Lecture 2 Business Processes

1. Lecture 2 Business Processes

2. Topic Question Which statement is more realistic for businesses? Business strategy drives the use of technology in the firm. The level of technology drives business strategy.

3. Enhancing Decision Making

4. Decision Making • The Process of • Identifying Conflicts or Opportunities • Developing Alternative Activities • Selecting an Alternative • Implementing the Desired Alternative • At the Root, Decision Making Is Having the Ability to Choose Between Alternatives and to Implement that Alternative

5. Concepts • Conflicts and Opportunities • Understanding the Variance Between the • Expected and Actual State or Results • Types of Decisions • Routine Decisions • Situations Occur Often, Have Tested Options, and Predictable Results • Non-Routine Decisions • Unique Situations, Lacking Previous Experience, and Unpredictable

6. Decision Making Process • Identify the Conflict • Identify the Scope of the Conflict • Brainstorm Alternative Actions • Analyze Alternatives • Select Alternatives (Reduce Conflict) • Implement Alternatives • Evaluate and Control

7. Decision Making Styles

8. Management Tasks Acquire a Feel for the Environment Adapt to Environmental Changes Attempt to Influence the Environment Meet Needs of Major Stakeholders  Owners Customers  Employees Suppliers  Society in General

9. Managerial Influence • Personal Decision-Making Approaches • Ability to Set Priorities • Timing of Decisions • Tunnel Vision • Commitment to Previous Decisions • Creativity

10. Management Model

11. Effective Decision Making • Allow Time for Decisions to Be Made • Be Self-Confident in Decision Making • Support Others to Make Decisions • Learn from Past Decisions • Recognize Differences in Situations

12. Effective Decision Making • Value Quality Information • Do Not Avoid Tough Decisions • Know When to Hold Off on Decisions • Attempt Something Different or New • Obtain Help in Making Decisions

13. Decision Making

14. Business Processes

15. Levels of Strategy Corporate Level In What Business Is the Company and in What Business Should the Company Be? Business Level How Should the Company Compete? Functional Level How Can the Company Support the Strategy?

16. Business Systems • Allows Organizations to Achieve their Strategic Business Objectives • All Systems Are Comprised of • Physical Components • Logical Components • Human Components

17. Management Support Management Information Systems (MIS) Decision Support Systems (DSS) Group Decision Support Systems (GDSS) Expert Systems (ES) Executive Information Systems (EIS) Executive Support Systems (ESS)

18. Basic Management Systems

19. Business Design Businesses Are Collections of Business Processes Processes Specific to Functional Area Manufacturing Human Resources Finance Sales & Marketing An Effective Business Design Is Created from Established and Acceptable Business Processes

20. Business Processes • The Success of a Business Is Dependent upon How Well Business Processes Are Defined and Modeled • Internal Environment • Business Systems • Inputs and Outputs • External Environment

21. Business Processes • Efficiency • Doing Things Right • Effectiveness • Doing the Right Thing

22. External Environment • Primary Concern of Managers • Forces with Direct Impact • Owners • Customers • Suppliers and Partners • Competitors • Labor

23. External Environment • Secondary Concern of Managers • Forces with Indirect Impact • Economic • Legal and Political • Sociocultural • Technological • Natural Environment

24. Environmental Influences

25. Environmental Influences Increasing Degree of Certainty Greater Certainty, Less Ambiguity Allocation of Imperfect Resources Insufficient Information, Time, People Improve Internal Organizational Controls Discrepancies in Organizational Issues Superiors – Subordinates Co-Workers – Team Members

26. Final Word

27. Lecture 2 Business Processes