The Components of a Business

Learning Objectives...

1. You’ll be able to identify and understand the basic components of a typical business
2. Through group research, you will identify and discuss additional, not so obvious parts of a business
3. Understand how Information Technology, and by extension Cybersecurity, supports a business, as well as options for organizing these important departments
4. You will develop an appreciation for the complexities of a modern enterprise, and the challenges faced in the broader context of competing in a global market

What must a business do to survive?

“Typical” Organization Chart...

CEO

Marketing

Sales

Finance

Operations

There can be many variations, but what about IT (Information Technology)?

HR

The differences between Accounting & Finance

Accounting focuses on the day-to-day flow of money in and out of a company or institution, and provides “checks and balances”

Finance is a broader term for the management of assets and liabilities and the planning of future growth.

Accounting

Finance

2020

2021

2022

What about Sales vs. Marketing?

Sales is responsible for selling the product - including face-to-face, phone, email or over the internet

Marketing is the practice of determining product fit, including price, target customer, features, demand, and promoting the product or service

Sales

Marketing

Human Resources (HR)

The HR department handles the “human” part of the business

• Establishes fair and equitable hiring (and firing) practices
• Works with other departments on hiring and skill goals
• Manages recruiting and related campaigns
• Ensures organizational legal compliance
• And much more

Identifying the Business

Fit and Structure of Various Parts of a Business

5 Minute Research

1. Identify other components of a business
2. Where do they “fit” in the organization

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Examples: Legal, Internal Auditing, Technical Support, Knowledge Management, Policies and Procedures, Supply Chain Management, Public Relations, Vendor Management

Let’s talk Supply Chain

What is a Supply Chain?

• A collection of companies and processes involved in moving a product from the suppliers of raw materials to the suppliers of intermediate components, then to final production, and, ultimately, to the customer
• Referred to as “chain” as one supplier feeds into the next, then the next, then the next
• A “network” is more accurate because businesses have multiple suppliers, who have multiple suppliers

The Supply Chain: Incoming...

Raw Material Supplier

Raw Material Supplier

Raw Material Supplier

Crude Oil

Supplier’s Supplier

(Tier 3)

Supplier’s Supplier

(Tier 3)

Refinery

Supplier

(Tier 2)

Plastic Granules

Keyboard

Supplier

The Supply Chain: Outgoing...

Retailer 1

Retailer

Retailer

End Customer

End Customer

End Customer

Wholesaler

Wholesaler

End Customer

In the news...

Apple fixes security hole reportedly used to hack an iPhone

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First example of “zero click” malware

Understanding the Supply Chain

Fit and Structure of IT

Using this picture as an example, as well as your own shoes, identify all the different materials used in building the shoe.

Then identify the raw materials used to make these materials.

How would you manage this if you were running Nike?

Recap: The “Typical” Organization...

CEO

Marketing

Sales

Finance

Operations

HR

But where does IT Fit? Cybersec?

IT in the Organization

Fit and Structure of IT

1. Where does IT “fit” in an organization?
2. What are the Roles & Responsibilities w/in IT?
3. How should IT itself be organized?

Another Look at a “Typical” Organization Chart...

CEO

Marketing

Sales

Technology

Finance

Operations

Technology

Technology

Typical IT Structure

CIO

PMO

Architecture

Development

Test

Security

Operations

Database

Reporting

The Bigger Picture

The Broader Perspective

Businesses (and IT Systems) do not live in a vacuum...

Inputs

Processing

Outputs

Information System(s)

Feedback

Suppliers

Customers

Regulations

Shareholders

Competitors

Geopolitics

Business

Wrap-up

1. Businesses must sell products or services at a profit to survive
2. Products are typically…
1. Developed by Operations
2. Positioned by Marketing
3. Sold By Sales
3. Accounting monitors daily activities (The checkbook)
4. Finance focuses on future investments
5. HR establishes hiring, employee management practices and support
6. IT (and cybersec) exists to support the business
7. Businesses exist in a broader ecosystem that includes forces, some of which, they have limited control