Published on January 15, 2009
Information System In Organization : Information System In Organization Chapter 2 Week 1: 16 September 2007 Principles and Learning Objectives : Principles and Learning Objectives The use of information systems to add value to the organization is strongly influenced by organizational structure, culture, and change. Identify the seven value-added processes in the supply chain and describe the role of information systems within them. Provide a clear definition of the terms organizational structure, culture, and change and discuss how they affect the implementation of information systems. Principles and Learning Objectives : Principles and Learning Objectives 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. Identify some of the strategies employed to lower costs or improve service. Define the term competitive advantage and discuss how organizations are using information systems to gain such an advantage. Discuss how organizations justify the need for information systems. Principles and Learning Objectives : Principles and Learning Objectives Information systems personnel are the key to unlocking the potential of any new or modified system. Define the types of roles, functions, and careers available in information systems. Organizations & Information Systems : Organizations & Information Systems Organisation and Information Systems : Organisation and Information Systems An organisational is a formal collection of people and resources established to accomplish a set of goals. Organisational can be view as a system (involved many processes) An organisation’s processes can be viewed as a series of activities or value chain. Value Chain Activities : Value Chain Activities Organizational Structure : Organizational Structure Organizational structure refers to corporate subunits and their relationship with the overall organization Categories of organizational structure: Traditional Project Team Multidimensional Traditional Organizational Structure : Traditional Organizational Structure Traditional Organizational Structure : Traditional Organizational Structure Project Organizational Structure : Project Organizational Structure Centered on major products and services Temporary project teams I.e. member includes: project manager, programmers, system analysts, consultant, secretariat. Project Organizational Structure : Project Organizational Structure Team Organizational Structure : Team Organizational Structure Temporary or permanent teams Work groups Various sizes (sub-unit of project) 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 Multidimensional Organizational Structure : Multidimensional Organizational Structure Virtual Organizational Structure * * * : Virtual Organizational Structure * * * Employs business units in geographically dispersed areas People may never meet face to face Can be permanent or temporary Telecommuting Activity 1 : Activity 1 Describe yourself in which type of organisation structure ? Justify your answer. Organizational Culture and Change : Organizational Culture and Change Organizational Culture : Organizational Culture Shared understandings, values, and assumptions in an organization Influences information systems Organizational Change : Organizational Change Reengineering : Reengineering * * * Reengineering : Reengineering * * * Continuous Improvement : Continuous Improvement Constantly seeking ways to improve business processes Benefits: Increased customer loyalty Reduction in customer dissatisfaction Reduced opportunity for competitive inroads * * * Continuous Improvement vs. Reengineering : Continuous Improvement vs. Reengineering * * * Total Quality Management (TQM) : Total Quality Management (TQM) Quality: ability of a product or service to meet or exceed customer expectations TQM: approaches and techniques used to achieve quality throughout the organization * * * Outsourcing and Downsizing * * * : Outsourcing and Downsizing * * * Outsourcing: contracting with outside professionals Downsizing: cutting the number of employees Competitive Advantage : Competitive Advantage Significant, long-term benefit to a company over its competition Ability to establish and maintain a competitive advantage is vital to the company’s success Competitive Advantage : Competitive Advantage Five forces motivate firms to seek competitive advantage Rivalry/compettion among existing competition Threat of new entrants Threat of substitutions Buyers’ bargaining power Suppliers’ bargaining power Strategic Planning for Competitive Advantage*** : Strategic Planning for Competitive Advantage*** Change the structure of the industry Create new products or services Improve existing products or services Use information systems for strategic planning Strategic Planning for Competitive Advantage – Example : Strategic Planning for Competitive Advantage – Example Performance-Based Information Systems : Performance-Based Information Systems Productivity : Productivity A measure of output achieved divided by input required Higher level of output for a given level of input means greater productivity Return on Investments and the Value of Information Systems : Return on Investments and the Value of Information Systems Earnings growth Market share Customer awareness and satisfaction Total cost of ownership Justifying Information Systems : Justifying Information Systems Ensure that the system supports business needs Assess risks Identify benefits Before we implement information in organisation We should consider these factors… Justifying Information Systems : Justifying Information Systems Assessment of Risk: How well are the requirements understood? To what degree does the project require pioneering effort in technology? Is there a risk of severe business repercussions if the project is poorly implemented? The 10 Best Places to Work for IS : The 10 Best Places to Work for IS Roles, Functions, and Careers in Information Systems Department : Roles, Functions, and Careers in Information Systems Department Operations - focuses on the efficiency of information Systems development - focuses on specific development projects and ongoing maintenance and review Support - provides user assistance The Three Primary Responsibilities of Information Systems : The Three Primary Responsibilities of Information Systems Typical IS Titles and Functions : Typical IS Titles and Functions Chief Information Officer (CIO) - employs the IS department’s equipment and personnel to help the organization attain its goals LAN administrators - set up and manage the network hardware, software, and security processes Typical IS Titles and Functions : Typical IS Titles and Functions Internet careers Strategists Programmers Website operators Chief Internet Officer Consulting firms Summary : Summary Value-added processes increase the relative worth of combined inputs on their way to becoming final outputs Business process reengineering involves the radical redesign of business processes, organizational structures, and information systems Information systems personnel typically work in an information systems department that employs a chief information officer, systems analysts, and computer programmers Case Study : Case Study Danone and Nestle create CPG Market. Discuss in group and submit your answer in next class.