Chapter 5 Flashcards
Activity systems
The way in which resources are deployed through the organisation takes form in the activities pursued by that organisation; therefore it is important to identify what these activities are, why they are valuable to customers (value), how the various activities fit together and how they are different from competitors (rarity).
Mapping activity systems:
1) Identify ´higher order strategic themes´(ways in which org meets CSF determining them in the industry.
2) Identify clusters of activities that underpin each of these themes and how these do or do not fit together.
3) Result is a picture of the organisation represented in an activity system.
Activity systems mapping encourages a greater understanding of the complexity of resources and capabilities, important if bases of competitive advantage are to be identified and managed.
The need is to understnad (i) the fit between the various activities and how these reinforce each other and (ii) the fit externally with the needs of clients. These linkages and this fit that can be the bases of sustainable competitive advantage. In combination, they may be valuable to clients, truly distinctive and therefore rate. In combination they may well constitute the complexity and causal ambiguity rooted in culture and history thaat makes them inimitable. Moreover, there can be activities that provide organisational support.
