Matt Moss
BUS-381
Chapter 3
7-9-13
1. (10 points) What is BPM? What are the steps involved in practicing BPM? Value chain
analysis is useful at the business level to highlight specific activities in the business
where information systems are most likely to have a strategic impact. Discuss this model,
identify the activities, and describe how the model can be applied to the concept of
information technology.
BPM is Business Process Management which is an approach to business which aims to
continuously improve business processes.
Value Chain analysis focus on Primary and Support activities. Primary activities are
related to production and distribution of the firms products and services which include
Inbound Logistics, Operations, Sales and Marketing, Service and Outbound Logistics.
Support Activities include Administration and Management, Human Resources,
Technology and Procurement.
The Value Chain Model can be applied to the concept of IT by identifying critical
leverage points where a firm can use IT most effectively to enhance its competitive
position.
2. (10 points) You are advising the owner of Smalltown Computer, a new, local computer
repair store that also builds custom computers to order. What competitive strategies
would you advise Smalltown Computer to take? Which ones will it have difficulty
exercising? Define the concept of core competency. How is this concept relevant to this
business?
I would advise Smalltown Computer to first use the basic strategy of Aligning IT with
their Business Objectives. Identify the shops goals and strategies; What does the business
hope to achieve? Determine how IT can help achieve business goals. Measure actual
performance (i.e. Sales, Customers, Revenue, Costs, etc).
Another strategy would be to use Product differentiation. Set up a website for customers
to build custom computers and allow them to submit or print their order.
Another strategy would be to focus of the market niche for trends toward types of
computers or products. An example of that would be the recent trend toward tablets and
smart phones.
I do not think they would have any difficulty exercising any of the strategies I listed here.
Core Competency is an activity for which a firm is a world-class leader or firm with
many years of experience. For example, the United States Postal Service is known for its
years of delivering mail and packages.
3. (10 points) Discuss the ways information systems can be used to improve quality. How is
Internet technology useful from a network economics perspective? Why should a
company engage in business process reengineering? How would a company know if it
needed or would gain from BPR?
Information Systems can improve quality by Reducing cycle time and simplify the
production process. You can also benchmark your business to a set of standards and
measure the performance against those standards. You can use customer feedback or
demands to improve products and services. Improve Design Quality and precision
especially for products. And you can improve production precision and tighten
production tolerances using software.