INFORMATION SYSTEMS, ORGANIZATIONS, & BUSINESS PROCESSES

ORGANIZATIONS & INFORMATION TECHNOLOGY MEDIATING FACTORS: Environment Culture Structure Standard Procedures Politics Management Decisions Chance ORGANIZATIONS INFORMATION TECHNOLOGY 3.3

INFORMATION SYSTEM INFORMATIONSYSTEM BUSINESSCHALLENGE BUSINESSSOLUTIONS MANAGEMENTINFORMATIONTECHNOLOGYORGANIZATION 3.2 MANAGING CHANGE FITTING TECHNOLOGY TO ORGANIZATION LIMITS OF TECHNOLOGY

MICROECONOMIC DEFINITION OF ORGANIZATION INPUT FROM ENVIRONMENT OUTPUT TO ENVIRONMENT PRODUCTION PROCESS FEEDBACK ORGANIZATION 3.4

BEHAVIORAL VIEW OF ORGANIZATIONS STRUCTURE: Hierarchy Division of labor Rules, Procedures PROCESS: Rights/Obligations Privileges/Responsibilities Values Norms People * ENVIRONMENTAL RESOURCES ENVIRONMENTAL OUTPUTS 3.5

STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONS CLEAR DIVISION OF LABOR HIERARCHY EXPLICIT RULES & PROCEDURES IMPARTIAL JUDGMENTS TECHNICAL QUALIFICATIONS MAXIMUM ORGANIZATIONAL EFFICIENCY * 3.6

ORGANIZATIONAL STRUCTURES ENTREPRENEURIAL: Start up business MACHINE BUREAUCRACY: Mid-sized manufacturing firm DIVISIONALIZED BUREAUCRACY: Fortune 500 PROFESSIONAL BUREAUCRACY: Law firms, hospitals ADHOCRACY: Consulting firm * 3.7

SALIENT FEATURES OF ORGANIZATIONS COMMON FEATURES: FORMAL STRUCTURE STANDARD OPERATING PROCEDURES POLITICS CULTURE * 3.8

SALIENT FEATURES OF ORGANIZATIONS UNIQUE FEATURES: ORGANIZATIONAL TYPE ENVIRONMENTS, GOALS, POWER CONSTITUENCIES, FUNCTION LEADERSHIP, TASKS TECHNOLOGY LEVELS * 3.9

ORGANIZATION & ITS ENVIRONMENT THE FIRM INFORMATION SYSTEMS 3.10

ORGANIZATION & ITS ENVIRONMENT THE FIRM INFORMATION SYSTEMS THE ENVIRONMENT: RESOURCES & CONSTRAINTS GOVERNMENTS COMPETITORS FINANCIAL INSTITUTIONS CULTURE KNOWLEDGE TECHNOLOGY 3.11

ORGANIZATIONAL LEVELS & SUPPORT SYSTEMS INDIVIDUAL GROUP DEPARTMENT ORGANIZATION INTERORGANIZATION ORGANIZATIONAL NETWORK * 3.12

ORGANIZATIONAL LEVELS & SUPPORT SYSTEMS INDIVIDUAL: ACTIVITY: Job, task SUPPORT: Client database, DSS GROUP: ACTIVITY: Project SUPPORT: Product scheduling, access to TPS, external sources, dynamic info needs, group DSS * 3.13

ORGANIZATIONAL LEVELS & SUPPORT SYSTEMS DEPARTMENT: ACTIVITY: Major function SUPPORT: Accounts payable; payroll; marketing; MIS; TPS DIVISION: ACTIVITY: Major product, service SUPPORT: Systems to support functions; MIS; TPS; on-line * 3.14

ORGANIZATIONAL LEVELS & SUPPORT SYSTEMS ORGANIZATION: ACTIVITY: Multiple products, services, goals SUPPORT: Integrated on-line, interactive financial & planning systems; MIS; ESS * 3.15

ORGANIZATIONAL LEVELS & SUPPORT SYSTEMS INTERORGANIZATION: ACTIVITY: Alliance; competition; exchange; contact SUPPORT: Communication systems; intelligence, observation, monitoring systems * 3.16

ORGANIZATIONAL LEVELS & SUPPORT SYSTEMS ORGANIZATIONAL NETWORK: ACTIVITY: Sector of economy; related products, services; interdependencies SUPPORT: Informal communication systems; industry / sector-level formal reporting systems * 3.17

