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Information Systems in Organizations

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Title: Information Systems in Organizations


1
Chapter 2
Information Systems in Organizations
2
Information Systems in Organizations
  • Organization
  • Collection of people and resources established to
    accomplish a set of goals (profit non-profit)
  • System of inputs, transformation, and outputs
  • Value Chain (Porter)
  • Series of activities that add value to a
    product/service
  • (e.g., warehousing, production, distribution,
    marketing, etc.)
  • IS monitors performance of these processes
  • IS has become part of the value-added processes

3
Organizational Structures
  • Traditional, Project, Team, Multidimensional
  • Lean organizations use IS to empower employees
  • Information can be provided to front line
    employees
  • Faster resolution of customer issues
  • IS assists in sharing information throughout the
    org.
  • Reduce costs and increase product quality
  • Improves productivity
  • IS helps increase employee satisfaction
  • Self-service applications
  • Faster feedback recognition

4
Organizational Culture Change
  • Organizational Culture
  • Common beliefs, values, understandings
  • Organizational Change
  • Internal external causes
  • Overcoming resistance is key to successful change
  • Employee involvement is necessary
  • Change model (Lewin Schein)
  • Unfreeze, Move, Refreeze
  • Change agents are required for successful
    adoption of new information systems

5
Lewin/Schein Model
Unfreeze
Move
Refreeze
6
Reengineering
7
Continuous Improvement TQM
  • Constantly seek ways to add value
  • (e.g., reduce number of defects, improve time to
    market)
  • Quality
  • Product must meet or exceed customer expectations
  • TQM (Demming)
  • Collection of tools techniques to achieve
    continuous improvement
  • IS is a key element of TQM
  • Collecting analyzing data, designing
    manufacturing new products, improving customer
    service

8
Outsourcing Downsizing
  • Outsourcing
  • Contracting external professional services to
    perform activities/processes, e.g., human
    resources, advertising, information systems
  • Enables an organisation to focus on its core
    strengths
  • Downsizing
  • Reducing the number of employees to cut costs
  • Effects on morale, communication, productivity
  • Early retirement buyout packages help to lessen
    the effects on remaining employees
  • NOT rightsizing

9
Competitive Advantage (1)
  • Seeking Maintaining a Competitive Advantage
  • Five-Force Model (Porter)
  • Rivalry among existing competitors
  • Threat of new entrants
  • Threat of substitute products
  • Bargaining power of buyers
  • Bargaining power of suppliers
  • IS can help to gain competitive advantage
  • Altering industry structure (alliances
    partnerships)
  • Creating new goods services and enhancing
    existing ones
  • Using IS as a strategic weapon (e.g., Sabre,
    Wal-Mart)

10
Competitive Advantage (2)
  • Strategies for gaining a competitive advantage
  • Low cost producer (IS can help to reduce a
    variety of costs)
  • Product Differentiation
  • IS can help to differentiate, e.g., quality,
    features, delivery
  • Market Differentiation
  • IS can help to identify target markets
  • Use of Data Mining

11
Performance Based Systems
  • IS is now a key factor in improving productivity
  • Redefining how organizations achieve their goals
  • Measuring the Value of IS
  • ROI, earnings,market share, customer satisfaction
  • Most IS projects are driven by at least one of
    the following factors
  • Tangible or intangible savings
  • Legal requirements
  • Modernisation
  • Pilot project

12
Careers in IS
  • IS employees are relatively high in demand
  • Above average starting salaries
  • Job market for IS professionals continues to grow
  • Primary areas
  • CIO
  • Operations
  • Systems Development
  • Systems Support
  • Consulting
  • Sales

13
Case
  • Textron - outsourcing, pages 77-78

14
Next Class
  • Chapter Three Hardware Input, Processing, and
    Output Devices
  • Case Unisys - customer service, pages 132-133
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