Principles of Information Systems, Sixth Edition Information Systems in Organizations Chapter 2

Principles of Information Systems, Sixth Edition Organizations & Information Systems

Principles of Information Systems, Sixth Edition Value Chain

Principles of Information Systems, Sixth Edition Organizational Structure Organizational subunits and their relationship with the overall organization Categories of organizational structure: –Team –Traditional –Multidimensional –Project –Virtual

Principles of Information Systems, Sixth Edition Traditional Organizational Structure

Principles of Information Systems, Sixth Edition Traditional Organizational Structure

Principles of Information Systems, Sixth Edition Project Organizational Structure Centered on major products and services Temporary project teams

Principles of Information Systems, Sixth Edition Project Organizational Structure

Principles of Information Systems, Sixth Edition Team Organizational Structure Temporary or permanent teams Work groups Various sizes

Principles of Information Systems, Sixth Edition Multidimensional Organizational Structure May incorporate several structures at the same time Advantage: –ability to simultaneously stress both traditional corporate areas and important product lines Disadvantage: –multiple lines of authority

Principles of Information Systems, Sixth Edition Multidimensional Organizational Structure

Principles of Information Systems, Sixth Edition Virtual Organizational Structure Employs business units in geographically dispersed areas People may never meet face to face Can be permanent or temporary

Principles of Information Systems, Sixth Edition Organizational Culture and Change

Principles of Information Systems, Sixth Edition Organizational Culture Shared understandings, values, and assumptions in an organization Influences information systems

Principles of Information Systems, Sixth Edition Organizational Change

Principles of Information Systems, Sixth Edition Reengineering

Principles of Information Systems, Sixth Edition Reengineering

Principles of Information Systems, Sixth Edition Continuous Improvement Constantly seeking ways to improve business processes Benefits: –Increased customer loyalty –Reduction in customer dissatisfaction –Reduced opportunity for competitive inroads

Principles of Information Systems, Sixth Edition Continuous Improvement vs. Reengineering

Principles of Information Systems, Sixth Edition Technology Diffusion, Infusion, and Acceptance Technology diffusion - measure of widespread use of technology Technology infusion - extent to which technology permeates a department Technology Acceptance Model (TAM) - specifies factors that can lead to higher usage of technology

Principles of Information Systems, Sixth Edition Total Quality Management (TQM) Quality: ability of a product or service to meet or exceed customer expectations TQM: approaches and techniques used to achieve quality throughout the organization

Principles of Information Systems, Sixth Edition Outsourcing and Downsizing Outsourcing: contracting with outside professionals Downsizing: cutting the number of employees

Principles of Information Systems, Sixth Edition Competitive Advantage Significant, long-term benefit to a company over its competition Ability to establish and maintain a competitive advantage is vital to the company’s success

Principles of Information Systems, Sixth Edition Competitive Advantage Five forces motivate firms to seek competitive advantage –Rivalry among existing competition –Threat of new entrants –Threat of substitutions –Buyers’ bargaining power –Suppliers’ bargaining power

Principles of Information Systems, Sixth Edition Strategic Planning for Competitive Advantage Change the structure of the industry Create new products or services Improve existing products or services Use information systems for strategic planning

Principles of Information Systems, Sixth Edition Strategic Planning for Competitive Advantage

Principles of Information Systems, Sixth Edition Performance-Based Information Systems

Principles of Information Systems, Sixth Edition Productivity A measure of output achieved divided by input required Higher level of output for a given level of input means greater productivity

Principles of Information Systems, Sixth Edition Return on Investments and the Value of Information Systems Earnings growth Market share Customer awareness and satisfaction Total cost of ownership

Principles of Information Systems, Sixth Edition Justifying Information Systems Ensure that the system supports business needs Assess risks Identify benefits

Principles of Information Systems, Sixth Edition Justifying Information Systems Assessment of Risk: –How well are the requirements understood? –To what degree does the project require pioneering effort in technology? –Is there a risk of severe business repercussions if the project is poorly implemented?

Principles of Information Systems, Sixth Edition Justifying Information Systems Most IS projects fall into one of the following categories: –Tangible Savings –Intangible Savings –Legal Requirement –Modernization –Pilot Project

Principles of Information Systems, Sixth Edition The 10 Best Places to Work for IS

Principles of Information Systems, Sixth Edition Roles, Functions, and Careers in Information Systems Department Operations - focuses on the efficiency of information Systems development - focuses on specific development projects and ongoing maintenance and review Support - provides user assistance

Principles of Information Systems, Sixth Edition The Three Primary Responsibilities of Information Systems

Principles of Information Systems, Sixth Edition Typical IS Titles and Functions Chief Information Officer (CIO) - employs the IS department’s equipment and personnel to help the organization attain its goals LAN administrators - set up and manage the network hardware, software, and security processes

Principles of Information Systems, Sixth Edition Typical IS Titles and Functions Internet careers –Strategists –Programmers –Website operators –Chief Internet Officer Consulting firms

Principles of Information Systems, Sixth Edition Summary Value-added processes increase the relative worth of combined inputs on their way to becoming final outputs Business process reengineering involves the radical redesign of business processes, organizational structures, and information systems Information systems personnel typically work in an information systems department that employs a chief information officer, systems analysts, and computer programmers