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Informational needs of organizations in an information society

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  • 1. Management Information Systems Informational Needs of Organizations in an Information Society: Competing with IS Jerry Fjermestad Copyright 1998-1999
  • 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. Informational Needs of Organizations
    • Capabilities of Information Systems
    • Development of Organizational Computing
    • The Mission of Information Systems
    • A Model of Organizational MIS
  • 4. Introduction
    • Information technology is becoming ubiquitous (omnipresent), everywhere at the same time, affecting:
      • the way companies do business
      • the way they grow
      • the way they compete
      • the way government agencies, etc provide services
      • the way the employees conduct their work
  • 5. The Information Society & Knowledge Work
    • Information Society:
      • an advanced form of the industrial society
      • a postindustrial society
      • where most of the people in the economy handle information
  • 6. The Information Society & Knowledge Work
    • A. History
      • Zwass, 1992 Figure 2.1
      • 1957- the beginning of the information era the number of info workers passed the number of industrial workers.
  • 7.  
  • 8. The Information Society & Knowledge Work
    • A. History
      • 1960's- only 9 of the 27 computer were earning their keep
      • 1964- first word processor
      • 1970- first fax
      • The information sector of the economy grew from 17% in 1950 to 58% in 1980
      • The industrial segment went from 65% to 27%
  • 9. The Information Society & Knowledge Work
    • B. The classic Infrastructure
      • Business computing (Data processing): reported to the organization controller: applications- accounting, payroll, and billing
      • Telecommunications: Mostly controlled by outside vendors low visibility of the technology, and low importance.
  • 10. The Information Society & Knowledge Work
    • B. The classic Infrastructure
      • Office support: Mailrooms, typing pools, reproduction centers, records management. Generally, these functions were out of sight of the mainstream organizational functionalities (finance, marketing, etc.)
      • General office ware: typewriters, answering machines, copiers were controlled by general budget.
  • 11. The Information Society & Knowledge Work
    • C. Pressure for Integration:
      • 1. spending had grown large that scattered management no longer satisfies basic corporate accountability principles
      • 2. Technological barriers between the various information tools were rapidly dissolving
      • 3. Many office technologies became computerized
        • Private branch exchanges (PBX's)
        • photo copiers
        • multiple tasking of office tools
  • 12. The Information Society & Knowledge Work
    • C. Pressure for Integration:
      • 4. Networking which is eliminating barriers around traditional domains (bailiwicks).
      • However, since the four main types of information services had a separate childhood it has been difficult to integrate
  • 13. The Information Society & Knowledge Work
    • D. What is Knowledge Work?
      • Knowledge workers deal with information (abstractions) rather than concrete objects
      • Knowledge workers DO NOT produce anything
      • Knowledge workers DO NOT exert "physical" effort
      • Are today's machine operators knowledge workers?
      • Are MIS professional knowledge workers?
  • 14. Demands on Organizations in an Informational Society
    • A. Demands of Continuing Innovation
      • Global economies
      • Operational environment is turbulent & complex
      • A highly dynamic information society requires constant innovation- products and services
      • Organizations change to adapt to these demands
      • MIS must FACILITATE change not stop it
  • 15. Demands on Organizations in an Informational Society
    • B. Changes in the environment- Information role
      • Changes in the economic environment causes business to reexamine their strategy: they must compete in order to be successful or survive.
        • The changing Market place
        • The economic turbulence has altered the structures of many organizations. IT contributes to this:
          • information moves faster
        • Quality: As defined by the customer
  • 16. Demands on Organizations in an Informational Society
        • Environment:
          • Consumer computing:
          • Deregulation: Airlines, banking, telecommunications
          • Crossing industry boundaries: Sears- retail, brokerage, mortgage, information (prodigy)
          • Traditional customers switching: Big bank customer find other means for financing (Sears, the brokerage houses)
          • Organizations by passing the local phone companies and going directly to long distance networks.
