Information systems, organizations, management, and strategy

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Information systems, organizations, management, and strategy

  1. 1. Management Information Systems - Chap. 3 By: Prof. Y. Peter Chiu 2 / 2009
  2. 2. Information Systems, Organizations, Management, and Strategy <ul><li>3.1 Organizations & Information System </li></ul><ul><li>3.2 The Changing Role of Information Systems in Organizations </li></ul><ul><li>3.3 Managers, Decision Making, and Information Systems </li></ul><ul><li>3.4 Information Systems and Business Strategy </li></ul>Chap. 3
  3. 3. 3.1 Organizations & Information System <ul><li> Technical Definition: </li></ul><ul><li>Stable, Formal, Social Structure </li></ul><ul><li> Takes Resources From Environment </li></ul><ul><li> Processes Them </li></ul><ul><li> To Produce Outputs </li></ul>ORGANIZATION
  4. 4. <ul><li>Fig 3-2: The Technical view of Organizations . </li></ul>3.1 Organizations & Information System
  5. 5. <ul><li> Behavioral Definition : </li></ul><ul><li>Collection Of </li></ul><ul><li> Rights, Privileges, Obligations, Responsibilities </li></ul><ul><li> Delicately Balanced </li></ul><ul><li> Conflict Resolution </li></ul>3.1 Organizations & Information System ORGANIZATION
  6. 6. <ul><li>Fig 3-1: The Two-way relationship b/w Organizations and I.S. </li></ul>3.1 Organizations & Information System MEDIATING FACTORS: Environment Culture Structure Standard Procedures Business Processes Politics Management Decisions Chance ORGANIZATIONS INFORMATION TECHNOLOGY
  7. 7. Structural Characteristics of All Organizations <ul><li>Clear Division Of Labor </li></ul><ul><li>Hierarchy </li></ul><ul><li>Explicit Rules & Procedures </li></ul><ul><li>Impartial Judgments </li></ul><ul><li>Technical Qualifications </li></ul><ul><li>Maximum Organizational Efficiency </li></ul>3.1 Organizations & Information System
  8. 8. Common Features of Organizations <ul><li>Formal Structure </li></ul><ul><li>Standard Operating Procedures </li></ul><ul><li>Politics </li></ul><ul><li>Culture </li></ul>3.1 Organizations & Information System
  9. 9. Unique Features of Organizations <ul><li>Organizational Types </li></ul><ul><li>Environments, Goals, Power </li></ul><ul><li>Constituencies, Function </li></ul><ul><li>Leadership, Tasks </li></ul><ul><li>Technology </li></ul><ul><li>Business Processes </li></ul>3.1 Organizations & Information System
  10. 10. Organization & Its Environment 3.1 Organizations & Information System Figure 3-4
  11. 11. <ul><li>Table 3-3: Summary of Salient Features of Organizations . </li></ul>3.1 Organizations & Information System
  12. 12. <ul><li>Fig 3-5: Information Technology Services . </li></ul>3.2 The Changing Role of Info Systems In Organizations
  13. 13. How Information Systems affect Organizations <ul><li>The Impact of Information Systems on Organization </li></ul><ul><li> Reduces </li></ul><ul><li> Operating costs </li></ul><ul><li> Reduces </li></ul><ul><li> Organizational size </li></ul><ul><li> – middle managers </li></ul><ul><li> – clerical workers </li></ul>3.2 The Changing Role of Info Systems In Organizations
  14. 14. <ul><li> Changes </li></ul><ul><li> Organizational Structure </li></ul><ul><li>– decentralize </li></ul><ul><li>– less reliance on SOPs </li></ul><ul><li> Increase </li></ul><ul><li> Information and knowledge workers </li></ul><ul><li> Self- guided workers </li></ul>How Information Systems affect Organizations – information access: automated, timeliness, and accuracy  Shortens  Decision Making Process 3.2 The Changing Role of Info Systems In Organizations
  15. 15. How Organizations Affect Information Systems ? <ul><li>Decisions about </li></ul><ul><li>The Role of information systems </li></ul><ul><li>Decisions about </li></ul><ul><li>The Computer Package : </li></ul><ul><li>- Who delivers information technology services ? </li></ul><ul><li>Decisions about </li></ul><ul><li>Why information systems are built ? </li></ul>3.2 The Changing Role of Info Systems In Organizations
  16. 16. <ul><li>Fig 3-8: Organizational Resistance and the mutually adjusting relationship between technology and the organization. </li></ul>3.2 The Changing Role of Info Systems In Organizations
