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Information Technology and Control

Information Technology and Control. BA 152. TOP (strategy, plans, non-programmed). 3. Strategic Weapon. INTERNAL. EXTERNAL. Intranets ERP Knowledge Management. Extranets, EDI Integrated Enterprise E-Business. 2. Business Resource. Management Information systems

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Information Technology and Control

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  1. Information Technologyand Control BA 152

  2. TOP (strategy, plans, non-programmed) 3. Strategic Weapon INTERNAL EXTERNAL • Intranets • ERP • Knowledge • Management • Extranets, EDI • Integrated • Enterprise • E-Business 2. Business Resource • Management Information systems • Decision Support Systems • Executive information systems • Management control systems • Balanced Scorecard MANAGEMENT LEVEL 1. Operations • Transaction • processing systems • Data warehousing LOWER LEVEL Evolution of Organizational Applications of Information Technology Direction of Information System Evolution LOW SYSTEM COMPLEXITY HIGH

  3. Data, Information, & Control • Data - Input from any communication channel • Information - Data that alters or reinforces understanding • Control - Evaluation of information that provides the basis for future actions

  4. Information and Data High Information Data Low High

  5. Information and Control High Control Information Low High

  6. Performance Measures Performance Standards Actions (if necessary) Control Systems:The Key Pieces

  7. Major Control Approaches • Market Control – • Bureaucratic Control – • Clan Control -

  8. Control Systems:What gets controlled and how? How Market Bureaucracy Clan What Input Process Output

  9. Supervisory Control Strategies • Input Control – • Behavior Control – • Output Control –

  10. Supervisory Control StrategiesWhat works best when? Are Tasks Structured? YESNO YES Are Outcomes Measurable? NO

  11. Developing Effective Control Systems • Involve employees in the process, as appropriate • Keep the system as simple as possible

  12. Developing Effective Control Systems • Make sure the system fits with the firm’s culture, strategy, and structure

  13. Effective Control Systems:Keep the following in mind • What gets measured is what will get done! • System costs must be considered. • Too much information can be as bad as too little. • You can’t make just one decision.

  14. Control Systems The Balancing Act Control Autonomy

  15. Knowledge Management

  16. Types of Knowledge • Consider two different types of knowledge important to organizations.

  17. Types of Knowledge • Explicit Knowledge • Knowledge that is formal and systematic • Knowledge that can be communicated and shared. • Examples?

  18. Types of Knowledge • Tacit (implicit) Knowledge • Knowledge that is highly personal. • Knowledge that is difficult to communicate, because “We often know more than we can tell.” • Examples?

  19. Sharing Different Kinds Of Knowledge Explicit to Tacit and vice-versa

  20. TO Tacit Explicit Tacit FROM Explicit Sharing Knowledge: The knowledge spiral

  21. Two Approaches to Knowledge Management For Explicit Knowledge Provide high-quality, reliable, and fast information systems for access of codified, reusable knowledge

  22. Knowledge Management Strategy Technology Mechanisms Two Approaches to Knowledge Management People-to-documents Develop an electronic document system that codifies, stores, disseminates, and allows reuse of knowledge. Invest heavily in information technology, with a goal of connecting people with reusable codified knowledge.

  23. Two Approaches to Knowledge Management For Tacit Knowledge Channel individual expertise to provide creative advice on strategic problems

  24. Knowledge Management Strategy Technology Mechanisms Two Approaches to Knowledge Management Person-to-person Develop networks for linking people so that tacit knowledge can be shared Invest moderately in information technology, with a goal of facilitating conversations and the exchange of tacit knowledge

  25. Communities of Practice • Collections of individuals • Bound together by informal relationships • Sharing common work context

  26. Communities of Practice • “Practice” suggests how individuals actually do their jobs as opposed to their formal job descriptions from their firm.

  27. To deliver a product or service Those reporting to manager Job demands and common goals Until the next reorganization To complete a specific task Assigned by senior manager Milestones and project goals Until project is completed To collect & pass on information Friends & business contacts Mutual needs As long as people need to connect Collective Comparisons Purpose? Who belongs? What holds it together? How long does it last? Informal network Formal work group Project team Community of practice

  28. Communities of Practice • Why should we allow/encourage, but not attempt to formally manage, COPs? • They can help drive strategy. • They can solve problems quickly. • They develop professional skills.

  29. Next Time • Organizational Size, Life Cycles, and Decline

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