  • 17. Demands on Organizations in an Informational Society
        • From Huber 1984:
        • Multi-Nationals:
          • Foreign Competition:
          • Global Production:
        • New Product and service cycles are shorting:
        • Increase in available knowledge
          • journals, corporate communications
  • 18. Demands on Organizations in an Informational Society
        • Growth of complexity: numerosity, diversity and interdependence
          • Numerosity: growing world population and industrial revolution (an interaction)
          • Diversity is caused by specialization (people & organizations wanting to succeed)
  • 19. Demands on Organizations in an Informational Society
          • Interdependence:
            • The revolution in the infrastructure-
            • Transportation
            • Communication
            • An organizations FOCUSED specialization
          • Increase Turbulence: caused by telecommunication speeds
          • Z Figure 2.2
        • 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
  • 20.  
  • 21. Informational Responses to the New Environment
    • Organizational design be based on the decision making paradigm: decision making is central to the organization
      • Organizational design for knowledge work in general and decision making in particular
      • Continuous product and process innovations through information & information systems
      • Constant internal company renewal supported by information systems
  • 22. Informational Responses to the New Environment
      • Explicit mechanisms for acquisition and targeted distribution of external information
      • Protection form information overload
  • 23. Informational Responses to the New Environment
    • A. Organizational design for knowledge work
      • Systems to support individuals and GROUPS
      • Specialists and distributed work/workers
      • consultants (internal & external) headquarters and field offices, etc.
  • 24.  
  • 25. Informational Responses to the New Environment
      • The Changing Work Environment
        • Business Teams:
        • Anytime Anyplace information:
        • Outsourcing:
        • The Demise of the hierarchy: a vertical chain of command
  • 26. Informational Responses to the New Environment
      • Attributes of a hierarchy
        • employees at the bottom, with only enough training and feedback to perform one type of job
        • supervisors allocate the work among these subordinates
        • supervisors perform training, do discipline, provide rewards
        • Professionals and staff are supervised but have more responsibility and autonomy
        • Managers and executives coordinate
  • 27. Informational Responses to the New Environment
      • Problems with a hierarchy
        • Cannot respond quickly to change
        • A growing concern for human "capital:" Human resources are the true competitive edge, companies must learn how to treat their employees
        • Less Middle Management (The on going effort of the recession); the key is to install IT to fill the gap
        • IT
        • New self managed groups
  • 28. Informational Responses to the New Environment
      • Problems with a hierarchy (con’t)
        • The baby boom generation is now the out-placed generation
        • A coming labor shortage
        • fewer young are entering the job market
        • less talent to choose from
        • benefits: less discrimination based on sex, age, race poor and disadvantaged will be given training
  • 29. Informational Responses to the New Environment
    • B. Product & Process Innovations
      • Federal Express & UPS are both in the shipping and INFORMATION business
      • IS helps companies to understand & control their processes and thus their products
        • Many factories have gone from a single large run to many smaller runs.
  • 30. Informational Responses to the New Environment
    • C. Renewal- RE-ENGINEERING
      • Adaptability & flexibility
      • IS architecture must accommodate this responsiveness
  • 31. Informational Responses to the New Environment
    • D. Acquiring and Distributing information
      • Boundary spanning activities: Two models
      • Continuous and probing
      • Daft & Weick Model
        • Intrusiveness: Active and Passive
        • Analyzability:
  • 32.  
  • 33.  
  • 34.  
  • 35. Informational Responses to the New Environment
    • E. Protection from Overload
      • Reduce cognitive overload
      • Magic number 7 + - 2 bits
      • Electronic filters to replace the Human filters
      • Expert systems
      • Systems designed for cognitive style
  • 36. Informational Responses to the New Environment
    • E. Protection from Overload (con’t)
      • Bembasat & Taylor Cognitive factors
        • Processing large amounts of data or complex data or both Improve by
          • deficiencies: corrected through training replace with another person
          • limitations: use decision aids- flowcharts, table, graphs, etc
  • 37. Informational Responses to the New Environment
    • E. Protection from Overload (con’t)
        • probabilistic events:
        • 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
        • environmental complexity:
        • decomposition
        • match the decision maker with the environment
        • aggregate information
        • provide flexibility
        • provide help (people, or other resources)
  • 38.  
