INSTITUTIONAL

PRESSURES AND
MINDFUL IT
MANAGEMENT
The Case of Yantian International
Container Terminal Limited
By:
Himani Chandra
Supriya Gaur
Tania Sethi
OBJECTIVE OF THE CASE STUDY
 The objective of the case study is to
understand the benefits of effective IT
Management in meeting institutional
pressures faced by organizations.
 While largely the focus has been on
leveraging IT for operations and IT adoption,
however fewer studies have investigated how
IT Management can help organizations to
deal with institutional pressures.
YANTIAN INTERNATIONAL
CONTAINER TERMINAL
 Formed by a joint venture between HPH
Group (which operates 49 ports in 29
countries) and Shenzhen Yantian Port Group
in 1993.
 In 2007, it became the worlds largest
container terminal in terms of annual
container throughput by a single terminal.
• How container port operators leveraged their
IT resources to cope their institutional
3.
pressures in a mindful manner?
• How these influenced the IT development of 2.
the container terminal?
• What institutional forces exert pressure on 1.
the operations of a container terminal?
METHODOLOGY
INSTITUTIONAL THEORY
 This theory posits that structural changes in
an organization are driven both by the desire
to reduce cost or improve efficiency with
external entities and by organizational
legitimacy. Such drivers foster
institutionalization of IT development.
WHY INSTITUTIONAL THEORY
 Foundation to investigate the influence of
institutional pressures on ITM
 Identify organizations that exert institutional
pressures requiring IT development efforts
 However IT development due to these
factors may not result in desired outcome as
IT implementation is risky, may lead to
inefficient outcomes, disruptions, etc.
 Therefore it is essential to make mindful
decisions about IT development.
MINDFULNESS AND ITM
 Ensuring continuous creation, being open to
new information and being aware of more
than one perspective.
 For e.g., in adopting a new software, a
mindful firm would ensure that it is
compatible with existing software &
hardware, compatible with software used by
its major suppliers, customers, etc.
RESEARCH PROCEDURES
1. Visited the port to understand its operations
2. Developed an interview guide to use in data collection
3. Collected interview data at YICT via in depth interviews
with managers and executives responsible for the three
major functions: operations support, commercial
services, and information services
4. Initiated meetings with groups of managers to seek
information that might have been overlooked in the
individual interviews
5. Collected documents and publications relating to the port
operations
6. Follow up emails were sent to interviewees
7. Publicly available information was accessed for validation
8. A case report was prepared
ITM BY HPH GROUP AND YICT
 Centralized-localized IT development approach-
Sharing of generic IT across the group with
flexibility to customize for local needs.
 YICT has upgraded and embraced IT innovation
continuously to enhance its operational
efficiency and to create value

Advantages of this approach-

 Cost effective
 Exploit the groups IT resources, along with the
flexibility to meet local needs
 Share ITM best practices
INFORMATION INFRASTRUCTURE AT YICT
 The operations and services of YICT are
complementary and inter-related.
 Information Sharing-The efficiency of
container terminal operations is not
guaranteed if the IT used at the terminal do
not share information.
 The development of Next Generation
Terminal Management System(nGen) provided
information sharing possible.
WHAT IS NGEN?
 NGen is a modular system that offers an architecture
that is flexible for plug-and-play options to support
future IT development.
 The system serves as a central processing unit to
coordinate container terminal operations and
facilitate information interchange between port users
(e.g., shipping lines, shippers, customs, and freight
forwarders) and YICT.
 Major IT applications for container terminal
operations are integrated with nGen. They serve 3
key functions:
 (1) container terminal operations support; (2)
information interchange for customs declaration; and
(3) communications and information interchange
amongst port users.
INSTITUTIONAL PRESSURE
Three groups of organizations that impose
different influences on container terminal
operations.
 Private organizations that use port facilities
for business purposes
 Public organizations that impose regulations
on container terminal operations
 Rival organizations that compete for
businesses
Institutio Needs of the Pressures on YICT Mindful IT applications
nal forces institutional forces

