Principles of Information Systems, Sixth Edition

Information Systems in Organizations

Chapter 2

Organizations & Information Systems

Value Chain

Traditional Organizational Structure

Traditional Organizational Structure

Project Organizational Structure

Multidimensional Organizational Structure

Multidimensional Organizational Structure

May incorporate several structures at the same time

Advantage:– ability to simultaneously stress both

traditional corporate areas and important product lines

Disadvantage:– multiple lines of authority

Organizational Change

Reengineering

Reengineering

Continuous Improvement

Constantly seeking ways to improve business processes

Benefits:– Increased customer loyalty– Reduction in customer dissatisfaction– Reduced opportunity for competitive

inroads

Continuous Improvement vs. Reengineering

Technology Diffusion, Infusion, and Acceptance

Technology diffusion - measure of widespread use of technology

Technology infusion - extent to which technology permeates a department

Technology Acceptance Model (TAM) - specifies factors that can lead to higher usage of technology

Competitive Advantage

Significant, long-term benefit to a company over its competition

Ability to establish and maintain a competitive advantage is vital to the company’s success

Competitive Advantage

Five forces motivate firms to seek competitive advantage– Rivalry among existing competition– Threat of new entrants– Threat of substitutions– Buyers’ bargaining power– Suppliers’ bargaining power

Strategic Planning for Competitive Advantage

Change the structure of the industry Create new products or services Improve existing products or services Use information systems for strategic

planning

Strategic Planning for Competitive Advantage

Performance-Based Information Systems

Productivity

A measure of output achieved divided by input required

Higher level of output for a given level of input means greater productivity

Return on Investments and the Value of Information

Systems

Earnings growth Market share Customer awareness and satisfaction Total cost of ownership

Justifying Information Systems

Ensure that the system supports business needs

Assess risks Identify benefits

Justifying Information Systems

Assessment of Risk:– How well are the requirements understood?– To what degree does the project require

pioneering effort in technology?– Is there a risk of severe business repercussions

if the project is poorly implemented?

Justifying Information Systems

Most IS projects fall into one of the following categories:– Tangible Savings– Intangible Savings– Legal Requirement– Modernization– Pilot Project

The 10 Best Places to Work for IS

Careers in Information Systems Department

Operations - focuses on the efficiency of information

Systems development - focuses on specific development projects and ongoing maintenance and review

Support - provides user assistance

Three Primary Responsibilities of Information Systems

Typical IS Titles and Functions

Chief Information Officer (CIO) - employs the IS department’s equipment and personnel to help the organization attain its goals

LAN administrators - set up and manage the network hardware, software, and security processes

Typical IS Titles and Functions

Internet careers– Strategists– Programmers– Website operators– Chief Internet Officer

Consulting firms

Summary Value-added processes increase the relative worth of

combined inputs on their way to becoming final outputs

Business process reengineering involves the radical redesign of business processes, organizational structures, and information systems

Information systems personnel typically work in an information systems department that employs a chief information officer, systems analysts, and computer programmers