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ICT and e-Business in the Pulp, Paper and Paper ... - empirica

ICT and e-Business in the Pulp, Paper and Paper ... - empirica

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<strong>Pulp</strong>, paper <strong>and</strong> paper products<br />

<strong>ICT</strong> <strong>and</strong> <strong>the</strong> transparency of bus<strong>in</strong>ess processes<br />

An important aspect of <strong>the</strong> <strong>ICT</strong> impact on work organisation is that <strong>the</strong> <strong>in</strong>creas<strong>in</strong>g use of<br />

<strong>ICT</strong> <strong>in</strong> all bus<strong>in</strong>ess areas (not only <strong>in</strong> B2B trade, but also <strong>in</strong>ternally) has effects on <strong>the</strong><br />

transparency of bus<strong>in</strong>ess processes. The first of <strong>the</strong> follow<strong>in</strong>g two case studies, about<br />

Rexcell a manufacturer of tissue <strong>and</strong> airlaid paper <strong>in</strong> Sweden, describes how a company<br />

uses <strong>ICT</strong> for quality management by meticulously document<strong>in</strong>g all bus<strong>in</strong>ess processes <strong>in</strong><br />

a system.<br />

A very important side effect of this <strong>in</strong>novation is that factory workers are now <strong>in</strong> a much<br />

better position to underst<strong>and</strong> how bus<strong>in</strong>ess processes are l<strong>in</strong>ked to each o<strong>the</strong>r, for<br />

example how market<strong>in</strong>g activities by sales people <strong>in</strong> <strong>the</strong> organisation are l<strong>in</strong>ked to <strong>the</strong><br />

delivery of <strong>the</strong> products <strong>the</strong>y are manufactur<strong>in</strong>g. This transparency <strong>and</strong> knowledge has<br />

streng<strong>the</strong>ned <strong>the</strong> 'team-spirit' <strong>and</strong> company culture, as every employee has a concrete<br />

underst<strong>and</strong><strong>in</strong>g of what is <strong>the</strong>ir <strong>in</strong>dividual role <strong>and</strong> contribution to <strong>the</strong> company's work.<br />

Improv<strong>in</strong>g supply cha<strong>in</strong> management<br />

In <strong>the</strong> e-<strong>Bus<strong>in</strong>ess</strong> Survey 2006, enterprises represent<strong>in</strong>g about 20% of employment <strong>in</strong> <strong>the</strong><br />

P&P <strong>in</strong>dustry said that <strong>the</strong>y used a Supply Cha<strong>in</strong> Management (SCM) system (see<br />

Exhibit 3-27, Section 3.5.2). Among large companies, about 40% said so. Thus, <strong>the</strong> P&P<br />

<strong>in</strong>dustry is among <strong>the</strong> lead<strong>in</strong>g SCM user sectors.<br />

The second case study featured <strong>in</strong> this section ("<strong>ICT</strong> for New Production Track<strong>in</strong>g")<br />

describes <strong>the</strong> <strong>in</strong>novative e-bus<strong>in</strong>ess activities of a large European producer of office<br />

paper <strong>in</strong> <strong>the</strong> area of SCM. The case study clearly illustrates <strong>the</strong> impact of <strong>ICT</strong> on work<br />

organisation, but from a different focus. It demonstrates effects of <strong>in</strong>troduc<strong>in</strong>g systematic<br />

SCM on work processes, skills requirements <strong>and</strong> organisational performance. The case<br />

study shows that <strong>the</strong> requirements for complementary skills were <strong>in</strong>itially met with some<br />

resistance, but that <strong>the</strong> use of <strong>ICT</strong> – with a focus on an RFID-supported SCM system–<br />

eventually translated <strong>in</strong>to significant efficiency ga<strong>in</strong>s. The state-of-play of RFID use <strong>in</strong> <strong>the</strong><br />

P&P <strong>in</strong>dustry is <strong>the</strong>n discussed <strong>in</strong> more detail <strong>in</strong> Section 4.3.<br />

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