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c h a p t e r

c h a p t e r. 3. INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND STRATEGY. LEARNING OBJECTIVES. IDENTIFY SALIENT CHARACTERISTICS OF ORGANIZATIONS ANALYZE RELATIONSHIP BETWEEN INFORMATION SYSTEM & ORGANIZATIONS *. LEARNING OBJECTIVES.

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c h a p t e r

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  1. c h a p t e r 3 INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND STRATEGY

  2. LEARNING OBJECTIVES • IDENTIFY SALIENT CHARACTERISTICS OF ORGANIZATIONS • ANALYZE RELATIONSHIP BETWEEN INFORMATION SYSTEM & ORGANIZATIONS *

  3. LEARNING OBJECTIVES • CONTRAST THEORIES OF MANAGERIAL ACTIVITIES AND ROLES • DESCRIBE HOW MANAGERS MAKE DECISIONS IN ORGANIZATIONS • EVALUATE ROLE OF INFORMATION SYSTEMS IN SUPPORTING VARIOUS LEVELS OF BUSINESS STRATEGY

  4. MANAGEMENT CHALLENGES • ORGANIZATIONS & INFORMATION SYSTEMS • WHAT IS AN ORGANIZATION ? • COMMON FEATURES OF ORGANIZATIONS • UNIQUE FEATURES OF ORGANIZATIONS • CHANGING ROLES OF SYSTEMS IN ORGANIZATIONS • INFORMATION TECHNOLOGY INFARSTRUCTURE AND INFORMATION SERVICES • HOW INFORMATION SYSTEMS AFFECT ORGANIZATIONS • THE INTERNET AND ORGANIZATIONS IMPLICATIONS FOR DESIGN AND UNDERSTANDING OF INFORAMTION SYSTEMS *

  5. MANAGEMENT CHALLENGES • MANAGERS, DECISION MAKING & INFORMATION SYSTEMS • THE ROLE OF MANAGERS IN ORGANIZATIONS • MANAGERS AND DECISION MAKING IMPLICATIONS FOR SYSTEM DESIGN • INFORMATION SYSTEMS & BUSINESS STRATEGY • WHAT IS A STRATEGIC INFORMATION SYSTEMS ? • BUSINESS-LEVEL STRATEGY AND THE VALUE CHAIN MODEL *

  6. MANAGEMENT CHALLENGES 1. SUSTAINABILITY OF COMPETITIVE ADVANTAGE 2. FITTING TECHNOLOGY TO ORGANIZATION *

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

  8. What is an organization ? CEO VP VP VP ORGANIZATION TECHNICAL DEFINITION: STABLE, FORMAL STRUCTURE • TAKES RESOURCES FROM ENVIRONMENT AND PROCESSES THEM TO PRODUCE OUTPUTS *

  9. ORGANIZATION INPUTS FROM ENVIRONMENT PRODUCTION PROCESS OUTPUTS TO ENVIRONMENT TECHNICAL MICROECONOMIC DEFINITION OF ORGANIZATION ORGANIZATIONS,CAPITAL AND LABOR ARE TRANSFORMED BY FIRM THROUGH THE PRODUCTION PROCESS INTO PRODUCTS AND SERVICES. THE PRODUCTS AND SERVICE ARE CONSUMED BY ENVIRONMENT

  10. ORGANIZATION BEHAVIORAL DEFINITION: COLLECTION OF: • RIGHTS, PRIVILEGES, OBLIGATIONS, RESPONSIBILITIES • DELICATELY BALANCED • CONFLICT RESOLUTION * PROCESS

  11. ENVIRONMENTAL RESOURCES ENVIRONMENTAL OUTPUTS FORMAL ORGANIZATION STRUCTURE: Hierarchy Division of labor Rules, Procedures PROCESS: Rights/Obligations Privileges/Responsibilities Values Norms People

  12. STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONS • CLEAR DIVISION OF LABOR • HIERARCHY • EXPLICIT RULES & PROCEDURES • IMPARTIAL JUDGMENTS • TECHNICAL QUALIFICATIONS FOR POSITIONS • MAXIMUM ORGANIZATIONAL EFFICIENCY *

  13. COMMON FEATURES OF ORGANIZATIONS • FORMAL STRUCTURE • STANDARD OPERATING PROCEDURES • POLITICS • CULTURE *

  14. UNIQUE FEATURES OF ORGANIZATIONS • ORGANIZATIONAL TYPES • ENVIRONMENTS, GOALS, POWER • CONSTITUENCIES, FUNCTION • LEADERSHIP, TASKS • TECHNOLOGY • BUSINESS PROCESSES *

