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The use of information systems to add value to the organization is strongly influenced by organizational structure, culture, and change. Changes in the org. will cause changes in IS Changes in IS and Technology will change the org. A good example is ERP.

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slide2
The use of information systems to add value to the organization is strongly influenced by organizational structure, culture, and change.
  • Changes in the org. will cause changes in IS
  • Changes in IS and Technology will change the org. A good example is ERP.
  • What role will you play in Org. structure, culture, change management and decisions regarding the use of IS’s?

Principles of Information Systems, Seventh Edition

slide3
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
    • TCO is used to help measure ROI
  • What is ROI and why is it important to organizations.

Principles of Information Systems, Seventh Edition

organizations and information systems
Organizations and Information Systems
  • Organization: a formal collection of people and other resources established to accomplish a set of goals.
  • Are there any org’s within the same industry that are exactly the same??? Do organizations change over time?
  • An organization is a system
    • Inputs to the system: resources such as materials, people, and money. (land, labor, and capital
    • Outputs to the environment: goods or services

Principles of Information Systems, Seventh Edition

organizations and information systems continued
Organizations and Information Systems (continued)
  • Value chain: a series (chain) of activities that includes inbound logistics, warehouse and storage, production, finished product storage, outbound logistics, marketing and sales, and customer service
  • Upstream management: management of raw materials, inbound logistics, and warehouse and storage facilities
  • Downstream management: management of finished product storage, outbound logistics, marketing and sales, and customer service

Principles of Information Systems, Seventh Edition

value chain again
Value Chain, again
  • Why is the concept of the value chain important??
  • Cone’s answer.
    • Always looking at all processes and activities determining how you can change, add, or delete processes with information systems to add value to products or services.
    • This will be in your realm as a decision maker. The only way that you will be successful in your own business or by working for a business is to make “good” decisions.

Principles of Information Systems, Seventh Edition

organizational structure
Organizational Structure
  • Organizational structure: organizational subunits and their relationship with the overall organization
  • Categories of organizational structure:
    • Traditional
    • Project
    • Team
    • Multidimensional
    • Virtual

Principles of Information Systems, Seventh Edition

traditional organizational structure
Traditional Organizational Structure
  • A hierarchical structure
  • Major department heads report to a president or top-level manager
  • A managerial pyramid shows the hierarchy of decision making and authority

Principles of Information Systems, Seventh Edition

figure 2 3 a simplified organizational model showing the managerial pyramid
Figure 2.3: A simplified organizational model, showing the managerial pyramid

What does this do with making decisions ???

Principles of Information Systems, Seventh Edition

figure 2 4 a traditional organizational structure
Figure 2.4: A Traditional Organizational Structure

Principles of Information Systems, Seventh Edition

project organizational structure
Project Organizational Structure
  • Centered around major products or services
  • Temporary project teams

Principles of Information Systems, Seventh Edition

team organizational structure
Team Organizational Structure
  • Centered on work teams or groups
  • Temporary or permanent teams
  • Various sizes

Principles of Information Systems, Seventh Edition

multidimensional organizational structure
Multidimensional Organizational Structure
  • May incorporate several structures at the same time
  • Advantage: ability to simultaneously stress both traditional corporate areas and important product lines
  • Disadvantage: multiple lines of authority

Principles of Information Systems, Seventh Edition

virtual organizational structure and collaborative work
Virtual Organizational Structure and Collaborative Work
  • Employs individuals, groups, or business units in geographically dispersed areas
  • People may never meet face to face
    • A job is not necessarily a place you go to.
  • Can be permanent or temporary
  • Collaborative work: managers and employees can effectively work in groups around the world

Principles of Information Systems, Seventh Edition

reengineering
Reengineering
  • Process redesign
  • Radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results

Principles of Information Systems, Seventh Edition

figure 2 8 reengineering
Figure 2.8: Reengineering

Principles of Information Systems, Seventh Edition

continuous improvement
Continuous Improvement
  • Constantly seeking ways to improve business processes
  • Benefits:
    • Increased customer loyalty
    • Reduced customer dissatisfaction
    • Reduced opportunity for competitive inroads

Principles of Information Systems, Seventh Edition

technology diffusion infusion and acceptance
Technology Diffusion, Infusion, and Acceptance
  • Technology diffusion: measure of how widespread the use of technology is in an organization
  • Technology infusion: extent to which technology permeates a department

Principles of Information Systems, Seventh Edition

technology diffusion infusion and acceptance1
Technology Diffusion, Infusion, and Acceptance
  • Technology Acceptance Model (TAM): specifies factors that can lead to higher usage of technology in an organization such as
  • The perceived usefulness of the tech.
  • The ease of its use
  • The quality of the IS
  • The degree to which the org. supports the use of the IS. What else????

Principles of Information Systems, Seventh Edition

technology diffusion infusion and acceptance2
Technology Diffusion, Infusion, and Acceptance
  • What is the best mixture of the diffusion, infusion, and acceptance for best performance and profitability ???

Principles of Information Systems, Seventh Edition

outsourcing on demand computing and downsizing
Outsourcing, On-Demand Computing, and Downsizing
  • Outsourcing: contracting with outside professionals
  • On-demand computing: contracting for computer resources to rapidly respond to an organization’s varying workflow
  • Downsizing: reducing the number of employees in an organization to cut costs. Usually the result of what???

Principles of Information Systems, Seventh Edition

competitive advantage
Competitive Advantage
  • Competitive advantage: significant, long-term benefit to a company over its competition
    • Once you achieve competitive advantage using IS’s you can usually keep it for a rather long time. Agree? Why?
  • Ability to establish and maintain a competitive advantage is vital to a company’s success

Principles of Information Systems, Seventh Edition

factors that lead firms to seek competitive advantage
Factors That Lead Firms to Seek Competitive Advantage
  • Rivalry among existing competition
  • Threat of new entrants
  • Threat of substitute products and services
  • Bargaining power of customers and suppliers

Principles of Information Systems, Seventh Edition

table 2 4 competitive advantage factors and strategies
Table 2.4: Competitive Advantage Factors and Strategies

Principles of Information Systems, Seventh Edition

major stages in the use of is
Major Stages in the Use of IS
  • 1960’s. Oriented toward cost reduction and productivity. Ignored the revenue side.
  • 1980’s. Oriented toward spending large amounts on IS and ignoring the costs.
  • Today. Performance based information systems.
    • Next Slide.

Principles of Information Systems, Seventh Edition

performance based information systems
Performance-Based Information Systems
  • Considers both strategic advantage and costs
  • Uses productivity, return on investment (ROI), net present value, and other measures of performance

Principles of Information Systems, Seventh Edition

productivity
Productivity
  • A measure of output achieved divided by input required
  • Higher level of output for a given level of input means greater productivity
  • Measured by OPMH

Principles of Information Systems, Seventh Edition

return on investment and the value of information systems
Return on Investment and the Value of Information Systems
  • Earnings growth
  • Market share
  • Customer awareness and satisfaction
  • Total cost of ownership

Principles of Information Systems, Seventh Edition

roles functions and careers in the information systems department
Roles, Functions, and Careers in the Information Systems Department
  • Primary responsibilities in information systems
    • Operations: focuses on the efficiency of information systems functions
    • Systems development: focuses on specific development projects and ongoing maintenance and review
    • Support: provides user assistance

Principles of Information Systems, Seventh Edition

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