Information Technology and Organizational Decision Making

1. Information Technology and Organizational Decision Making

2. Motivation for creating a theory of effects of advances IT on organizations • Reinvestigate the effects of IT on organization • Create a theory of the effects of advance IT on organization • Integration • Practical, administrative importance

3. Reinvestigate the effects of IT on organization • Effectiveness of Advanced IT • Communication medium • Face to face reporting Vs e-mail • Computer-assisted decision-aiding technologies • Expert systems, decision-support system

4. Crate a theory of the effects of IT on organization • To explore and understand the effects of advances IT has on an organization. • To set a standard theory concerning the effects of advanced information technologies on organizations.

5. Integration • To help researchers in each of the fields to become more aware of the existence, content, and relevance of the work done by researchers in other fields by putting all their works into one theory

6. Practical, administrative importance • In the absence of experience, the value of theory is important to administrators or advisors when implementing advances IT onto the organization

7. Traditional information technologies • Operating software • Microsoft Windows XP • Computers • “Simple” application • Microsoft Offices, and Quick Book

8. Advance information technologies • Transmit, manipulate, analyze, or exploit information • Digital computer processes information integral to the user’s communication or decision support

9. Nature of advance IT • Two characteristics • Basic characteristics of advance IT • Properties of advance IT

10. Basic characteristics of advance IT • Data storage capacity • Hard drive, removable media, and tapes • Transmission capacity • WAN, LAN, and wireless technologies • Processing capacity • CPU processing power, memory storage, and Databases processing

11. Properties of advance IT • More relevant to task • Improve the overall performance of user • Support user every day task

12. Example of properties of advance IT • Communication • Ability to communicate more easily and less expensively • Ability to communicate more rapidly and with greater precision to targeted groups • Ability to record and index more reliably and inexpensively the content and nature of communication events • Selectively control access and participation in a communication event or network

13. Example of properties of IT • Decision aiding • Store and retrieve large amounts of information more quickly and inexpensively • More rapidly and selectively access information created outside the organization • More rapidly and accurately combine and reconfigure information so as to create new information • More compactly store and quickly use the judgment and decision models developed in the minds of experts • More reliably and inexpensively record and retrieve information about content and nature of organizational transactions

14. Mistaken impressions on advances IT • Advanced IT does not replace traditional IT, but a supplements to traditional IT • There are no inferior or superior between advances IT and traditional IT (working side by side) to improve users productive

15. Environments affecting advance IT • External environments of many organizations are sufficiently competitive that, in order to survive, the organizations must adopt and properly use rationality-enhancing communication and decision-aiding technologies. • Outside Competition drive the implementation and usage of advance IT to gain advantage over the competitions

16. Environments affecting advance IT • Highly politicized or power-driven organizations which also have highly competitive internal environments, and in such environments it is necessary for managers to maximize their own competitive effectiveness by appearing to satisfy the goals of resource controllers on an issue-by-issue basis. • Internal competition between department drive the implementation and usage of advance IT

17. Environments affecting advance IT • Almost all organizations, effective fulfillment of organizational responsibilities contributes to the development and maintenance of a manager’s reputation. • Mangers try to use advance IT to his or her personal effectiveness to maintain his or her reputation

18. Effect at the subunit level • Participation in decision making • Size and heterogeneity of decision units • Frequency and duration of the meetings

19. Effect at the subunit level What is the effect of the computer-assisted communication technology on the breadth of participation in decision making?

20. Effect at the subunit level • Proposition 1: Use of computer-assisted communication technologies leads to a larger number and variety of people participating as information sources in the making of a decision.

21. Proposition 1 • Reduce effort to gather and exchange information • internet, information system, database • Increase number of people participating in decision making process • More research, less expert • Speed up the information gathering process

22. Limitation on Proposition 1 • Increase in participation might not lead to higher quality decisions • Might not increase practical significance • Might not even be more effective (too much input)

23. Effect at the subunit level What is the effect of computer-assisted communication and decision-support technology on the size and heterogeneity of decision units?

24. Effect at the subunit level • Proposition 2: Use of computer-assisted communication and decision-support technologies leads to decrease in the number and variety of members comprising the traditional face-to-face decision unit.

25. Proposition 2 • Experts replaced by expert systems • Information keepers replaced by management information system • Face-to-face decision unit replaced by e-mail communication, teleconferencing or videoconferencing

26. Effect at the subunit level What is or what will be the effect of computer-assisted communication and decision-support technologies on the time absorbed by meetings?

27. Effect at the subunit level • Proposition 3: Use of Computer-assisted communication and decision support technologies results in less of the organization’s time being absorbed by decision related meetings

28. Proposition 3: • Decrease in traditional face-to-face decision unit • Replace with short “mini-meetings” • More informal meetings

29. Conclusion • Effects of Advances IT at the subunit level • Increase the participation in the decision making • Decrease the number of members comprising traditional face-to-face decision unit • Less time spend on decision related meetings

30. Thank you for your time! Question?