WORK GROUPS, PROBLEMS, SUPPORT TYPES: HIERARCHICAL INTERDEPARTMENTAL COMMITTEES PROJECT TEAMS COMMITTEES TASK FORCES PEER GROUPS / SOCIAL NETWORKS * 3.18

WORK GROUPS, PROBLEMS, SUPPORT PROBLEMS: MAKING ARRANGEMENTS ATTENDING MEETINGS LONG AGENDAS COST OF MEETINGS BETWEEN-MEETING ACTIVITIES * 3.19

WORK GROUPS, PROBLEMS, SUPPORT SUPPORT: HIERARCHICAL: Video conferencing; INTERDEPARTMENTAL COMMITTEES: Electronic messaging * 3.20

WORK GROUPS, PROBLEMS, SUPPORT SUPPORT: PROJECT TEAMS: Scheduling software; Meeting support tools; Documents; Intranet COMMITTEES: e-bulletin boards; Video conferencing; ; Computer conferencing * 3.21

WORK GROUPS, PROBLEMS, SUPPORT SUPPORT: TASK FORCES: Graphics display; Info utility; Documents; Meeting support tools PEAR GROUPS / SOCIAL NETWORKS: Telephone; ; Correspondence * 3.22

THE COMPUTER PACKAGE ORGANIZATION: Senior Management; Major end users INFORMATION SYSTEMS DEPARTMENT  Technology: Hardware; Software  Information Systems Specialists * 3.23

THE COMPUTER PACKAGE INFORMATION SPECIALISTS: Managers Systems analysts Systems designers Systems programmers Applications programmers Maintenance programmers Database administrator * 3.24

WHAT SOME SPECIALISTS DO PROGRAMMERS: Write software SYSTEMS ANALYSTS: Translate business problems into solutions IS MANAGERS: Department leaders END USERS: Department reps for whom applications are developed * 3.25

SYSTEM DEVELOPMENT PROCESS EXTERNAL Uncertainties Opportunities INTERNAL Values Norms Interests SYSTEM DEVELOPMENT Adoption Utilization Management SYSTEM DEVELOPMENT Adoption Utilization Management 3.26

HOW INFO SYSTEMS AFFECT ORGANIZATIONS MICROECONOMIC THEORY: Info technology is a factor of production, like capital & labor TRANSACTION COST THEORY: Firms attempt to minimize transaction costs internally & externally * 3.27

HOW INFO SYSTEMS AFFECT ORGANIZATIONS AGENCY THEORY: Firm is nexus of contracts among agents who make decisions; IS shrink number of agents & reduce cost BEHAVIORAL THEORIES: Concepts from Sociology, Psychology, Political Science; Organizations & Information Technology mutually influence each other * 3.28

HOW INFO SYSTEMS AFFECT ORGANIZATIONS DECISION & CONTROL THEORY: Decisions are made under conditions of risk & uncertainty; centralization & hierarchy reduce uncertainty SOCIOLOGICAL THEORY: Bureaucracy, SOPs help stabilize organizations, but slow ability to change * 3.29

HOW INFO SYSTEMS AFFECT ORGANIZATIONS POSTINDUSTRIAL THEORY: Flatter organizations; dominated by knowledge workers; decentralized decision making CULTURAL THEORY: Info technology must fit organization’s culture to be accepted * 3.30

HOW INFO SYSTEMS AFFECT ORGANIZATIONS POLITICAL THEORY: Info systems are outcome of political competition for policies, procedures, resources * 3.31

IMPLEMENTING CHANGE Source: Leavitt, Handbook of Organization (1965) TASK PEOPLETECHNOLOGY STRUCTURE RESISTANCE MUTUAL ADJUST MENT 3.32

HOW WEB AFFECTS ORGANIZATIONS MORE INFO, ANYWHERE, ANYTIME MORE SCOPE, DEPTH, RANGE OF KNOWLEDGE: Global encyclopedia LOWERS COST, RAISES QUALITY OF INFO DISTRIBUTION: Enhances attention span of vendors, customers, employees * 3.33

3. INFORMATION SYSTEMS, ORGANIZATIONS, & BUSINESS PROCESSES 3.34