Chapter 2: Organizational Strategy, Competitive Advantage + IS Flashcards
What are organizations?
Deliberate structure of people working toward a specific purpose (check notes for MIS definition)
Business processes
Include? Cross Functional Processes
IS + Bu Processes ()
Business Process
An ongoing collection of related activities that create a product or service of value to the org, its Bu partners, and/or it’s Cu’s
Bu Process Elements
Inputs (i.e)
Resources ()
Outputs ()
Efficiency vs Effectiveness
Doing things right vs doing the right thing?
i.e. of Bu Processes
ACCT BPro:
Managing A/P
FIN BPro:
Producing Bu Forecasts
MRKT BPRO:
Collecting Sales Tax
PRO/OPMANG BPRO:
Processing Physical inventory
HR Bro:
Managing Pay + payroll
MIS BPRO:
Antivirus Control
Cross Functional Processes
No Single Functional area = responsible for everything
Steps = executed in a coordinated + collaborative way
Procurement & Fulfillment Cross - Functional processes ()
Airplane Ticket Diagram
I.e. of cross - Functional Operations (simple for CU, more complex for other parts)
()
IS’s vital role in 3 Bu Process Areas
- Executing the Process ()
- Capturing + Storing Process Data ()
- Monitoring Process Performance ()
IS’s help Execte Porcess by…
- Informing emp’s when it’s time to complete a task (i.e. reminder software?)
- Providing required data (i.e. Managers need Survey data from Emp’s?)
- Providing a means to complete a task (i.e. Financial Analysis can use Finance Functional area IS’s)
Capturing + Storing Process Data
Processes generate data (i.e Dates (17 - 5 - 2006), Times (9:00 AM), Prodcut numbers (27 units), Quantities, Prices ($19), Addresses (Wall Street), Names (Chauncey), Emp actions
IS’s capture + store process data (aka, Transaction data)
Capturing + Storing data provides immediate, ‘real time’ feedback (quick?)
Monitoring Process Performance
IS evaluates info to Determine how well a process is being executed
Evaluation occur at 2 levels
Process Level (i.e. Whole row of Airplane Flightcheck - in tables?)
Instance Level (1 specific airplane flight check - in table)
Monitoring
Identifies Problems for process improvement (i.e. making check - out table work at a faster pace?)
Measures of Excellence in Executing Bu Processes
- Cu Satisfaction ()
- Cost Reduction ()
- Cycle + Fulfillment Time ()
- Quality ()
- Differentiation ()
- Productivity ()
Bu Process Reengineering (BPR)
A Radical Redisign of an Org’s Bu Processes to inc productivity + Profitability (i.e. Subway rebranding itself from Sandwiches to Shoes/converting all previous stores to shoe shops)
Examines BP’s with clean slate approach
But Process Improvement (BPI)
An incremental approach to move an org toward a bu process centered operations (i.e. Like Nike adding + sign to logo, small changes)
Focuses on reducing variation in process outputs by identifying the underlying cause of variation (I.e. check slow sandwich shop employee stand, see what cause of slow/sloppy work, try to improve it)
6 Sigma = Popular Methodology for BPI
Focuses on
BPI 5 or 5 Basic Phases of Sucessful BPI
- Define (the problem?)
- Measure ()
- Anlayze ()
- Improve ()
- Control ()
BPI vs BPR
PBI
Low risk/low cost (I.e. change logo)
Incremental change (small changes)
Bottom - up approach ()
Takes less time
Quantifiable results (I.e see difference between average time slow sandwich artist made food vs after training/motivation)
All emp’s are trained in BPI
BPR:
High risk/high cost
Radical redesign (I.e smash hole into garden to make pool)
Top - down Approach ()
Time consuming (I.e. total rebrand of a comp, Like sell Ice Cream to selling Cars)
Impact can be overwhelming (more emotional, less quantifiable)
High failure rate
Bu Process Management (BPM)
A Management system used to support continuous BPI initiatives for core Bu processes over time
Important Conponents of BPM
- Process Modeling (using tech/diagrams????)
- Web - enabled technologies (items the Internet?)
- Bu Activity Monitoring (BAM)
()
Bu Process Management Suite (BPMS)
An integrated set of applications used for BPM
Emerging Trend of Social BPM
Technologies enabling emp’s to collaborate across functions (i.e. Marketing + IT department emp’s collobarate on x technology) + externally use Social Media Tools
