Ism

1. Session 05: Information System Organizations
& Strategy
Management Information System
(MIS)
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Academic Session: 2023/2024
Faculty Information Technology

2. Learning Objectives
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 Identify and describe important
features of organizations that
managers need to know about in order
to build and use information systems
successfully.
 Assess the challenges posed by
strategic information systems and
management solutions.

3. Organizations and Information Systems
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 Information technology and organizations influence one
another
Complex relationship influenced by organizations
1: Structure ( implementation of simulation= OS, Antivirus,
Ms Office & all database management )
2: Business processes ( Financial Software's, eg, SAP,
Tally, DacEasy)
3: Politics ( automatic vote counter machines)
4: Culture ( outsourcing)
5: Environment ( ticket reservation, metro)
6: Management decisions

4. 4
TWO-WAY RELATIONSHIP BETWEEN
ORGANIZATIONS AND INFORMATION
TECHNOLOGY

5. Organization
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 What is an organization?
 Is a group of people who work
together in an organized way for a
shared purpose

6. THE BEHAVIORAL VIEW OF
ORGANIZATIONS
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7. Features of organizations
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Use of hierarchical structure
Accountability, authority in
system of impartial decision
making
Routines and business
processes
Organizational politics, culture,
environments and structures

8. Organizational culture
 Is the behaviour of humans within an
organization and the meaning that
people attach to those behaviours……
 What products the organization should produce
 How and where it should be produced
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9. Organizational Structure:
 It's the operating manual that tells members
how the organization is put together and
how it works. More specifically
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10. How Information Systems Impact
Organizations and Business Firms
1: Economic Impacts
 Information systems technology is a
factor of production.
 IT affects the cost and quality of
information and changes economics of
information.
 Information technology helps firms
contract in size because it can reduce
transaction costs.
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11. Cont…
2: Flattening Organizations
 Information systems can reduce the
number of levels in an organization by
providing managers with information
to supervise larger numbers of
workers and by giving lower-level
employees more decision-making
authority.
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12. The Internet and Organizations
 The Internet increases the
accessibility, storage, and distribution
of information and knowledge for
organizations
Example: Large firm delivers internal
manuals to employees via a corporate
Web site
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13. Using Information Systems to achieve
Competitive Advantage
 What is Competitive Forces?
 Factors that influence the competitive
position of a company in
an industry, market or Factors that
change competition on the market
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14. Five Competitive Forces Shape Fate
of Firm
1. Traditional Competitors
All firms share market space with competitors who are
continuously devising new products, services, efficiencies,
switching costs
2. New market entrants
Some industries have high barriers to entry, e.g. computer chip
business. New companies have new equipment, younger
workers, but little brand recognition.
3. Substitute products and services
Substitutes customers might use if your prices become too
high, e.g. iTunes substitutes for CDs
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15. 4. Customers
 Can customers easily switch to competitor’s
products? Can they force businesses to
compete on price alone in transparent
marketplace?
5. Suppliers
 Market power of suppliers when firm cannot
raise prices as fast as suppliers
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16. END
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