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Lecture 2 Organizational Strategy, Competitive Advantage, and Information Systems Objectives
• Discuss ways in which information systems enable cross-
functional business processes and business processes for a single functional area.
• Differentiate between business process reengineering,
business process improvement, and business process management.
• Identify effective IT responses to different kinds of business pressures.
• Describe the strategies that organizations typically adopt to
counter Porter’s five competitive forces. • Ref.: Chapter 2
Faculty of Information Technology Introduction to MIS 2 Business Process
• The process involves three fundamental elements:
• Inputs: Materials, services, and information that
flow through and are transformed as a result of process activities
• Resources: People and equipment that perform process activities
• Outputs: The product or a service created by the process
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• Two fundamental metrics in assessing processes:
• Efficiency: focuses on doing things well in the process
• Ex: progressing from one process activity to another
without delay or without wasting money or resources
• Effectiveness: focuses on doing the things that
matter; that is, creating outputs of value to the process customer. • Ex: High-quality products
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• Cross-Functional Processes: no single functional
area is responsible for a process’s execution.
• Procurement process: includes all of the tasks
involved in acquiring needed materials externally from a vendor
• Fulfillment process: is concerned with processing customer orders
Faculty of Information Technology Introduction to MIS 5 Examples of Business Processes
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Faculty of Information Technology Introduction to MIS 7
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.
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Banking teller flowchart template
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Business process modeling for Order Item
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