msis 110: introduction to computers; instructor: s. mathiyalakan1 information systems in...
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MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 1
Information Systems in Organizations
Chapter 2
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Principles and Learning Objectives
• The use of information systems to add value to the organization is strongly influenced by organizational structure, culture, and change.
– Identify the value-added processes in the supply chain and describe the role of information systems within them.
– Provide a clear definition of the terms organizational structure, culture, and change and discuss how they affect the implementation of information systems.
MSIS 110: Introduction to Computers; Instructor: S. Mathiyalakan 3
Principles and Learning Objectives
• Because information systems are so important, businesses need to be sure that improvements or completely new systems help lower costs, increase profits, improve service, or achieve a competitive advantage.
– Identify some of the strategies employed to lower costs or improve service.
– Define the term competitive advantage and discuss how organizations are using information systems to gain such an advantage.
– Discuss how organizations justify the need for information systems.
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Principles and Learning Objectives
• Information systems personnel are the key to unlocking the potential of any new or modified system.
– Define the types of roles, functions, and careers available in information systems.
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Organizations & Information Systems
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Organizational Structure
• Organizational subunits and their relationship with the overall organization
• Categories of organizational structure:– Team– Traditional– Multidimensional– Project– Virtual
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Traditional Organizational Structure
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Traditional Organizational Structure
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Project Organizational Structure
• Centered on major products and services• Temporary project teams
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Project Organizational Structure
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Team Organizational Structure
• Temporary or permanent teams• Work groups• Various sizes
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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
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Multidimensional Organizational Structure
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Virtual Organizational Structure
• Employs business units in geographically dispersed areas
• People may never meet face to face
• Can be permanent or temporary
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Organizational Culture and Change
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Organizational Culture
• Shared understandings, values, and assumptions in an organization
• Influences information systems
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Continuous Improvement
• Constantly seeking ways to improve business processes
• Benefits:– Increased customer loyalty– Reduction in customer dissatisfaction– Reduced opportunity for competitive inroads
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Continuous Improvement vs. Reengineering
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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
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Total Quality Management (TQM)
• Quality: ability of a product or service to meet or exceed customer expectations
• TQM: approaches and techniques used to achieve quality throughout the organization
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Outsourcing and Downsizing
• Outsourcing: contracting with outside professionals
• Downsizing: cutting the number of employees
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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
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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
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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
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Strategic Planning for Competitive Advantage
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Performance-Based Information Systems
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Productivity
• A measure of output achieved divided by input required
• Higher level of output for a given level of input means greater productivity
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Return on Investments and the Value of Information Systems
• Earnings growth• Market share• Customer awareness and satisfaction• Total cost of ownership
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Justifying Information Systems
• Ensure that the system supports business needs• Assess risks• Identify benefits
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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?
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Justifying Information Systems
• Most IS projects fall into one of the following categories:– Tangible Savings– Intangible Savings– Legal Requirement– Modernization– Pilot Project
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The 10 Best Places to Work for IS
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Roles, Functions, and 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
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The Three Primary Responsibilities of Information Systems
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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
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Typical IS Titles and Functions
• Internet careers– Strategists– Programmers– Website operators– Chief Internet Officer
• Consulting firms
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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