MIS 2000 Organizations and Information Systems – Impact on Organizational Design (slightly revised, see outline)

Outline Two typologies of Information Systems Organization design (structure, processes, culture, politics— deleted due lack of time; also minor revision of slide 11) Relationships b/w organization design and Information Systems

MIS 2000 Information Systems for Management IS Types - Organizational Function Served ORGANIZATION Production + Support Supply Back-End Delivery Front End Back-end: Purchasing Systems – supply chain Production Systems – Manufacturing, Services, involved in org. core business operations Support to Production: HR, Accounting & Finance, Planning, Inventory, R+D, Engineering/Product Development Front-end: Marketing & Sales Systems, Customer Relationship Mgt. (CRM) (customer tracking, sales recording, billing, competition/environment scanning, market segmentation) IS in Businesses1 of 15

IS Types – Data and User MIS 2000 Information Systems for Management * Also called Reporting sys. or Admin. sys. The MIS area of study refers to all system types, not just MIS type of systems. IS and Organizations 2 of 15 Systems have different data, processing capabilities & deliverables AND different Users “Packing” systems together (see Note). Everyday operations control Supervisory Management Mid-level Management Mid-range performance control & planning Executive Management Strategic planning & control * Knowledge Work Systems (professionals) Knowledge Work Systems (professionals) Communication Systems (everybody) Communication Systems (everybody) Group Support Systems (everybody) Group Support Systems (everybody)

Relationship Between Two Typologies MIS 2000 Information Systems for Management Organizational Function Data & User Type Human Resources TPSMIS/RSDSS Database of travel claims Detailed reports on travel claims in past month, drawn from Travel Claims Database Module with if-then rules that processes detailed reports and identifies deviations from organization’s rules. …. IS in Businesses3 of 15 Different IS types based on data/user can be in each department.

IS and Organizations Organizations use systems to advance their organizational design (get organized better) and, consequently, to achieve economic gains. Organizational Design: Composition of tasks and processes, departments, methods of management, stable beliefs & behaviors, power distribution… IS in Businesses MIS 2000 Information Systems for Management 4 of 15 Organization Organizational Design Efficiency of operations Effectiveness of business OrganizationInformation Systems Impacts Economic aspects

IS and Organizations (cont.) Operational Efficiency: Save time (on tasks…) & money (on materials, equipment, labour) Business Effectiveness – accomplishing competitive targets: New product (good or service) Product differentiated from competitors’ Market-related goals Customer-related goals Systems should advance methods of organizing and help to increase efficiency and effectiveness of organizations. IS in Businesses MIS 2000 Information Systems for Management 5 of 15

IS in Businesses MIS 2000 Information Systems for Management 6 of 15 MIS 2000 Information Systems for Management Organization Collection of individuals sharing work, following certain rules and using technology to produce certain good or service. Organization takes inputs from the environment, transforms them, and puts the result out into the environment. Organization can be viewed from the perspectives of Structure Processes Culture Politics

IS in Businesses MIS 2000 Information Systems for Management 7 of 15 Organizational Structure Organization of work: tasks, procedures, processes, jobs departments (functions; grouping of work); distribution of work in geographical space Levels of management (Hierarchy) Rules and regulations (Formalization) Distribution of decision making power (Centralization)

IS in Businesses MIS 2000 Information Systems for Management 8 of 15 IS Impact on Organizational Structure Systems can directly impact organizational structure via changes in the organization of work (e.g., task modification) Reduction of middle management (“flattening” of hierarchy) Reduction of explicit rules & regulations (less written rules) Broader distribution of decision making power (decentralization)

Organizational (Business) Processes Process view of organizations is newer than structural. Business process is a set of tasks from a start to an end point, that deliver a value for a customer. Process can cut across departments. IS in Businesses MIS 2000 Information Systems for Management 9 of 15 Structure ViewProcess View Tasks, jobs, departmentsTasks, sub-processes, processes (consisted of sub-processes) What type of work is coveredHow work is actually done How work is divided upHow work links up Static view; describes work organization and rules Dynamic view; flow of work, decision points Frog’s view, focus on piecesBird’s view, focus on a whole Skills in focusBoth skills and IST in focus No focus on performance (results)Performance focus (value for customer) Status-quo (no change interest)Change interest

IS Impact on Business Processes (BP) IS used to support BP - Business Process Management (BPM). Electronic linking of tasks & remote locations Automated management of linked tasks Measurement of time and quality enhanced IS used to change BP – Business Process Reengineering (BPR). IS aids in making: New BP possible (e.g., CRM, beyond org. boundaries) Simpler, faster, less labour-intensive BP 10 of 15

IS in Businesses MIS 2000 Information Systems for Management 11 of 15 MIS 2000 Information Systems for Management Organizational Culture Stable beliefs and behaviors shared among organization members. Beliefs and behaviors related to data/information/knowledge & IST examples: the role of IST in business (support vs. driver) when to change IST (conservative vs. progressive) proper communication (face-to-face vs. tech-mediated & which) who should operate IST (all vs. specialists) what is better – paper or electronic data format knowledge culture (e.g.: 3M, Microsoft) how to plan & develop IS, how to manage data

IS and Organizational Culture Organizational culture is an important condition for developing and using IS New IS can collide with organizational culture => failure of IS, old culture resilient (some EMR* systems) culture change required (ERP systems) mutual adjustment of systems and culture (GSS) IS in Businesses MIS 2000 Information Systems for Management 12 of 15

Mutual Influences IS—Organization Important! IS do not influence organizational design one way, existing organization (structure, processes, culture, politics) impacts on new IS as well. Mutual influencing, IS adjust to an organization, and the organization adjusts to IS. The proportion of mutual adjustment is a matter of scale, depending on a particular organization. System’s IT matters (flexibility)! Management of change matters (attention, persistence, initiatives)! IS in Businesses MIS 2000 Information Systems for Management 15 of 15 OrganizationIS Impacts