Textbook Notes (280,000)
CA (160,000)
Ryerson (10,000)
ITM (800)
ITM 102 (300)
Chapter 3

ITM 102 Chapter Notes - Chapter 3: Business Process Reengineering, Business Process, European Cooperation In Science And Technology


Department
Information Technology Management
Course Code
ITM 102
Professor
David Atkinson
Chapter
3

This preview shows page 1. to view the full 4 pages of the document.
CHAPTER 3 CREATING BUSINESS VALUE
BUSINESS ORGAINZATION AND BUSINESS PROCESSES
Business strategy: a broad-based formula for how business is going to compete, what its goals
should be, and what plans and policies will be needed to carry out goals
If properly constructed, strategy creates business value and competitive advantage
PORTERS FIVE FORCES MODEL different factors for competitive rivalry (i.e.
barriers of entry, substitutions, bargaining power of buyers and suppliers)
Open systems model: business operates by transforming inputs into outputs and constantly
interacting with environment
STAKEHOLDERS AND BOUNDARIES IN THE BUSINESS ENVIRONMENT
Stakeholder: person or entity that has an interest in and influence on how business will function
External or internal relative to system
Influence all depends on how organizations decision makers perceive in relation to
stakeholders interest
Organizational boundaries: must be aware of what is going on in environment so it can take
steps to remain competitive by responding to opportunities or threats
Needs external information to run operations or processes on daily basis
HOW BUSINESSES ORGANIZE TO CREATE VALUE
Businesses possess structures that organize information, responsibility, and authority
Four types of organizational structure:
1. FUNCTIONAL AND DECENTRALIZED STRUCTURE: lines of authority (who
has right to tell whom to do what) and communication are vertically oriented.
2. MATRIX STRUCTURE: blends functional and decentralized organizational
structures
Top to bottom: organized as functional structure
Left to right : follows a product-focused (or customer-focused) structure
that creates teams across business units
3. DECENTRIALIZED BY GEOGRAPHY
BUSINESS PROCESS
Business process: collection of activities that takes one or more kinds of input and creates an
output (product or service) that is of value to customer
Process shown as INPUT -> PROCESS -> OUTPUT
Hundreds of processes running business; linked together and interact with one another to
achieve various goals
Sub-processes is one or more task that accomplish significant portion or stage of process
IGOE: method used in process mapping that illustrates inputs, guides, outputs, and enablers of
process
www.notesolution.com
You're Reading a Preview

Unlock to view full version