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- Discuss characteristics of organizations
- Relationship between organizations and information systems
- Describe decision processes
- Evaluate role of Information systems in supporting business strategy
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- Maintaining competitive advantage
- Technology leap frog game
- FITTING TECHNOLOGY & ORGANIZATION (Visa-versa)
- Business and technology alignment & Integration
- *
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- You will need to understand how management functions within an
organization
- You will need to know how IS, management and business strategy fit
together
- Many factors can influence the effectiveness of the organization and IT
partnership
- See examples on next slide --à
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- TECHNICAL DEFINITION:
- STABLE, FORMAL STRUCTURE, Legal
- TAKES RESOURCES FROM ENVIRONMENT AND PROCESSES THEM TO PRODUCE OUTPUTS
- ->
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- BEHAVIORAL DEFINITION:
- COLLECTION OF:
- RIGHTS, PRIVILEGES, OBLIGATIONS, RESPONSIBILITIES, Relationships
- DELICATELY BALANCED
- CONFLICT RESOLUTION
- *
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- STRUCTURE: Hierarchy Division of labor Rules, Procedures
- PROCESS: Rights/Obligations Privileges/Responsibilities Values Norms People
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- Technical Organization Definition
- Infinitely maliable – Rearrangement of machines and workers
- Capital and labor are substatutes for each other
- Behavioral Organization Definition
- More complex
- Rights, privileges, relationships developed over time are difficult to
upset
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- CLEAR DIVISION OF LABOR
- HIERARCHY
- EXPLICIT RULES & PROCEDURES
- IMPARTIAL JUDGMENTS
- TECHNICAL QUALIFICATIONS
- MAXIMUM ORGANIZATIONAL
EFFICIENCY
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- FORMAL STRUCTURE
- STANDARD OPERATING PROCEDURES
- POLITICS
- CULTURE
- Can restrict change
- Only 10% of 1919 Fortune 500 companies till exist today
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- ORGANIZATIONAL TYPE
- ENVIRONMENTS, GOALS, POWER
- Government, legal, customer, competitors
- IS is key to environmental scanning
- CONSTITUENCIES, FUNCTION
- LEADERSHIP, TASKS
- TECHNOLOGY
- BUSINESS PROCESSES
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- ENTREPRENEURIAL: Startup business
- MACHINE BUREAUCRACY: Mid-sized manufacturing firm
- DIVISIONALIZED BUREAUCRACY: Fortune 500
- PROFESSIONAL BUREAUCRACY: Law firms, hospitals
- ADHOCRACY: Consulting firms
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- What is IT infrastructure?
- How has IT changed?
- How has the use of IT changed?
- Information flow
- Widening role
- Complexity
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- PROGRAMMERS: Write software
- System Admin: Setup hardware software and networks.
- IT/SYSTEMS ANALYSTS: Translate business problems into solutions
- IS MANAGERS: Department leaders
- END USERS: Department reps for whom applications are developed
- CIO: Chief information officer
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- MICROECONOMIC MODEL: Info technology is a factor of production, like
capital & labor
- Can be substituted for labor and capitol
- TRANSACTION COST THEORY: Firms attempt to minimize transaction costs
internally & externally
- Cost of IT goes down then labor is replaced with IT
- Lower transactional costs via networks
- Easier and cheaper to contract purchases & services
- *
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- AGENCY THEORY: Firm is nexus of contracts among self-interested parties
requiring supervision
- Reduce management costs as IT makes it possible to manage more staff
with less resource
- BEHAVIORAL THEORIES: Info systems could change hierarchy of decision
making; reduce need for middle management & clerical support;
distribute information
- IT allow information to jump levels in hierarchy
- Authority relies on knowledge and competence
- Task force or Virtual Team environments
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- Politics and IS are inseparable
- IS effects access to vital resources, Information
- IS can also impact work flow
- Decreasing or increasing the influence or need for department(s)
- May cause resistance to change
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- E-mail communication
- Electronic handbooks published & revised
- Interactive training classes
- Employees review, update personal data
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- Environment
- Organization Structure and SOP
- Culture and Politics
- Type of organization
- Style of leadership (micromanager)
- Extent of top managements support
- The tasks and business process effected
- Sentiments and attitudes of workers
- History of organization
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- CLASSICAL: Describe functions- plan, organize, coordinate, decide,
control
- Functions of the role are not necessarily what managers really do
- BEHAVIORAL: Based on observations of managers on the job
- Maybe much less formal then the classic model suggests.
