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2. What do managers need to know about organizations in order to build and use information systems successfully?
What impact do information systems have on organizations?
How do information systems support the activities of managers in organizations?
3. Sustainability of competitive advantage.
Fitting technology to the organization( or vice-versa)
14. All organizations have different:
Leadership Styles, Tasks
15. Entrepreneurial: Start up business
Machine bureaucracy: Midsize manufacturing firm
Divisionalized bureaucracy: Fortune 500
Professional bureaucracy: Law firms, hospitals, school systems
Adhocracy: Consulting firm
18. Information systems department:
Formal organizational unit
Responsible for information systems in the organization
20. Includes specialists:
Programmers: Highly trained, write software
Systems analysts: Translate business problems into solutions, act as liaisons between the information systems department and rest of the organization
21. Specialists (cont.):
Information system managers: Leaders of various specialiststeams
Chief information officer (CIO): Senior manager in charge of information systems function in the firm
End users: Department representatives outside the information system department for whom applications are developed
22. Economic Theories :
Information technology is a factor of production, like capital and labor.
Transaction Cost Theory:
Firms can conduct marketplace transactions internally more cheaply to grow larger.
23. Transaction Cost Theory
Agency Cost Theory: Firm is nexus of contracts among self-interested parties requiring supervision.
25. Agency Cost Theory
26. Behavioral Changes :
Information technology could change hierarchy of decision making
Lower cost of information acquisition
Broadens the distribution of information
27. Virtual Organization:
Task force networked organizations.
Uses networks to link people, assets, and ideas to create and distribute products and services without being limited to physical locations
28. Increasing the Flexibility of Organization
1. Increasing the ability :
To sense and respond to changes in marketplace.
To take advantage of new opportunities,
2. Mass customization,
3. Micromarketing for niche products
30. 2. Affect on Roles of Managers in Organizations :
Interpersonal: Managers act as figureheads and leaders
Informational: Managers receive and disseminate critical information, nerve centers
Decisional: Managers initiate activities, allocate resources, and negotiate conflicts
31. Process of Decision Making at Various Management levels :
Strategic Decision Making: Determines long-term objectives, resources, and policies.
Management Control: Monitors effective or efficient usage of resources and performance of operational units
32. Operational Control: Determines how to perform specific tasks set by strategic and middle-management decision makers
Knowledge-level Decision Making: Evaluates new ideas for products, services, ways to communicate new knowledge, ways to distribute information
33. Decisions are classified as:
Unstructured: Non routine, decision maker provides judgment, evaluation, and insights into problem definition, no agreed-upon procedure for decision making.
Structured: Repetitive, routine, handled using a definite procedure.
35. Intelligence: Collect information, identify problem.
Design: Conceive alternative solution to a problem
Choice: Select among the alternative solutions
Implementation: Put decision into effect and provide report on the progress of solution
37. Rational Model: Choosing best alternative rationally.
Organizational Model : Group decision.
Bureaucratic Model : Based on SOP
Political Model : Compromises.
38. Factors to consider while planning a
Organizational structure, hierarchy, specialization, standard operating procedures
39. Culture and politics of the organization
Type of organization and its style of leadership.
Groups affected by the system and the attitudes of workers who will be using the system.
Kinds of tasks, decisions, and business processes, information system is designed to assist.
40. System Characteristics to be kept in mind while designing new systems:
Flexibility and multiple options for handling data and evaluating information
Capability to support a variety of styles, skills, and knowledge
41. System Characteristics to be kept in mind while designing new systems:
Capability to keep track of many alternatives and consequences
Sensitivity to the organizations bureaucratic and political requirements.