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Module 2
Basic system theory
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Business System
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A methodical procedure or
process that is used as a
delivery mechanism for
providing specific goods
or services to customers.

Business Process

Integrated Business Processes

Integrated Business Processes

Relationships

Integrated Systems

Supplier - Customer

Trade agreements

Blurred Boundaries

Social Networks

Departments

Companies

Countries

Social
architecture
ofof
thethe
firm
Social
architecture
firm

N=1
Personalized
Co-created
experiences

Flexible and resilient


business processes
and focused analytics

R=G
Global
access
to
resources
and
talent

Technical architecture of the firm

Adopted from
Prahalad, Krishnan (2008)

Relationships

Integrated Systems

Supplier - Customer

Trade agreements

Blurred Boundaries

Social Networks

Departments

Companies

Countries

Recent trends raise concerns that


traditional approaches to educating
and grooming future business leaders
may be insufficient
(Atwater, Kannan, and Stephens, 2008).

Ponschock (2009)

Supply Chain

Logistics

Functional Decisions

Sales

Functional Decisions

Functional Decisions

Marketing

Functional Decisions

Functional Decisions

Traditional Organizations
and
Traditional Education Curricula
Aligned
Under Functional Silos

Finance

Functional Decisions

Marketing
Sales

Ponschock (2009)

Supply Chain

Operations
Logistics

Functional Decisions

Functional Decisions

Functional Decisions

Functional Decisions

Operations

Finance

Process Integration
Systemic Information Model
Marketing

Sales

Supply Chain

Process Decisions

Process Decisions

Process Decisions
Demand

Forecast
Marketing Programs

Conversion

Procurement

Manufacturing

Process Decisions

Process Decisions

A/P

Process Decisions
A/R

Finance

Process Decisions

Ponschock (2009)

Logistics

Throughput

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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).

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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.

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