Informational needs of organizations in an information society

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Informational needs of organizations in an information society

  1. 1. Management Information Systems Informational Needs of Organizations in an Information Society: Competing with IS Jerry Fjermestad Copyright 1998-1999
  2. 2. Informational Needs of Organizations Introduction The Information Society & Knowledge Work Demands on Organizations in an Informational Society Informational Responses to the New Environment
  3. 3. Informational Needs of Organizations <ul><li>Capabilities of Information Systems </li></ul><ul><li>Development of Organizational Computing </li></ul><ul><li>The Mission of Information Systems </li></ul><ul><li>A Model of Organizational MIS </li></ul>
  4. 4. Introduction <ul><li>Information technology is becoming ubiquitous (omnipresent), everywhere at the same time, affecting: </li></ul><ul><ul><li>the way companies do business </li></ul></ul><ul><ul><li>the way they grow </li></ul></ul><ul><ul><li>the way they compete </li></ul></ul><ul><ul><li>the way government agencies, etc provide services </li></ul></ul><ul><ul><li>the way the employees conduct their work </li></ul></ul>
  5. 5. The Information Society & Knowledge Work <ul><li>Information Society: </li></ul><ul><ul><li>an advanced form of the industrial society </li></ul></ul><ul><ul><li>a postindustrial society </li></ul></ul><ul><ul><li>where most of the people in the economy handle information </li></ul></ul>
  6. 6. The Information Society & Knowledge Work <ul><li>A. History </li></ul><ul><ul><li>Zwass, 1992 Figure 2.1 </li></ul></ul><ul><ul><li>1957- the beginning of the information era the number of info workers passed the number of industrial workers. </li></ul></ul>
  7. 8. The Information Society & Knowledge Work <ul><li>A. History </li></ul><ul><ul><li>1960's- only 9 of the 27 computer were earning their keep </li></ul></ul><ul><ul><li>1964- first word processor </li></ul></ul><ul><ul><li>1970- first fax </li></ul></ul><ul><ul><li>The information sector of the economy grew from 17% in 1950 to 58% in 1980 </li></ul></ul><ul><ul><li>The industrial segment went from 65% to 27% </li></ul></ul>
  8. 9. The Information Society & Knowledge Work <ul><li>B. The classic Infrastructure </li></ul><ul><ul><li>Business computing (Data processing): reported to the organization controller: applications- accounting, payroll, and billing </li></ul></ul><ul><ul><li>Telecommunications: Mostly controlled by outside vendors low visibility of the technology, and low importance. </li></ul></ul>
  9. 10. The Information Society & Knowledge Work <ul><li>B. The classic Infrastructure </li></ul><ul><ul><li>Office support: Mailrooms, typing pools, reproduction centers, records management. Generally, these functions were out of sight of the mainstream organizational functionalities (finance, marketing, etc.) </li></ul></ul><ul><ul><li>General office ware: typewriters, answering machines, copiers were controlled by general budget. </li></ul></ul>
  10. 11. The Information Society & Knowledge Work <ul><li>C. Pressure for Integration: </li></ul><ul><ul><li>1. spending had grown large that scattered management no longer satisfies basic corporate accountability principles </li></ul></ul><ul><ul><li>2. Technological barriers between the various information tools were rapidly dissolving </li></ul></ul><ul><ul><li>3. Many office technologies became computerized </li></ul></ul><ul><ul><ul><li>Private branch exchanges (PBX's) </li></ul></ul></ul><ul><ul><ul><li>photo copiers </li></ul></ul></ul><ul><ul><ul><li>multiple tasking of office tools </li></ul></ul></ul>
  11. 12. The Information Society & Knowledge Work <ul><li>C. Pressure for Integration: </li></ul><ul><ul><li>4. Networking which is eliminating barriers around traditional domains (bailiwicks). </li></ul></ul><ul><ul><li>However, since the four main types of information services had a separate childhood it has been difficult to integrate </li></ul></ul>
