1 types, strategic role & impact by chandra s. amaravadi information systems in organizations -...
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TYPES, STRATEGIC ROLE & IMPACT
BY
CHANDRA S. AMARAVADI
INFORMATION SYSTEMS IN ORGANIZATIONS - II
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IN THIS PRESENTATION
Definition of organization Type of organizations and defining features An overview of the different functional areas The different types of information systems TP, “MIS”, DSS, OIS, ESS
The firm and its environment IT and business strategy Impact of information systems
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INFORMATION SYSTEMS AND THE ENVIRONMENT
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THE ENVIRONMENT
What is the business environment? What property/properties does it exhibit?
From this point of view, how are organizationscharacterized?
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organi-zation
competition
supplier
cust
omer
government
bankstrade
groups
policy
mak
ing
bodi
es
ENVIRONMENT OF AN ORGANIZATION
gener
al
envi
ronm
ent
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ENVIRONMENT
concerned with inputs and outputs (e.g. customers, suppliers, competitors)
governs rules of the game(e.g. banks, special groups, government)
General environmentconcerned with socio economic trends(e.g. cultural characteristics, demographics etc.)
Task environment
Institutional environment
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Change Structure
Change Strategy
Change SOPs
How viable are these methods?
ENVIRONMENTAL CHANGE
ADAPTATION MECHANISMS
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ADAPTATION MECHANISMS..
How does a typical consumer products companyadapt, ifa) gas prices increase?b) one of its products misses a sales target?c) there are tax laws that favor business expansion?d) there are permanent, industry-wide labor shortages?e) if it has to market globally instead of locally?
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Strategy is concerned with achieving a fit with Strategy is concerned with achieving a fit with the environmentthe environment
Business level -- What products should the firm offer? -- “Product mix”, What markets?
Industry level -- How should the firm compete? by marketing? by raising prices?
How is strategic planning carried out?
STRATEGY
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TASK ENVIRONMENT
ENVIRONMENTALCHANGE
STRATEGICCHANGES
ORGANIZATION
RELATIONSHIP BETWEEN ENV. ORGANIZATION & STRATEGY
Competitor
Customer
Competitor
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THE ROLE OF IS
ENVIRONMENT
STRATEGY,SOPS..
ORGANIZATION
The Role of IS/IT is mainly to support strategy
env. changes
changesinfluence
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INFORMATION SYSTEMS AND BUSINESS STRATEGY
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How can information systems supportcorporate strategy?
INFORMATION SYSTEMS AND BUSINESS STRATEGY
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INFORMATION SYSTEMS AND BUSINESS STRATEGY
Business levelValue chainSupply chain managementIT based products/services
Industry levelInformation partnershipsCompetitive forces
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Value chain IT-based products and services Supply Chain management & ECR
BUSINESS LEVEL STRATEGY
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PRIMARY: Directly related to production & distribution.
SUPPORT: Infrastructure, human resources, technology, procurement
VALUE CHAIN
Activities that add value to products, services
Contributes to product or service life cycle
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PORTER – Support value chain
Purchasing, warehousing, production, distribution
Support activities: accounting, HR
Support activities: finance
VALUE CHAIN..
What is the value chain for a law firm?
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SUPPLY CHAIN MANAGEMENT & ECR
Integration of supplier, distributor, and customer logisticsRequirements into one cohesive process
Supply Chain Management
The collection of entities (manufacturing plants, distributioncenters, conveyances, retail outlets, people, and information),which are linked together into processes supplying goods orservices from source to consumption.
Supply Chain
Systems linking customers needs to production and distribution.Efficient Customer Response Systems
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IT BASED PRODUCTS/SERVICES
CBT Credit cards Financial products I2 example
Those where information/IT is a major component of the product.
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Information partnerships Competitive forces
INDUSTRY-LEVEL STRATEGIES
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INFORMATION PARTNERSHIPS
Industry level collaborations Involves information sharing A limited collaboration
Credit cards and frequent flier programs Code sharing?
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THE FIRM
TRADITIONAL COMPETITION
NEW MARKET ENTRANTS
SUPPLIERS CUSTOMERS
SUBSTITUTE PRODUCTS & SERVICES
COMPETITIVE FORCES
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COMPETITIVE FORCES MODEL..
Compete by raising entry-barriers Discourage switching to substitutes Use IT-supported standards Tie-in customers using IT products
Examples?
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IMPACT OF INFORMATION SYSTEMS
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ORGANIZATIONS & INFORMATION TECHNOLOGY
Impact of information systems on the organization Strategic (already discussed)
Impact of the organization on the IS
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MEDIATING FACTORS: MEDIATING FACTORS: Environment Environment CultureCultureStructure Structure Standard Procedures Standard Procedures Politics Politics Management DecisionsManagement Decisions
ORGANIZATIONSORGANIZATIONSINFORMATION INFORMATION TECHNOLOGYTECHNOLOGY
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IMPACT OF THE ORGANIZATION ON THE IT FUNCTION
Organization of IS (how IT is organized) Decides role of IS (what IT will do for the org.)
Concerned with how the organization controls IT department
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THE END