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Session 4: Organization Management and Information systems

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Title: Session 3: Organization, Management, Business Processes, and Information systems Author: zhao Last modified by: Tiyzhao Created Date: 3/6/2002 3:45:21 PM – PowerPoint PPT presentation

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Title: Session 4: Organization Management and Information systems


1
Session 4 Organization Management and
Information systems
2
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3
Management
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    ???????????,???????????????
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2.3
4
A Company System
INPUT of raw materials/ information
OUTPUT of finished products/ service
Manufacturing/ operation PROCESS
5
What is an organization?
  • Technical definition a stable, formal social
    structure that takes resources from the
    environment and process them to produce output.
  • Behavioral definition a collection of rights,
    privileges, obligations, and responsibilities
    that are delicately balanced over time through
    conflict and conflict resolution.

6
ORGANIZATIONS AND INFORMATION SYSTEMS
The Two-Way Relationship Between Organizations
and Information Technology
MEDIATING FACTORS Environment
Culture Structure
Standard Procedures(??) Politics
Management Decisions
Chance
7
ORGANIZATIONS AND INFORMATION SYSTEMS
  • Organization
  • Stable, formal structure
  • Takes resources from environment and processes
    them to produce outputs

8
ORGANIZATIONS AND INFORMATION SYSTEMS
  • Behavioral definition of Organization
  • Collection of rights, privileges, obligations,
    responsibilities
  • Delicately balanced
  • Conflict resolution

9
ORGANIZATIONS AND INFORMATION SYSTEMS
  • Common Features of Organizations
  • Organizations are bureaucracies that have certain
    structural features
  • Clear division of labor
  • Hierarchy
  • Explicit rules and procedures(?????)
  • Impartial judgments
  • Technical qualifications
  • Maximum organizational efficiency
  • Standard Operating Procedures
  • Precise rules, procedures, and practices
  • Enable organizations to cope with all expected
    situations

10
ORGANIZATIONS AND INFORMATION SYSTEMS
  • Common Features of Organizations
  • Organizational Politics
  • Divergent viewpoints leads to political struggle,
    competition, and conflict
  • Hamper organizational change
  • Organizational Culture a set of fundamental
    assumptions about
  • What products the organization should produce
  • How and where it should produce them
  • For whom they should be produced

11
ORGANIZATIONS INFORMATION SYSTEMS
  • Unique Features of Organizations
  • Structures/Organizational types
  • Goals
  • Constituencies(??)
  • Leadership Styles, Tasks
  • Surrounding Environment

12
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

13
THE CHANGING ROLE OF INFORMATION SYSTEMS IN
ORGANIZATIONS
  • Information Technology Infrastructure and
    Information Technology Services
  • Information systems department
  • Formal organizational unit
  • Responsible for information systems in the
    organization

14
THE CHANGING ROLE OF INFORMATION SYSTEMS IN
ORGANIZATIONS
  • Information Technology Services

15
The Systems Analyst as a facilitator
IT Vendors
Steering committee
User 1
Applications programmers
User 2
System Analyst
User N
Network administrator
Mgt/system owner
Database administrator
Interface design expert
16
How Information Systems Affect Organizations
  • Economic theories(????)
  • Information technology is a factor of production,
    like capital and labor

17
Transaction cost theory(??????) Firms can
conduct marketplace transactions internally more
cheaply to grow larger
18
Agency theory(????) Firm is nexus of contracts
among self-interested parties requiring
supervision
19
Flattening Organizations
20
  • Behavioral theories(????)
  • Information technology could change hierarchy of
    decision making
  • Lower cost of information acquisition
  • Broadens the distribution of information

21
Implement Change
Tasks
Resistant
People
Technology
????MUTUAL ADJUSTMENT
Structure
Source Leavitt, Handbook of Organization (1965)
22
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
  • The Role of Managers in Organizations
  • Classical model of management
  • Traditional description of management
  • Focuses on formal functions plan, organize,
    coordinate, decide, control(??????????????)
  • Behavioral model of management
  • Describes management based on observations of
    managers on the job
  • Managerial roles
  • Expectation of activities that managers should
    perform in an organization

23
  • ?????? Managers act as figureheads and leaders.
  • ???? Managers receive and disseminate critical
    information, nerve centers.
  • ???? Managers initiate activities, allocate
    resources, and negotiate conflicts.

