Reading notes for chapter 3 in the textbook. - PowerPoint PPT Presentation

Loading...

PPT – Reading notes for chapter 3 in the textbook. PowerPoint presentation | free to download - id: 3bb674-NThkZ



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

Reading notes for chapter 3 in the textbook.

Description:

Reading notes for chapter 3 in the textbook. Read Section 3.1 leisurely. It is on the organizations and the information systems. You are probably familiar with the ... – PowerPoint PPT presentation

Number of Views:50
Avg rating:3.0/5.0
Slides: 43
Provided by: cisnetBar
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: Reading notes for chapter 3 in the textbook.


1
Reading notes for chapter 3 in the textbook. Read
Section 3.1 leisurely. It is on the organizations
and the information systems. You are probably
familiar with the organization theory .Pay
attention to the technical and behavioral
definitions of organizations as well as
bureaucracy, structural characteristics of
organizations, standard operating procedures and
organizational culture. Section 3.2 is on the
changing role of information systems in the
organization and is interesting to read how
information systems leads to automation,
decreases transaction costs and lays foundations
for virtual organizations. Note the definitions
of end users and CIO. Section 3.3 is on
decision-making, perhaps another familiar topic
for you. Pay attention to strategic decision
making, structured and unstructured decisions,
rational model of decision making .It would be
interesting to read individual models of
decision-making and organizational models of
decision-making.
2
 Reading notes for chapter 3 in the textbook -
Continued Section 3.4 is on the strategic use of
information technology to gain competitive
advantage. Strategic use of information
technology may be at the business-level, firm
level or industry level. Pay attention to how
information technology is used at each level,
especially strategies employed at each level.
Strategic transition and its management is
crucial for successfully steering the
organization into new technology. Pay
attention to the fact the information technology
is widely used in every type of organization to
be competitive, to keep pace with competition, to
meet the legal requirements, and to improve the
production. Hence, strategic use of information
technology results in significant competitive
advantages. This section deserves careful
attention.
3
Chapter 3 Information Systems, Organizations,
Management and Strategy
4
Organizations And Information Technology
Mediating Factors Environment Culture Structure S
tandard procedures Business process Politics Manag
ement Decisions Chance
organizations
Information Technology
5
FORMAL ORGANIZATION
Structure Hierarchy division of
labor Rules,procedures Business
processes Process Rights/obligations Privileges/re
sponsibilities Values Norms People
Environmental resources
Environmental outputs
6
  • Organization (technical definition)
  • A Stable, formal, social structure that takes
    resources from the environment and processes them
    to produce outputs.
  • Organization (behavioral definition)
  • A collection of rights, privileges, obligations,
    and responsibilities that are delicately balanced
    over a period of time through conflict and
    conflict resolution.
  • Bureaucracy
  • Formal Organization with a clear-cut division of
    labor, abstract
  • rules and procedures, and impartial decision
    making that uses
  • technical qualifications and professionalism as
    a basis for
  • Promoting employees.

7
STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONS
  • Clear division of labor
  • Hierarchy
  • Explicit rules and procedures
  • Impartial judgments
  • Technical qualifications for positions
  • Maximum organizational efficiency

8
ORGANIZATIONAL STRUCTURES
9
ORGANIZATIONAL STRUCTURES
10
Summary of salient features of organizations
  • Common Features
  • Formal Structure
  • Standard operating procedures(SOPs)
  • Politics
  • Culture
  • Unique features
  • Organizational type
  • Environments
  • Goals
  • Power
  • Constituencies
  • Function
  • Leadership
  • Tasks
  • Technology
  • Business processes

11
Information Systems department The Formal
organizational unit that is responsible for the
information systems function in the organization.
Programmers Highly trained technical specialists
who write computer software instructions.
Systems analysts Specialists who translate
business problems and requirements into
information requirements and systems,acting as
liaison between the information systems
department and the rest of the organization.

