PRESENTED BY:SUBHADEEP GHOSH (PG-10-085)

A TYPE OF ECONOMIC ACTIVITY THAT IS INTANGIBLE, IS NOT STORED AND DOES NOT RESULT IN OWNERSHIP. A SERVICE IS CONSUMED AT THE POINT OF SALE. SERVICES ARE ONE OF THE TWO KEY COMPONENTS OF ECONOMICS, THE OTHER BEING GOODS. EXAMPLES OF SERVICES INCLUDE THE TRANSFER OF GOODS, SUCH AS THE POSTAL SERVICE DELIVERING MAIL, AND THE USE OF EXPERTISE OR EXPERIENCE, SUCH AS A PERSON VISITING A DOCTOR.

AN ECONOMIC SYSTEM IN WHICH GOODS AND SERVICES ARE EXCHANGED FOR ONE ANOTHER OR MONEY, ON THE BASIS OF THEIR PERCEIVED WORTH. EVERY BUSINESS REQUIRES SOME FORM OF INVESTMENT AND A SUFFICIENT NUMBER OF CUSTOMERS TO WHOM ITS OUTPUT CAN BE SOLD AT PROFIT ON A CONSISTENT BASIS.

In general, a framework is a real or conceptual structure intended to serve as a support or guide for the building of something that expands the structure into something useful.

The traditional approach to establishing enterprise direction was to create a mission or purpose statement along with supporting strategies. Once these were in place, goals and objectives were defined to accomplish the strategies, and finally tactical/operational plans were developed and executed in accordance with the strategic direction. One of the operational plans that was usually, but not always, created was the IT plan.

Mission
Strategies

Objectives

Operational Plans

IT

Financial

Marketing

Financial

In the object-oriented framework the mission is represented as a super class in a strategic enterprise framework that defines the identity of the enterprise as "Big Rules." Subclasses of the "Big Rules," or business rules, inherit the attributes of the mission and form the equivalent to the strategies and objectives in the traditional framework. The strategic enterprise framework provides the foundation for business domains to reside. One of the business domains is the IT domain.

An external environment interface must exist and be plugged into the strategic enterprise framework to ensure that information can flow effectively through all components of the strategic framework

IT Domain Marketing Domain Financial Domain Operations Domain

External Environment Interface

People Technology

People

Technology People
Technology Process

Process

Process

Services

Services that the IT function provides the enterprise must support the balanced needs of the entire organization. One method of ensuring that this happens is through the use of the balanced scorecard approach.

The balanced scorecard approach is an approach that first burst on the scene with The balanced scorecard a Harvard Business Review article, "The methodology, in addition to Balanced ScorecardMeasures that Drive providing discipline to ensure Performance," JanuaryFebruary 1992, all facets of the enterprise are written by David Norton and Robert S. Kaplan. Since that article, the methodology viewed in a balanced manner, provides an architecture that has become widely accepted as an includes measurement of goal extremely valuable tool to ensure that accomplishments that grow out strategies address all areas of the of the methodology. enterprise, and has become a core management process to ensure that resources are allocated appropriately to the support of the strategies.

Return on Investment. Economic Value Added. Revenue/Employee. Unit/Costs.

oCustomer Satisfaction. oMarket Share. oCustomer Retention.

oQuality. oResponse Time. oNew Product Sales Percentage.

oEmployee Satisfaction. oRe-skilling Capabilities. oTeam Alignment and Performance.

Warehouse

Warehouse

Warehouse

Seagate

INTEL

Pentium
Quotation

Raw Materials

Server Ack Order

Dell
Payment

E-Bank Hub

Ack Order Payment

Buyer
Delivery

Dell Warehouse

THA

NK

YOU