organizations systems

8/3/2019 Organizations Systems

1/25

Organizations & Systems

Sept. 12, 2005


2/25

Outline What is an Organization?

Interaction of IT with the Organization Network Effects & Economics

Classifying Business Organization Units

& Information Systems


3/25

What is an Organization? Technical Definition: "A stable, formal,

social structure that takes resources

from the environment and proceses

them to produce outputs." (Laudon &

Laudon)

Information Technology is introducedinto this structure to make the

production of outputs more efficient.


4/25

What is an Organization?Structural, Behavioural and Other:

Hierarchy of authority

Impersonality Written rules of conduct (operating procedures)

Promotion based on achievement (technicalqualifications for positions; meritocracy)

Specialized division of labor

Efficiency (maximal organizational efficiency)

IT innovations can create conflicts between these.


5/25

A Pre-ITInsurance

ClaimsOffice(c 1965)

Giuliani, V. E.The MechanizationOf Office Work.

inForester, T., ed.The Information

Technology

Revolution.MIT Press; 1985.


6/25

A Post-ITInsurance


Giuliani, V. E.The MechanizationOf Office Work.

inForester, T., ed.The Information

Technology

Revolution.MIT Press; 1985.


7/25

A Post-ITInsurance


the computers may be in head office, orthey may be operated by a service company

the call centre is somewhere (and everywhere)

the adjusters/claims agents may work out oftheir homes, as contract employees

TheNetwork

HeadOffice

DataCentre

CallCentre

Bank

Agents

Customers


8/25

IT & THE ORGANIZATION:BEFORE & AFTER

IP Pre-IT IP Post-IT

Skill Levels

relatively low relatively high

Information Needs

structured flows limited access

structured storage broad access

Responsiveness

relatively slow relatively fast


9/25



Tasks

specialized compartmentalized

repetitive

generalized interconnected

varied/novel

Work Flow

batch oriented event-driven

Standard of Performance

follow the rules understand the process


10/25



OrganizationalStructure

strongly hierarchical weakly networked

strongly networked weakly hierarchical

Workforce

relatively larger relatively smaller


11/25

3 Economic effects of IT on

the Organization1.Information technology costs generally fall,

labour costs generally rise. IT can be

substituted for labour, and result in fewermiddle managers and clerical workers.

2.Information technology lowers transactioncosts. Firms should therefore become smaller,

and have more external transactions (e.g.through outsourcing).

3.Information technology lowers internalmanagement (supervision and coordination)costs. Firms can therefore become larger. (?)


12/25

Org. Units & IT SystemsFunction

Org. level

Sales &Marketing

Manufacturing &Production

Finance &Accounting

HumanResources

"EpistemologicalLevel"

Strategic(Executive SupportSystem)

Sales trendforecasting

Facilities location Profit Planning Labor forceneeds

Strategy

"Wisdom?"

Management(Decision SupportSystem; ManagementInformation Systems)

Pricinganalysis

ProductionPlanning

Budgeting Range &Distribution ofwages,benefits

Knowledge

Knowledge(Knowledge WorkSystems; OfficeSystems)

Marketanalysis

Computer AidedDesign

InvestmentPortfolioAnalysis

Designpossible careerpaths

Knowledge andInformation

Operations(TransactionProcessing Systems)

Enter,process, track

Machine control AccountsReceivable

Trackemployeetraining, skills

& evaluations

Data


13/25

Examples: Webtrends See: learningspaces.org/1311


14/25

Enterprise Systems & the Orgold integration of ITs


15/25

Enterprise Systems & the Orgnew integration of ITs


16/25


17/25


18/25

The Major Eras Of The ComputerAge

1964-1980 The System Centric Era1964: introduction of the IBM 360

1981-1993 The PC Centric Era1981: introduction of the IBM PC

1994-2005 The Network Centric Era

2006-2015 The Content Centric Era?


19/25

FEATURE

Audience

Technology

Principle

Offerings

Network Focus

User Focus

SupplierStructure

Supplier Leadership

# Users at end

Market Size

SYSTEMSCENTRIC

Corporate

Transistor

Groschs Law

Proprietary Systems

Data Center

Efficiency

Vertical Integration

US systems

10 million

$20 billion


20/25

FEATURE

Audience

Technology

Principle

Offerings

Network Focus

User Focus

SupplierStructure

Supplier Leadership

# Users at end

Market Size

SYSTEMSCENTRIC

Corporate

Transistor

Groschs Law

Proprietary Systems

Data Center

Efficiency


US systems

10 million

$20 billion

PC CENTRIC

Professional

Microprocessor

Moores Law

Standard Products

LAN/WAN

Productivity

Horizontal value chain

US Components

100 million

$460 billion


21/25

FEATURE

Audience

Technology

Principle

Offerings

Network Focus

User Focus

SupplierStructure

Supplier Leadership

# Users at end

Market Size

SYSTEMSCENTRIC

Corporate

Transistor

Groschs Law

Proprietary Systems

Data Center

Efficiency


US systems

10 million

$20 billion

PC CENTRIC

Professional

Microprocessor

Moores Law

Standard Products

LAN/WAN

Productivity


US Components

100 million

$460 billion


22/25

FEATURE

Audience

Technology

Principle

Offerings

Network Focus

User Focus

SupplierStructure

Supplier Leadership

# Users at end

Market Size

PC CENTRIC

Professional

Microprocessor

Moores Law

Standard Products

LAN/WAN

Productivity


US Components

100 million

$460 billion

NETWORK CENTRIC

Consumer

Bandwidth

Metcalfes Law

Value Added Services

Public Network

CustomerService

Unified Computer &Communications ChainNational Carriers

1 Billion

$3 trillion


23/25

FEATURE

Audience

Technology

Principle

Offerings

Network Focus

User Focus

SupplierStructure

Supplier Leadership

# Users at end

Market Size

PC CENTRIC

Professional

Microprocessor

Moores Law

Standard Products

LAN/WAN

Productivity


US Components

100 million

$460 billion

NETWORK CENTRIC

Consumer

Bandwidth

Metcalfes Law


Public Network

CustomerService

Unified Computer &Communications ChainNational Carriers

1 Billion

$3 trillion


24/25

FEATURE

Audience

Technology

Principle

Offerings

Network Focus

User Focus

SupplierStructure

Supplier Leadership

# Users at end

Market Size

NETWORK CENTRIC

Consumer

Bandwidth

Metcalfes Law


Public Network

CustomerService

Unified Computer &

Communications ChainNational Carriers

1 Billion

$3 trillion

CONTENT CENTRIC

Individual

Software

Transformation Law

Custom Services

Transparent

Virtualization

Embedded

Content Providers

Universal

Too embedded to measure


25/25

FEATURE

Audience

Technology

Principle

Offerings

Network Focus

User Focus

SupplierStructure

Supplier Leadership

# Users at end

Market Size

NETWORK CENTRIC

Consumer

Bandwidth

Metcalfes Law


Public Network

CustomerService

Unified Computer &

Communications ChainNational Carriers

1 Billion

$3 trillion

CONTENT CENTRIC

Individual

Software

Transformation Law

Custom Services

Transparent

Virtualization

Embedded

Content Providers

Universal

Too embedded to measure

organizations systems

Documents