2128IBA Business Processes
Study Guide for Final Exam Preparation
Key Concepts – Multiple choice.
The impact of competition of value generation.
* Some firms have natural competitive advantage
* Geographical proximity to inputs, e.g. steel/coal
* Legislated monopoly, e.g. NTT DoCoMo
* Intellectual Property ownership, e.g. Apple Computers * Other firms must create CA through
* Added value, e.g. product attributes
* Lower production costs, e.g. fit between activities
The value chain: including support processes and primary processes.
What is value chain analysis.
* Value chain analysis is the process of isolating activities “that are technologically and strategically distinct.” Porter, M.E., 1985. p. 39 * A firm’s value chain is a system of interdependent activities linked across and up/down the firm * Neither value chains nor activity areas can be mapped consistently with accounting system categories * VCA aimed at the business unit level and lower – not really large corporations of multiple BU’s
How is value chain analysis related to strategic alignment.
All process and people are all aligned with the strategic goals of the company.
What is the meaning of strategic alignment.
Support, People and processes all help to achieve the goals of the company.
Strategic alignment and performance management.
Accountability and Strategic Alignment.
Shows who is responsible for specific processes
Strategic Alignment and Innovation.
Process Based Competition. Process affect innovation and innovation improves processes.
Relationship between Strategic Alignment and Differentiation. Firm’s impact on buyers value chain.
Why bother mapping in strategic alignment.
* Process evaluation measures
* Process performance analysis
* Service evaluation: Blueprinting
* Business processes: A broader perspective
* Benchmarking and Re-engineering
* Quality tools for Improving processes
The process of BPR (steps etc… ).
Idea Generation, Research, Internal Preparation, Commercialisation.
What is a process oriented organisational design.
* Organisational Structures that enhance focus on process. * A trade off between functional expertise and process efficiency. * Business Process Executives (BPE) & Business Process Owners (BPO) End Results
* Properly aligned leadership and employees
* Clear accountability for meeting customers needs
* Substantial process improvement
* The process of having suppliers provide goods and services that were previously provided internally Off shoring
* The building, acquiring, or moving of process capabilities from a domestic location to another country location while maintaining ownership and control.
ERP System tradition.
How an ERP system relates to value creation.
* Robust/Lean processes result in some cases
* Strategic view of data
* Enhanced security of data
* Improved financial tracking
* Cross functional money problems
* One system for all planning
* Promotes cross functional processes
* Standardised data
* Labels and product codes
* Easier to track lost money
The Value Chain - Support and Main Processes?
* It is a bunch of processes that all ad to value creation of the product * Margin – total costs and the collective cost of performing value activities. * Main Processes – Inbound Logistics, Operations, Outbound Logistics, MKT Sales, Service. * Support – Firm Infrastructure, Human Resources Management, Technology Development, Procurement. Cradle-to-grave Input/Output model
* Goods or Services producing processes or networks
* Resource support
Value Chain Intergration – Managing information, goods and services to ensure availability...
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