24
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
  • Managers and Decision Making
  • Process of Decision Making
  • Strategic Decision Making Determines long-term
    objectives, resources, and policies
  • Management Control Monitors effective or
    efficient usage of resources and performance of
    operational units
  • Operational control Determines how to perform
    specific tasks set by strategic and
    middle-management decision makers
  • Knowledge-level decision making Evaluates new
    ideas for products, services, ways to communicate
    new knowledge, ways to distribute information

25
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
  • Decisions are classified as
  • Unstructured Non routine, decision maker
    provides judgment, evaluation, and insights into
    problem definition, no agreed-upon procedure for
    decision making
  • Structured Repetitive, routine, handled using a
    definite procedure

26
MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS
27
Business Model, Business Processes, and
Information systems
28
CASE Dell COMPUTER CORPORATION
  • Analyze the PC industry and its market segments

29
PC Industry
  • Product life cycles in the PC industry have
    shrunk from about 22 months in 1988 to six months
    in 1997, and the price/performance of key
    components has continued to double every 18
    months or less. As a result, excess inventory
    depreciates rapidly (an estimated 10 per month .
    )
  • driven by rapid technological improvements
  • getting new, quality products to market on time
    is critical to maintaining competitiveness in an
    industry where customers are willing to pay a
    premium for the latest technologies and reward
    quality by repeated purchases.

30
PC Industry
  • companies that minimize inventory and bring new
    products to market faster can reduce costs,
    increase market share and maintain higher
    margins.
  • the standardized, modular nature of the PC.
  • the structure of distribution.

31
Dells Direct Distribution Channel
  • Selling direct removes two links in the supply
    chain where inventory could build up and also
    enables Dell to know its final customers, provide
    better service to them, and promote repeat or
    expanded sales to them.
  • Build-to-order production allows Dell to
    introduce new technologies as soon as customers
    want them and makes it possible to adjust
    production to demand very quickly. It also means
    that Dell does not purchase components and
    assemble PCs until it has received payment from
    the customer, giving the company a negative cash
    conversion cycle in which it receives payment
    from customers before it must pay suppliers.

32
Dells Global Sales Characteristics
33
Dell Build-to-Order Production
  • The build-to-order production system is the focal
    point of Dells business operations, the common
    contact point for sales, procurement, logistics,
    manufacturing and delivery.
  • This requires very close coordination between
    Dells sales and manufacturing arms and between
    Dell and its suppliers. It achieves this by
    refining its business processes, developing close
    relationships with a limited number of suppliers,
    and by using IT to facilitate communication
    within and outside the company.

34
Dell ??
  • Direct sales eliminates inventory in the channel,
    provides Dell with information on and access to
    the final customer, and allows Dell to offer
    other services to the customer.
  • Build-to-order allows Dell to offer the latest
    technologies which carry a higher margin, allows
    it to customize its products to user
    specifications, and means that Dell doesnt lay
    out cash for parts until it receives payment for
    the PC.
  • Together, direct sales and build-to order help
    create a strong relationship between Dell and its
    customers, as both require direct interaction and
    allow Dell to gather information on its
    customers needs.

35
Dells Use of Information And Technology----Refine
ment of the Dell Model
36
Extension of the Dell Model
37
Dell Sales Revenue (Millions )
38
Dell Worldwide Market Share in (based on unit
shipments)
39
Dell U.S. Market Share in (based on unit
shipments)
40
Dell's Share Price
41
Dell Net Income
42
Dell Online History
Late 1980s 1994 1995 1996 1997
1998 1999 2000
43
What advantages had Dell Online in comparison to
its competitor?
  • Transaction segment
  • Market access 250000 visits per week to dell.com
    website. (?The website sale is incremental or
    merely cannibalization of existing customers)
  • Cost saving
  • A website sale rep was able to carry 1.5 time
    monthly quota as a traditional sale rep
  • Service efficiency

44
What advantages had Dell Online in comparison to
its competitor?
  • Relationship Segment
  • Premier Pages will build switching costs and
    build customer loyalty ?!
  • Market access
  • Provide them with an opportunity to offer
    customers a differentiated service/product.

45
What role does information system play in the
business model?
  • Differentiate product/service
  • Reduce the cost, improve the business process.
  • Increase the revenue
  • Increase the customer switch cost
  • Lock in customers and in suppliers
  • Change industry business model
  • unpick the internally built products and outside
    distributors, dealers, resellers, and retailers
  • Mass customization

46
Traditional Business Model
47
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48
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  • P 105
  • 2.
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