MIS 2000 Organizations and Information Systems – Impact on Organizational Design (slightly...
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Transcript of MIS 2000 Organizations and Information Systems – Impact on Organizational Design (slightly...
MIS 2000MIS 2000
Organizations and
Information Systems –
Impact on Organizational Design(slightly revised, see outline)(slightly revised, see outline)
Outline
Two typologies of Information Systems
Organization design (structure, processes, culture, politics—deleted due lack of time; also minor revision of slide 11)
Relationships b/w organization design and Information Systems
MIS 2000 Information Systems for Management
IS Types - Organizational Function Served
ORGANIZATIONProduction + Support
Supply
Back-End
Delivery
Front End
Back-end: Purchasing Systems – supply chain
Production Systems – Manufacturing, Services, involved in org. core
business operations
Support to Production: HR, Accounting & Finance, Planning, Inventory, R+D, Engineering/Product Development
Front-end: Marketing & Sales Systems, Customer Relationship Mgt. (CRM) (customer tracking, sales recording, billing, competition/environment scanning, market segmentation)
IS in Businesses 1 of 15
IS Types – Data and User
MIS 2000 Information Systems for Management
* Also called Reporting sys. or Admin. sys. The MIS area of study refers to all system types, not just MIS type of systems.
IS and Organizations 2 of 15
Systems have different data, processing capabilities & deliverables
AND different Users
“Packing” systems together (see Note).
Everyday operations control Supervisory Management
Mid-levelManagement
Mid-range performance control & planning
ExecutiveManagement Strategic planning & control
*
Knowledge Work Systems (professionals)
Communication Systems (everybody)
Group Support Systems (everybody)
Relationship Between Two Typologies
MIS 2000 Information Systems for Management
Organizational Function
Data & UserType
Human Resources
TPS MIS/RS DSS
Database of travel claims
Detailed reports on travel claims in past month, drawn from Travel Claims Database
Module with if-then rules that processes detailed reports and identifies deviations from organization’s rules.
….
IS in Businesses 3 of 15
• Different IS types based on data/user can be in each department.
IS and OrganizationsOrganizations use systems to advance their organizational design (get organized better) and, consequently, to achieve economic gains.
Organizational Design: Composition of tasks and processes, departments, methods of management, stable beliefs & behaviors, power distribution…
IS in Businesses MIS 2000 Information Systems for Management 4 of 15
OrganizationOrganizational Design
Efficiency ofoperations
Effectiveness ofbusiness
OrganizationInformation Systems
Impacts
Economic aspects
IS and Organizations (cont.)
Operational Efficiency: Save time (on tasks…) & money (on materials, equipment, labour)
Business Effectiveness – accomplishing competitive targets:
New product (good or service)Product differentiated from competitors’Market-related goalsCustomer-related goals
Systems should advance methods of organizing and help to increase efficiency and effectiveness of organizations.
IS in BusinessesMIS 2000 Information Systems for
Management 5 of 15
IS in BusinessesMIS 2000 Information Systems for
Management 6 of 15MIS 2000 Information Systems for
Management
Organization
Collection of individuals sharing work, following certain rules and using technology to produce certain good or service.
Organization takes inputs from the environment, transforms them, and puts the result out into the environment.
Organization can be viewed from the perspectives of
Structure
Processes
Culture
Politics
IS in BusinessesMIS 2000 Information Systems for
ManagementMIS 2000 Information Systems for
Management 7 of 15
Organizational StructureOrganization of work:
tasks, procedures, processes, jobsdepartments (functions; grouping of work); distribution of work in geographical space
Levels of management (Hierarchy)Rules and regulations (Formalization)Distribution of decision making power (Centralization)
IS in BusinessesMIS 2000 Information Systems for
Management 8 of 15
IS Impact on Organizational Structure
Systems can directly impact organizational structure via changes in the organization of work (e.g., task modification)
Reduction of middle management (“flattening” of hierarchy)
Reduction of explicit rules & regulations (less written rules)
Broader distribution of decision making power (decentralization)
Organizational (Business) ProcessesProcess view of organizations is newer than structural. Business process is a set of tasks from a start to an end point, that deliver a value for a customer. Process can cut across departments.
IS in BusinessesMIS 2000 Information Systems for
Management 9 of 15
Structure View Process View
Tasks, jobs, departments Tasks, sub-processes, processes (consisted of sub-processes)
What type of work is covered How work is actually done
How work is divided up How work links up
Static view; describes work organization and rules
Dynamic view; flow of work, decision points
Frog’s view, focus on pieces Bird’s view, focus on a whole
Skills in focus Both skills and IST in focus
No focus on performance (results) Performance focus (value for customer)
Status-quo (no change interest) Change interest
IS Impact on Business Processes (BP)
IS used to support BP - Business Process Management (BPM).• Electronic linking of tasks & remote locations• Automated management of linked tasks• Measurement of time and quality enhanced
IS used to change BP – Business Process Reengineering (BPR). IS aids in making:• New BP possible (e.g., CRM, beyond org. boundaries)• Simpler, faster, less labour-intensive BP
10 of 15
IS in BusinessesMIS 2000 Information Systems for
Management 11 of 15MIS 2000 Information Systems for
Management
Organizational Culture
Stable beliefs and behaviors shared among organization members.
Beliefs and behaviors related to data/information/knowledge & IST examples:
the role of IST in business (support vs. driver)when to change IST (conservative vs. progressive)proper communication (face-to-face vs. tech-mediated & which) who should operate IST (all vs. specialists)what is better – paper or electronic data formatknowledge culture (e.g.: 3M, Microsoft) how to plan & develop IS, how to manage data
IS and Organizational Culture
Organizational culture is an important condition for developing and using IS
New IS can collide with organizational culture =>
failure of IS, old culture resilient (some EMR* systems)
culture change required (ERP systems)
mutual adjustment of systems and culture (GSS)
IS in BusinessesMIS 2000 Information Systems for
Management 12 of 15
Mutual Influences IS—Organization
Important! IS do not influence organizational design one way, existing organization (structure, processes, culture, politics) impacts on new IS as well.
Mutual influencing, IS adjust to an organization, and the organization adjusts to IS.
The proportion of mutual adjustment is a matter of scale, depending on a particular organization.
System’s IT matters (flexibility)! Management of change matters (attention, persistence, initiatives)!
IS in BusinessesMIS 2000 Information Systems for
Management 15 of 15
OrganizationIS Impacts