making authority to each team leader. So the team leader is given authority to make decision and responsible for any task that assigned to the team. When organization structure is flattened, each team member will know who they should reports to when they accomplish a task or faces any problems.
3. Systems, The CEO should redesign the reward system to achieve the new business strategy and company goal. Every employee and team will work toward to the new business strategy and company goal to achieve their rewards. For instance, sale team they