  17. 17. Internet & Organizations <ul><li> The internet increase the </li></ul><ul><li> ■ Accessibility </li></ul><ul><li> ■ Storage </li></ul><ul><li> ■ Distribution of Info & Knowledge </li></ul><ul><li> For organizations </li></ul><ul><li>■ Lowering the transaction and agency costs </li></ul>3.2 The Changing Role of Info Systems In Organizations ◆
  18. 18. Role Of Managers <ul><li> Classical Descriptions of Management </li></ul><ul><li>Describe functions- plan, organize, coordinate, decide, control </li></ul><ul><li> Behavioral Models </li></ul><ul><li>Based on observations of managers on the job </li></ul>3.3 Managers, Decision Making, and Information Systems
  19. 19. <ul><li>Behavioral model of management activities : </li></ul><ul><li> High-volume, High-speed work </li></ul><ul><li> Variety, Fragmentation, Brevity </li></ul><ul><li> Issue preference current, ad hoc, specific </li></ul><ul><li> Contacts, complex web of interactions </li></ul><ul><li> Strong preference for verbal media </li></ul><ul><li> Control of the agenda </li></ul>What Managers Do ? 3.3 Managers, Decision Making, and Information Systems
  20. 20. <ul><li>Managerial Roles: Mintzberg (1971) </li></ul><ul><li> Interpersonal roles </li></ul><ul><li> Figurehead </li></ul><ul><li> Leader </li></ul><ul><li> Liaison </li></ul><ul><li> Informational roles </li></ul><ul><li> Nerve center </li></ul><ul><li> Disseminator </li></ul><ul><li> spokesperson </li></ul>3.3 Managers, Decision Making, and Information Systems
  21. 21. <ul><li>Managerial Roles: Mintzberg (1971) </li></ul><ul><li> Decisional roles </li></ul><ul><li>  Entrepreneur </li></ul><ul><li> Disturbance handler </li></ul><ul><li> Resource allocator </li></ul><ul><li> Negotiator </li></ul>3.3 Managers, Decision Making, and Information Systems
  22. 22. <ul><li>How information systems can benefit managers ? </li></ul><ul><li> What managers do ? </li></ul><ul><li> What information managers need for decision making ? </li></ul><ul><li>  How decisions are made ? </li></ul><ul><li>  What kinds of decisions can be supported by formal information systems ? </li></ul>3.3 Managers, Decision Making, and Information Systems ◇
  23. 23. 3.3 Managers, Decision Making, and Information Systems
  24. 24. 3.3 Managers, Decision Making, and Information Systems Levels of Decision Making Operational control Knowledge- level decision making Management control Strategic decision making
  25. 25. <ul><li>Decisions are classified as: </li></ul><ul><li>Unstructured: </li></ul><ul><li>Non routine , decision maker provides judgment, evaluation, and insights into problem definition, no agreed-upon procedure for decision making </li></ul><ul><li>Structured: </li></ul><ul><li>Repetitive, routine, handled using a definite procedure </li></ul>3.3 Managers, Decision Making, and Information Systems
  26. 26. <ul><li>Fig. 3-9: Different kinds of information systems at the various organization levels support different types of decisions. </li></ul>3.3 Managers, Decision Making, and Information Systems TPS OAS MIS KWS DSS ESS ORGANIZATIONAL LEVEL TYPE OF DECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC STRUCTURED ACCOUNTS RECEIVABLE ELECTRONIC PRODUCTION SCHEDULING COST OVERRUNS SEMI- BUDGET STRUCTURED PREPARATION PROJECT SCHEDULING FACILITY LOCATION UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTS NEW MARKETS
  27. 27. <ul><li>Fig 3-10: The decision making process. </li></ul>3.3 Managers, Decision Making, and Information Systems
  28. 28. Stages of Decision Making <ul><li> Intelligence : </li></ul><ul><li>Collect information; identify problem </li></ul><ul><li> Design : </li></ul><ul><li>Conceive alternatives; select criteria </li></ul><ul><li> Choice : </li></ul><ul><li>Use criteria to evaluate alternatives ; select </li></ul><ul><li> Implementation: </li></ul><ul><li>Put decision into effect ; allocate resources; control </li></ul>3.3 Managers, Decision Making, and Information Systems
  29. 29. Management Challenges Unstructured nature of important decisions Diversity of managerial roles Complexity of decision making 3.3 Managers, Decision Making, and Information Systems
  30. 30. Strategic Information Systems ( S.I.S ) <ul><li> Computer systems at any level of the organization that change </li></ul><ul><li>The goals, operations, products, services, or environmental relationships , to </li></ul><ul><li>help the organization gain a competitive advantage . </li></ul>3.4 Information Systems and Business Strategy
  31. 31. <ul><li>Fig. 3-15: Porter’s competitive forces model </li></ul>3.4 Information Systems and Business Strategy
