BBA340

Module 2Basic system theory

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BBA340 A methodical procedure or process that is used as a delivery mechanism for providing specific goods or services to customers.

Business System

Business Process

Integrated Business Processes

Integrated Business Processes

Social Networks

Integrated Systems

Trade agreements

Supplier - Customer

Relationships

Departments

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Companies

Countries

Adopted from Prahalad, Krishnan (2008)

N=1

PersonalizedCo-createdexperiences

Social architecture of the firmSocial architecture of the firm

R=G

Globalaccess

toresources

andtalent

Technical architecture of the firm

Flexible and resilientbusiness processes

and focused analytics

Social Networks

Integrated Systems

Trade agreements

Supplier - Customer

Relationships

Departments

Blu

rred B

oun

dari

es

Companies

Countries

“Recent trends raise concerns that traditional approaches to educating and grooming future business leaders may be insufficient”

(Atwater, Kannan, and Stephens, 2008).

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Marketing

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Sales

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Supply Chain

Traditional OrganizationsandTraditional Education CurriculaAlignedUnder Functional Silos

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Logistics

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Finance

Ponschock (2009) ©

Fu

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Marketing

Fu

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Decis

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Sales

Fu

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Decis

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Supply Chain

Operations

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Logistics

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Finance

Operations

Ponschock (2009) ©

Process Decisions

Marketing

Process IntegrationSystemic Information Model

Process Decisions Process Decisions

Process Decisions

Process Decisions

Finance

Sales Supply Chain

Logistics

Throughput

Forecast

Demand

Marketing Programs

Process Decisions

Manufacturing

Process Decisions

Procurement

Conversion

A/P A/R

Ponschock (2009) ©

BBA340

A century ago, social interactions involved relationships with others who were within a short walking radius (Ermann, Williams, & Shauf, 1997). Companies advertised on radio or local papers, many by word of mouth. Deals were struck with a handshake in the local coffee shop. Organizational size permitted employees to more readily see the whole. For many, especially in the industrialized West, small face-to-face communities are disappearing. Technology and the internet have introduced communities that do not exist in geography and have no tangible physical presence. These virtual villages or townships (Ponschock & Greif, 2007) are not represented by geography, social class, or financial accounting. Instead, their cyber position is defined and driven by curiosity (Luthra, 2006). As Laurie Anderson musician/artist wrote “Technology is the campfire around which we gather” (Intel Brochure, 2004, p. 2).

BBA340

Country borders, departments, organization charts, and job descriptions are constraints placed in the way of system assessment in problem solving. “Think outside the box” is a mantra conveyed to encourage knowledge creation not bounded by bias or fabricated constraints. Angel (2006) argues that in an innovation culture continuum, organizations typically need to “integrate silos, so individual departments can work with each other for productivity improvements and greater flexibility of response” (p.3). Ilies, Wilson, & Wagner, (2009) refers to the decline of boundaries between work and family as spill over behavior.