Sarahí Cruz Salazar

A01703728

Strategic Information Systems

Activity 1

1. Describe the functional organizational structure. Why do you think this

structure is so widely used?

Organizations use functional structure because it´s divided into departments, each one
responsible for a specific task or a set of related activities. The most typical departments
found within organizations include purchasing, operations, warehouse, sales and
marketing, research and development, finance and accounting, human resources, and
information systems. The company relies on each department to function properly so its
individual steps accomplish the desirable outcome of the company.

2. What is the silo effect? Why does it exist? What problems does it create? How
can an organization reduce or eliminate the silo effect?

The silo effect refers to the lack of information flowing between the different groups of the
organization that are part of the bigger picture. It started as part of the functional structure
as a result of the rapid growth companies went through, however, people developed skills
in their area without fully understanding the process before and after. A company cannot
function properly with one area, it requires the effort of its member of all areas, thinking
sideways since the activities complement each other. The organization can reduced it
learning and training to view the process end to end and not just focusing on their specific
task.

3. What is a business process? Why is adopting a process view of organizations

essential to becoming a successful manager?

A business process is a series of activities integrated in a process, with different functional

areas and working as a whole to achieve a specific outcome. Since, many of the process are
carried by different areas an effective communication between the areas is essential to
complete the process efficiently and effectively, a manager should be able to identify these
challenges and address them according to needs of the organizations and its members.

4. Briefly describe the key business processes included in this chapter in terms of
their key steps.

There is a correlation between the processes divided in three main sections

- The procurement process: (buy) the acquisition of material needed to make the
products.
- The production process : (produce) the creation of products within the organization
 Sarahí Cruz Salazar
A01703728

- The fulfillment process: (sell) involves all the process of selling and delivering the
products.

5. Explain the interrelationships among the key processes included in this

chapter. Why are these interrelationships important?

The sub process are essential to ensure the connectivity and communication to reach the
desirable outcome of the organization. The activities include designing, planning,
managing projects and recruiting the right people for the organization, supporting the
initial process idea and through the lifetime of the process using historical data of
performance and improving it.

• The lifecycle data management process (design)

• The material planning process (plan)

• The inventory and warehouse management (IWM)

• The asset management and customer service processes (service)

• Human capital management (HCM)

• Project management processes (projects)