  32. 32. Competitive forces model <ul><li> Model used to describe the interaction </li></ul><ul><li>of external influences , specially threats </li></ul><ul><li>and opportunities, that affect an </li></ul><ul><li>organization’s strategy and ability to </li></ul><ul><li>compete. </li></ul>3.4 Information Systems and Business Strategy ◆
  33. 33. Four basic Competitive Strategies Product Differentiation Focused Differentiation Tight Linkages to customers & suppliers Low-cost producer <ul><li>New & Unique </li></ul><ul><li>Products and </li></ul><ul><li>Services </li></ul><ul><li>ATM by Citibank </li></ul><ul><li>C-M-A by Merrill </li></ul><ul><li>Lynch </li></ul><ul><li>New Market Niches </li></ul><ul><li>for specialized </li></ul><ul><li>Products or Services </li></ul><ul><li>Sears Roebuck </li></ul><ul><li>American Express </li></ul><ul><li>“ Lock” customers & </li></ul><ul><li>Suppliers ; </li></ul><ul><li>Raises Switching </li></ul><ul><li>Costs </li></ul><ul><li>Federal Express </li></ul><ul><li>Baxter International </li></ul><ul><li>Wizard by Avis </li></ul><ul><li>C-R-S by </li></ul><ul><li>Wal-Mart </li></ul><ul><li>Yield mgmt by </li></ul><ul><li>Airlines </li></ul>3.4 Information Systems and Business Strategy
  34. 34. <ul><li> Data-mining </li></ul><ul><li>Analysis of large pools of data to find patterns and rules that can be used to guide decision making and to predict future behavior . </li></ul><ul><li> Switching Costs </li></ul><ul><li>The expense a customer or company incurs in lost time and expenditure of resources when changing from one supplier or system to a competing supplier or system. </li></ul>Competitive forces model 3.4 Information Systems and Business Strategy
  35. 35. <ul><li>Fig. 3-13: Stockless inventory compared to traditional and just-in-time supply methods. </li></ul>3.4 Information Systems and Business Strategy ◆
  36. 36. Value Chain model <ul><li> Model that highlights the primary or support activities that add a margin of value to a firm’s products or services where information systems can best be applied to achieve a competitive advantage . </li></ul>3.4 Information Systems and Business Strategy  Primary Activities Activities most directly related to the production and distribution of a firm’s products or services .  Support Activities Activities that make the delivery of a firm’s primary activities possible. Consists of the organization’s infrastructure, human resources, technology, and procurement.
  37. 37. 3.4 Information Systems and Business Strategy Figure 3-11
  38. 38. Business-Level Strategy 3.4 Information Systems and Business Strategy Figure 3-14
  39. 39. Strategic Information Systems Competitive Forces Model The Value Chain Model 3.4 Information Systems and Business Strategy
  40. 40. What managers should do ? <ul><li> How is the industry currently using information systems ? </li></ul><ul><li> Can significant strategic opportunities be gained by introducing new information system technology ? </li></ul>3.4 Information Systems and Business Strategy
  41. 41. <ul><li> What is the current business strategic plan , and how does that plan mesh with the current strategy for information services ? </li></ul><ul><li> Does the firm have the technology and capital required to develop a strategic information systems initiative ? </li></ul>What managers should do ? 3.4 Information Systems and Business Strategy
  42. 42. HOMEWORK CHAP.3 <ul><li># 1 What are the Mediating Factors between organizations and Information Technology ? </li></ul><ul><li># 2 Describe briefly what common features and unique features of organizations are? </li></ul><ul><li># 3 Describe how information systems affect organizations; and how organizations affect information systems. </li></ul><ul><li># 8 What specific managerial roles can information systems support ? Where are information systems particularly strong in supporting managers, and where are they weak? </li></ul><ul><li># 9 What are the four stages of decision making described by Simon? </li></ul><ul><li># 12 What is a strategic information system? </li></ul><ul><li># 13 Describe what competitive forces model and value chain model are? Name four basic competitive strategies. </li></ul><ul><li># 14 What managers should do after understanding the impact of strategic information system? </li></ul>~ THE END ~

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