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CHAPTER 2

Organizational Strategy, Competitive Advantage, and Information Systems . CHAPTER 2. 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

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CHAPTER 2

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  1. Organizational Strategy, Competitive Advantage, and Information Systems CHAPTER 2

  2. 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

  3. LEARNING OBJECTIVES 1. Understand the concept of business processes, and provide examples of business processes in the functional areas of an organization. 2.Differentiate between the terms business process reengineering and business process management. 3.List and provide examples of the three types of business pressures, and describe one IT response to each.

  4. LEARNING OBJECTIVES (continued) 4. Identify the five competitive forces described by Porter, and explain how the Web impacts each one. 5.Describe the strategies that organizations typically adopt to counter the five competitive forces and achieve competitive advantage. 6.Define business – information technology alignment, and describe the characteristics of effective alignment.

  5. 2.1 Business Processes • Business Process • “…collection of related activities that create a product or service of value to the organization, its business partners, and/or its customers.” (p.35) • Cross-Functional Business Processes • Multiple functional area collaborate to perform the process

  6. Receive Ticket Order Traveler Airline Web Site Seats Available NO Notify Traveler Plan Trip YES Reserve Seats Check Flights NO Frequent Flyer Mileage Sufficient? Use Credit Card? NO Seats Available? NO YES YES Charge Credit Card YES Subtract Mileage Submit Ticket Order Charge OK? NO Notify Traveler Receive e-Ticket YES Confirm Flight(s) Issue e-Ticket

  7. 2.2 Business Process Reengineering and Business Process Management • How does an organization ensure business process excellence? • Business Process Reengineering • Strategy for improving efficiency and effectiveness of an organization’s business processes . (p. 38) • Business Process Management • A management technique that includes methods and tools to support the design, analysis, implementation, management, and optimization of business processes. (p.38)

  8. 2.3 Business Pressures, Organizational Responses, and IT Support Business Pressures • Market Pressures • Technology Pressures • Societal Pressures

  9. Market Pressures The Global Economy and Strong Competition The Changing Nature of the Workforce Powerful Customers

  10. Business Pressures, Organizational Responses, and IT Support

  11. The Stages of Globalization (From Thomas Friedman in The World is Flat) • Globalization 1.0 (from 1492 to 1800) • Globalization 2.0 (from 1800 to 2000) • Globalization 3.0 (from 2000 to the present)

  12. Globalization 1.0 Christopher Columbus

  13. Globalization 2.0 (first half) Railroads Steam engine

  14. Globalization 2.0 (second half) Satellites Fiber optics OpenMoko open source smart phone Netbook

  15. Globalization 3.0 3.0 2.0 1.0

  16. Thomas Friedman’s Ten Flatteners • Fall of the Berlin Wall • Netscape goes public • Development of work-flow software • Uploading • Outsourcing • Offshoring • Supply Chaining • Insourcing • Informing • The Steroids

  17. Fall of the Berlin Wall

  18. Rise of the European Union (a consequence of the Fall of the Berlin Wall)

  19. Netscape Goes Public Marc Andreessen (wrote Mosaic browser and Netscape browser)

  20. Workflow Software

  21. Uploading

  22. Outsourcing Outsourcing gained momentum and “took off” with Year 2000 (Y2K) problem

  23. Offshoring Call center in India

  24. Supply Chaining

  25. Insourcing

  26. Informing It’s not just There are MANY other interesting search engines as we see in Chapter 5

  27. The Steroids • Digital • Mobile • Virtual • Personal

  28. The Steroids • Computing • Instant messaging and file sharing • Voice over Internet Protocol • Videoconferencing • Computer graphics • Wireless technologies

  29. First Steroid: Computing (processing) TO Ultramobile personal computer Charles Babbage’s Difference Engine (1822)

  30. Computing (continued – storage) TO Sony Micro Vault Thumb Drive Capacity: 2 gigabytes First disk storage unit by IBM (1956) Capacity: 5 megabytes Size: Refrigerator

  31. Second Steroid: Instant Messaging and File Sharing Instant messaging (example) File sharing (example)

  32. Third Steroid: Voice over Internet Protocol

  33. Fourth Steroid: Videoconferencing A telepresence system in a conference room

  34. Videoconferencing (continued) An individual telepresence system

  35. Videoconferencing and Medicine New Zealand used Polycom, a leading vendor of telepresence systems, to provide a telemedicine application for children.

  36. Fifth Steroid: Computer Graphics

  37. Sixth Steroid: Wireless Technologies Using cell phone in motion Geostationary satellite Bluetooth phone sunglasses

  38. Technology Pressures • Technological Innovation and Obsolescence • Information Overload

  39. Technological Innovation and Obsolescence Obsolescence: Slide Rule Innovation: Early calculator

  40. Technological Innovation and Obsolescence (continued) Innovation: Telegraph Obsolescence: Pony Express

  41. Technological Innovation and Obsolescence (continued) Obsolescence: old phonograph Innovation: iPod nano

  42. Technological Innovation and Obsolescence (continued) Innovation: digital camera Innovation: “Credit card” digital camera Obsolescence: old analog camera

  43. Technological Innovation and Obsolescence (continued) Obsolescence: Horse and Buggy Innovation: Ford Model T

  44. Technological Innovation and Obsolescence (continued) Obsolescence: Manual typewriter Innovation: Notebook computer with word processing software

  45. Information Overload

  46. Societal/Political/Legal Pressures • Social Responsibility • Government Regulation and Deregulation • Protection Against Terrorist Attacks • Ethical Issues

  47. Social Responsibility Green IT See CBS video on disposal of e-waste

  48. Social Responsibility One Laptop per Child initiative http://news.bbc.co.uk/2/hi/technology/7068084.stm

  49. Social Responsibility (continued) Internet over satellite in developing nations

  50. Social Responsibility (continued) Bridging the Digital Divide

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