Post on 28-Dec-2015
Information Systems, Organizations, and Strategy
CHAPTER 3
ORGANIZATIONS AND INFO SYSTEM
Organization
social structure/takes resources from environment and processes them to produce outputs (technical def.)
Collection of rights, privileges, obligations, responsibilities/delicately balanced over time through conflict and conflict resolution (behavior def.)
Need both technical and behavioral definitions
FEATURES OF ORGANIZATIONS
Routines and business processes
Routines make up business processes
Business processes make up the firm
People in organizations have different perspectives, concerns, specialties
Politics
Different perspectives, concerns, etc.
FEATURES OF ORGANIZATIONS (CONT)
Culture Made up of assumptions that define goals and
products (what to produce, how, etc)
Environments Change faster than organizations Environmental scanning Disruptive Technologies
Organizational structure Based on different groups served
TYPES OF ORGANIZATIONAL STRUCTURES
5 basic kinds of organizational structures
Entrepreneurial: Small start-up business
Machine bureaucracy: Midsize manufacturing firm
Divisionalized bureaucracy: Fortune 500 firms
Professional bureaucracy: Law firms, school systems, hospitals
Adhocracy: Consulting firms
IMPACT OF INFORMATION SYSTEMS ON ORGANIZATIONS AND BUSINESS
FIRMS
Economic
Transaction cost theory – can reduce costs of firms buying on the marketplace what they cannot make/contracting with external suppliers
Agency theory - agents (employees) contracted by owner/agents need constant supervision/managers can oversee more employees by using IT to acquire and analyze information
Organizational and behavioral
Flattens organizations, information systems, employees make decisions and are self-managing, and can potentially change an organizational culture, etc.
Internet and organizations
Increases accessibility, store and disseminate knowledge and information
USING INFO SYSTEMS FOR COMPETITIVE ADVANTAGE
Porter’s Competitive Forces model (Porter’s Five Forces)
Traditional competitors
New market entrants
Substitute products and services
Customers
Suppliers
STRATEGIES FOR DEALING WITH COMPETITIVE FORCES
INTERNET’S IMPACT
BUSINESS VALUE CHAIN MODEL
VALUE WEB
Collection of independent firms that use information technology to coordinate their value chains
OTHER WAYS TO USE INFO SYSTEMS FOR COMPETITIVE ADVANTAGE
Synergies - When output of some units used as inputs to others, or organizations pool markets and expertise
Example: Google purchases YouTube
Enhance core competencies
Network-based strategies
Network economics
Virtual Company
Business Ecosystem
MANAGEMENT ISSUES
Sustain competitive advantage
Align IT with business objectives
Manage strategic transitions