Chapter 2 Information Systems in Organizations

Why Learn About Information Systems in Organizations? Information systems (ISs) can cut costs and increase profits Students in most fields need to know ISs Management major might be hired to design a system to improve productivity Biochemistry major might be hired to conduct drug research using computer techniques

Organizations Organization: a formal collection of people and other resources established to accomplish a set of goals

Organizations and Information Systems An organization is a system - has inputs, processing mechanisms, outputs, and feedback Inputs to the system: resources such as materials, people, and money Outputs to the environment: goods or services

Organizations and Information Systems (continued) Principles of Information Systems, Ninth Edition

Organizations and Information Systems (continued) Value chain Series (chain) of activities that includes inbound logistics and warehouse and storage اللوجستية (بالإنجليزية: Logistics، أو ما يعرف بالعربية فَنُّ السَّوْقِيَّات، هو فن وعلم إدارة تدفق البضائع والطاقة والمعلومات والموارد الأخرى كالمنتجات الخدمات وحتى البشرية من منطقة الإنتاج إلى منطقة الاستهلاك. Supply chain management (SCM) Determines: What supplies are required for value chain What quantities are needed to meet customer demand How supplies should be processed into finished goods and services How shipment of supplies and products to customers should be scheduled, monitored, and controlled Principles of Information Systems, Ninth Edition

Organizations and Information Systems (continued) Principles of Information Systems, Ninth Edition

Organizations and Information Systems (continued) Customer relationship management (CRM) programs Help companies manage all aspects of customer encounters Can help a company collect customer data, contact customers, and educate them about new products Principles of Information Systems, Ninth Edition

Organizational Structures Organizational subunits and the way they relate to the overall organization Categories of organizational structure Traditional Project Team Virtual Principles of Information Systems, Ninth Edition

Traditional Organizational Structure (continued) Principles of Information Systems, Ninth Edition

Traditional Organizational Structure Hierarchical structure Major department heads report to a president or top-level manager Flat organizational structure Empowers employees at lower levels Empowerment Gives employees and their managers more responsibility and authority to make decisions Principles of Information Systems, Ninth Edition

Traditional Organizational Structure (continued) Principles of Information Systems, Ninth Edition

Project and Team Organizational Structures Project organizational structure Centered on major products or services Many project teams are temporary Team organizational structure Centered on work teams or groups Team can be temporary or permanent, depending on tasks Principles of Information Systems, Ninth Edition

Project and Team Organizational Structures (continued) Principles of Information Systems, Ninth Edition

Virtual Organizational Structure and Collaborative Work Employs business units in geographically dispersed areas People may never meet face to face Allows collaborative work Managers and employees can effectively work in groups, even those composed of members from around the world Principles of Information Systems, Ninth Edition

Organizational Culture and Change Major understandings and assumptions Influences information systems Organizational change How organizations plan for, implement, and handle change Change model Represents change theories by identifying phases of change and the best way to implement them Principles of Information Systems, Ninth Edition

Organizational Culture and Change (continued) Unfreezing Ceasing وقف old habits and creating a climate that is receptive يستقبل to change Moving Learning new work methods, behaviors, and systems Refreezing Involves reinforcing changes to make the new process second nature, accepted, and part of the job Principles of Information Systems, Ninth Edition

Organizational Culture and Change (continued) Principles of Information Systems, Ninth Edition

Reengineering and Continuous Improvement Process redesign Radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough اختراق in business results Continuous improvement Constantly seeking ways to improve business processes Principles of Information Systems, Ninth Edition

Reengineering and Continuous Improvement (continued) Principles of Information Systems, Ninth Edition

Reengineering and Continuous Improvement (continued) Merchandising الترويج Rationale الاساس المنطقي Principles of Information Systems, Ninth Edition

Reengineering and Continuous Improvement (continued) Principles of Information Systems, Ninth Edition

User Satisfaction and Technology Acceptance Technology acceptance model (TAM) Specifies the factors that can lead to better attitudes مواقف about the information system Technology diffusion نشر Measure of how widely technology is spread throughout an organization Technology infusion صب Extent to which technology permeates يتخلل a department Principles of Information Systems, Ninth Edition

Quality Ability of a product or service to meet or exceed customer expectations Techniques used to ensure quality Total quality management Six Sigma Principles of Information Systems, Ninth Edition

Outsourcing, On-Demand Computing, and Downsizing Contracting with outside professional services On-demand computing Contracting for computer resources to rapidly respond to an organization’s varying workflow Also called on-demand business or utility computing Downsizing Reducing number of employees Principles of Information Systems, Ninth Edition

Competitive Advantage Significant and (ideally) long-term benefit to a company over its competition Ability to establish and maintain competitive advantage is vital to the company’s success Principles of Information Systems, Ninth Edition