  • 39. Informational Responses to the New Environment
    • E. Protection from Overload (con’t)
      • Cognitive style: The process by which individual process, organize and change information during decision making
      • input ---> Process ----> Output
  • 40.  
  • 41. Informational Responses to the New Environment
    • E. Protection from Overload (con’t)
      • information gathering
      • information evaluation
  • 42. Informational Responses to the New Environment
    • E. Protection from Overload (con’t)
      • Information gathering: relates to perceptual processes by which the mind organizes verbal & visual stimuli
        • perceptive- focus on relationships among data items and generalize about the environment
        • receptive- focus on detail & attempt to derive specific knowledge about the environment from available data
  • 43. Informational Responses to the New Environment
    • E. Protection from Overload (con’t)
      • Information evaluation: the sequence by which the individual analyzes the data
        • systematic (analytic)- structured deductive approach
        • intuitive (heuristic)- trial and error, use non-verbal cues- require a rich media
  • 44. Capabilities of Information Systems
    • 1. Fast, accurate, with large storage capacity, rapid site communication
    • 2. Instantaneous access of/to information
      • Organizational memory
      • Transparent to the user
    • 3. Means of coordination
      • internal: decision makers; project teams
      • external: buyers/ sellers; customers/suppliers
  • 45. Capabilities of Information Systems
    • 4. Boundary spanning: IOS, EDI
    • 5. Decision Support: "THE ANSWER"
      • structured decisions
      • Unstructured decisions
    • 6. Normalization of organizational practice
      • standardization of procedures
      • connectivity
    • 7. Differentiation of Products or Services
  • 46. Capabilities of Information Systems
    • 8. Modeling: Forecasting and Planning systems
    • 9. Production Control
      • CIM, CNC, MRP II, Etc.
  • 47. Development of Organizational Computing
    • A. 1950's to 1970's
      • Data processing
      • EFFICIENCY
    • B. 1970's
      • Time sharing
      • The birth of the "USER"
      • EFFICIENCY, EFFECTIVENESS
  • 48. Development of Organizational Computing
    • C. Today
      • Mainframe on the desk
      • LAN's
      • EFFICIENCY, EFFECTIVENESS, SATISFACTION, USABILITY
    • Z Fig 3.5 to fig 3.8
  • 49.  
  • 50.  
  • 51.  
  • 52.  
  • 53. Development of Organizational Computing
    • D. The Technology Environment
      • 1. Hardware:
        • In the 1960's the main concerns were: machine efficiency and tracking new technology
        • Batch processing was dominate
        • 1975's processing power began to move out of the central site. The rise of the interdepartmental mini computer
        • 1980's the PC was born
        • THUS a major tend was born: the movement of hardware and processing power to the users.
  • 54. Development of Organizational Computing
    • D. The Technology Environment (con’t)
      • 2. Software:
        • 1960's emphasis on transaction processing (highly structured)
        • 1970's life cycle development methods and software engineering.
        • 1980's user involvement, prototyping
        • 1975's the software industry started to mature, thus purchasing software of the self became an option
        • 1970's the birth of Decision Support Systems (DSS) Semi-structured problem solving
  • 55. Development of Organizational Computing
    • D. The Technology Environment (con’t)
      • 3. Data:
        • From file management to database management (1960's)
        • 1970's the data dictionary
        • 1980's distributed database management
      • 4. Communication:
        • 1960's on-line time sharing systems
        • 1970's public and intra-company data networks
        • 1980's the concept of information technology
  • 56. The Mission of Information Systems
    • Paradigm shifts:
    • Transaction Processing: in the early days the measure was: Paperwork factory such as
      • payroll, accounts payable, product shipped
      • productivity-
      • percentages of up time,
      • throughput (transactions per day)
      • lines of code written per time period (day or week)
  • 57. The Mission of Information Systems
    • MIS: Reports for management by exception, and summary
      • "the right information at the right time"
    • Today: To improve the performance of people in organization through the use of information technology
      • Effectiveness: Information to the right person at the right time to make a (the) decision
  • 58. The Mission of Information Systems From Data Processing to MIS to Information Systems (IT) to ID
  • 59. END