  12. 13. The Information Society & Knowledge Work <ul><li>D. What is Knowledge Work? </li></ul><ul><ul><li>Knowledge workers deal with information (abstractions) rather than concrete objects </li></ul></ul><ul><ul><li>Knowledge workers DO NOT produce anything </li></ul></ul><ul><ul><li>Knowledge workers DO NOT exert &quot;physical&quot; effort </li></ul></ul><ul><ul><li>Are today's machine operators knowledge workers? </li></ul></ul><ul><ul><li>Are MIS professional knowledge workers? </li></ul></ul>
  13. 14. Demands on Organizations in an Informational Society <ul><li>A. Demands of Continuing Innovation </li></ul><ul><ul><li>Global economies </li></ul></ul><ul><ul><li>Operational environment is turbulent & complex </li></ul></ul><ul><ul><li>A highly dynamic information society requires constant innovation- products and services </li></ul></ul><ul><ul><li>Organizations change to adapt to these demands </li></ul></ul><ul><ul><li>MIS must FACILITATE change not stop it </li></ul></ul>
  14. 15. Demands on Organizations in an Informational Society <ul><li>B. Changes in the environment- Information role </li></ul><ul><ul><li>Changes in the economic environment causes business to reexamine their strategy: they must compete in order to be successful or survive. </li></ul></ul><ul><ul><ul><li>The changing Market place </li></ul></ul></ul><ul><ul><ul><li>The economic turbulence has altered the structures of many organizations. IT contributes to this: </li></ul></ul></ul><ul><ul><ul><ul><li>information moves faster </li></ul></ul></ul></ul><ul><ul><ul><li>Quality: As defined by the customer </li></ul></ul></ul>
  15. 16. Demands on Organizations in an Informational Society <ul><ul><ul><li>Environment: </li></ul></ul></ul><ul><ul><ul><ul><li>Consumer computing: </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Deregulation: Airlines, banking, telecommunications </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Crossing industry boundaries: Sears- retail, brokerage, mortgage, information (prodigy) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Traditional customers switching: Big bank customer find other means for financing (Sears, the brokerage houses) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Organizations by passing the local phone companies and going directly to long distance networks. </li></ul></ul></ul></ul>
  16. 17. Demands on Organizations in an Informational Society <ul><ul><ul><li>From Huber 1984: </li></ul></ul></ul><ul><ul><ul><li>Multi-Nationals: </li></ul></ul></ul><ul><ul><ul><ul><li>Foreign Competition: </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Global Production: </li></ul></ul></ul></ul><ul><ul><ul><li>New Product and service cycles are shorting: </li></ul></ul></ul><ul><ul><ul><li>Increase in available knowledge </li></ul></ul></ul><ul><ul><ul><ul><li>journals, corporate communications </li></ul></ul></ul></ul>
  17. 18. Demands on Organizations in an Informational Society <ul><ul><ul><li>Growth of complexity: numerosity, diversity and interdependence </li></ul></ul></ul><ul><ul><ul><ul><li>Numerosity: growing world population and industrial revolution (an interaction) </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Diversity is caused by specialization (people & organizations wanting to succeed) </li></ul></ul></ul></ul>
  18. 19. Demands on Organizations in an Informational Society <ul><ul><ul><ul><li>Interdependence: </li></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>The revolution in the infrastructure- </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Transportation </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Communication </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>An organizations FOCUSED specialization </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><li>Increase Turbulence: caused by telecommunication speeds </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Z Figure 2.2 </li></ul></ul></ul></ul><ul><ul><ul><li>Huber (1984) suggests that in order for organizations to succeed they must be compatible with the environment. This was the way the Indian lived before the settlers of the 1700's </li></ul></ul></ul>
