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Information Systems in Organizations Information Systems and Management.

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1 Information Systems in Organizations Information Systems and Management

2 Introduction Businesses need to ensure that systems:  Lower Costs  Increase Profits  Improve Service  Achieve a competitive advantage

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

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

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

6 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

7 Organizational Structure

8 Organizational subunits and the way they relate to the overall organization.

9 Types of Organizational Structures Traditional Flat Project Team Multi-Dimensional Virtual

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

11 33313 2 3 Organization Structure and IS

12 IS Department Functions  Technical Operating Systems Telecommunications DBA  Systems & Programming  Training Internal External  Audit

13 Business Process Reengineering (BPR) BPR The radical redesign of business processes Technology TQM

14 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

15 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

16 Information System Success Efficiency - Output / Input - Do things right Effectiveness - Output / Objectives - Do the right things

17 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

18 BPR – Revolutionary TQM - Evolutionary

19 “Don’t pave the cow paths”

20 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

21 Porter’s Five Forces Model Factors that lead to attainment of competitive advantage

22 Porter’s Five Forces Model & Information Technology

23 1.Buyer Power  Decrease buyer power  Make it more attractive for customers to buy from us  IT  Loyalty Program  Safeway VS. Save-On-Foods  Aeroplan From a Company Perspective

24 2.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

25 3.Threat of Substitute Product or Services  Decrease the threat  Have fewer alternatives in the market  IT  Create switching costs

26 4.Threat of New Entrants  Decrease the threat  Create an entry barrier  IT 5.Rivalry among Existing Competitors  Trend is toward increased competition  IT  Gain a competitive advantage (fleeting)  Compete on price  Track Purchasing sequences

27 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

28 Planning IS Organizing Controlling Staffing Directing

29 Chief Information Officer (CIO) Oversees all uses of IT Ensures strategic alignment of IT with business goals and objectives

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

31 Information Systems in Organizations Information Systems and Management

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