INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND STRATEGY 3 INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND STRATEGY

LEARNING OBJECTIVES IDENTIFY SALIENT CHARACTERISTICS OF ORGANIZATIONS ANALYZE RELATIONSHIP BETWEEN INFO SYSTEM & ORGANIZATIONS *

LEARNING OBJECTIVES CONTRAST THEORIES OF ORGANIZATIONS DESCRIBE DECISION PROCESSES EVALUATE ROLE OF INFORMATION SYSTEMS IN SUPPORTING BUSINESS STRATEGY *

MANAGEMENT CHALLENGES ORGANIZATIONS & INFORMATION SYSTEMS CHANGING ROLES OF SYSTEMS IN ORGANIZATIONS MANAGERS, DECISION MAKING & INFORMATION SYSTEMS INFORMATION SYSTEMS & BUSINESS STRATEGY *

MANAGEMENT CHALLENGES 1. SUSTAINABILITY OF COMPETITIVE ADVANTAGE 2. FITTING TECHNOLOGY & ORGANIZATION *

ORGANIZATIONS & INFORMATION TECHNOLOGY MEDIATING FACTORS: Environment Culture Structure Standard Procedures Politics Management Decisions Chance ORGANIZATIONS INFORMATION TECHNOLOGY

ORGANIZATION CEO VP TECHNICAL DEFINITION: STABLE, FORMAL STRUCTURE TAKES RESOURCES FROM ENVIRONMENT AND PROCESSES THEM TO PRODUCE OUTPUTS *

TECHNICAL MICROECONOMIC DEFINITION OF ORGANIZATION OUTPUTS TO ENVIRONMENT ORGANIZATION PRODUCTION PROCESS INPUTS FROM

ORGANIZATION BEHAVIORAL DEFINITION: COLLECTION OF: RIGHTS, PRIVILEGES, OBLIGATIONS, RESPONSIBILITIES DELICATELY BALANCED CONFLICT RESOLUTION *

FORMAL ORGANIZATION ENVIRONMENTAL RESOURCES ENVIRONMENTAL OUTPUTS STRUCTURE: Hierarchy Division of labor Rules, Procedures PROCESS: Rights/Obligations Privileges/Responsibilities Values Norms People

STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONS CLEAR DIVISION OF LABOR HIERARCHY EXPLICIT RULES & PROCEDURES IMPARTIAL JUDGMENTS TECHNICAL QUALIFICATIONS MAXIMUM ORGANIZATIONAL EFFICIENCY *

COMMON FEATURES OF ORGANIZATIONS FORMAL STRUCTURE STANDARD OPERATING PROCEDURES POLITICS CULTURE *

UNIQUE FEATURES OF ORGANIZATIONS ORGANIZATIONAL TYPES ENVIRONMENTS, GOALS, POWER CONSTITUENCIES, FUNCTION LEADERSHIP, TASKS TECHNOLOGY BUSINESS PROCESSES *

ORGANIZATIONAL STRUCTURES ENTREPRENEURIAL: Startup business MACHINE BUREAUCRACY: Mid-sized manufacturing firm DIVISIONALIZED BUREAUCRACY: Fortune 500 PROFESSIONAL BUREAUCRACY: Law firms, hospitals ADHOCRACY: Consulting firm *

ORGANIZATION & ITS ENVIRONMENT THE ENVIRONMENT: RESOURCES & CONSTRAINTS GOVERNMENTS COMPETITORS FINANCIAL INSTITUTIONS CULTURE KNOWLEDGE TECHNOLOGY THE FIRM INFORMATION SYSTEMS

INFORMATION SYSTEMS DEPARTMENT PROGRAMMERS: Write software SYSTEMS ANALYSTS: Translate business problems into solutions IS MANAGERS: Department leaders END USERS: Department reps for whom applications are developed *

SENIOR MANAGEMENT MAJOR END-USERS (DIVISIONS) THE ORGANIZATION SENIOR MANAGEMENT MAJOR END-USERS (DIVISIONS) INFORMATION SYSTEMS DEPARTMENT Information System Specialists: CIO Managers System Analysts System Developers Programmers Network Specialists Database Administrator Clerical IT Infrastructure: Hardware Software Data Networks

HOW INFO SYSTEMS AFFECT ORGANIZATIONS MICROECONOMIC MODEL: Info technology is a factor of production, like capital & labor TRANSACTION COST THEORY: Firms attempt to minimize transaction costs internally & externally *

HOW INFO SYSTEMS AFFECT ORGANIZATIONS AGENCY THEORY: Firm is nexus of contracts among self-interested parties requiring supervision BEHAVIORAL THEORIES: Info systems could change hierarchy of decision making; reduce need for middle management & clerical support; distribute information *

IMPLEMENTING CHANGE TASK PEOPLE TECHNOLOGY STRUCTURE RESISTANCE Source: Leavitt, Handbook of Organization (1965) TASK PEOPLE TECHNOLOGY STRUCTURE RESISTANCE MUTUAL ADJUSTMENT

INTERNET & ORGANIZATIONS E-mail communication Electronic handbooks published & revised Interactive training classes Employees review, update personal data *

ROLE OF MANAGERS CLASSICAL: Describe functions- plan, organize, coordinate, decide, control BEHAVIORAL: Based on observations of managers on the job *

INFO SYSTEMS, LEVELS, DECISIONS TPS OAS MIS KWS DSS ESS ORGANIZATIONAL LEVEL TYPE OF DECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC STRUCTURED ACCOUNTS RECEIVABLE ELECTRONIC PRODUCTION SCHEDULING COST OVERRUNS SEMI- BUDGET PREPARATION PROJECT FACILITY LOCATION UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTS NEW MARKETS

STAGES OF DECISION MAKING INTELLIGENCE: Collect information; identify problem DESIGN: Conceive alternatives; select criteria CHOICE: Use criteria to evaluate alternatives; select IMPLEMENTATION: Put decision into effect; allocate resources; control * SOURCE: Simon, The New Science of Management Decision (1960)

INDIVIDUAL MODELS OF DECISION MAKING RATIONAL: Comprehensive rationality; evaluate all alternatives SYSTEMATIC: Structured, formal method INTUITIVE: Trial & error, unstructured, multiple approach *

ORGANIZATIONAL MODELS OF DECISION MAKING BUREAUCRATIC: Follow standard operating procedures (SOP) POLITICAL: Key groups compete and bargain “GARBAGE CAN”: Organizations not rational; solutions accidental *

BUSINESS LEVEL STRATEGY LOCK IN CUSTOMERS & SUPPLIERS SUPPLY CHAIN MANAGEMENT: Stockless inventories, continuous replenishment, just-in-time delivery INTRA FIRM STRATEGY: Product differentiation, focused differentiation, low-cost producer EFFICIENT CUSTOMER RESPONSE: Point-of-sale systems, datamining *

COMPETITIVE FORCES MODEL NEW MARKET ENTRANTS SUBSTITUTE PRODUCTS & SERVICES THE FIRM TRADITIONAL INDUSTRY COMPETITORS THE INDUSTRY SUPPLIERS CUSTOMERS

COMPETITIVE FORCES MODEL NEW MARKET ENTRANTS SUBSTITUTE PRODUCTS & SERVICES INDUSTRY SET INDUSTRY COMPETITORS INDUSTRY 2 INDUSTRY 1 SUPPLIERS CUSTOMERS INDUSTRY 4 INDUSTRY 3

INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND STRATEGY