1. 3.1 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND STRATEGY

2. 3.2 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy What do we need to know about organizations in order to build and use information systems successfully?What do we need to know about organizations in order to build and use information systems successfully? What impact do information systems have on organizations?What impact do information systems have on organizations? How do information systems support the activities of managers?How do information systems support the activities of managers? How can businesses use information systems for competitive advantage?How can businesses use information systems for competitive advantage? Why is it so difficult to build successful information systems?Why is it so difficult to build successful information systems? OBJECTIVES

3. 3.3 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy ORGANIZATIONS AND INFORMATION SYSTEMS

4. 3.4 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy Definition of Organization: Stable, formal social structureStable, formal social structure Takes resources from environmentTakes resources from environment raw materials labour capital Processes resources to produce outputsProcesses resources to produce outputs Collection of rights and responsibilities delicately balanced through conflict resolutionCollection of rights and responsibilities delicately balanced through conflict resolution ORGANIZATIONS AND INFORMATION SYSTEMS

5. 3.5 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy ORGANIZATIONS AND INFORMATION SYSTEMS

6. 3.6 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy ORGANIZATIONS AND INFORMATION SYSTEMS

7. 3.7 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy ORGANIZATIONS AND INFORMATION SYSTEMS Common Features of Organizations: Hierarchy with clear division of labourHierarchy with clear division of labour Standard Operating Procedures (SOP’s)Standard Operating Procedures (SOP’s) often unwritten, yet hard to change focused on efficiency, not ease of use Culture - assumptions about:Culture - assumptions about: What products the organization should produce How, where and for whom Divergent viewpoints lead to political conflict which hinders changeDivergent viewpoints lead to political conflict which hinders change

8. 3.8 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy Organizational Structures Entrepreneurial:Entrepreneurial: – –Start-up business Machine bureaucracy:Machine bureaucracy: – –Midsize manufacturing firm Divisionalized bureaucracy:Divisionalized bureaucracy: – –Fortune 500 Professional bureaucracy:Professional bureaucracy: – –Law firms, hospitals, school systems Adhocracy:Adhocracy: – –Consulting firm ORGANIZATIONS & INFORMATION SYSTEMS

9. 3.9 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy What do we need to know about organizations in order to build and use information systems successfully?What do we need to know about organizations in order to build and use information systems successfully? What impact do information systems have on organizations?What impact do information systems have on organizations? How do information systems support the activities of managers?How do information systems support the activities of managers? How can businesses use information systems for competitive advantage?How can businesses use information systems for competitive advantage? Why is it so difficult to build successful information systems?Why is it so difficult to build successful information systems? OBJECTIVES

10. 3.10 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy INFORMATION SYSTEMS IMPACT IS IS can help identify external changes that require a response

11. 3.11 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy INFORMATION SYSTEMS IMPACT

12. 3.12 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy INFORMATION SYSTEMS IMPACT

13. 3.13 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy INFORMATION SYSTEMS IMPACT

14. 3.14 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy Virtual Organization: Uses networks to link people, assets, and ideas to create and distribute products and services without being limited to traditional organizational boundaries or physical locationsUses networks to link people, assets, and ideas to create and distribute products and services without being limited to traditional organizational boundaries or physical locations e.g. Calyx and Corollae.g. Calyx and Corolla INFORMATION SYSTEMS IMPACT

15. 3.15 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy What do we need to know about organizations in order to build and use information systems successfully?What do we need to know about organizations in order to build and use information systems successfully? What impact do information systems have on organizations?What impact do information systems have on organizations? How do information systems support the activities of managers?How do information systems support the activities of managers? How can businesses use information systems for competitive advantage?How can businesses use information systems for competitive advantage? Why is it so difficult to build successful information systems?Why is it so difficult to build successful information systems? OBJECTIVES

