Lecture 1 — Comprehensive Exam Summary
Course Introduction · Chapter 2 · Chapter 3
IT in a Business Environment · A Framework for Information Management
Part 1 — Course Introduction & Exam Logistics
Lecturer: Prof. Dr. Dimitri Van Landuyt — Associate Professor in Information Systems Engineering (Faculty of
Economics and Business, KU Leuven).
Handbook & Lecture Mapping
The course covers chapters 2, 3, 13, 14, 15, 16, 17, 18, 19, 20, 21 of 'The IT Management Essentials'.
Mapping:
Slide: lecture-to-chapter mapping
Course Goals — Management vs. Governance
IT MANAGEMENT (CIO concern) IT GOVERNANCE (CEO concern)
How should I run the IT department? How much money should I spend on IT?
How do I deliver value to the business? How should this money be spent?
What staff is needed (and what should they do)? How do I create business value from IT?
How can I provide what users need? Is my IT department efficient enough?
How do I ensure quality in IT? Which IT projects are of strategic interest?
Lecture 1 — ICT Service Management — Page 1
, Slide: management vs. governance
EXAM TIP: Master the management/governance distinction. Management = running the IT shop
(CIO). Governance = strategic alignment with the business (CEO).
Exam Format
• Written, closed-book. Mainly OPEN questions. Mix of theory and exercises.
• Calculations expected — bring calculator. Tests understanding/insight.
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, Part 2 — Chapter 2: IT in a Business Environment
2.1 — The Organisation as a System
Goal of an organisation: CREATE VALUE. The organisation is an input → transformation → output machine.
Hierarchical decomposition
• Organisation → executes 1..* business functions
• Business function — coarse-grained (department-level). Typical: Marketing & Sales, R&D, Production,
Financial Mgmt & Admin, HR.
• Business process — long-lived structured workflow. Example: Create customer offer → Accept offer →
Enter order → Make invoice.
• Business activity — atomic step. Example: Determine configuration, Fix prices, Determine discount,
Make financial report on offer.
Slide: org → functions → processes → activities (UML hierarchy)
EXAM TIP: Know precise definitions for business function, business process, business activity. Be able
to give an example for each.
Porter's Value Chain (Michael Porter, 1985)
Quote (memorise): 'Competitive strategy is about being different. It means deliberately choosing a different
set of activities to deliver a unique mix of value.'
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