2. Chapter 2 Information Systems in Organizations

3. Why Learn About Information Systems in Organizations?
Information systems (ISs) can cut costs and increase profits
Students in most fields need to know ISs
Management major might be hired to design a system to improve productivity
Biochemistry major might be hired to conduct drug research using computer techniques

4. Organizations
Organization: a formal collection of people and other resources established to accomplish a set of goals

5. Organizations and Information Systems
An organization is a system - has inputs, processing mechanisms, outputs, and feedback
Inputs to the system: resources such as materials, people, and money
Outputs to the environment: goods or services

6. Organizations and Information Systems (continued)
Principles of Information Systems, Ninth Edition

7. Organizations and Information Systems (continued)
Value chain
Series (chain) of activities that includes inbound logistics and warehouse and storage
اللوجستية (بالإنجليزية: Logistics، أو ما يعرف بالعربية فَنُّ السَّوْقِيَّات، هو فن وعلم إدارة تدفق البضائع والطاقة والمعلومات والموارد الأخرى كالمنتجات الخدمات وحتى البشرية من منطقة الإنتاج إلى منطقة الاستهلاك.
Supply chain management (SCM)
Determines:
What supplies are required for value chain
What quantities are needed to meet customer demand
How supplies should be processed into finished goods and services
How shipment of supplies and products to customers should be scheduled, monitored, and controlled
Principles of Information Systems, Ninth Edition

8. Organizations and Information Systems (continued)
Principles of Information Systems, Ninth Edition

9. Organizations and Information Systems (continued)
Customer relationship management (CRM) programs
Help companies manage all aspects of customer encounters
Can help a company collect customer data, contact customers, and educate them about new products
Principles of Information Systems, Ninth Edition

10. Organizational Structures
Organizational subunits and the way they relate to the overall organization
Categories of organizational structure
Traditional
Project
Team
Virtual
Principles of Information Systems, Ninth Edition

11. Traditional Organizational Structure (continued)
Principles of Information Systems, Ninth Edition

12. Traditional Organizational Structure
Hierarchical structure
Major department heads report to a president or top-level manager
Flat organizational structure
Empowers employees at lower levels
Empowerment
Gives employees and their managers more responsibility and authority to make decisions
Principles of Information Systems, Ninth Edition

13. Traditional Organizational Structure (continued)
Principles of Information Systems, Ninth Edition

14. Project and Team Organizational Structures
Project organizational structure
Centered on major products or services
Many project teams are temporary
Team organizational structure
Centered on work teams or groups
Team can be temporary or permanent, depending on tasks
Principles of Information Systems, Ninth Edition

15. Project and Team Organizational Structures (continued)
Principles of Information Systems, Ninth Edition

16. Virtual Organizational Structure and Collaborative Work
Employs business units in geographically dispersed areas
People may never meet face to face
Allows collaborative work
Managers and employees can effectively work in groups, even those composed of members from around the world
Principles of Information Systems, Ninth Edition

17. Organizational Culture and Change
Major understandings and assumptions
Influences information systems
Organizational change
How organizations plan for, implement, and handle change
Change model
Represents change theories by identifying phases of change and the best way to implement them
Principles of Information Systems, Ninth Edition

18. Organizational Culture and Change (continued)
Unfreezing
Ceasing وقف old habits and creating a climate that is receptive يستقبل to change
Moving
Learning new work methods, behaviors, and systems
Refreezing
Involves reinforcing changes to make the new process second nature, accepted, and part of the job
Principles of Information Systems, Ninth Edition

19. Organizational Culture and Change (continued)
Principles of Information Systems, Ninth Edition

20. Reengineering and Continuous Improvement
Process redesign
Radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough اختراق in business results
Continuous improvement
Constantly seeking ways to improve business processes
Principles of Information Systems, Ninth Edition

21. Reengineering and Continuous Improvement (continued)
Principles of Information Systems, Ninth Edition

22. Reengineering and Continuous Improvement (continued)
Merchandising الترويج
Rationale الاساس المنطقي
Principles of Information Systems, Ninth Edition

23. Reengineering and Continuous Improvement (continued)
Principles of Information Systems, Ninth Edition

24. User Satisfaction and Technology Acceptance
Technology acceptance model (TAM)
Specifies the factors that can lead to better attitudes مواقف about the information system
Technology diffusion نشر
Measure of how widely technology is spread throughout an organization
Technology infusion صب
Extent to which technology permeates يتخلل a department
Principles of Information Systems, Ninth Edition

25. Quality
Ability of a product or service to meet or exceed customer expectations
Techniques used to ensure quality
Total quality management
Six Sigma
Principles of Information Systems, Ninth Edition

26. Outsourcing, On-Demand Computing, and Downsizing
Contracting with outside professional services
On-demand computing
Contracting for computer resources to rapidly respond to an organization’s varying workflow
Also called on-demand business or utility computing
Downsizing
Reducing number of employees
Principles of Information Systems, Ninth Edition