Customers Fast container Enhance container Computerize container

turnover rate. terminal terminal activities to
operational enhance the container
efficiency. terminal operations.
Fast custom Reengineer customs Computerize customs
declaration and procedures to operations to shorten time
clearance. shorten time for of customs declaration.
declaration and
clearance.
Efficient pickup/ Develop chain of Data sharing to coordinate
drop-off of goods. transportation. transportation.
Complete Ensure smooth flow Allow customer access to
transportation of goods via the port. information relevant to
Infrastructure their operations.
around the port. Heighten security with
Low service charge. minimal disruption to the
customer supply chain.
Value-added Provide value-added Value-added services to
services. services. help the lower operating
cost & increase revenue.
EXAMPLE: MINDFUL IT
APPLICATION
 Deployment of the Tractor Mobile Terminal
System (TMT) with a WiFi network for allocating
a tractor in the container port to a grounding
and pick-up location. This has significantly
increased operational efficiency.
 Value-added services to its customers-
Development of the Port Community Card System
(PCC) to manage entry and exit at the gatehouse
by automatic acquisition of truck identification
and transfer of service charges. This enhances
terminal security, and helps truckers manage
their finance and trucking operations.
 Development of a communication platform,Easy-
Port
Institutio Needs of the Pressures on YICT Mindful IT applications
nal institutional
forces forces

Customs High level of Heighten container Real-time and secure data

container terminal security. transmission.
terminal
security.
Provide channels for Communication and data
Shipment data information sharing sharing between users.
visibility. between the relevant Heighten container terminal
Shipment data organizations. security without incurring
accuracy. more work for customs.

Improve customs operations

Reengineering of by using IT.
customs
operations and
procedures.
EXAMPLE: MINDFUL IT
APPLICATION
 YICT developed a customs system, the Customs
Electronic Inspection System (CEIS), which supports
information interchange amongst the Dapeng Customs,
inspection area, and the YICT control tower.
 CEIS enhanced the visibility of inspection information,
speeded up cargo clearance for container terminal
users, shortens the container storage time and reduces
storage charges for the container port users.
 Developed IT solutions to minimize the adverse effect
of heightening security by participating in the Smart
and Secure Tradelanes Program of the HPH Group.
 Installed RFID(Radio Frequency Identification)
sensors.
Institutiona Needs of the Pressures on YICT Mindful IT applications
l institutional forces
forces

Competitors Increase Expand throughput Enhance container terminal

throughput handling. operational efficiency to
capacity. improve throughput capacity.
Improve container Improve container Computerize container
terminal efficiency. terminal efficiency. terminal operations to lower
operating costs. Enhance data
accuracy for coordination of
chain of transportation.

Develop/improve IT Enhance service Reengineer to improve

infrastructure. capabilities. information interchange.
Develop/improve Improve Provide efficient services.
transportation transportation
infrastructure in infrastructure.
the port. Lower
service charge.
Improve customer Improve chain of Provide value-added services
services. Heighten transportation. that enhance operational
container terminal efficiency.
security.
EXAMPLE: MINDFUL IT
APPLICATION
 YICT has accelerated its Phase III
development to cope with the growth of sea
transportation. It has also developed IT that
are both flexible, allowing easy modification
of functionalities and easily extensible to
accommodate new IT development.
 YICT developed a user-friendly interface that
requires no special training, but also set up a
customer service centre to answer user
enquiry.
IMPLICATIONS OF THE CASE
Firms that possess mindfulness can accomplish a high level
of differentiated reasoning in developing IT to meet
organizational needs.
 Preoccupation with failure and success
1. Reluctance to simplify interpretations
2. Sensitivity to operations
3. Commitment to resilience
4. Reliance on expertise over formal authority
IMPLICATIONS FOR RESEARCH
This case study:
 Revealed the applications, infrastructure,
and performance implications of IT in one of
the busiest container ports in the world
 Examined how the institutional pressures
faced by YICT shaped its ITM
 Extended the concept of individual
mindfulness to organizational mindfulness
LIMITATION OF THE CASE
Data was collected for a single organization.
BENEFITS FROM THE CASE
 It suggested that firms maintaining divergent
perspectives better handle the institutional
pressures.
 It also revealed the benefit of maintaining
group level ITM.
 It revealed that a flexible IT infrastructure
allows effective communication and
information sharing with customers and
governmental bodies.
 It showed how institutional pressure can be
handled in the right manner.
THE LEARNING…
The container terminal operators should
regularly assess their business environment.
The showed them how to determine the
institutional pressures, and how they could
proactively respond to them.