week 8 Business models in the digital world

In the lecture, Bilal has explained to us a few business models that are popular in the digital world. An organisation is a structure that processes resources from the environment to produce outputs.

Organisation:

·         Information technology and organisation influence each other

An organisation is structure that processes resources from the environment

Business: processes and routines

·         Business firm: collection of business processes

·         Business processes: collection of routines

·         Routine

IS pushes decision making to lower levels, less managers are required.

There are five types of organisational structure:

1. entrepreneurial: small owned business
2. machine bureaucracy such as government groups
3. divisional bureaucracy: fortune 500 companies
4. professional bureaucracy: law firms, schools and hospitals
5. adhocracy: consulting firms  

Operational level

·         day to day process

·         interactions with consumers

·         operational decisions

freeconomics business models

·         freeconomic: leveraging of technology to provide products and services

·         what businesses provide to consumers and vice versa

·         free isn’t necessary no profit

In the seminar, Sussie has made my class do an excel exercise. This was to improve our knowledge and IT skills to go forward in the course. The exercise consisted of calculating outgoings using different formulas and different contexts.