Management Information Systems, Second Canadian Edition
Chapter 3: Information Systems, Organizations, Management, and Strategy
INFORMATION
SYSTEMS,
ORGANIZATIONS,
MANAGEMENT,
AND STRATEGY
3.1
Copyright © 2005 Pearson Education Canada Inc.
Management Information Systems, Second Canadian Edition
Chapter 3: Information Systems, Organizations, Management, and Strategy
OBJECTIVES
• 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?
• How do information systems support the activities of
managers?
• How can businesses use information systems for
competitive advantage?
• Why is it so difficult to build successful information
systems?
3.2
Copyright © 2005 Pearson Education Canada Inc.
Management Information Systems, Second Canadian Edition
Chapter 3: Information Systems, Organizations, Management, and Strategy
ORGANIZATIONS AND INFORMATION SYSTEMS
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
Definition of Organization:
• Stable, formal social structure
• Takes resources from environment
• raw materials
• labour
• capital
• Processes resources to produce outputs
• Collection of rights and responsibilities delicately
balanced through conflict resolution
3.4
Copyright © 2005 Pearson Education Canada Inc.
Management Information Systems, Second Canadian Edition
Chapter 3: Information Systems, Organizations, Management, and Strategy
ORGANIZATIONS AND INFORMATION SYSTEMS
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
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
Common Features of Organizations:
• Hierarchy with clear division of labour
• Standard Operating Procedures (SOP’s)
• often unwritten, yet hard to change
• focused on efficiency, not ease of use
• Culture - assumptions about:
• What products the organization should produce
• How, where and for whom
• Divergent viewpoints lead to political
conflict which hinders change
3.7
Copyright © 2005 Pearson Education Canada Inc.
Management Information Systems, Second Canadian Edition
Chapter 3: Information Systems, Organizations, Management, and Strategy
ORGANIZATIONS & INFORMATION SYSTEMS
Organizational Structures
• Entrepreneurial:
– Start-up business
• Machine bureaucracy:
– Midsize manufacturing firm
• Divisionalized bureaucracy:
– Fortune 500
• Professional bureaucracy:
– Law firms, hospitals, school systems
• Adhocracy:
– Consulting firm
3.8
Copyright © 2005 Pearson Education Canada Inc.
Management Information Systems, Second Canadian Edition
Chapter 3: Information Systems, Organizations, Management, and Strategy
OBJECTIVES
• 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?
• How do information systems support the activities of
managers?
• How can businesses use information systems for
competitive advantage?
• Why is it so difficult to build successful information
systems?
3.9
Copyright © 2005 Pearson Education Canada Inc.
Management Information Systems, Second Canadian Edition
Chapter 3: Information Systems, Organizations, Management, and Strategy
INFORMATION SYSTEMS IMPACT
IS can help identify external changes that require a response
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
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
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
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
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
locations
• e.g. Calyx and Corolla
3.14
Copyright © 2005 Pearson Education Canada Inc.
Management Information Systems, Second Canadian Edition
Chapter 3: Information Systems, Organizations, Management, and Strategy
OBJECTIVES
• 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?
• How do information systems support the activities of
managers?
• How can businesses use information systems for
competitive advantage?
• Why is it so difficult to build successful information
systems?
3.15
Copyright © 2005 Pearson Education Canada Inc.
Management Information Systems, Second Canadian Edition
Chapter 3: Information Systems, Organizations, Management, and Strategy
IS SUPPORT OF MANAGEMENT
Classical Model of Management:
• Traditional, focuses on formal functions:
– plan, organize, coordinate, decide, control
Behavioral Model of Management:
• Describes management based on
observations of managers on the job
• much less formal, structured
• preference for oral reports, diverse
contacts
3.16
Copyright © 2005 Pearson Education Canada Inc.
Management Information Systems, Second Canadian Edition
Chapter 3: Information Systems, Organizations, Management, and Strategy
IS SUPPORT OF MANAGEMENT
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
Systems Should Be Designed with the
Following Characteristics:
• Flexible - provide many options for handling
data and evaluating information
• Capable of supporting a variety of styles
• Keep track of many alternatives
• Sensitive to the organization’s bureaucratic
and political requirements
3.18
Copyright © 2005 Pearson Education Canada Inc.
Management Information Systems, Second Canadian Edition
Chapter 3: Information Systems, Organizations, Management, and Strategy
OBJECTIVES
• 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?
• How do information systems support the activities of
managers?
• How can businesses use information systems for
competitive advantage?
• Why is it so difficult to build successful information
systems?
3.19
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 organization
• Changes goals, operations, products, services, or
environmental relationships
• Helps organization gain a competitive advantage
Eg:
•
•
•
•
3.20
Value Webs
Product differentiation
Focused Differentiation
Efficient customer response system
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 firms
• Uses information
technology to collectively
produce a product or
service
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
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
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
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
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
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
Efficient Customer Response System:
• directly links customer’s system to
vendor’s SCM system
• raises ‘switching costs’
– Expense incurred by a customer when
changing from one supplier to another
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
3.26
Copyright © 2005 Pearson Education Canada Inc.
Management Information Systems, Second Canadian Edition
Chapter 3: Information Systems, Organizations, Management, and Strategy
OBJECTIVES
• 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?
• How do information systems support the activities of
managers?
• How can businesses use information systems for
competitive advantage?
• Why is it so difficult to build successful information
systems?
3.27
Copyright © 2005 Pearson Education Canada Inc.
Management Information Systems, Second Canadian Edition
Chapter 3: Information Systems, Organizations, Management, and Strategy
MANAGEMENT CHALLENGES
1. Sustaining competitive advantage
2. Adopting strategic systems demands
changes in the organization
-
3.28
do we adapt the organization to the technology
or vice versa?
should IT experts design systems without user
involvement?
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
3.29
Copyright © 2005 Pearson Education Canada Inc.