information technology and control ba 152. evolution of organizational applications of information...
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Information Technologyand Control
BA 152
Evolution of Organizational Applications of Information Technology
1. Operations• Transaction processing systems• Data warehousing
LOW SYSTEM COMPLEXITY HIGH
Direction of InformationSystemEvolution
MANAGEMENTLEVEL
TOP(strategy, plans,
non-programmed)
LOWER LEVEL
2. Business Resource• Management Information systems• Decision Support Systems• Executive information systems• Management control systems• Balanced Scorecard
3. Strategic Weapon
• Intranets• ERP• Knowledge Management
INTERNAL• Extranets, EDI• IntegratedEnterprise•E-Business
EXTERNAL
Data, Information, & Control Data - Input from any communication
channel Information - Data that alters or reinforces
understanding Control - Evaluation of information that
provides the basis for future actions
Information and DataIn
form
atio
n
DataLow
High
High
Information and Control
Information
Co
ntr
ol
High
Low High
Control Systems:The Key Pieces
PerformanceStandards
PerformanceMeasures
Actions (if necessary)
Major Control Approaches Market Control –
Bureaucratic Control –
Clan Control -
Control Systems:What gets controlled and how?
Output
Process
Input
ClanBureaucracyMarketHow
What
Supervisory Control Strategies
Input Control –
Behavior Control –
Output Control –
Supervisory Control Strategies What works best when?
Are Tasks Structured?YES NO
YES
Are OutcomesMeasurable?
NO
Developing Effective Control Systems
1. Involve employees in the process, as appropriate
2.
3. Keep the system as simple as possible
4.
Developing Effective Control Systems
5. Make sure the system fits with the firm’s culture, strategy, and structure
6.
Effective Control Systems:Keep the following in mind
1. What gets measured is what will get done!
2. System costs must be considered.
3. Too much information can be as bad as too little.
4. You can’t make just one decision.
Control Systems
The Balancing Act
ControlControl AutonomyAutonomy
Knowledge Management
Consider two different types of knowledge important to organizations.– –
Types of Knowledge
Explicit Knowledge– Knowledge that is formal and systematic–
– Knowledge that can be communicated and shared.
– Examples?
Types of Knowledge
Tacit (implicit) Knowledge– Knowledge that is highly personal.–
– – Knowledge that is difficult to
communicate, because “We often know more than we can tell.”
– Examples?
Types of Knowledge
Sharing Different KindsOf Knowledge
Explicit to Tacit and vice-versa
Sharing Knowledge:The knowledge spiral
FROM
Tacit
Explicit
TO ExplicitTacit
Two Approaches to Knowledge Management
For Explicit KnowledgeProvide high-quality, reliable, and fast
information systems for access of codified, reusable knowledge
Two Approaches to Knowledge Management
Mechanisms
Technology
KnowledgeManagement
Strategy
People-to-documentsDevelop an electronic document system that codifies, stores, disseminates, and allows reuse of knowledge.
Invest heavily in information technology, with a goal of connecting people with reusable codified knowledge.
For Tacit KnowledgeChannel individual expertise to provide creative advice
on strategic problems
Two Approaches to Knowledge Management
Two Approaches to Knowledge Management
Person-to-person
Develop networks for linking people so that tacit knowledge can be shared
Invest moderately in information technology, with a goal of facilitating conversations and the exchange of tacit knowledge
Mechanisms
Technology
KnowledgeManagement
Strategy
Communities of Practice
Collections of individuals– Bound together by informal relationships– – Sharing common work context–
Communities of Practice
“Practice” suggests how individuals actually do their jobs as opposed to their formal job descriptions from their firm.
Collective Comparisons
As long as people need to
connectMutual needs
Friends & business contacts
To collect & pass on
information
Informal network
Until project is completed
Milestones and project
goals
Assigned by senior manager
To complete a specific
task
Project team
Until the next reorganization
Job demands and common
goals
Those reporting to
manager
To deliver a product or
service
Formal work group
Community
of practice
How long does it last?
What holds it together?
Who belongs?Purpose?
Why should we allow/encourage, but not attempt to formally manage, COPs?
1. They can help drive strategy.
2.
3. They can solve problems quickly.
4.
5. They develop professional skills.
6.
Communities of Practice
Next Time
Organizational Size, Life Cycles, and Decline