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Information Systems in Organizations

Information Systems in Organizations. Information Systems and Management. Introduction. Businesses need to ensure that systems: Lower Costs Increase Profits Improve Service Achieve a competitive advantage. IS personnel are the key to unlocking the potential of any new or modified system

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Information Systems in Organizations

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  1. Information Systems in Organizations Information Systems and Management

  2. Introduction Businesses need to ensure that systems: • Lower Costs • Increase Profits • Improve Service • Achieve a competitive advantage

  3. IS personnel are the key to unlocking the potential of any new or modified system (HBO)

  4. In your career you will work with information systems to help your company become more efficent, effective, productive, and competitive within its industry.

  5. Organization An organization is a formal collection of people and other resources established to accomplish a set of goals.

  6. Value Chain The Value Chain is a series of activities that includes: • Inbound logistics • Warehouse & Storage • Production • Finished product storage • Outbound logistics • Marketing & Sales • Customer Service

  7. Organizational Structure

  8. Organizational Structure Organizational subunits and the way they relate to the overall organization.

  9. Types of Organizational Structures • Traditional • Flat • Project • Team • Multi-Dimensional • Virtual http://www.evektor.cz/evektor/images/organisation_chart_EN.gif

  10. Empowerment Giving employees and their managers more responsibility and authority to make decisions, take certain actions, and have more control over their jobs.

  11. Organization Structure and IS 3 2 3 3 3 1 3

  12. IS Department Functions • Technical • Operating Systems • Telecommunications • DBA • Systems & Programming • Training • Internal • External • Audit

  13. Business Process Reengineering (BPR) BPR The radical redesign of business processes • Technology • TQM

  14. Technology • Diffusion: Measure of how widely technology is spread throughout the organization • Infusion: Extent to which technology is deeply integrated into a business area • Technology Acceptance Model (TAM): a model that describes the factors that lead to higher levels of acceptance and usage of technology. • Factors include ease of use and quality of information

  15. Total Quality Management (TQM) • Quality: the ability of a product or service to meet or exceed customer expectations • TQM: approaches that foster a commitment to quality • Awareness of customer needs • Empowering and rewarding employees for quality

  16. Information System Success Efficiency - Output / Input - Do things right Effectiveness - Output / Objectives - Do the right things

  17. More BPR • The fundamental re-thinking and radical redesign of business processes to achieve dramatic improvements in cost, quality, service, and speed. • Automate: IT substitutes for human effort • Payroll (same but faster) • Informate: IT augments human effort • Spreadsheets (new activities) • Transformate: IT restructures processes • Paperless Accounts Payable

  18. BPR – Revolutionary TQM - Evolutionary

  19. “Don’t pave the cow paths”

  20. Strategies to Contain Costs • Outsourcing: contracting with outside professional services to meet specific business needs • On-Demand Computing(Utility Computing): contracting for computer resources to rapidly respond to an organizations varying workflow (Cloud) • Downsizing (Rightsizing): reducing the number of employees to cut costs

  21. Porter’s Five Forces Model Factors that lead to attainment of competitive advantage

  22. Porter’s Five Forces Model&Information Technology

  23. From a Company Perspective • Buyer Power • Decrease buyer power • Make it more attractive for customers to buy from us • IT • Loyalty Program • Safeway VS. Save-On-Foods • Aeroplan

  24. Supplier Power • Decrease supplier power • Have many alternate supply sources • IT • B2B Marketplace • Internet-based services which brings together many buyers and sellers • Private Exchange

  25. Threat of Substitute Product or Services • Decrease the threat • Have fewer alternatives in the market • IT • Create switching costs

  26. Threat of New Entrants • Decrease the threat • Create an entry barrier • IT • Rivalry among Existing Competitors • Trend is toward increased competition • IT • Gain a competitive advantage (fleeting) • Compete on price • Track Purchasing sequences

  27. Strategic Planning for Competitive Advantage Strategic Alliance: Agreement between two or more companies that involves the joint production and distribution of goods and services. • Creating new products and services • Improving existing products and services • Using IS for strategic purposes

  28. Planning Organizing Directing IS Staffing Controlling

  29. Chief Information Officer (CIO) • Oversees all uses of IT • Ensures strategic alignment of IT with business goals and objectives

  30. Discussion Question Business Personnel and IT Personnel There is a GAP • What is this gap? • Why does it exist? • How may it be resolved?

  31. Information Systems in Organizations Information Systems and Management

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