- Group work may be assigned weekly and due dates will be provided. Groups will consist of 10 people from different class sections to encourage mixing. - Late or cheating work will receive a grade of 0, and medical or other approved absences require documentation. - The announcement provides an overview of enterprise types, organizational structures, information flow within organizations, and how information systems are used to support operations and strategy.

1. Organization, Technology and Information
Aj.Patcharaporn Panwong
E-mail: patcharaporn.panwong@gmail.com
School of IT
7/11/2011

2. Announcement

3. Group Work: Announcement
• Group Work might be assigned weekly (flexible)
• Due to many questions & requests, change number of group
member
– 10 people : 1 company
– Form group member from different sections (Mixing)
• Deadline for submitting group works
Name Deadline
1 Group Work 1 (Week 1) 20 November 2011, before midnight (e-learning)
2 Final Group Work Report 6 February 2012 in lecture class
(Mix group works from Week 2 - 14)

4. Rule
• Not accept late work = 0 mark, due to many students
• Cheating = 0 mark
• Absence: Will check class attendance for you, IF
– Sick: Send “doctor certificate” plus “sick leave letter”
– Other important cases e.g. visa extension: 1) Inform in advance by
mail / in person + 2) Send letter later

5. For your information,
1. Lecture = for all students who study OAM
2. Lab = 2 sections. Important, you need to remember your lab
section for submitting individual work + attending lab hour/lab
test + writing down in your exam paper.

6. Getting started with Chapter 2

7. Agenda
• Type of Enterprises / Firms
• Organizational Structures
• Information Characteristics in Organization
• The Flow of Information within an Organization
• Information Systems Using in the Organization
• Leverage IT as a competitive strategy

8. Type of Enterprises / Firm
1. Retail Enterprises own a large number of stores in a wide
geographical area and use their size to obtain discount on
the goods purchase; then seek to sell the goods at the lower
price than smaller retailers
Example: 7eleven, Tesco Lotus Express
7eleven
 Book Smile (book and web)
 Shopping Online (http://www.shopat7.com)
 7catalog (book and web)
 Counter Services

9. Type of Enterprises (cont)
2. Manufacturing Enterprises create goods on a large scale
and then distribute & sell the goods to customers or other
organizations.
Example:
- Digital camera: Fujifilm ( Japan) using ERP system
- Car: Toyota

10. Type of Enterprises (cont)
3. Service Enterprises typical create or sell goods, but provide
service for customers or other organizations.
Example:
- Insurance: Worldcare Travel Insurance, AIA and etc.
- Banking & Financial industries: Citibank, SCB and etc.
- Restaurant: MK

11. Type of Enterprises (cont)
4. Wholesale Enterprises seek to purchase and sale in large
quantities of goods to other organizations, usually at a lower cost
than retail.
5. Government Enterprises include large city governments, state
governments, and the departments & agencies of the federal
department

12. Type of Enterprises (cont)
6. Education Enterprises include large universities or school
systems which consist of executives, instructors, and other service
personnel and whose reach extends throughout a country, a
state, or the entire country.
Example: MFU, e-learning web-based system

13. Organizational Structures
“Organizational subunits and the way they relate to the
overall organization.” (Ralph Stair and George Reynolds
2010)
• Directly impact to organization’s information system
• There are four main structures as follows:
1. Traditional Organizational Structure
2. Project Organizational Structures
3. Team Organizational Structures
4. Virtual Organizational Structure and Collaborative Work

14. Traditional Organizational Structure
• Called a “hierarchical structure”
• As managerial pyramid which decision making and authority
flows from top-level managers to non-management
employees
Decision + authority
Strategic
level
Tactical level
Operational level
Clerical level

15. Traditional Organizational Structure (Cont)
• Trend: “Flat organizational structure”
• To reduce number of management levels / layers in the
traditional organizational structure
• Empowerment of employees & their managers
– By giving more responsibility & authority to make decisions and solve
problems without permission from midlevel managers.
• IS  a key which provides required information to make
decision for employee

16. Project Organizational Structures
“A structure centered on major products and services”
(Ralph Stair and George Reynolds 2010)
• Traditional functions are positioned within each project.
• Many project teams are temporary – finish then members
move to new team formed for another project
President
Senior VP, Senior VP,
A Project B Project
Finance Marketing Production Sales Finance Marketing Production Sales

17. Team Organizational Structures
“ A structure centered on work teams or groups” (Ralph
Stair and George Reynolds 2010)
• Team can be
– small / large
– temporary / permanent.
• Each team has a leader who reports to an upper-level
manager