- Interpersonal aspects
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- Interpersonal
- Informational
- Decisional
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- Strategic – Determine long-term objectives
- Management – Monitor efficiency of resources and performance
- Knowledge-Level – new products, services, ways to communicate
- Unstructured – non-routine, problem definition, no agreed process
- Structured – Repetitive, routine, a defined procedure
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- INTELLIGENCE: Collect information; identify problem
- DESIGN: Conceive alternatives; select criteria
- CHOICE: Use criteria to evaluate alternatives; select
- IMPLEMENTATION: Put decision into effect; allocate resources; control
- LOOP BACK???
- *
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- Individual vs Group decisions
- RATIONAL: Comprehensive rationality; evaluate all alternatives.
- Identify goals, Rank options and choose best fit
- Must remove emotion and politics
- SYSTEMATIC: Structured, formal method
- Often requires consensus. Difficult to attain?
- INTUITIVE: Trial & error, unstructured, multiple approach
- My mechanic uses this method
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- BUREAUCRATIC: Follow standard operating procedures (SOP)
- Change can be damaging to the organization
- POLITICAL: Key groups compete and bargain
- Decisions are a form of compromise between different groups with
competing goals
- Tilted by unequal power and diverse interests
- “GARBAGE CAN”: Organizations not rational; solutions accidental
- Analysis paralysis
- Just do it
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- Provide multiple models for the evaluation of data
- Decision support capability for groups
- Sensitive to political and bureaucratic requirements. Can be
overridden!!!
- A group decision can always be overridden. Should it?
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- Tools to stay ahead of the competition
- Used by all organization levels
- Alter the way a firm operates or maybe even the very business of the
firm
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- Business level strategy
- Become lowest cost producer
- Differentiate products and services
- Change scope of product or service. Global versus regional niche.
- Value Chain - Specifies parts of the business were competitive
strategies can be exploited
- Primary activities - Most directly relate to product and distribution of
a firms products and services
- Support activities - make the delivery of primary activities possible.
Technology, Management, Accounting, HR
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- A collection of firms connect through technology to coordinate behavior
to produce a product or service.
- Industrial networks form the infrastructure
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- 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
- *
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- Differentiate products and services
- ATMs, Internet stock trading, banking, reservations
- Niche (focused) Market
- Finding product niches can be facilitated with IS
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- Value chains developed with vendors and suppliers to keep inventory
stocked
- Traditional inventory
- Inventory may sit in storage for weeks
- Just-in-time
- Inventory used within a week of delivery
- Stockless inventory
- Daily deliveries
- Eliminating the store room
- Larger offsite bulk distribution centers
- Efficient IS can allow less overhead in inventory maintenance
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- Cost 5 time as much to acquire new customer then to keep existing
- Value chain that involve customer responsiveness can help retain
customers while maintaining efficient levels of inventory
- Internet product configurators
- Tied into production schedules and supply chain
- Supply push economy – Based on historical 12 month forecasts to
determine production
- Demand pull economy – Customer demand pulls production schedules
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- Synergy – pulling together complimenting products and services to
leverage customer relationships
- Deere’s product and service model
- Information Partnerships – Credit cards/Hotels and frequent flier miles
- Core Competencies – World classed leader. Firms product focus
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- Information partnerships
- Non competitive companies join forces without merging to develop
strategically valuable customer options
- Competitive forces model
- New entrants into the market
- Substitute products
- Traditional competition in Industry
- Now broadened by Industry Sets
- Auto manufactures need to complete with other transportation industries
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