  19. 21. Informational Responses to the New Environment <ul><li>Organizational design be based on the decision making paradigm: decision making is central to the organization </li></ul><ul><ul><li>Organizational design for knowledge work in general and decision making in particular </li></ul></ul><ul><ul><li>Continuous product and process innovations through information & information systems </li></ul></ul><ul><ul><li>Constant internal company renewal supported by information systems </li></ul></ul>
  20. 22. Informational Responses to the New Environment <ul><ul><li>Explicit mechanisms for acquisition and targeted distribution of external information </li></ul></ul><ul><ul><li>Protection form information overload </li></ul></ul>
  21. 23. Informational Responses to the New Environment <ul><li>A. Organizational design for knowledge work </li></ul><ul><ul><li>Systems to support individuals and GROUPS </li></ul></ul><ul><ul><li>Specialists and distributed work/workers </li></ul></ul><ul><ul><li>consultants (internal & external) headquarters and field offices, etc. </li></ul></ul>
  22. 25. Informational Responses to the New Environment <ul><ul><li>The Changing Work Environment </li></ul></ul><ul><ul><ul><li>Business Teams: </li></ul></ul></ul><ul><ul><ul><li>Anytime Anyplace information: </li></ul></ul></ul><ul><ul><ul><li>Outsourcing: </li></ul></ul></ul><ul><ul><ul><li>The Demise of the hierarchy: a vertical chain of command </li></ul></ul></ul>
  23. 26. Informational Responses to the New Environment <ul><ul><li>Attributes of a hierarchy </li></ul></ul><ul><ul><ul><li>employees at the bottom, with only enough training and feedback to perform one type of job </li></ul></ul></ul><ul><ul><ul><li>supervisors allocate the work among these subordinates </li></ul></ul></ul><ul><ul><ul><li>supervisors perform training, do discipline, provide rewards </li></ul></ul></ul><ul><ul><ul><li>Professionals and staff are supervised but have more responsibility and autonomy </li></ul></ul></ul><ul><ul><ul><li>Managers and executives coordinate </li></ul></ul></ul>
  24. 27. Informational Responses to the New Environment <ul><ul><li>Problems with a hierarchy </li></ul></ul><ul><ul><ul><li>Cannot respond quickly to change </li></ul></ul></ul><ul><ul><ul><li>A growing concern for human &quot;capital:&quot; Human resources are the true competitive edge, companies must learn how to treat their employees </li></ul></ul></ul><ul><ul><ul><li>Less Middle Management (The on going effort of the recession); the key is to install IT to fill the gap </li></ul></ul></ul><ul><ul><ul><li>IT </li></ul></ul></ul><ul><ul><ul><li>New self managed groups </li></ul></ul></ul>
  25. 28. Informational Responses to the New Environment <ul><ul><li>Problems with a hierarchy (con’t) </li></ul></ul><ul><ul><ul><li>The baby boom generation is now the out-placed generation </li></ul></ul></ul><ul><ul><ul><li>A coming labor shortage </li></ul></ul></ul><ul><ul><ul><li>fewer young are entering the job market </li></ul></ul></ul><ul><ul><ul><li>less talent to choose from </li></ul></ul></ul><ul><ul><ul><li>benefits: less discrimination based on sex, age, race poor and disadvantaged will be given training </li></ul></ul></ul>
  26. 29. Informational Responses to the New Environment <ul><li>B. Product & Process Innovations </li></ul><ul><ul><li>Federal Express & UPS are both in the shipping and INFORMATION business </li></ul></ul><ul><ul><li>IS helps companies to understand & control their processes and thus their products </li></ul></ul><ul><ul><ul><li>Many factories have gone from a single large run to many smaller runs. </li></ul></ul></ul>
  27. 30. Informational Responses to the New Environment <ul><li>C. Renewal- RE-ENGINEERING </li></ul><ul><ul><li>Adaptability & flexibility </li></ul></ul><ul><ul><li>IS architecture must accommodate this responsiveness </li></ul></ul>