Factors That Lead Firms شركات to Seek Competitive Advantage Rivalry منافسة among existing competitors Threat تهديد of new entrants منافسين جدد Threat of substitute products and services Bargaining مساومة power of customers and suppliers Principles of Information Systems, Ninth Edition

Strategic Planning for Competitive Advantage Cost leadership قيادة التكلفة Differentiation التفاضل Niche strategy استراتيجية المتخصصة Altering the industry structure تغيير هيكل الصناعة Principles of Information Systems, Ninth Edition

Strategic Planning for Competitive Advantage (continued) Creating new products and services Improving existing product lines and service Other strategies Growth in sales First to market Customizing products and services Hiring the best people Principles of Information Systems, Ninth Edition

Performance-Based Information Systems Major stages in the use of information systems Cost reduction and productivity Competitive advantage Performance-based management Principles of Information Systems, Ninth Edition

Performance-Based Information Systems (continued) Principles of Information Systems, Ninth Edition

Productivity A measure of output achieved divided by input required Higher level of output for a given level of input means greater productivity Productivity = (Output / Input) × 100% Principles of Information Systems, Ninth Edition

Return on Investment and the Value of Information Systems Earnings growth نمو الأرباح Market share and speed to Market Customer awareness and satisfaction Total cost of ownership Principles of Information Systems, Ninth Edition

Risk Information systems can sometimes be costly failures Costs of development and implementation can be greater than the returns from the new system Principles of Information Systems, Ninth Edition

Careers in Information Systems Degree programs Degrees in information systems Business degrees with a global or international orientation Students are increasingly completing business degrees with a global or international orientation Opportunities in information systems are not confined to single countries Principles of Information Systems, Ninth Edition

Roles, Functions, and Careers in IS Primary responsibilities in information systems Operations Systems development Support Information service units Principles of Information Systems, Ninth Edition

Typical IS Titles and Functions Chief information officer (CIO) Employs the IS department’s equipment and personnel to help the organization attain its goals LAN administrators Set up and manage the network hardware, software, and security processes Principles of Information Systems, Ninth Edition

Typical IS Titles and Functions (continued) Internet careers Internet strategists and administrators Internet systems developers Internet programmers Internet or Web site operators Certification Process for testing skills and knowledge resulting in an endorsement موافقة by the certifying authority Principles of Information Systems, Ninth Edition

Other IS Careers New and exciting careers have developed in security and fraud detection and prevention Other IS career opportunities include being employed by technology companies, such as: Microsoft (www.microsoft.com), Google (www.google.com), Dell (www.dell.com), and many others Principles of Information Systems, Ninth Edition

Finding a Job in IS Developing an online résumé can be critical to finding a good job Job search approaches On campus visits Referrals from professors, friends, and family members The Internet Online job sites Company Web sites Social networking sites Blogs Principles of Information Systems, Ninth Edition

Summary Organizations Categories of organizational structure Systems with inputs, transformation mechanisms, and outputs Categories of organizational structure Traditional, project, team, and virtual Organizational culture Major understandings and assumptions Reengineering Radical redesign of business processes, organizational structures, information systems, and values of the organization Principles of Information Systems, Ninth Edition

Summary (continued) Continuous improvement Outsourcing Downsizing Constantly seeking ways to improve business processes Outsourcing Contracting with outside professional services Downsizing Reducing number of employees Competitive advantage Significant, and (ideally) long-term benefit to a company over its competition Principles of Information Systems, Ninth Edition

Summary (continued) Performance-based information systems Productivity Consider both strategic advantage and costs Productivity Measure of output achieved divided by input required Primary responsibilities in information systems Operations, systems development, and support Typical IS titles Chief Information Officer (CIO), LAN administrators, and Internet strategists Principles of Information Systems, Ninth Edition

Principles and Learning Objectives The use of information systems to add value to the organization is strongly influenced by organizational structure, culture, and change Identify the value-added processes in the supply chain and describe the role of information systems within them Provide a clear definition of the terms organizational structure, culture, and change and discuss how they affect the implementation of information systems Principles of Information Systems, Ninth Edition 46 46

Principles and Learning Objectives (continued) Because information systems are so important, businesses need to be sure that improvements or completely new systems help lower costs, increase profits, improve service, or achieve a competitive advantage Identify some of the strategies employed to lower costs or improve service Define the term competitive advantage and discuss how organizations are using information systems to gain such an advantage Discuss how organizations justify the need for information systems Principles of Information Systems, Ninth Edition 47 47

Principles and Learning Objectives (continued) Cooperation between business managers and IS personnel is the key to unlocking the potential of any new or modified system Define the types of roles, functions, and careers available in the field of information systems Principles of Information Systems, Ninth Edition 48 48

Review question #2