Business Pressures-Responses- Support Model Business Organization's Decisions and Environmental Factors Responses Support Globalization Strategy Analyses Customer demand Pressures Partners'collaboration Predictions Government regulations Realtime response Decisions Market conditions agility Competition Opportunities Increased productivity Etc New vendors New business models Etc. Integrated computerized decision support Business intelligence Copynight@ 2014 Pearson Education, Inc Slide 1-6
Copyright © 2014 Pearson Education, Inc. Slide 1- 6 Business Pressures–Responses– Support Model
The Business environment The environment in which organizations operate today is becoming more and more complex, creating opportunities, and problems EXample: globalization Business environment factors markets, consumer demands, technology, and societal Copynight@ 2014 Pearson Education, Inc Slide 1-7
Copyright © 2014 Pearson Education, Inc. Slide 1- 7 The Business Environment ▪ The environment in which organizations operate today is becoming more and more complex, creating ▪ opportunities, and ▪ problems. ▪ Example: globalization. ▪ Business environment factors: ▪ markets, consumer demands, technology, and societal…
Business Environment Factors FACTOR DESCRIPTION Markets Strong competition Expanding global markets Blooming electronic markets on the Internet Innovative marketing methods Opportunities for outsourcing with IT support Need for real-time, on-demand transactions Consumer Desire for customization demand Desire for quality, diversity of products, and speed of delivery Customers getting powerful and less loyal Technology More innovations, new products, and new services Increasing obsolescence rate ncreasing information overload Social networking Web 2.0 and beyond Societal Growing government regulations and deregulation Workforce more diversified, older, and composed of more women Prime concerns of homeland security and terrorist attacks Necessity of Sarbanes-Oxley Act and other reporting -related legislation Increasing social responsibility of companies Greater emphasis on sustainability Copynight@ 2014 Pearson Education, Inc Slide 1-8
Copyright © 2014 Pearson Education, Inc. Slide 1- 8 Business Environment Factors FACTOR DESCRIPTION Markets Strong competition Expanding global markets Blooming electronic markets on the Internet Innovative marketing methods Opportunities for outsourcing with IT support Need for real-time, on-demand transactions Consumer Desire for customization demand Desire for quality, diversity of products, and speed of delivery Customers getting powerful and less loyal Technology More innovations, new products, and new services Increasing obsolescence rate Increasing information overload Social networking, Web 2.0 and beyond Societal Growing government regulations and deregulation Workforce more diversified, older, and composed of more women Prime concerns of homeland security and terrorist attacks Necessity of Sarbanes-Oxley Act and other reporting-related legislation Increasing social responsibility of companies Greater emphasis on sustainability
Organizational Responses Be Reactive, Anticipative, Adaptive and proactive Managers may take actions, such as Employ strategic planning Use new and innovative business models Restructure business processes Participate in business alliances Improve corporate information systems more [in the book Copynight@ 2014 Pearson Education, Inc Slide 1-9
Copyright © 2014 Pearson Education, Inc. Slide 1- 9 Organizational Responses ▪ Be Reactive, Anticipative, Adaptive, and Proactive ▪ Managers may take actions, such as ▪ Employ strategic planning. ▪ Use new and innovative business models. ▪ Restructure business processes. ▪ Participate in business alliances. ▪ Improve corporate information systems. ▪ … more [in the book]
Closing the Strategy Gap One of the major objectives of computerized decision support is to facilitate closing the gap between the current performance of an organization and its desired performance, as expressed in its mission, objectives, and goals, and the strategy to achieve them Copynight@ 2014 Pearson Education, Inc Slide 1-10
Copyright © 2014 Pearson Education, Inc. Slide 1- 10 Closing the Strategy Gap ▪ One of the major objectives of computerized decision support is to facilitate closing the gap between the current performance of an organization and its desired performance, as expressed in its mission, objectives, and goals, and the strategy to achieve them