organizations and information systems
DESCRIPTION
The use of information systems to add value to the organization is strongly influenced by organizational structure, culture, and change. Changes in the org. will cause changes in IS Changes in IS and Technology will change the org. A good example is ERP. - PowerPoint PPT PresentationTRANSCRIPT
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The use of information systems to add value to the organization is strongly influenced by organizational structure, culture, and change.
Changes in the org. will cause changes in IS Changes in IS and Technology will change the
org. A good example is ERP. What role will you play in Org. structure, culture,
change management and decisions regarding the use of IS’s?
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Because information systems are so important, businesses need to be sure that improvements or completely new systems help lower costs, increase profits, improve service, or achieve a competitive advantage TCO is used to help measure ROI
What is ROI and why is it important to organizations.
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Organizations and Information Systems Organization: a formal collection of people and
other resources established to accomplish a set of goals.
Are there any org’s within the same industry that are exactly the same??? Do organizations change over time?
An organization is a system
Inputs to the system: resources such as materials, people, and money. (land, labor, and capital
Outputs to the environment: goods or services
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Organizations and Information Systems (continued) Value chain: a series (chain) of activities that
includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service
Upstream management: management of raw materials, inbound logistics, and warehouse and storage facilities
Downstream management: management of finished product storage, outbound logistics, marketing and sales, and customer service
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Value Chain, again
Why is the concept of the value chain important??
Cone’s answer. Always looking at all processes and activities
determining how you can change, add, or delete processes with information systems to add value to products or services.
This will be in your realm as a decision maker. The only way that you will be successful in your own business or by working for a business is to make “good” decisions.
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Organizational Structure
Organizational structure: organizational subunits and their relationship with the overall organization
Categories of organizational structure:
Traditional
Project
Team
Multidimensional
Virtual
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Traditional Organizational Structure A hierarchical structure
Major department heads report to a president or top-level manager
A managerial pyramid shows the hierarchy of decision making and authority
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Figure 2.3: A simplified organizational model, showing the managerial pyramid
What does this do with making decisions ???
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Figure 2.4: A Traditional Organizational Structure
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Project Organizational Structure
Centered around major products or services
Temporary project teams
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Team Organizational Structure
Centered on work teams or groups
Temporary or permanent teams
Various sizes
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Multidimensional Organizational Structure
May incorporate several structures at the same time
Advantage: ability to simultaneously stress both traditional corporate areas and important product lines
Disadvantage: multiple lines of authority
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Virtual Organizational Structure and Collaborative Work
Employs individuals, groups, or business units in geographically dispersed areas
People may never meet face to face
A job is not necessarily a place you go to.
Can be permanent or temporary
Collaborative work: managers and employees can effectively work in groups around the world
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Reengineering
Process redesign
Radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results
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Figure 2.8: Reengineering
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Continuous Improvement
Constantly seeking ways to improve business processes
Benefits:
Increased customer loyalty
Reduced customer dissatisfaction
Reduced opportunity for competitive inroads
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Technology Diffusion, Infusion, and Acceptance
Technology diffusion: measure of how widespread the use of technology is in an organization
Technology infusion: extent to which technology permeates a department
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Technology Diffusion, Infusion, and Acceptance
Technology Acceptance Model (TAM): specifies factors that can lead to higher usage of technology in an organization such as
The perceived usefulness of the tech.
The ease of its use
The quality of the IS
The degree to which the org. supports the use of the IS. What else????
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Technology Diffusion, Infusion, and Acceptance What is the best mixture of the diffusion,
infusion, and acceptance for best performance and profitability ???
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Outsourcing, On-Demand Computing, and Downsizing
Outsourcing: contracting with outside professionals
On-demand computing: contracting for computer resources to rapidly respond to an organization’s varying workflow
Downsizing: reducing the number of employees in an organization to cut costs. Usually the result of what???
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Competitive Advantage
Competitive advantage: significant, long-term benefit to a company over its competition
Once you achieve competitive advantage using IS’s you can usually keep it for a rather long time. Agree? Why?
Ability to establish and maintain a competitive advantage is vital to a company’s success
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Factors That Lead Firms to Seek Competitive Advantage
Rivalry among existing competition
Threat of new entrants
Threat of substitute products and services
Bargaining power of customers and suppliers
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Table 2.4: Competitive Advantage Factors and Strategies
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Major Stages in the Use of IS
1960’s. Oriented toward cost reduction and productivity. Ignored the revenue side.
1980’s. Oriented toward spending large amounts on IS and ignoring the costs.
Today. Performance based information systems. Next Slide.
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Performance-Based Information Systems
Considers both strategic advantage and costs
Uses productivity, return on investment (ROI), net present value, and other measures of performance
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Productivity
A measure of output achieved divided by input required
Higher level of output for a given level of input means greater productivity
Measured by OPMH
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Return on Investment and the Value of Information Systems
Earnings growth
Market share
Customer awareness and satisfaction
Total cost of ownership
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Roles, Functions, and Careers in the Information Systems Department Primary responsibilities in information systems
Operations: focuses on the efficiency of information systems functions
Systems development: focuses on specific development projects and ongoing maintenance and review
Support: provides user assistance