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TYPES, STRATEGIC ROLE & IMPACT BY CHANDRA S. AMARAVADI

INFORMATION SYSTEMS IN ORGANIZATIONS - II. TYPES, STRATEGIC ROLE & IMPACT BY CHANDRA S. AMARAVADI. IN THIS PRESENTATION. Definition of organization Type of organizations and defining features An overview of the different functional areas The different types of information systems

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TYPES, STRATEGIC ROLE & IMPACT BY CHANDRA S. AMARAVADI

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  1. INFORMATION SYSTEMS IN ORGANIZATIONS - II TYPES, STRATEGIC ROLE & IMPACT BY CHANDRA S. AMARAVADI

  2. IN THIS PRESENTATION • Definition of organization • Type of organizations and defining features • An overview of the different functional areas • The different types of information systems • TP, “MIS”, DSS, OIS, ESS • The firm and its environment • IT and business strategy • Impact of information systems

  3. INFORMATION SYSTEMS AND THE ENVIRONMENT

  4. THE ENVIRONMENT What is the business environment? What property/properties does it exhibit? From this point of view, how are organizations characterized?

  5. ENVIRONMENT OF AN ORGANIZATION government general banks bodies supplier customer organi- zation competition trade groups making environment policy

  6. ENVIRONMENT Task environment concerned with inputs and outputs (e.g. customers, suppliers, competitors) Institutional environment governs rules of the game (e.g. banks, special groups, government) General environment concerned with socio economic trends (e.g. cultural characteristics, demographics etc.)

  7. ADAPTATION MECHANISMS ENVIRONMENTAL CHANGE Change Structure Change Strategy Change SOPs How viable are these methods?

  8. ADAPTATION MECHANISMS.. How does a typical consumer products company adapt, if a) gas prices increase? b) one of its products misses a sales target? c) there are tax laws that favor business expansion? d) there are permanent, industry-wide labor shortages? e) if it has to market globally instead of locally?

  9. STRATEGY Strategy is concerned with achieving a fit with the environment • Business level -- What products should the firm offer? -- “Product mix”, What markets? • Industry level -- How should the firm compete? by marketing? by raising prices? How is strategic planning carried out?

  10. RELATIONSHIP BETWEEN ENV. ORGANIZATION & STRATEGY STRATEGIC CHANGES Competitor ENVIRONMENTAL CHANGE Customer ORGANIZATION Competitor TASK ENVIRONMENT

  11. THE ROLE OF IS env. changes ENVIRONMENT ORGANIZATION changes influence STRATEGY, SOPS.. The Role of IS/IT is mainly to support strategy

  12. INFORMATION SYSTEMS AND BUSINESS STRATEGY

  13. INFORMATION SYSTEMS AND BUSINESS STRATEGY How can information systems support corporate strategy?

  14. INFORMATION SYSTEMS AND BUSINESS STRATEGY • Business level • Value chain • Supply chain management • IT based products/services • Industry level • Information partnerships • Competitive forces

  15. BUSINESS LEVEL STRATEGY • Value chain • IT-based products and services • Supply Chain management & ECR

  16. VALUE CHAIN Activities that add value to products, services Contributes to product or service life cycle • PRIMARY: Directly related to production & distribution. • SUPPORT: Infrastructure, human resources, technology, procurement

  17. VALUE CHAIN.. PORTER – Support value chain Support activities: accounting, HR Purchasing, warehousing, production, distribution Support activities: finance What is the value chain for a law firm?

  18. SUPPLY CHAIN MANAGEMENT & ECR Supply Chain The collection of entities (manufacturing plants, distribution centers, conveyances, retail outlets, people, and information), which are linked together into processes supplying goods or services from source to consumption. Supply Chain Management Integration of supplier, distributor, and customer logistics Requirements into one cohesive process Efficient Customer Response Systems Systems linking customers needs to production and distribution.

  19. IT BASED PRODUCTS/SERVICES Those where information/IT is a major component of the product. • CBT • Credit cards • Financial products • I2 example

  20. INDUSTRY-LEVEL STRATEGIES • Information partnerships • Competitive forces

  21. INFORMATION PARTNERSHIPS • Industry level collaborations • Involves information sharing • A limited collaboration • Credit cards and frequent flier programs • Code sharing?

  22. COMPETITIVE FORCES NEW MARKET ENTRANTS SUBSTITUTE PRODUCTS & SERVICES TRADITIONAL COMPETITION THE FIRM SUPPLIERS CUSTOMERS

  23. COMPETITIVE FORCES MODEL.. • Compete by raising entry-barriers • Discourage switching to substitutes • Use IT-supported standards • Tie-in customers using IT products • Examples?

  24. IMPACT OF INFORMATION SYSTEMS

  25. ORGANIZATIONS & INFORMATION TECHNOLOGY • Impact of information systems on the organization • Strategic (already discussed) • Impact of the organization on the IS

  26. ORGANIZATIONS & INFORMATION TECHNOLOGY MEDIATING FACTORS: Environment Culture Structure Standard Procedures Politics Management Decisions INFORMATION TECHNOLOGY ORGANIZATIONS

  27. IMPACT OF THE ORGANIZATION ON THE IT FUNCTION Concerned with how the organization controls IT department • Organization of IS • (how IT is organized) • Decides role of IS • (what IT will do for the org.)

  28. THE END

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