Intro to Business - Organizations,Businessprocesses BusinessModel Then&Now Then Now Functional Process Hierarchical vertical Horizontal

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1/10/2011 1 Organizations, Business processes, and Information Systems How do companies do more with less? By innovating their business processes Then Now Functional Hierarchical, Process Horizonta vertical Task Centered Horizontal Customer focused
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1/10/2011 2 Yesterday’s Functional Business Model •Departmental •Specialized •Vertical •Silo effect •Poor coordination •Lack of visibility •Efficient but not effective •Delays in executing BP •Excess inventory •Lack of visibility Today’s Business Process Model •Horizontal •Cross functional •Increased communication •Collaboration between functions •Effective •Better customer service •Generalists
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1/10/2011 3 Functional vs. Process views Old View New View Functional View Process View
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1/10/2011 4 Matrix Organization/Management Breaks down the traditional vertical silos; integrated Composition of Organizational Units Grouping by Function Most common form of organization Finance, HR, Operations, Marketing, IS, Engineering, Distribution Grouping by Process Based on business process Horizontal Appropriate when the work is Based on type of work Most useful when the work done is highly independent. Economies of scale can be achieved Easier to add new employees Development of expertise can be fostered Have narrow perspective highly interdependent Promote ownership among the participants in the BP involved Reduces hierarchical supervision or control Performance is easy to measure Performance is easier to improve Not efficient way of using structure resources knowledge across people with similar background
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1/10/2011 5 Functions versus Process Business Models Dimension 1. Primary focus 2. Organizational Processes 1. “how” ; Dynamic 2. Horizontal, workflow Functions 1. “What”; Static 2 Vertical; chain of Orientation 3. Objective 4. Personal 5. Perspective 3. Customer focused, outcome oriented; outward focus 4. Teams of generalists 5. Holistic 2. Vertical; chain of command 3. Task centered; inward focus 4. Individual Specialist 5. Parochial Functional IS (old, legacy) Then Cross functional IS (new, Enterprise Systems) Now Silo effect Poor coordination, delays excess Information flow across functions Centralized delays, excess inventory, lack of visibility Lack of integration (connecting the dots) database Integrated
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6 Critical Success Factors People Process Technology Technology Process People Company’s DNA People Process Technology Technology Scalable Process Technology Change Management Business Process Management Management Flexible Reliable Accessible Available Well defined Best practices People Top Management Use modeling tools
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This note was uploaded on 01/20/2012 for the course INT MGMT 300 taught by Professor Staff during the Fall '11 term at The University of Akron.

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Intro to Business - Organizations,Businessprocesses BusinessModel Then&Now Then Now Functional Process Hierarchical vertical Horizontal

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