Information Systems, organizations & Strategy Created by: Rabeya Rahaman

1. Chapter: 03Information Systems, organizations & Strategy Created by: Rabeya Rahaman

2. Organization & IS The interaction between IS & organization is complex and influenced by many mediator factors The Two-Way Relationship Between Organizations and Information Technology

4. Stable, formal social structure that takes resources from environment and processes them to produce outputs

7. Goals

8. Constituencies

9. Leadership styles

10. Tasks

12. Routines (standard operating procedures)

13. Precise rules, procedures, and practices developed to cope with virtually all expected situations

14. Business processes: Collections of routines

16. Divergent viewpoints lead to political struggle, competition, and conflict

18. Encompasses set of assumptions that define goal and product

19. What products the organization should produce

20. How and where it should be produced

21. For whom the products should be produced

23. Organizations and environments have a reciprocal relationship

24. Organizations are open to, and dependent on, the social and physical environment

25. Organizations can influence their environments

26. Environments generally change faster than organizations

29. Five basic kinds of structure

30. Entrepreneurial: Small start-up business

31. Machine bureaucracy: Midsize manufacturing firm

32. Divisionalized bureaucracy: Fortune 500 firms

33. Professional bureaucracy: Law firms, school systems, hospitals

35. Examples: personal computers, word processing software, the Internet, the PageRank algorithm

36. First movers and fast followers

37. First movers – inventors of disruptive technologies

39. IT changes relative costs of capital and the costs of information

40. Information systems technology is a factor of production, like capital and labor

41. IT affects the cost and quality of information and changes economics of information

42. Information technology helps firms contract in size because it can reduce transaction costs (the cost of participating in markets)

44. Firms seek to economize on cost of participating in market (transaction costs)

47. Firm is nexus of contracts among self-interested parties requiring supervision

48. Firms experience agency costs (the cost of managing and supervising) which rise as firm grows

51. IT flattens organizations

52. Decision making pushed to lower levels

53. Fewer managers needed (IT enables faster decision making and increases span of control)

54. Postindustrial organizations

57. Information systems become bound up in organizational politics because they influence access to a key resource – information

58. Information systems potentially change an organization’s structure, culture, politics, and work

61. The Internet can greatly lower transaction and agency costs

63. Structure

64. Hierarchy, specialization, routines, business processes

65. Culture and politics

66. Type of organization and style of leadership

67. Main interest groups affected by system; attitudes of end users

68. Tasks, decisions, and business processes the system will assist