  28. 31. Informational Responses to the New Environment <ul><li>D. Acquiring and Distributing information </li></ul><ul><ul><li>Boundary spanning activities: Two models </li></ul></ul><ul><ul><li>Continuous and probing </li></ul></ul><ul><ul><li>Daft & Weick Model </li></ul></ul><ul><ul><ul><li>Intrusiveness: Active and Passive </li></ul></ul></ul><ul><ul><ul><li>Analyzability: </li></ul></ul></ul>
  29. 35. Informational Responses to the New Environment <ul><li>E. Protection from Overload </li></ul><ul><ul><li>Reduce cognitive overload </li></ul></ul><ul><ul><li>Magic number 7 + - 2 bits </li></ul></ul><ul><ul><li>Electronic filters to replace the Human filters </li></ul></ul><ul><ul><li>Expert systems </li></ul></ul><ul><ul><li>Systems designed for cognitive style </li></ul></ul>
  30. 36. Informational Responses to the New Environment <ul><li>E. Protection from Overload (con’t) </li></ul><ul><ul><li>Bembasat & Taylor Cognitive factors </li></ul></ul><ul><ul><ul><li>Processing large amounts of data or complex data or both Improve by </li></ul></ul></ul><ul><ul><ul><ul><li>deficiencies: corrected through training replace with another person </li></ul></ul></ul></ul><ul><ul><ul><ul><li>limitations: use decision aids- flowcharts, table, graphs, etc </li></ul></ul></ul></ul>
  31. 37. Informational Responses to the New Environment <ul><li>E. Protection from Overload (con’t) </li></ul><ul><ul><ul><li>probabilistic events: </li></ul></ul></ul><ul><ul><ul><li>provide a way for decision to judge the likelihood of the event better- examples of past decisions and results; what-if capabilities; Decompose the problem </li></ul></ul></ul><ul><ul><ul><li>environmental complexity: </li></ul></ul></ul><ul><ul><ul><li>decomposition </li></ul></ul></ul><ul><ul><ul><li>match the decision maker with the environment </li></ul></ul></ul><ul><ul><ul><li>aggregate information </li></ul></ul></ul><ul><ul><ul><li>provide flexibility </li></ul></ul></ul><ul><ul><ul><li>provide help (people, or other resources) </li></ul></ul></ul>
  32. 39. Informational Responses to the New Environment <ul><li>E. Protection from Overload (con’t) </li></ul><ul><ul><li>Cognitive style: The process by which individual process, organize and change information during decision making </li></ul></ul><ul><ul><li>input ---> Process ----> Output </li></ul></ul>
  33. 41. Informational Responses to the New Environment <ul><li>E. Protection from Overload (con’t) </li></ul><ul><ul><li>information gathering </li></ul></ul><ul><ul><li>information evaluation </li></ul></ul>
  34. 42. Informational Responses to the New Environment <ul><li>E. Protection from Overload (con’t) </li></ul><ul><ul><li>Information gathering: relates to perceptual processes by which the mind organizes verbal & visual stimuli </li></ul></ul><ul><ul><ul><li>perceptive- focus on relationships among data items and generalize about the environment </li></ul></ul></ul><ul><ul><ul><li>receptive- focus on detail & attempt to derive specific knowledge about the environment from available data </li></ul></ul></ul>
  35. 43. Informational Responses to the New Environment <ul><li>E. Protection from Overload (con’t) </li></ul><ul><ul><li>Information evaluation: the sequence by which the individual analyzes the data </li></ul></ul><ul><ul><ul><li>systematic (analytic)- structured deductive approach </li></ul></ul></ul><ul><ul><ul><li>intuitive (heuristic)- trial and error, use non-verbal cues- require a rich media </li></ul></ul></ul>
  36. 44. Capabilities of Information Systems <ul><li>1. Fast, accurate, with large storage capacity, rapid site communication </li></ul><ul><li>2. Instantaneous access of/to information </li></ul><ul><ul><li>Organizational memory </li></ul></ul><ul><ul><li>Transparent to the user </li></ul></ul><ul><li>3. Means of coordination </li></ul><ul><ul><li>internal: decision makers; project teams </li></ul></ul><ul><ul><li>external: buyers/ sellers; customers/suppliers </li></ul></ul>
  37. 45. Capabilities of Information Systems <ul><li>4. Boundary spanning: IOS, EDI </li></ul><ul><li>5. Decision Support: &quot;THE ANSWER&quot; </li></ul><ul><ul><li>structured decisions </li></ul></ul><ul><ul><li>Unstructured decisions </li></ul></ul><ul><li>6. Normalization of organizational practice </li></ul><ul><ul><li>standardization of procedures </li></ul></ul><ul><ul><li>connectivity </li></ul></ul><ul><li>7. Differentiation of Products or Services </li></ul>
