information systems in organizations
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Information Systems in Organizations. Information Systems and Management. Introduction. Businesses need to ensure that systems: Lower Costs Increase Profits Improve Service Achieve a competitive advantage. IS personnel are the key to unlocking the potential of any new or modified system - PowerPoint PPT PresentationTRANSCRIPT
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Information Systems in Organizations
Information Systems and Management
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Introduction
Businesses need to ensure that systems:
Lower Costs Increase Profits Improve ServiceAchieve a competitive
advantage
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IS personnel are the key to unlocking the potential of any new or modified system
(HBO)
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• In your career you will work with information systems to help your company become more efficent, effective, productive, and competitive within its industry.
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Organization
An organization is a formal collection of people and other resources established to accomplish a set of goals.
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Value Chain
The Value Chain is a series of activities that includes:– Inbound logistics– Warehouse & Storage– Production– Finished product storage– Outbound logistics– Marketing & Sales– Customer Service
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Organizational Structure
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Organizational Structure
Organizational subunits and the way they relate to the overall organization.
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Types of Organizational Structures
•Traditional
•Flat
•Project
•Team
•Multi-Dimensional
•Virtual
http://www.evektor.cz/evektor/images/organisation_chart_EN.gif
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Empowerment
Giving employees and their managers more responsibility and authority to make decisions, take certain actions, and have more control over their jobs.
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3 3 3 1 3
2
3
Organization Structure and IS
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IS Department Functions
Technical• Operating Systems• Telecommunications• DBA
Systems & Programming
Training•Internal•External
Audit
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Business Process Reengineering (BPR)
BPR
The radical redesign of business processes
• Technology
• TQM
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Technology
• Diffusion: Measure of how widely technology is spread throughout the organization
• Infusion: Extent to which technology is deeply integrated into a business area
• Technology Acceptance Model (TAM): a model that describes the factors that lead to higher levels of acceptance and usage of technology.– Factors include ease of use and quality of
information
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Total Quality Management (TQM)
• Quality: the ability of a product or service to meet or exceed customer expectations
• TQM: approaches that foster a commitment to quality– Awareness of customer needs– Empowering and rewarding employees
for quality
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Information System Success
Efficiency
- Output / Input
- Do things right
Effectiveness
- Output / Objectives
- Do the right things
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More BPR
• The fundamental re-thinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed.
• Automate: IT substitutes for human effort– Payroll (same but faster)
• Informate: IT augments human effort– Spreadsheets (new activities)
• Transformate: IT restructures processes– Paperless Accounts Payable
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BPR – Revolutionary
TQM - Evolutionary
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“Don’t pave the cow paths”
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Strategies to Contain Costs
• Outsourcing: contracting with outside professional services to meet specific business needs
• On-Demand Computing (Utility Computing):
contracting for computer resources to rapidly respond to an organizations
varying workflow (Cloud)
• Downsizing (Rightsizing):
reducing the number of employees to cut costs
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Porter’s Five Forces Model
Factors that lead to attainment of competitive advantage
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Porter’s Five Forces Model
&Information Technology
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1. Buyer Power Decrease buyer power Make it more attractive for
customers to buy from us IT
Loyalty Program Safeway VS. Save-On-Foods Aeroplan
From a Company Perspective
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2. Supplier Power Decrease supplier power Have many alternate supply
sources IT
B2B Marketplace Internet-based services
which brings together many buyers and sellers
Private Exchange
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3. Threat of Substitute Product or Services Decrease the threat Have fewer alternatives in the
market IT
Create switching costs
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4. Threat of New Entrants Decrease the threat Create an entry barrier IT
5. Rivalry among Existing Competitors Trend is toward increased competition IT
Gain a competitive advantage (fleeting) Compete on price Track Purchasing sequences
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Strategic Planning for Competitive Advantage
Strategic Alliance:
Agreement between two or more companies that involves the joint production and distribution of goods and services.
• Creating new products and services• Improving existing products and
services• Using IS for strategic purposes
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Planning
ISOrganizing
Controlling Staffing
Directing
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Chief Information Officer (CIO)
• Oversees all uses of IT
• Ensures strategic alignment of IT with business goals and objectives
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Discussion Question
Business Personnel and IT Personnel
There is a GAP• What is this gap?
• Why does it exist?
• How may it be resolved?
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Information Systems in Organizations
Information Systems and Management