Chapter-2-Information-Systems-Organisations-and-Strategy -...

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Victoria Abdilla Chapter 2 Information Systems, Organisations and Strategy What is an Organisation? Technical def: stable, formal social structure that takes resources from the environment and processes them to produce outputs (tells us how thousands of firms in competitive markets combine capital, labour and IT) Behaviour def: a collection of rights, privileges, obligations and responsibilities that is delicately balanced over a period of time through conflict and conflict resolution (takes us inside the individual firm to how technology affects their inner workings) More stable than an informal group in terms of longevity and routine-ness Formal legal entity with internal rules and procedures that must abide by laws They need to change the way they do business since technology is disruptive, however it can be used to squeeze out costs and also creates value for the customer IS and organisations influence each other: IS are built by managers to serve the interests of the business firm, but organisations must be aware of and open to the influences of IS to benefit from new technologies (this interaction is influenced by factors including environment, culture, structure, business processes, politics and management decisions) Features of Organisations Routines and business processes Become very efficient over time as they develop routines (standard operating procedures) for producing goods and services Routines are precise rules, procedures and practices to cope with virtually all expected situations Business processes are collections of routines – a business firm is a collection of business processes Organisational politics There is political struggle for resources as people in different positions have different concerns and perspectives Hard to bring about change in an organisation due to political resistance – easier for managers who know how to work with the politics of an organisation Organisational culture All have unquestioned assumptions that define their goals and products e.g. what products they should produce Powerful unifying force that restrains political conflict and promotes common understanding Also a powerful restraint on change – technological change threatens commonly held cultural assumptions Organisational environments Environments shape what organisations do but organisations can influence their environments Organisations are key instruments for environmental scanning : helping managers identify external changes that might require an organisational response Environments generally change faster than organisations – most are unable to adapt, particularly young firms IT helps organisations perceive change and act on them Disruptive technology : innovations that improve a product or service in ways that the market does not expect, typically by being lower priced or designed for a different set of consumers e.g. the first PC and ATM Organisational structure Type Description Example
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