18. Virtual Organizational Structure and
Collaborative Work
“A structure that employs individuals, groups, or complete
business units in geographically dispersed areas that can
last for a few weeks or years, often requiring
telecommunications or the Internet” (Ralph Stair and
George Reynolds 2010)
• Work can be done anywhere, anytime
• Allow collaborative work
• Use IT to communicate and coordinate work

19. Virtual Organizational Structure and
Collaborative Work
• Successful one: one strategy is to have in-house employees
concentrate on the firm’s core business and use virtual
employees to do everything else.
USA
Collaborative
work
Thailand
India

20. Information characteristics in organization
• People in the organization need different information, due to
different responsibilities.
• Data have its own flow  called as “Data flow”

21. Differing information Needs
• People must receive only needed
information to accomplish their job
(no more or less).
• Well designed information system  filter information such
the right information reaches the right decision maker at the
right time in the right form.

22. Differing information Needs (cont)
There are 4 basic levels of knowledge workers in every company as
follows:
1. Clerical level
2. Operational level
3. Tactical Level
4. Strategic Level

23. Differing information Needs (cont)
1. Clerical level: personnel, those involved in repetitive
tasks, are concerned primarily with transaction handling.
Example: a sale clerk might key in customer orders on his/her terminal
and an airline ticket agent might confirm a flight.
Strategic
level
Tactical level
Operational level
Clerical level
Sale clerk

24. Differing information Needs (cont)
2. Operational level:
• Personnel at the operational level have well-defined short-term
tasks.
• Their information requirements often consist of operational
feedback.
Strategic
level
Tactical level
Sale Manager Operational level
Clerical level

25. Differing information Needs (cont)
3. Tactical Level: Manager and knowledge workers
concentrate on achieving a series of goals required to meet
the objective set at the strategic level.
• The information requirements are usually periodic.
• Tactical level personnel are concerned primary with operation
and budgets from year to year.
Example: In the sale of information system, the national sales director,
who is at the tactical level, might want the cooperate sale report.

26. Differing information Needs (cont)
4. Strategic Level: Provide overall direction and guidance of
the organization (objective-oriented)
• Their information requirements are often one time reports, what
– if reports and trend analyses.
Example: the president of the company might ask for the report that
shows the four-year sales trend for each product.

27. What Information describes
Description
Internal Information Describe special operational aspects of an
organization
External Information Describe the environment surrounding the
organizations
Objective Information Quantifiably describe something that is known
Subjective Information Attempt to describe something that is currently
unknown

28. The flow of information within an
Organization
1. The Vertical flow
1.1. The upward flow
- Based on daily transactions (such as sales)
- People in the lower level: capture the information and store it
in the central database
- People in the upper levels: access and use that information

29. The flow of information within an
Organization (cont)
1. The Vertical flow (cont)
1.2. The downward flow
- Consists of the strategies, goals, and directive that originate
at one level and are passed to lower levels
Example: An overall sales goal might originate at the strategic
management level., which would develop more specific sales
goals pass them to the operational management level.

30. The flow of information within an
Organization (cont)
2. The horizontal flow
- Information that passes among various departments
3. The Decentralized Organization (New information flow):
- Computer network era to a decentralized form
- Flat Organization
- Cooperative work by a group of people
- Share use of databases

31. Information systems in the Enterprise
• Accounting and Finance
• Human Resources (HR)
• Manufacturing
• Quality Control
• Marketing
• Sales
• Distribution
• Customer Services

32. Information systems in the Enterprise (cont)
1. Accounting and Finance
- Accounting software manages everyday transactions, such as
sales and payments to suppliers.
- Financial software helps to manage a budget, forecast, and
analyze.

33. Information systems in the Enterprise (cont)
2. Human Resources (HR)
- Human Resources Information System (HRIS) manages one or
more human resources functions.
Example: Wal-Mart maintains records on its more than 1.8 million
employees.
- Employee Relationship Management (ERM) system automates
and manages much of the communication between employees
and business such as
- Preparing an overall training plan of company
- Preparing a statement of payments and mailing of salary bulletins

34. Information systems in the Enterprise (cont)
3. Manufacturing
- Assist on the actual assembly process such as scheduling and
managing the product inventory.
- Example: Material Requirement Planning (MRP) focuses on
issue related to inventory of parts and forecasting future
demand. So those materials are always available when needed.

