Information Systems in Organizations

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Information Systems in Organizations

• Information Systems and Management

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Introduction

• Businesses need to ensure that systems
• Lower Costs
• Increase Profits
• Improve Service
• Achieve a competitive advantage

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• IS personnel are the key to unlocking the
  potential of any new or modified system
• (HBO)

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• In your career you will work with information
  systems to help your company become more
  efficent, effective, productive, and competitive
  within its industry.

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• Organization
• An organization is a formal collection of people
  and other resources established to accomplish a
  set of goals.

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Value Chain

• The Value Chain is a series of activities that
  includes
• Inbound logistics
• Warehouse Storage
• Production
• Finished product storage
• Outbound logistics
• Marketing Sales
• Customer Service

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Organizational Structure
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• Organizational Structure
• Organizational subunits and the way they relate
  to the overall organization.

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Types of Organizational Structures

• Traditional
• Flat
• Project
• Team
• Multi-Dimensional
• Virtual

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• Empowerment
• Giving employees and their managers more
  responsibility and authority to make decisions,
  take certain actions, and have more control over
  their jobs.

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Organization Structure and IS
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IS Department Functions

• Technical
• Operating Systems
• Telecommunications
• DBA
• Systems Programming

• Training
• Internal
• External
• Audit

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Business Process Reengineering (BPR)

• BPR
• The radical redesign of business processes
• Technology
• TQM

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Technology

• Diffusion Measure of how widely technology is
  spread throughout the organization
• Infusion Extent to which technology is deeply
  integrated into a business area
• Technology Acceptance Model (TAM) a model that
  describes the factors that lead to higher levels
  of acceptance and usage of technology.
• Factors include ease of use and quality of
  information

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Total Quality Management (TQM)

• Quality the ability of a product or service to
  meet or exceed customer expectations
• TQM approaches that foster a commitment to
  quality
• Awareness of customer needs
• Empowering and rewarding employees for quality

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Information System Success

• Efficiency
• - Output / Input
• - Do things right
• Effectiveness
• - Output / Objectives
• - Do the right things

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More BPR

• The fundamental re-thinking and radical redesign
  of business processes to achieve dramatic
  improvements in cost, quality, service, and
  speed.
• Automate IT substitutes for human effort
• Payroll (same but faster)
• Informate IT augments human effort
• Spreadsheets (new activities)
• Transformate IT restructures processes
• Paperless Accounts Payable

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• BPR Revolutionary
• TQM - Evolutionary

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• Dont pave the cow paths

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Strategies to Contain Costs

• Outsourcing
• contracting with outside professional services
  to meet specific business needs
• On-Demand Computing (Utility Computing)
  contracting for computer resources to rapidly
  respond to an organizations varying workflow
  (Cloud)
• Downsizing (Rightsizing)
• reducing the number of employees to cut costs

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Porters Five Forces Model Factors that lead to
attainment of competitive advantage
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Porters Five Forces ModelInformation
Technology
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From a Company Perspective

• Buyer Power
• Decrease buyer power
• Make it more attractive for customers to buy from
  us
• IT
• Loyalty Program
• Safeway VS. Save-On-Foods
• Aeroplan

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• Supplier Power
• Decrease supplier power
• Have many alternate supply sources
• IT
• B2B Marketplace
• Internet-based services which brings together
  many buyers and sellers
• Private Exchange

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• Threat of Substitute Product or Services
• Decrease the threat
• Have fewer alternatives in the market
• IT
• Create switching costs

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• Threat of New Entrants
• Decrease the threat
• Create an entry barrier
• IT
• Rivalry among Existing Competitors
• Trend is toward increased competition
• IT
• Gain a competitive advantage (fleeting)
• Compete on price
• Track Purchasing sequences

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Strategic Planning for Competitive Advantage

• Strategic Alliance
• Agreement between two or more companies that
  involves the joint production and distribution of
  goods and services.
• Creating new products and services
• Improving existing products and services
• Using IS for strategic purposes

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Planning
Organizing
Directing
IS
Staffing
Controlling
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Chief Information Officer (CIO)

• Oversees all uses of IT
• Ensures strategic alignment of IT with business
  goals and objectives

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Discussion Question

• Business Personnel and IT Personnel
• There is a GAP
• What is this gap?
• Why does it exist?
• How may it be resolved?

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Information Systems in Organizations

• Information Systems and Management