MIST 2090 1st Edition Lecture 9 Outline of Last Lecture Project management Outline of Current Lecture Functional organization The Silo Effect Issues with functional systems Consequences of poor conduction Business processes o Key business process o Example of business process Current Lecture Functional organization o Many existing companies are set up as different functional units o Different functions or departments in an organization are responsible for different things o In a functional structure each unit has its own information system that optimizes its work Ex Purchasing has a purchasing system The warehouse has a warehouse system Sales has a sales system Each system is optimized for that function The silo effect o Silo effect workers complete their tasks in their functional silos without regard to the consequences for the components of the process o The silo nature of the functional organizational structure and the crossfunctional nature of processes are at odds o There is a need for communication and collab b w functions Issues with functional systems o The problem with functional systems is that these systems are isolated or stovepiped from each other o Different functions and their systems don t talk to each other results in delays Consequences of poor coordination o Delays These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute Increased lead times Increased cycle times o Excess inventory just in case o lack of visibility across the process status where is my order How is the process doing Business processes o Sequence of tasks or activities that take a set of inputs and convert them into desired outputs o Key business processes include Procurement Production Fulfillment o Business process example Buys skateboards parts o What are some steps in buying process o Who performs steps Make skateboards o What are some steps in the making process o Who performs Sell skateboards o What are steps in selling process o Who performs