Competitive Advantage & Strategic IS: Chapter 2
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Questions and Answers

In new product development, which of the following is most accurate regarding responsibility for the process?

  • No single functional area is solely responsible; it requires a coordinated effort. (correct)
  • The research and development department holds primary responsibility.
  • The finance department is responsible for managing the budget.
  • The marketing department holds primary responsibility.

What is the primary role of Information Systems (IS) in executing a business process?

  • To inform employees when to complete tasks, provide necessary data, and offer tools to complete tasks. (correct)
  • To manage employee performance reviews.
  • To determine the strategic goals of the organization.
  • To oversee the company's financial investments.

Why is capturing and storing process data important for businesses?

  • It is required for legal compliance but has little operational value.
  • It provides immediate, real-time feedback on process performance. (correct)
  • It is only useful for historical analysis and reporting.
  • It is primarily used for marketing and sales purposes.

At which levels does Information Systems (IS) monitor process performance?

<p>At both the process level and the instance level. (B)</p> Signup and view all the answers

Which of the following best describes the primary focus of Business Process Improvement (BPI)?

<p>Making incremental adjustments and enhancements to existing business processes. (C)</p> Signup and view all the answers

Which of the following is NOT a typical goal of Business Process Improvement (BPI)?

<p>Maintaining the status quo of existing processes. (D)</p> Signup and view all the answers

What is the defining characteristic of Business Process Reengineering (BPR)?

<p>A radical redesign of business processes with a 'clean slate' approach. (A)</p> Signup and view all the answers

A company implements a new CRM system that streamlines customer interactions and improves customer satisfaction scores. This initiative primarily demonstrates which measure of IT success?

<p>Effectiveness by increasing customer and business value (C)</p> Signup and view all the answers

In the context of business processes, what is the role of 'resources'?

<p>The people, equipment, and facilities used to execute the activities. (C)</p> Signup and view all the answers

A manufacturing company is implementing a new Enterprise Resource Planning (ERP) system. How would this system support cross-functional processes like order management?

<p>By providing a single, integrated platform that allows different departments to access and share information seamlessly. (C)</p> Signup and view all the answers

Which of the following best describes how Information Systems (IS) can contribute to differentiation as a business process excellence goal?

<p>By enabling the creation of unique and customized products or services that meet specific customer needs. (C)</p> Signup and view all the answers

Which of the following scenarios exemplifies a business process that is both efficient and effective?

<p>A logistics process that delivers products on time and at a minimal cost, meeting customer expectations. (B)</p> Signup and view all the answers

What is the key challenge presented by functional organizations regarding business processes?

<p>Business processes often span multiple functional departments, creating communication and coordination challenges. (C)</p> Signup and view all the answers

Which element of a business process involves capturing and assembling elements that enter the system to be processed?

<p>Input (C)</p> Signup and view all the answers

What is the primary goal of Business Process Reengineering (BPR)?

<p>To fundamentally rethink and redesign business processes for radical improvement. (C)</p> Signup and view all the answers

In a purchasing process, which department is typically responsible for the final payment to the supplier?

<p>Treasure (C)</p> Signup and view all the answers

Flashcards

Business Process

An ongoing collection of related activities creating a product or service of value.

Inputs (in a Business Process)

Elements that enter the system to be processed.

Processing (in a Business Process)

The transformation that converts inputs into outputs.

Outputs (in a Business Process)

Transformed elements transferred to their destination.

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Efficiency (IT Success)

Minimizing cost, time and errors.

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Effectiveness (IT Success)

Supporting business strategies, enabling processes, and increasing value.

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Cross-functional Processes

Related activities spanning multiple departments.

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Input

Capturing and assembling elements that enter the system to be processed.

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New Product Development Responsibility & Coordination

A coordinated and collaborative effort across different functional areas, where no single area is solely responsible.

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Order Management Process

A sequence of business activities that crosses traditional functional boundaries.

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Cross-Functional Systems

Systems that support business processes spanning multiple functional areas within an organization.

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IS Role in Executing Processes

Informing, providing data, and furnishing a means to complete tasks in business processes.

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Process Data Examples

Dates, times, product numbers, quantities, prices, addresses, names and employee actions.

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Capturing & Storing Process Data

Data captured and stored by IS that provides immediate, real-time feedback.

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Excellence in Executing Business Processes

Customer Satisfaction, Cost Reduction, Cycle time Reduction, Quality, Differentiation and Productivity.

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Business Process Reengineering (BPR)

The radical redesign of an organization’s business processes to increase productivity and profitability using a clean slate approach.

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Study Notes

  • Chapter 2 covers organizational strategy, competitive advantage, and information systems.
  • Major subjects include business processes, competitive advantage, and Strategic IS
  • Business processes involve BPR, BPI, and BPM.
  • Competitive advantage and Strategic IS includes the 5 Competitive Forces Model, Value Chain, 3 Generic Strategy, and Strategic Alignment

Business Processes

  • A business process is an ongoing collection of related activities creating value for the organization, its business partners, and/or customers.
  • Business processes comprise inputs, resources, and outputs.
  • Inputs are capturing and assembling elements that enter the system to be processed.
  • Processing is the transformation process converting input into output.
  • Outputs are transferring transformed elements to their ultimate destination.
  • Efficiency minimizes cost and time and reduces errors, while effectiveness supports business strategies, enables business processes, increases customer and business value, and completes tasks.

Functional Organizations

  • Processes are cross-functional, for example, new product development.
  • There is no single functional area responsible.
  • Needs to be executed in a collaborative and coordinated way.
  • Information Technology applies to all the steps within business processes.
  • Cross-functional enterprise applications are supported by cross-functional systems.
  • New product development process is one example of something cross-functional
  • Information Systems play a vital role in executing business processes.
  • Information Systems also play a vital role in capturing and storing process data.
  • Information Systems also play a vital role in monitoring process performance.
  • Information systems assist in executing processes by informing staff when to complete tasks, providing needed data, and supplying completion methods.
  • Processes generate data such as dates, times, product numbers, prices, and employee actions which are captured and stored by IS as transaction data, providing real-time feedback.
  • Information Systems evaluate data to determine how well a process is executed, with evaluations at both the process and instance levels.
  • Monitoring identifies areas needing process improvement.

BPI, BPR, and BPM

  • Focus on excelling in executing Business Processes
  • Customer Satisfaction
  • Cost Reduction
  • Cycle and fulfillment time reduction
  • Quality Differentiation
  • Productivity.
  • Business Process Reengineering (BPR) involves a radical business process redesign to boost productivity and profitability, examining them with a "clean slate" approach. It was originally defined by Michael Hammer and James Champy in 1993.
  • Business Process Improvement (BPI) is an incremental approach to process-centered operations. It reduces process variation by finding its underlying causes.
  • Six Sigma is a popular BPI mythology
  • Five basic phases of successful BPI; Define, Measure, Analyze, Improve, Control
  • Business Process Management (BPM) is a management system supporting continuous BPI initiatives for core business processes over time. Key components include process modeling, web-enabled technologies, and Business Activity Monitoring (BAM).
  • The Business Process Management Suite (BPMS) is an integrated set of applications used for BPM.
  • An emerging trend is Social BPM, which uses technologies that enable employees to collaborate internally and externally across functions using social media tools.

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Description

This lesson covers organizational strategy, competitive advantage, and information systems, including business processes like BPR, BPI, and BPM. Key concepts are the 5 Competitive Forces Model, Value Chain, Generic Strategies, and Strategic Alignment to help students understand efficiency and effectiveness.

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