Information systems managers Leaders of the
various specialists in the information systems
department.
Chief information officer(CIO) Senior manager
in charge of the information systems function in
the firm.
End users Representatives of departments
outside the information systems group for whom
applications are developed.
12
THE ORGANIZATION Senior management Major end
users(divisions)
Information Systems department
Information Systems Specialists CIO Managers Sys
tems analysts Systems designers Programmers Networ
k specialists Database administrator Clerical
IT Infrastructure Hardware Software Data
storage Networks
13
How Information Systems Affect the Organizations
Microeconomic model of thee firm Model of the
firm that views information technology as a
factor of production that can be freely
substituted for capital and labor. Transaction
cost theory Economic theory stating that firms
grow larger because they can conduct market
place transactions internally more cheaply than
they can with external firms in the
marketplace. Agency theory Economic theory that
views the firm as a nexus of contracts among
self-interested individuals who must be
supervised and managed. Virtual
organization Organization using networks to link
people,assets and ideas to create and distribute
products and services without being limited to
traditional organizational boundaries or
physical location.
14
Organizational Components and Change
TASK
PEOPLE
TECHNOLOGY
STRUCTURE
15
Managers and Decision-Making
Classical model of management Traditional
description of management that focused on its
formal functions of planning, organizing,
coordinating, deciding and controlling.
Behavioral models Descriptions of management
based on behavioral scientists observations of
what managers actually do in their jobs.
16
Managerial Roles in Behavioral Model
Managerial roles Expectations of the activities
that managers should perform in an
organization. Interpersonal roles Mintzbergs
classification for managerial roles where
managers act as figureheads and leaders for the
organization. Informational roles Mintzbergs
classification for managerial roles where
managers act as the nerve centers of their
organizations,receiving and disseminating
critical information. Decision
roles Mintzbergs classification for managerial
roles where managers initiate activities,handle
disturbances,allocate resources and negotiate
conflicts.
17
The Process of Decision-Making Strategic
decision making Determining the long-term
objectives, resources and policies of an
organization. Management control Monitoring
how efficiently or effectively resources are
utilized and how well operational units are
performing. Operational control Deciding how
to carry out specific tasks specified by upper
and middle management and establishing criteria
for completion and resource allocation.
Knowledge-level decision making Evaluating new
ideas for products, services, ways to communicate
new knowledge, and ways to distribute
information throughout the organization.
18
Types of Decisions
Unstructured decisions Non-routine decisions in
which the decision maker must provide judgement,
evaluation, and insights into the problem
definition there is no agreed-upon procedure for
making such decisions. Structured
decisions Decisions that are repetitive, routine,
and have a definite procedure for handling them.
19

Organizational level Operational
knowledge
management Strategic
Type of decision Structured Semi- structu
red U n-structured
TPS
Office systems
MIS
DSS
KWS
ESS
20
Individual Models of Decision-Making
Cognitive style Underlying personality
dispositions toward the treatment of
information, selection of alternatives, and
evaluation of consequences. Systematic decision
makers cognitive style that describes people who
approach a problem by structuring it in terms of
some formal method. Intuitive decision
makers Cognitive style that describes people who
approach a problem with multiple methods in an
unstructured manner, using trail and error to
find a solution. Organizational models of
decision making Models of decision making that
take into account the structural and political
characteristics of an organization.
21
Organizational Models of Decision-Making
Bureaucratic models of decision making Models of
decision making where decisions are shaped by the
organizations standard operating
procedures(SOPs). Political models of decision
making Models of decision making where decisions
result from competition and bargaining among the
organizations interest groups and key
leaders. Garbage can model Model of decision
making that states that organizations are not
rational and that decisions are solutions that
become attached to problems for accidental
reasons.
22
What is Business Strategy?
  • Organization has a limited set of resources (e.g.
    time, people, money, physical resources) and they
    must decide how to use those resources.
  • Example You have the following resources
  • 500,000
  • A building
  • 10 employees
  • A patent on new invention
  • Strategy is deciding what the organization is
    going to do and how it will use use its resources

23
Examples of Strategies
  • Strategy 1 manufacture equipment with the money
    and use the building and the people to
    manufacture widgets.
  • Strategy 2 Outsource the production of widgets
    and use the people and building to be widget
    distributor - or perhaps a widget store.
  • Strategy 3 Sell the patent to a larger firm,
    sell the building, fire the employees and retire!

24
Strategy vs. Tactic
  • Strategy focuses essentially on deciding on what
    the organization is trying to do, what it is
    trying to become within its business environment.
    Changing strategy is difficult and often causes
    problems.
  • Tactic is the implementation of the strategy. It
    is the set of management decisions focussed on
    how to achieve the strategic objectives.
  • Example once the organization decides that it
    wants to be a widget manufacturer, there are many
    decisions that must be made about how to
    profitably manufacture widgets.

25
Strategic Decisions
  • Strategic decisions address questions such as
  • What products or services will be provide?
  • Will we focus on providing low cost
    goods/services?
  • Will we focus on providing unique goods/services?
  • Where will we sell our goods/services? To whom?
  • IT can assist the strategic decision maker (e.g.
    ESS). More importantly, IT is likely to be
    critical to the implementation of the strategy.

