Motivation for creating a theory of effects of advances IT on organizations
Reinvestigate the effects of IT on organization Create a theory of the effects of advance IT on organization Integration Practical, administrative importance
Reinvestigate the effects of IT on organization
Effectiveness of Advanced IT– Communication medium
Face to face reporting Vs e-mail
– Computer-assisted decision-aiding technologies Expert systems, decision-support system
Crate a theory of the effects of IT on organization
To explore and understand the effects of advances IT has on an organization.
To set a standard theory concerning the effects of advanced information technologies on organizations.
Integration
To help researchers in each of the fields to become more aware of the existence, content, and relevance of the work done by researchers in other fields by putting all their works into one theory
Practical, administrative importance
In the absence of experience, the value of theory is important to administrators or advisors when implementing advances IT onto the organization
Traditional information technologies
Operating software– Microsoft Windows XP
Computers “Simple” application
– Microsoft Offices, and Quick Book
Advance information technologies
Transmit, manipulate, analyze, or exploit information
Digital computer processes information integral to the user’s communication or decision support
Nature of advance IT
Two characteristics– Basic characteristics of advance IT– Properties of advance IT
Basic characteristics of advance IT
Data storage capacity– Hard drive, removable media, and tapes
Transmission capacity– WAN, LAN, and wireless technologies
Processing capacity– CPU processing power, memory storage, and
Databases processing
Properties of advance IT
More relevant to task Improve the overall performance of user Support user every day task
Example of properties of advance IT
Communication– Ability to communicate more easily and less expensively – Ability to communicate more rapidly and with greater precision to targeted
groups– Ability to record and index more reliably and inexpensively the content and
nature of communication events– Selectively control access and participation in a communication event or
network
Example of properties of IT
Decision aiding– Store and retrieve large amounts of information more
quickly and inexpensively– More rapidly and selectively access information created
outside the organization– More rapidly and accurately combine and reconfigure
information so as to create new information– More compactly store and quickly use the judgment and
decision models developed in the minds of experts– More reliably and inexpensively record and retrieve
information about content and nature of organizational transactions
Mistaken impressions on advances IT
Advanced IT does not replace traditional IT, but a supplements to traditional IT
There are no inferior or superior between advances IT and traditional IT (working side by side) to improve users productive
Environments affecting advance IT
External environments of many organizations are sufficiently competitive that, in order to survive, the organizations must adopt and properly use rationality-enhancing communication and decision-aiding technologies.– Outside Competition drive the implementation and
usage of advance IT to gain advantage over the competitions
Environments affecting advance IT
Highly politicized or power-driven organizations which also have highly competitive internal environments, and in such environments it is necessary for managers to maximize their own competitive effectiveness by appearing to satisfy the goals of resource controllers on an issue-by-issue basis.
– Internal competition between department drive the implementation and usage of advance IT
Environments affecting advance IT
Almost all organizations, effective fulfillment of organizational responsibilities contributes to the development and maintenance of a manager’s reputation.– Mangers try to use advance IT to his or her
personal effectiveness to maintain his or her reputation
Effect at the subunit level
Participation in decision making Size and heterogeneity of decision units Frequency and duration of the meetings
Effect at the subunit level
What is the effect of the computer-assisted communication technology on the breadth of
participation in decision making?
Effect at the subunit level
Proposition 1: Use of computer-assisted communication technologies leads to a larger number and variety of people participating as information sources in the making of a decision.
Proposition 1
Reduce effort to gather and exchange information– internet, information system, database
Increase number of people participating in decision making process– More research, less expert
Speed up the information gathering process
Limitation on Proposition 1
Increase in participation might not lead to higher quality decisions
Might not increase practical significance Might not even be more effective (too much
input)
Effect at the subunit level
What is the effect of computer-assisted communication and decision-support
technology on the size and heterogeneity of decision units?
Effect at the subunit level
Proposition 2: Use of computer-assisted communication and decision-support technologies leads to decrease in the number and variety of members comprising the traditional face-to-face decision unit.
Proposition 2
Experts replaced by expert systems Information keepers replaced by
management information system Face-to-face decision unit replaced by e-mail
communication, teleconferencing or videoconferencing
Effect at the subunit level
What is or what will be the effect of computer-assisted communication and decision-
support technologies on the time absorbed by meetings?
Effect at the subunit level
Proposition 3: Use of Computer-assisted communication and decision support technologies results in less of the organization’s time being absorbed by decision related meetings
Proposition 3:
Decrease in traditional face-to-face decision unit Replace with short “mini-meetings” More informal meetings
Conclusion
Effects of Advances IT at the subunit level– Increase the participation in the decision making– Decrease the number of members comprising
traditional face-to-face decision unit– Less time spend on decision related meetings
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