CHAPTER 2

CHAPTER 2

Information Systems and the Modern Organization

n  CHAPTER OUTLINE

2.1       Business Processes

2.2       Business Process Reengineering and           Business Process Management

2.3       Business Pressures, Organizational Responses, and Information Technology    Support

2.4       Competitive Advantage and Strategic        Information Systems

2.5       Business – Information Technology             Alignment

 

 A business process is a collection of related activities that produce a product or a service of value to the organization, its business partners, and/or its customers.

A cross-functional business process is one in which no single functional area is responsible for its execution.

Competitive advantage is an advantage over competitors in some measure such as cost,quality, or speed; leads to control of a market and to larger-than-average profits.

Example of Business Process :-

 Business process reengineering is a radical redesign of a business process that improves Its efficiency and effectiveness, often by beginning with a “clean sheet.”

 Business process management is a management technique that includes methods and tools to support the design, analysis, implementation, management, and optimization.

See video about Business process 

 

  Business Pressures :-

The Stages of Globalization

·        Globalization 1.0 (from 1492 to 1800)

Christopher Columbus “discovering” the New World in 1492. 

  

·        Globalization 2.0 (from 1800 to 2000)

                Steam engine

                                                                                                     Railroads

·        Globalization 3.0 (from 2000 to the present)

See video about Globalization

Technology Pressures: -

Technological Innovation and Obsolescence  :   new and improved technologies rapidly create or support  substitutes for products ,service option .

                                                                                                          Innovation: Telegraph                                   Obsolescence: Pony Express

Information Overload :  amount of information available on th internet doubles every day .

Societal/Political/Legal Pressures :-

•          Social Responsibility
•        Government Regulation and Deregulation
•           Protection Against Terrorist Attacks
•           Ethical Issues

1.     Competitive Advantage: An advantage over competitors in some measure such as cost, quality, or speed, leads to control of a market and to larger- than average profits.

2.     Strategic Information Systems (SIS) provide a competitive advantage by helping an organization to implement its strategic goals and to increase its performance and productivity.

Porter’s Competitive Forces Model: -

Porter’s Value Chain Model:- 

Strategies for Competitive Advantage: -

   Cost Leadership. Produce products and/or services at the lowest cost in the industry.

   Differentiation. Offer different products, services or product features.

   Innovation. Introduce new products and services, add new features to existing products and services or develop new ways to produce them.

 Operational Effectiveness. Improve the manner in which internal business processes are executed so that a firm performs similar activities better than its rivals.

 Customer-orientation. Concentrate on making customers happy.

See video about   

Business Strategy: Achieving Competitive Advantage