26
Elements of Strategic Management
  • Long range planning
  • Responsive
  • management
  • Innovation

27
The Role of IT
  • Create systems that provide strategic advantage
  • Supports strategic changes, such as
    business reengineering
  • Provides business intelligence
  • Competitive intelligence
  • Sustainable competitive advantage

28
Competitive Advantage
  • What makes strategy difficult is that most
    business environments are competitive. Need to
    try to "second guess" the competition.
  • Competitive advantage what sets the firm apart
    from the rest of its competitors.
  • Basis for competition cost, speed, quality,
    variety, level of service,...

29
Strategic Information Systems
  • Strategic information systems
  • computer systems at any level of an organization
    that change the goals, processes, products,
    services, or environmental relationships to help
    the organization gain a competitive advantage
  • Information considered as a resource, much like
    capital and labor
  • IT-critical competitive strategies Customer
    lock-in, customer lock-out, new business entry

30
STRATEGY LEVELS AND INFORMATION
TECHNOLOGY (IT) - ANOTHER FRAMEWORK
STRATEGIES
MODELS
IT TECHNIQUES
INDUSTRY
cooperation vs. competition
Competitive forces
electronic transactions
communications networks
licensing
Network economics
Inter-organizational systems
standards
information partnership
FIRM
Synergy
knowledge systems
Core competency
Core competencies
organizational systems
BUSINESS
Low Cost producer
Value chain analysis
data mining
IT-based products / services
Differentiation of products/services
Inter-organizational systems
Scope of competition (global vs. niche)
supply chain management
efficient customer response
31
Value Chain Analysis
  • Highlights the primary and support activities
    that add a margin of value to a firms
    product/service where IS can best be applied to
    achieve a competitive advantage.
  • Primary activities
  • Activities most directly related to the
    production and distribution of a firms
    products/services
  • Consist of inbound logistics, operations,
    outbound logistics, sales and marketing, service
  • Support activities
  • Activities that make the delivery of primary
    activities possible
  • Consist of organizations infrastructure, human
    resources, technology, procurement

32
The Value Chain for a Restaurant
  • Each box represents a primary process

33
IS to Support Product/Service Differentiation
  • Product/service differentiation
  • strategy for creating brand loyalty by developing
    new and unique products/services that are not
    easily duplicated by competitors
  • e.g. Citibanks ATM

34
IS to Support Niche Focus
  • Focused differentiation
  • strategy for developing new market niches for
    specialized products/services
  • Data mining
  • analysis of large pool of data to find patterns
    and rules that can be used to guide
    decision-making and predict future behavior
  • e.g. direct marketing
  • Applications of Data mining
  • Identifying individuals or organizations most
    likely to respond to a direct mailing.
  • Predicting which customers are likely to switch
    to competitors.
  • Identifying common characteristics of customers
    who purchase the same product.

35
IS to Support Low Cost Strategy
  • Supply chain management
  • integrates supplier, distributors, and customer
    logistics requirements into one cohesive process
  • to reduce inventory cost or underutilized staff
  • e.g. Wall-Marts continuous replenishment
    system
  • lock in customer and raise switching costs
  • expense a customer incurs in lost time and
    expenditure of resources when changing from one
    supplier to a competing supplier
  • e.g. Baxter Healthcares stockless inventory

36
Business Level Strategy
37
Firm-Level Strategies
  • A firm is a collection of business units
  • Synergy
  • outputs of some business units used as inputs to
    other units
  • IS to tie operations of business units
  • Core competencies
  • activities at which a firm is a world-class
    leader
  • IS to encourage sharing of knowledge

38
Industry-Level Strategies
  • Competition with other firms
  • Cooperation through information partnership
  • e.g. American Airlines and Citibank
  • Models to help analysis
  • Competitive forces
  • Network economics
  • based on concept of a network where adding
    another participant entails no marginal costs but
    can create much larger marginal gain

39
COMPETITIVE FORCES MODEL
NEW
SUBSTITUTE
MARKET
PRODUCTS
ENTRANTS
SERVICES
TRADITIONAL
THE FIRM
COMPETITION
Bargaining power of SUPPLIERS
Bargaining power of CUSTOMERS
40
Managing Strategic Transitions
  • A movement from one level of socio-technical
    system to another. Often required when adopting
    strategic systems that demand changes in the
    social and technical elements of an organization.

41
Questions Managers Should Ask
  • Forces at work in the industry and strategies
  • Using information and communication technology
  • The direction and nature of change within the
    industry
  • Opportunities to be gained by introducing
    information systems technology
  • Kinds of systems are applicable to the
  • Being behind or ahead of the industry in its
    application of information systems
  • The current business strategic plan, and the
    current strategy for information services
  • Sufficient technology and capital to develop a
    strategic information systems initiative
  • The greatest value to the firm

42
Challenges
  • Integrations
  • Sustainability of competitive advantage
About PowerShow.com