Introduction
Businesses need to ensure that systems:
Lower Costs Increase Profits Improve ServiceAchieve a competitive
advantage
• In your career you will work with information systems to help your company become more efficent, effective, productive, and competitive within its industry.
Organization
An organization is a formal collection of people and other resources established to accomplish a set of goals.
Value Chain
The Value Chain is a series of activities that includes:– Inbound logistics– Warehouse & Storage– Production– Finished product storage– Outbound logistics– Marketing & Sales– Customer Service
Organizational Structure
Organizational subunits and the way they relate to the overall organization.
Types of Organizational Structures
•Traditional
•Flat
•Project
•Team
•Multi-Dimensional
•Virtual
http://www.evektor.cz/evektor/images/organisation_chart_EN.gif
Empowerment
Giving employees and their managers more responsibility and authority to make decisions, take certain actions, and have more control over their jobs.
IS Department Functions
Technical• Operating Systems• Telecommunications• DBA
Systems & Programming
Training•Internal•External
Audit
Business Process Reengineering (BPR)
BPR
The radical redesign of business processes
• Technology
• TQM
Technology
• Diffusion: Measure of how widely technology is spread throughout the organization
• Infusion: Extent to which technology is deeply integrated into a business area
• Technology Acceptance Model (TAM): a model that describes the factors that lead to higher levels of acceptance and usage of technology.– Factors include ease of use and quality of
information
Total Quality Management (TQM)
• Quality: the ability of a product or service to meet or exceed customer expectations
• TQM: approaches that foster a commitment to quality– Awareness of customer needs– Empowering and rewarding employees
for quality
Information System Success
Efficiency
- Output / Input
- Do things right
Effectiveness
- Output / Objectives
- Do the right things
More BPR
• The fundamental re-thinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.
• Automate: IT substitutes for human effort– Payroll (same but faster)
• Informate: IT augments human effort– Spreadsheets (new activities)
• Transformate: IT restructures processes– Paperless Accounts Payable
Strategies to Contain Costs
• Outsourcing: contracting with outside professional services to meet specific business needs
• On-Demand Computing (Utility Computing):
contracting for computer resources to rapidly respond to an organizations
varying workflow (Cloud)
• Downsizing (Rightsizing):
reducing the number of employees to cut costs
1. Buyer Power Decrease buyer power Make it more attractive for
customers to buy from us IT
Loyalty Program Safeway VS. Save-On-Foods Aeroplan
From a Company Perspective
2. Supplier Power Decrease supplier power Have many alternate supply
sources IT
B2B Marketplace Internet-based services
which brings together many buyers and sellers
Private Exchange
3. Threat of Substitute Product or Services Decrease the threat Have fewer alternatives in the
market IT
Create switching costs
4. Threat of New Entrants Decrease the threat Create an entry barrier IT
5. Rivalry among Existing Competitors Trend is toward increased competition IT
Gain a competitive advantage (fleeting) Compete on price Track Purchasing sequences
Strategic Planning for Competitive Advantage
Strategic Alliance:
Agreement between two or more companies that involves the joint production and distribution of goods and services.
• Creating new products and services• Improving existing products and
services• Using IS for strategic purposes
Chief Information Officer (CIO)
• Oversees all uses of IT
• Ensures strategic alignment of IT with business goals and objectives
Discussion Question
Business Personnel and IT Personnel
There is a GAP• What is this gap?
• Why does it exist?
• How may it be resolved?