35. Information systems in the Enterprise (cont)
4. Quality control
- Quality control systems help the company to maintain or improve
the quality of products and services.
- Quality control software needs the data that gathers from the on
going process.
- Combining with static analysis software can define or predict the
product defects and problems with the company process.

36. Information systems in the Enterprise (cont)
5. Marketing
- A marketing information system serves as central repository for
the tasks of the marketing functional units.
- Example: A market research system stores and analyzes data
gathered from demographics and surveys; targeting market by
querying database with criteria e.g. income, gender, previous
purchase, and favorite recreational activities.

37. Information systems in the Enterprise (cont)
6. Sales
- Help sales people manage customer contacts, scheduling
customer meeting, manage product information, and take orders
from customers.
- Example: Sales Force Automation (SFA) system records all the
stages in a sales process. (Wikipedia)

38. Information systems in the Enterprise (cont)
7. Distribution
- Distribution systems provide forecasting for inventory control,
manage & track product shipping, and provide information to
analysis on inventory in warehouse.
- Some distribution systems need GPS and other navigation
technologies to track real-time shipping.

39. Information systems in the Enterprise (cont)
8. Customer Services
- Customer Interaction Management (CIM) software handles the
day to day interactions with customers across different channels
e.g. telephone, e-mail, instant message and etc.
- CIM routes customer’s telephone call to the right person
depending on the identity or response that customer giving to the
prompts.

40. IT department as a key resource
• Make technology decisions for the enterprise e.g. decision
whether to build or buy new customer interaction
management information systems.
• Many companies elevate the importance of IT by including a
CIO executive position that reports to CEO.

41. Competitive strategies
“the strategic advantage one business entity has over its rival
entities within its competitive industry” (Wikipedia)
• All information systems in organization must facilitate
organization’s competitive strategies.
• Porter’s Generic Competitive Strategies:
Cost Differentiation
• Cost
• Differentiation Better
Broad Lowest cost
product/service
• Focus target across industry
across industry
Better
Narrow Lowest cost within
product/service
target an industry
within an industry
segment
segment

42. Leverage IT as a competitive strategy
• Increasing Sales
• Increasing productivity and reduce cost
• Improving Customer Service

43. Leverage IT as a competitive strategy (cont)
“If information technology is so clearly the solution for
establishing the competitive advantage, why isn’t everybody
doing it?”
– IT solutions often are expensive and time consuming
– Risk failure
– Resist change

44. The Impact of IT on organizations
• Business strategy: service can be delivered over network
channels.
• Organization culture: change in the way of information flow
(communication)
• Organization structure: enable more flexible structure
• Management process: reduce unnecessary process and provide
more ways of accessing information
• Work: change nature of professional work by using IT
• The Workplace: work anywhere + anytime.

45. Assignment

46. Individual Assignment
• Will be announced in your lab hour
• Section 01: Tuesday 8.00-10.00 S3 101
• Section 02: Thursday 8.00-10.00 S3 101

47. Group Work2 (Briefly)
• Remark: Be part of final group work report, submit on 6
February 2012 in lecture class
• As launching a new company from your group work1,
– What is a type of your organizational structure?
– Draw your organizational structure using MS word 2011
– Define job position of each member in your group
• Download “group work assignment & template2” from e-learning
– From workbin: “1301341: Office Automation Management (2/2011)”
– Under folder: “Group work Assignment”

48. Reference
• Ralph M. Stair and George W. Reynolds. (2010). Information Systems. 9th Edition. Canada :
International ISE Edition.
• Stephen Haag. … [et al.]. (2007). Management Information Systems for the Information Age.
6th Edition. Singapore : McGraw-Hill/Irwin, The McGraw-Hill Companies, Inc.
• Vijayagopal. (2011). Communication Flow in the Organization.
http://vijagopalk.tripod.com/trainervijayagopal/id19.html
• Wikipedia. (2011). http://en.wikipedia.org/wiki/Main_Page
• Kioskea. (2011). Employee Relationship Management (ERM).
http://en.kioskea.net/contents/entreprise/erm.php3
• QuickMBA. (2011). Competitive Advantage. http://www.quickmba.com/strategy/competitive-
advantage/
• What is the difference between upward and downward flow of information?.
http://www.kaschassociates.com/101web/ex1%20oc%20upward%20downward.htm
• David Skyrme. (2011). The Impact of IT on Organizations.
http://www.skyrme.com/insights/5itorg.htm

49. Questions?