Chapter 0 - Introduction ICT Governance
& Management - IT Service Management
ICT Management (and Governance)
Chapter 0, 2, 3 and 14
PART I - INFORMATION SYSTEMS IN A BUSINESS ENVIRONMENT
Chapter 2 - Info tech in a business
environment
How does IT fit in a business environment?
An organization is a system
Think of a company; government agency is also an organization although they are not for profit. System.
System takes input, does some processing and provides output.
Car manufacturing company: input = raw materials: iron & plastics; they assemble & manufacture cars & output
is a working car.
Chapter 0, 2, 3 and 14
An organization is a system
Between the input & output => activities the company has to do in order to provide the output. The output has a
higher value than the input => can lead to a higher price & profit.
Inbetween: business processes.
Business functions group processes
Business processes: basic things that companies do. Assembling a car for example
Chapter 0, 2, 3 and 14
Companies are typical y organized in business functions = col ections of related business processes. Typical
business functions in a classical commercial functions shown here. Marketing & sales…
Business processes are what the organization does
Account management, general ledger… complex activities that are done inside an organization. They are
structured, elementary activities. Subsequent activities.
One business process takes time to do it, space (need a manufacturing hal ), & resources (money, people, raw
materials)…
Chapter 0, 2, 3 and 14
Activities are simple actions
Inside the business processes you also have elementary activities. Business process ‘create customer offer’ in
the marketing & sales function. To create a customer offer => activities.
When activity? Business process? Not important. Up to you to decide whether you call something A/BP. If you
want to emphasize that it is more complex & structured => BP. If you want to emphasize that it is more
elementary, simple = activity. Activities & BPs are the fundamental things that are done in an organization.
Chapter 0, 2, 3 and 14
The value chain p 17
Basic model of an organization => Michael Porter. Idea: in an organization: sequence of business processes
that create value. That transform raw materials into a finished product for example => business processes that
add value to the raw materials. Value chain: several business functions in this chain.
Inbound logistics: accept raw materials. Purchasing etc. arrive at the manufacturing plant.
Operations: manufacture the product
Outbound logistics: deliver to the customer
M&S
Services = after sales services = returns, support…
Chapter 0, 2, 3 and 14