  15. ORGANIZATIONAL STRUCTURE TYPE • ENTREPRENEURIAL: Startup business • MACHINE BUREAUCRACY: Mid-sized manufacturing firm • DIVISIONALIZED BUREAUCRACY: Fortune 500 FIRM SUCH AS GM • PROFESSIONAL BUREAUCRACY: Law firms, hospitals, School systems • ADHOCRACY: Consulting firm *

  16. ENVIRONMENTAL RESOURCES & CONSTRAINTS GOVERNMENTS COMPETITORS FINANCIAL INSTITUTIONS CULTURE KNOWLEDGE TECHNOLOGY THE FIRM INFORMATION SYSTEMS ORGANIZATION & ITS ENVIRONMENT

  17. INFORMATION SYSTEMS DEPARTMENT • PROGRAMMERS: Write software • SYSTEMS ANALYSTS: Translate business problems into solutions • IS MANAGERS: Department leaders • END USERS: Department reps for whom applications are developed *

  18. INFORMATION SYSTEMS DEPARTMENT Information System Specialists: CIO Managers System Analysts System Developers Programmers Network Specialists Database Administrator Clerical IT Infrastructure: Hardware Software Data Networks THE ORGANIZATION SENIOR MANAGEMENT MAJOR END-USERS (DIVISIONS)

  19. HOW INFO SYSTEMS AFFECT ORGANIZATIONS • MICROECONOMIC MODEL: Information technology is a factor of production, like capital & labor • TRANSACTION COST THEORY: Firms attempt to minimize transaction costs internally & externally *

  20. HOW INFO SYSTEMS AFFECT ORGANIZATIONS • AGENCY THEORY: Firm is nexus of contracts among self-interested parties requiring supervision • BEHAVIORAL THEORIES: Info systems could change hierarchy of decision making; reduce need for middle management & clerical support; distribute information *

  21. TASK RESISTANCE TECHNOLOGY PEOPLE MUTUAL ADJUSTMENT STRUCTURE IMPLEMENTING CHANGE All four components must be changed simultaneously

  22. INTERNET & ORGANIZATIONS • E-mail communication • Electronic handbooks published & revised • Interactive training classes • Employees review, update personal data *

  23. THE ROLE OF MANAGERS IN ORGANIZATIONS • CLASSICAL model: Describe functions : planning, organizing, coordinating, deciding, controlling • BEHAVIORAL model : Descriptions of management based on scientists’ observations of what managers actually do in their jobs *

  24. INFO SYSTEMS, LEVELS, DECISIONS ORGANIZATIONAL LEVEL TYPE OF DECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC ACCOUNTS STRUCTURED RECEIVABLE PRODUCTION ELECTRONIC COST OVERRUNS SCHEDULING TPS MIS OAS SEMI- BUDGET STRUCTURED PREPARATION PROJECT DSS SCHEDULING FACILITY LOCATION ESS KWS UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTS NEW MARKETS

  25. STAGES OF DECISION MAKING • INTELLIGENCE:Collect information; identify problem • DESIGN:Conceive possible alternatives; select criteria • CHOICE:Use criteria to evaluate alternatives; select • IMPLEMENTATION:Puts decision into effect; allocate resources; control *

  26. INDIVIDUAL MODELS OFDECISION MAKING • RATIONAL:Comprehensive rationality; evaluate all alternatives • SYSTEMATIC: Structured, formal method • INTUITIVE:Trial & error, unstructured, multiple approach to find solution *

  27. ORGANIZATIONAL MODELS OF DECISION MAKING By group, organization • BUREAUCRATIC model:Follow standard operating procedures (SOP) • POLITICAL:Key groups compete and bargain • “GARBAGE CAN model”:Organizations not rational; solutions accidental *

  28. BUSINESS LEVEL STRATEGY LOCK IN CUSTOMERS & SUPPLIERS • SUPPLY CHAIN MANAGEMENT: Stockless inventories, continuous replenishment, just-in-time delivery • INTRA FIRM STRATEGY: Product differentiation, focused differentiation, low-cost producer • EFFICIENT CUSTOMER RESPONSE: Point-of-sale systems, datamining *

  29. NEW MARKET ENTRANTS SUBSTITUTE PRODUCTS & SERVICES THE INDUSTRY THE FIRM TRADITIONAL INDUSTRY COMPETITORS SUPPLIERS CUSTOMERS COMPETITIVE FORCES MODEL

  30. NEW MARKET ENTRANTS SUBSTITUTE PRODUCTS & SERVICES INDUSTRY SET INDUSTRY 1 INDUSTRY 2 INDUSTRY COMPETITORS INDUSTRY 4 INDUSTRY 3 SUPPLIERS CUSTOMERS COMPETITIVE FORCES MODEL

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