Organizational Information Systems and Their Impact Vocabulary and concepts to categorize different Information Systems © Gabriele Piccoli

Course Roadmap Part I: Foundations Chapter 1: Introduction Chapter 2: Information Systems Defined Chapter 3: Organizational Information Systems and Their Impact Part II: Competing in the Internet Age Part III: The Strategic use of Information Systems Part IV: Getting IT Done © Gabriele Piccoli

Learning Objectives How to categorize systems according to the hierarchical, functional, and process perspectives. The rationale of each perspective and its limitations. The definition, underlying principles, and applications of business process reengineering (BPR). The advantages and disadvantages of BPR. The definition of integration and its role in the modern firm. The pressures toward integration and the challenges integration creates. Business and systems integration trends and the relationship between the two. The information systems cycle and the progression of business data, from its inception in transaction processing systems, to its storage in data repositories, and finally to its use in analytical tools. © Gabriele Piccoli

Categorizing Systems The Hierarchical Perspective The Functional Perspective The Process Perspective © Gabriele Piccoli

Hierarchical Perspective Activity Time horizon Hierarchical level Characteristics Strategic Long term General management Functional management Externally focused Ad-hoc Highly unstructured Tactical Mid term Middle management Repeatable Semi-structured Recurrent Operational Short term Front line employees Low discretion Highly structured Transaction focused © Gabriele Piccoli

Hierarchical Perspective © Gabriele Piccoli

Today’s Hierarchy Adoption of flatter hierarchies between front-line operations and strategic decision-making Empowerment Limitation: Difficult to neatly separate information systems in clear cut categories © Gabriele Piccoli

Functional Perspective Systems are designed to support specific needs of individuals in the same functional area © Gabriele Piccoli

Process Perspective The functional and hierarchical perspectives are limited by: Lack of integration of separate systems Leading to: Redundancy Inefficiency Business Process Reengineering offers a potential solution © Gabriele Piccoli

Business Process Reengineering Business processes are inherently cross-functional BPR seeks to break down the organizational silos http://www.ashburnweb.com/pd/images/silo.jpg © Gabriele Piccoli

Process Series of steps that a firm performs in order to complete an economic activity © Gabriele Piccoli

BPR Risks BPR requires radical 3rd order change Significant downsizing and layoffs follow BPR initiatives Very expensive to implement © Gabriele Piccoli

The central role of IT in BPR As organizations and technology evolve over time, traditional business processes may become obsolete and need to be reevaluated. © Gabriele Piccoli

Integration The history of lack of integration Coordination costs Mergers and acquisitions Integration: The process of unifying, or joining together, some tangible or intangible assets © Gabriele Piccoli

The Dimensions of Integration © Gabriele Piccoli

Object & Locus Locus: Object: Internal External The assets the organization seeks to combine © Gabriele Piccoli

Business Integration The introduction of cohesive, streamlined business processes that encompass previously separate activities Objective: Presenting “one face” to the customer Providing solutions Achieving global inventory visibility © Gabriele Piccoli

Systems Integration Unification or tight linkage of IT-enabled information systems and databases Primary focus: Technological component of the IS Types of systems integration: Internal External © Gabriele Piccoli

The Integration Trade-offs Benefits Reduction of duplication and redundancy Access to information Speed Response time Drawbacks Increased coordinate costs Reduced local flexibility © Gabriele Piccoli

The IS Cycle © Gabriele Piccoli

The IS Cycle Models the progression of data From its inception in transaction processing systems To its storage in data repositories To its use in analytical tools © Gabriele Piccoli

What we Learned How to categorize systems according to the hierarchical, functional, and process perspectives. The rationale of each perspective and its limitations. The definition, underlying principles, and applications of business process reengineering (BPR). The advantages and disadvantages of BPR. The definition of integration and its role in the modern firm. The pressures toward integration and the challenges integration creates. Business and systems integration trends and the relationship between the two. The information systems cycle and the progression of business data, from its inception in transaction processing systems, to its storage in data repositories, and finally to its use in analytical tools. © Gabriele Piccoli