Organisational Analysis: Finding the Value of the Organisation

Organisational Analysis: Finding the Value of the Organisation

DOI: 10.4018/978-1-5225-3392-4.ch002
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The organisational analysis described here (aimed at developing the plans for strategic development and risk assessment) is to determine the core functioning of the organisation. It is essential to get a clear unambiguous understanding of the key factors that drive the performance of the organisation and to determine what risks may threaten the organisation. To do this an organisation must carefully choose the analysis tools they will use to gather information about their organisation. Companies, while researching and analysing their business architecture, are rediscovering Michael Porter's value chain (Whittle, 2016). To understand the value creation aspect of the organisation, it is necessary to determine the critically significant value activities, together with any causal relations that are evident and where possible the degree of that relation. There is a suggestion that the value stream is a more basic analysis unit than the value chain and that the value chain can comprise several value stream components. The value stream may, therefore, be a better analysis unit to use when developing the value architecture. The business model cannot be called an analysis tool; however, it is a critical review tool for the other analysis activities and an essential communication facility for the organisation.
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Issues In Choosing The Right Analysis Tool

There is a great variety of analysis tools available to delve into all facets of the organisation depending on what the prevailing concerns are and whether some in particular aspect of the organisation is under investigation. Cadle, Paul, and Turner (2010) list 72 unique business analysis techniques, this gives a great deal of choice; unfortunately, a search on business analysis tends to focus on information systems analysis. Organisation analysis has been described in many papers and books and the various analyses include Porter's 5 forces and value chain analysis, the SWOT analysis, PESTLE analysis etc. These analyses describe the essential components of and effects on the organisation but also provide a great deal of detail which if included in the business model will make it overly complex. It is necessary to organise and structure the presentation of the information so that each critically important aspect gets the necessary focus that is essential in order to use it effectively.

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