1. Chapter 3: IT Impact on Organizations
Summarized from:
Lynda Applegate, Robert D. Austin, and Deborah L. Soule, Corporate Information Strategy And Management: Text and Cases, McGraw Hill, 8th Edition, 2009.
Unless otherwise specified.
Last updated: September, 2016

2. Learning objectives
Recognize that IT impacts the business model (through its effects on organizational capabilities組織能力)
Learn how to analyze IT for its potential to enable new capabilities啟用新功能
e.g. facilitate促進new and improved organizational structures and processes

3. Organizational capabilities
Direct quote from:
“Ability and capacity of an organization expressed in terms of its
(1) Human resources: their number, quality, skills, and experience,
(2) Physical and material resources: machines, land, buildings,
(3) Financial resources: money and credit,
(4) Information resources: pool of knowledge, databases, and
(5) Intellectual resources: copyrights版權, designs, patents專利, etc.”
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4. What this chapter proposes?
IT is an important enabler推動者for developing the best-in-class capabilities required for success

5. IS/IT capabilities
Please refer to this website ( under the “Lecture Slides -> Additional Slides”) to download the slides for this topic.
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6. IT Capabilities transformation
[IS resource]  [IS capability]  [Organizational capability]
Include
(CRM, SCM)  External relationship management capabilities  better customer/ supplier relationship capabilities, financial profitability/resources capabilities
(CRM, ESS, BI)  Market responsiveness capabilities  information resources capabilities, financial (planning) capabilities
(ERP)  Cost effective IS operations capabilities  information resources capabilities ….
(Data analytics software)  processing of big data  information resources capabilities, intellectual resources capabilities
(Social media sites)  networking and marketing  information resources (consumer needs prediction) capabilities, human resources (planning) capabilities
Source: Celeste Ng, 2016

7. Supplementary information

8. Defining Big Data: The Big Data Institute (TBDI)
Big Data Institute (TBDI;
Defines Big Data as vast datasets數據集that:
Exhibit variety各種各樣;
Include structured, unstructured, and semi-structured data;
Are generated at high velocity with an uncertain pattern不確定模式;
Do not fit neatly into traditional, structured, relational databases; and
Can be captured, processed, transformed, and analyzed in a reasonable amount of time only by sophisticated information systems.
Source: Rainer, Kelly, Prince, Brad and Watson, Hugh, Management Information Systems: Moving Business Forward, John Willey & Sons, Inc.: New Jersey, 3rd Edition, 2015 
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9. Big Data (1)
Source:
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10. Big Data (2)
Source:
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11. Source: https://en.wikipedia.org/wiki/Social_media_marketing
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12. Adapted from Source: https://en. wikipedia
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13. Fundamental elements基本要素for success
Two fundamental elements基本要素for success
Hierarchy等級制度– specify a number of structures and systems that help to safeguard保護a large firm
Authority權力system – limit decision making and actions行為by strict segregation隔離of responsibility and duties責任和義務, restricted access to information and asset
In theory, the hierarchy is designed so that, short of sabotage破壞, no single employee or work unit can make a decision or take action that can immediately threaten威脅the entire organization

14. Balancing agility with control (1)
Two mistakes executives often make
(1) Failure to redesign失敗重新設計end-to-end processes (with consideration for other part部分of the organization or on partners, suppliers and/or customer organizations)
E.g. Frito-Lay, Inc. (a division of PepsiCo, Inc.) in the mid-1980s attempted to accelerate the rate of new product development加快新產品開發速度without ensuring無保證that the supply chain, manufacturing, and order fulfillment processes訂單實行流程could handle the increased complexity

15. Balancing agility with control (2)
(2) Failure to realign faster-cycled operations重新調整更快運作with organization structure, control, authority systems, incentives, and culture
E.g. Frito-Lay, Inc. 2nd project to integrate their new products development process with supply chain, manufacturing, and order fulfillment processes but failed to redesign the organization and management systems needed to control these accelerated, real-time processes
Real-time business intelligence即時商業智能and early warning for decision-making were not in place, opportunities were missed, and problems went undiscovered問題發生未被發現

16. Balancing agility with control (3)
Thus, the key is to streamline, integrate, and “time synchronize”精簡，整合和“時間同步” both operating and management processes in the business
Operating processes: the activities thru which an organization designs, produces, markets, delivers, and supports its products and services
Management processes: the activities thru which an organization manages the design, production, marketing, delivery, and supports of its products and services

17. Suggestion
Adopt a comprehensive approach全面的做法to organization design that includes
Analysis and realignment調整of capabilities within 4 key areas of business model商業模式design
Processes and infrastructure流程和基礎架構
People and partners
Organization and culture
Leadership and governance
Core elements to consider under agility敏捷
Improved access to information
High-capacity networked communication高容量的網絡通信systems