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Deriving Business Value

2014 unit code: INF20009 (formerly LEB211)

Please note that unit codes have changed from 2014.
Credit points12.5 Credit Points

One Semester

Contact hours36 Hours over the semester, normally 3 hours per week

LEB111 Foundations of Business Systems and eCommerce

Related course(s)

*From July, 2013 this unit will be taught at the Hawthorn Campus
This is a prescribed unit of study in the Business Major/s. It may also be undertaken as a unit of study in any other Swinburne degree program, subject to the prerequisite and degree requirements.

Aims and objectives

The unit aims to facilitate students understanding of:

1) the concept of value and on the sources of value for modern business in a world where organisational ,sustainability and environmental harmony are increasingly dominant themes

2) the role of social capital in businesses and the consequent implications for organisational culture, structure and strategy

3) methods for identifying and analysing value in organizations, including the value chain, value networks, and value shops, along with tools for measuring organisational value and sustainability.
Learning Objectives
1) Identify and explain the different kinds of value (tangible and intangible) sought by organisations in today’s digital economy.
2) Evaluate the value proposition and configuration for a given organisation
3) Compare and contrast a range of methods for creating and leveraging value in organisations by using examples.
4) Discuss a range of tools for measuring value in an organisation
5) Compare and contrast the roles and contributions of an evolving group of stakeholders in ensuring the sustainability of organisations
6) Examine the role of IT/IS in value creation in organisations.
7) Explain the key business concepts of strategy, culture and infrastructure and apply them to IT alignment scenarios

Teaching methods

Virtual lectures
Face-to-face tutorials


Online Tests 25 - 35%
Value Creation Proposal 25% - 30%
Final close book examination 40 -50%

Generic skills outcomes

Students will develop the following skills and knowledge:
  • Analytical, critical thinking and research skills
  • Problem-solving skills
  • Teamwork skills
  • Ability to work independently
  • Communication skills


Lesson 1: Concepts of value, value propositions, and value configuration in the digital economy
1) Value and value propositions 2) Value configuration 3) Value from Business models and business model innovation

Lesson 2: The organisational landscape:
1) Organisational types, structures, cultures and strategies 2) Collaboration and competition 3) Entrepreneurship and innovation

Lesson 3: Creation of business value through various kinds of capital – human, social, and economic
1) Kinds of capital – human, social, and economic 2) Stakeholder management

Lesson 4: Supply and value chain management
1) Supply and value chains 2) Supply chain and integrated supply chain management

Lesson 5: Value creation through IT/IS
1) Creating value through IS (e.g. Customer Relationship Management (CRM), Decision Support System (DSS) 2) Creating value through Internet and social technologies 3) The alignment of IT/IS Strategies with business strategies 4) IT/IS Governance

Lesson 6: Mapping and measuring organisational value and sustainability employing tools such as Measurable Organisational Value (MOV), the Balanced Scorecard, the Intangible Assets Monitor, the Triple Bottom Line (TBL) and the Environmental Performance Index (EPI).

Reading materials

Turban, E., Leidner, D., McLean, E.R. and Wetherbe, J.C. 2008, Information Technology for Management: Transforming Organization in the Digital Economy, 6th edn, John WIley & Sons, Brisbane.

Huggins, R. and Izushi, H. 2007, Competing for knowledge: Creating, connecting and growing, Routledge, London.

Illing, G.and Peitz, M. 2006, ‘Industrial Organization and the Digital Economy', in Illing, G.and Peitz, M. (eds), Industrial Organization and the Digital Economy, The MIT Press, London, England.

Jansen, D. W. 2006, The New Economy and Beyond: Past, Present and Future, Edward Elgar, Northampton, MA.

Jelassi, T. and Enders, A. 2008, Strategies for e-Business: Creating Value through Electronic and mobile commerce, Pearson Education UK, London

Leibold, M., Probst, G. and Gibbert, M. 2005, Strategic management in the knowledge economy: new approaches and business applications, 2nd edn, John Wiley & Son, Weinheim, Germany.

Martin, B. and Tian, X.M. 2010, Books, Bytes, and Business, Ashgate, London

Turban, E., Leidner, D., McLean, E.R. and Wetherbe, J.C. 2008, Information Technology for Management: Transforming Organization in the Digital Economy, 6th edn, John WIley & Sons, Brisbane.

Parazoglou, M.P. and Ribbers, P.M.A. 2006, eBusiness: organizational and technical foundations, John Wiley & Sons, West Sussex.

Text books

Modern Business Value: Principles and Best Practices (2011), to be published, authors and publisher details to be confirmed.


Turban, E, King, D, Lee, J & Viehland, D (2004) Electronic commerce: a managerial perspective, International edn, Prentice Hall/Pearson Education, New Jersey.

Afuah, A., & Tucci, C.L., (2003) Internet business models and strategies, 2nd edn, McGraw-Hill, New York.

Turban, E., Leidner, D., McLean, E., Wetherbe, J., (2006) Information technology for management, transforming organisations in the digital economy, 5th edn, John Wiley and Sons, New York.