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

28. Factors That Lead Firms شركات to Seek Competitive Advantage
Rivalry منافسة among existing competitors
Threat تهديد of new entrants منافسين جدد
Threat of substitute products and services
Bargaining مساومة power of customers and suppliers
Principles of Information Systems, Ninth Edition

29. Strategic Planning for Competitive Advantage
Cost leadership قيادة التكلفة
Differentiation التفاضل
Niche strategy استراتيجية المتخصصة
Altering the industry structure
تغيير هيكل الصناعة
Principles of Information Systems, Ninth Edition

30. Strategic Planning for Competitive Advantage (continued)
Creating new products and services
Improving existing product lines and service
Other strategies
Growth in sales
First to market
Customizing products and services
Hiring the best people
Principles of Information Systems, Ninth Edition

31. Performance-Based Information Systems
Major stages in the use of information systems
Cost reduction and productivity
Competitive advantage
Performance-based management
Principles of Information Systems, Ninth Edition

32. Performance-Based Information Systems (continued)
Principles of Information Systems, Ninth Edition

33. Productivity A measure of output achieved divided by input required
Higher level of output for a given level of input means greater productivity
Productivity = (Output / Input) × 100%
Principles of Information Systems, Ninth Edition

34. Return on Investment and the Value of Information Systems
Earnings growth
نمو الأرباح
Market share and speed to Market
Customer awareness and satisfaction
Total cost of ownership
Principles of Information Systems, Ninth Edition

35. Risk Information systems can sometimes be costly failures
Costs of development and implementation can be greater than the returns from the new system
Principles of Information Systems, Ninth Edition

36. Careers in Information Systems
Degree programs
Degrees in information systems
Business degrees with a global or international orientation
Students are increasingly completing business degrees with a global or international orientation
Opportunities in information systems are not confined to single countries
Principles of Information Systems, Ninth Edition

37. Roles, Functions, and Careers in IS
Primary responsibilities in information systems
Operations
Systems development
Support
Information service units
Principles of Information Systems, Ninth Edition

38. 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, Ninth Edition

39. Typical IS Titles and Functions (continued)
Internet careers
Internet strategists and administrators
Internet systems developers
Internet programmers
Internet or Web site operators
Certification
Process for testing skills and knowledge resulting in an endorsement موافقة by the certifying authority
Principles of Information Systems, Ninth Edition

40. Other IS Careers
New and exciting careers have developed in security and fraud detection and prevention
Other IS career opportunities include being employed by technology companies, such as:
Microsoft ( Google ( Dell ( and many others
Principles of Information Systems, Ninth Edition

41. Finding a Job in IS
Developing an online résumé can be critical to finding a good job
Job search approaches
On campus visits
Referrals from professors, friends, and family members
The Internet
Online job sites
Company Web sites
Social networking sites
Blogs
Principles of Information Systems, Ninth Edition

42. Summary Organizations Categories of organizational structure
Systems with inputs, transformation mechanisms, and outputs
Categories of organizational structure
Traditional, project, team, and virtual
Organizational culture
Major understandings and assumptions
Reengineering
Radical redesign of business processes, organizational structures, information systems, and values of the organization
Principles of Information Systems, Ninth Edition

43. Summary (continued) Continuous improvement Outsourcing Downsizing
Constantly seeking ways to improve business processes
Outsourcing
Contracting with outside professional services
Downsizing
Reducing number of employees
Competitive advantage
Significant, and (ideally) long-term benefit to a company over its competition
Principles of Information Systems, Ninth Edition

44. Summary (continued) Performance-based information systems Productivity
Consider both strategic advantage and costs
Productivity
Measure of output achieved divided by input required
Primary responsibilities in information systems
Operations, systems development, and support
Typical IS titles
Chief Information Officer (CIO), LAN administrators, and Internet strategists
Principles of Information Systems, Ninth Edition

46. Principles and Learning Objectives
The use of information systems to add value to the organization is strongly influenced by organizational structure, culture, and change
Identify the value-added processes in the supply chain and describe the role of information systems within them
Provide a clear definition of the terms organizational structure, culture, and change and discuss how they affect the implementation of information systems
Principles of Information Systems, Ninth Edition 46 46

47. Principles and Learning Objectives (continued)
Because information systems are so important, businesses need to be sure that improvements or completely new systems help lower costs, increase profits, improve service, or achieve a competitive advantage
Identify some of the strategies employed to lower costs or improve service
Define the term competitive advantage and discuss how organizations are using information systems to gain such an advantage
Discuss how organizations justify the need for information systems
Principles of Information Systems, Ninth Edition 47 47

48. Principles and Learning Objectives (continued)
Cooperation between business managers and IS personnel is the key to unlocking the potential of any new or modified system
Define the types of roles, functions, and careers available in the field of information systems
Principles of Information Systems, Ninth Edition 48 48

49. Review question #2