16. 3.16 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy Classical Model of Management: Traditional, focuses on formal functions:Traditional, focuses on formal functions: –plan, organize, coordinate, decide, control Behavioral Model of Management: Describes management based on observations of managers on the jobDescribes management based on observations of managers on the job much less formal, structuredmuch less formal, structured preference for oral reports, diverse contactspreference for oral reports, diverse contacts IS SUPPORT OF MANAGEMENT

17. 3.17 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy IS SUPPORT OF MANAGEMENT

18. 3.18 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy Systems Should Be Designed with the Following Characteristics: Flexible - provide many options for handling data and evaluating informationFlexible - provide many options for handling data and evaluating information Capable of supporting a variety of stylesCapable of supporting a variety of styles Keep track of many alternativesKeep track of many alternatives Sensitive to the organization’s bureaucratic and political requirementsSensitive to the organization’s bureaucratic and political requirements IS SUPPORT OF MANAGEMENT

19. 3.19 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy What do we need to know about organizations in order to build and use information systems successfully?What do we need to know about organizations in order to build and use information systems successfully? What impact do information systems have on organizations?What impact do information systems have on organizations? How do information systems support the activities of managers?How do information systems support the activities of managers? How can businesses use information systems for competitive advantage?How can businesses use information systems for competitive advantage? Why is it so difficult to build successful information systems?Why is it so difficult to build successful information systems? OBJECTIVES

20. 3.20 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy USE OF IS FOR COMPETETIVE ADVANTAGE Strategic Information System Computer system at any level of an organizationComputer system at any level of an organization Changes goals, operations, products, services, or environmental relationshipsChanges goals, operations, products, services, or environmental relationships Helps organization gain a competitive advantageHelps organization gain a competitive advantageEg: Value WebsValue Webs Product differentiationProduct differentiation Focused DifferentiationFocused Differentiation Efficient customer response systemEfficient customer response system

21. 3.21 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy USE OF IS FOR COMPETETIVE ADVANTAGE Value Web: Customer-driven network of independent firmsCustomer-driven network of independent firms Uses information technology to collectively produce a product or serviceUses information technology to collectively produce a product or service

22. 3.22 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy USE OF IS FOR COMPETETIVE ADVANTAGE

23. 3.23 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy USE OF IS FOR COMPETETIVE ADVANTAGE Product Differentiation: –Creates brand loyalty by developing new and unique products and services –Products and services not easily duplicated by competitors –eg: Citibank’s invention

24. 3.24 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy USE OF IS FOR COMPETETIVE ADVANTAGE Focused Differentiation: –Developing new market niches for specialized services or products –Helps businesses compete better than competitors in the target areas –eg: HBC analyzes purchase data to plan promotions to exisiting customers cost of acquiring a new customer is 5 x cost of retaining existing one

25. 3.25 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy USE OF IS FOR COMPETETIVE ADVANTAGE Efficient Customer Response System: directly links customer’s system to vendor’s SCM systemdirectly links customer’s system to vendor’s SCM system raises ‘switching costs’raises ‘switching costs’ –Expense incurred by a customer when changing from one supplier to another

26. 3.26 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy USE OF IS FOR COMPETETIVE ADVANTAGE

27. 3.27 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy What do we need to know about organizations in order to build and use information systems successfully?What do we need to know about organizations in order to build and use information systems successfully? What impact do information systems have on organizations?What impact do information systems have on organizations? How do information systems support the activities of managers?How do information systems support the activities of managers? How can businesses use information systems for competitive advantage?How can businesses use information systems for competitive advantage? Why is it so difficult to build successful information systems?Why is it so difficult to build successful information systems? OBJECTIVES

28. 3.28 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy 1.Sustaining competitive advantage 2.Adopting strategic systems demands changes in the organization -do we adapt the organization to the technology or vice versa? -should IT experts design systems without user involvement? MANAGEMENT CHALLENGES

29. 3.29 Copyright © 2005 Pearson Education Canada Inc. Management Information Systems, Second Canadian Edition Chapter 3: Information Systems, Organizations, Management, and Strategy INFORMATION SYSTEMS, ORGANIZATIONS, MANAGEMENT, AND STRATEGY