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Lecture Introduction to business information systems (3rd edition): Chapter 5 - Norrie, Nanjad, Huber

Chapter 5 - Creating business value. After studying this chapter you will be able to understand: Business organization and business processes; applying IT to create business value corporate, IT, and project governance. | Chapter 5 Creating Business Value © John Wiley & Sons Canada, Ltd. 5- WHAT WE WILL COVER • Business Organization and Business Processes • Applying IT to Create Business Value • Corporate, IT, and Project Governance © John Wiley & Sons Canada, Ltd. 5- BUSINESS ORGANIZATION AND BUSINESS PROCESSES Organizations need a business strategy to deliver their end product or service. Strategy becomes a road map for what needs to be done to create high business value and lower costs to create competitive advantages. © John Wiley & Sons Canada, Ltd. 5- MISSION, VISION, AND VALUES An organization’s mission is why it exists. The vision is what it does. And the values represent statements about how they achieve © John Wiley & Sons Canada, Ltd. 5- BUSINESS STRATEGY INFLUENCES © John Wiley & Sons Canada, Ltd. 5- BUSINESS AS OPEN SYSTEMS An organization as a system helps you see how organizations use various resources, processes, and structures to create business value. The open systems model indicates that a business operates by transforming inputs into outputs and by constantly interacting with its environment. Organizational boundary is an important aspect of the open system as it allows a business to receive inputs and to produce outputs. © John Wiley & Sons Canada, Ltd. 5- OPEN SYSTEM MODEL © John Wiley & Sons Canada, Ltd. 5- HOW BUSINESSES ORGANIZE TO CREATE VALUE To get something done in an organization, you need to know where to go for the information and how to get to the authority required to accomplish your task. All business organizations possess structures that organize information, responsibility, and authority. © John Wiley & Sons Canada, Ltd. 5- ORGANIZATIONAL FORM © John Wiley & Sons Canada, Ltd. 5- ADVANTAGES AND DISADVANTAGES OF FUNCTIONAL, DECENTRALIZED, AND MATRIX FORM Organizational Form Advantages Disadvantages Functional • Economies of scale through efficient use of resources • Poor communication and coordination . | Chapter 5 Creating Business Value © John Wiley & Sons Canada, Ltd. 5- WHAT WE WILL COVER • Business Organization and Business Processes • Applying IT to Create Business Value • Corporate, IT, and Project Governance © John Wiley & Sons Canada, Ltd. 5- BUSINESS ORGANIZATION AND BUSINESS PROCESSES Organizations need a business strategy to deliver their end product or service. Strategy becomes a road map for what needs to be done to create high business value and lower costs to create competitive advantages. © John Wiley & Sons Canada, Ltd. 5- MISSION, VISION, AND VALUES An organization’s mission is why it exists. The vision is what it does. And the values represent statements about how they achieve © John Wiley & Sons Canada, Ltd. 5- BUSINESS STRATEGY INFLUENCES © John Wiley & Sons Canada, Ltd. 5- BUSINESS AS OPEN SYSTEMS An organization as a system helps you see how organizations use various resources, processes, and structures to create business value. The open