  38. 46. Capabilities of Information Systems <ul><li>8. Modeling: Forecasting and Planning systems </li></ul><ul><li>9. Production Control </li></ul><ul><ul><li>CIM, CNC, MRP II, Etc. </li></ul></ul>
  39. 47. Development of Organizational Computing <ul><li>A. 1950's to 1970's </li></ul><ul><ul><li>Data processing </li></ul></ul><ul><ul><li>EFFICIENCY </li></ul></ul><ul><li>B. 1970's </li></ul><ul><ul><li>Time sharing </li></ul></ul><ul><ul><li>The birth of the &quot;USER&quot; </li></ul></ul><ul><ul><li>EFFICIENCY, EFFECTIVENESS </li></ul></ul>
  40. 48. Development of Organizational Computing <ul><li>C. Today </li></ul><ul><ul><li>Mainframe on the desk </li></ul></ul><ul><ul><li>LAN's </li></ul></ul><ul><ul><li>EFFICIENCY, EFFECTIVENESS, SATISFACTION, USABILITY </li></ul></ul><ul><li>Z Fig 3.5 to fig 3.8 </li></ul>
  41. 53. Development of Organizational Computing <ul><li>D. The Technology Environment </li></ul><ul><ul><li>1. Hardware: </li></ul></ul><ul><ul><ul><li>In the 1960's the main concerns were: machine efficiency and tracking new technology </li></ul></ul></ul><ul><ul><ul><li>Batch processing was dominate </li></ul></ul></ul><ul><ul><ul><li>1975's processing power began to move out of the central site. The rise of the interdepartmental mini computer </li></ul></ul></ul><ul><ul><ul><li>1980's the PC was born </li></ul></ul></ul><ul><ul><ul><li>THUS a major tend was born: the movement of hardware and processing power to the users. </li></ul></ul></ul>
  42. 54. Development of Organizational Computing <ul><li>D. The Technology Environment (con’t) </li></ul><ul><ul><li>2. Software: </li></ul></ul><ul><ul><ul><li>1960's emphasis on transaction processing (highly structured) </li></ul></ul></ul><ul><ul><ul><li>1970's life cycle development methods and software engineering. </li></ul></ul></ul><ul><ul><ul><li>1980's user involvement, prototyping </li></ul></ul></ul><ul><ul><ul><li>1975's the software industry started to mature, thus purchasing software of the self became an option </li></ul></ul></ul><ul><ul><ul><li>1970's the birth of Decision Support Systems (DSS) Semi-structured problem solving </li></ul></ul></ul>
  43. 55. Development of Organizational Computing <ul><li>D. The Technology Environment (con’t) </li></ul><ul><ul><li>3. Data: </li></ul></ul><ul><ul><ul><li>From file management to database management (1960's) </li></ul></ul></ul><ul><ul><ul><li>1970's the data dictionary </li></ul></ul></ul><ul><ul><ul><li>1980's distributed database management </li></ul></ul></ul><ul><ul><li>4. Communication: </li></ul></ul><ul><ul><ul><li>1960's on-line time sharing systems </li></ul></ul></ul><ul><ul><ul><li>1970's public and intra-company data networks </li></ul></ul></ul><ul><ul><ul><li>1980's the concept of information technology </li></ul></ul></ul>
  44. 56. The Mission of Information Systems <ul><li>Paradigm shifts: </li></ul><ul><li>Transaction Processing: in the early days the measure was: Paperwork factory such as </li></ul><ul><ul><li>payroll, accounts payable, product shipped </li></ul></ul><ul><ul><li>productivity- </li></ul></ul><ul><ul><li>percentages of up time, </li></ul></ul><ul><ul><li>throughput (transactions per day) </li></ul></ul><ul><ul><li>lines of code written per time period (day or week) </li></ul></ul>
  45. 57. The Mission of Information Systems <ul><li>MIS: Reports for management by exception, and summary </li></ul><ul><ul><li>&quot;the right information at the right time&quot; </li></ul></ul><ul><li>Today: To improve the performance of people in organization through the use of information technology </li></ul><ul><ul><li>Effectiveness: Information to the right person at the right time to make a (the) decision </li></ul></ul>
  46. 58. The Mission of Information Systems From Data Processing to MIS to Information Systems (IT) to ID
  47. 59. END
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