Leveraging Technology for Strategic Organizational Control

1. 0 Chapter Eight Using IT for Coordination and Control

2. Evolution of Organizational Applications of Technology 0

3. Information for Decision Making and Control 0 • Technology provides vehicle for managers to access information for decision-making • Management information systems include: • Information reporting systems • Decision support systems • Executive information systems • Technology provides systems for controls: • Executive dashboards • Balance scorecards

4. Managerial Control and Decision Making 0

5. A Simplified Feedback Control Model 0

6. Management Control Systems 0 • Formal routines, reports and procedures • Formalized information based activities • Controls include: • Budgets, financial reports • Reward systems • Quality control systems • Managers must define standards and measure performance

7. The Level and Focus of Control Systems 0 • Organizational Level: The Balanced Scorecard • Measure financial, customer, employee and market concerns • Comprehensive management control system • Strategy map – visualization of organization success drivers and how they are linked • Departmental Level: Behavior versus Outcome Control • How people do their jobs • Outcomes people produce

8. Major Perspectives of the Balanced Scorecard 0

9. Adding Strategic Value 0 • Strengthening Internal Coordination with information systems Intranets Knowledge Management Web 2.0 Tools Enterprise Resource Planning

10. Two Approaches to Knowledge Management 0

11. Example of ERP Network 0

12. Adding Strategic Value 0 • Strengthening External Coordination with information technology • Uses IT to coordinate with suppliers, customers & partners • Supply Chain Management • Information linkages are key for coordination • Horizontal relationships coordinate the supply chain to meet customer needs

13. The Integrated Enterprise 0

14. Customer Relationships 0 • Strengthening customer relationships are paramount for organizations • Apply IT tools to build relationship • Customer Relationship Management (CRM) systems help customers: • Track customer interactions • Maintain sales and service records • Coordinate sales, marketing and customer service • Many organizations are applying web technologies to enhance customer relationships: blogs, wikis, social networking

15. Customer Web Ordering Process 0

16. E-Business Organization Design 0 • E-business is any business that takes place over a computer network • Many organizations have Internet operations • Managers may choose from different E-business strategies: • In-house Division • Spin-Off • Strategic Partnership

17. E-business Strategies 0

18. IT Impact on Organization Design 0 • Smaller Organizations • Decentralized Organizational Structures • Improved Horizontal Coordination • Improved Interorganizational Relationships • Enhanced Network Structures

19. Key Characteristics of Traditional vs. Emerging Interorganizational Relationships 0

20. Design Essentials 0 • Successful organizations leverage technology • Technology aids in better decision-making • Organizations must employ controls to measure performance • Technology is adding strategic value internally and externally • Technology is impacting the design of organizations