Unformatted text preview: BUSI1003 BUSI1003 Introduction to Management Information Systems Information LEC 04 Information Systems, Information Organizations, and Strategy Organizations, References: References: Laudon, K. C. and Laudon, J. P., Management Information Systems: Managing the Digital Firm, 11th edition, Prentice-Hall, 2010. 11th 1 Our Focus in this Chapter Organizations and Information Organizations Systems Systems Business Strategy and Information Business Systems Systems 2 What is an Organization? By size? What do we mean by size? By nature of business? Industry? Business By sector? sector? 3 Look At These Organizations A flower shop or a meat shop in Wanchai wet flower market market McKinsey, BCG, Monitor HKU, PwC, KPMG, Queen Mary Hospital The Garden Co. Ltd., Amoy Cheung Kong, Sun Hung Kai different w are they Ho ch other? from ea 4 They Are Different They in terms of … … in Organizational structure Routines and business processes Organizational environments Organizational culture Organizational politics 5 They Are Different in terms of … … Organizational structure Flower shop, Meat shop Garden, Amoy Cheung Kong, Sun Hung Kai HKU, KPMG, Queen Mary McKinsey, BCG
6 They Are Different in terms of … … Routines and business processes Some organizations are more loose but Some some are more tight some 7 They Are Different in terms of … … Organizational environment Facing local/domestic, regional, Facing international, or global environments international, 8 They Are Different They in terms of … … in Organizational culture Organizational politics 9 Why These Differences Why Are Important? Are 10 Look At These Organizations Look Again … … Again A flower shop or a meat shop in Wanchai flower o do we expect t wet What kind of IS wet market ganizations? McKinsey, in these or see BCG, Monitor HKU, PwC,about thQueen nctional IS, KPMG, ose fu Mary Hospital Think , MIS, DSS, S The Gardenprise IS, Amoy er Co. Ltd., TP ent ESS, e c? Cheung Kong, Sun Hung tKai 11 Look At These Organizations Look Again … … Again A flower shop or a meat shop in Wanchai flower wet market wet McKinsey, BCG, Monitor HKU, PwC, KPMG, Queen Mary Hospital The Garden Co. Ltd., Amoy Cheung Kong, Sun Hung Kai 12 Organizational Resistance to Change
• Information systems become bound up in organizational politics because they influence access to a key resource – information
• Information systems potentially change an organization’s structure, culture, politics, and work
• Most common reason for failure of large projects is due to organizational and political resistance to change 13 Implementing IS has consequences for task arrangements, structures, and people To implement change, all four components must be changed simultaneously (Source: Leavitt, 1965) 14 Our Focus in this Chapter Organizations and Information Organizations Systems Systems Business Strategy and Business Information Systems Information 15 Information Systems and Information Business Strategy Business Definition of Strategic Information Systems Definition (SIS): (SIS): – Computer systems at any level of the Computer at organization that change goals, operations, products, services, or environmental relationships to help the organization to gain a competitive advantage advantage Question: – What is Competitive Advantage?
16 Competitive Advantage An organization has CA, if – it provides more value to its customers (or it more add value) add • Customers is willing to pay for this value Customers of product of • Because of good product design, good Because service delivered service – it provides the same value to customers at a it lower price (lower cost of production and lower thus charge a lower price) thus • Efficient production process • Better relationship with supplier and thus Better lower cost of materials lower
17 Competitive Strategy
Low Cost Producer: Use information systems to produce products and services at a Use lower price than competitors while enhancing quality and level of service of – E.g., Wal-Mart & Dell Product Differentiation: Product Use information systems to differentiate products, and enable Use new services and products new – E.g., Apple Focused Differentiation: Focused Use information systems to enable a focused strategy on a single Use market niche; specialize. market – E.g., Hilton & Harrah’s Customer and Supplier Intimacy: Use information systems to develop strong ties and loyalty with Use customers and suppliers customers – E.g., Chrysler and Amazon 18 Value Chain Porter, 1985 Highlight the primary or support activities Highlight that add a margin of value to a firm’s products or services products Information Systems can best be applied to Information achieve a competitive advantage achieve 19 Value Chain Primary Activities
– most directly related to the production and most distribution of a firm’s products or services distribution – Includes Inbound logistics, operations, outbound Includes logistics, sales & marketing and services logistics, Support Activities Support
– make the delivery of the primary activities make possible and consist of organization infrastructure, human resources, technology, and procurement procurement
20 Firm Value Chain 21 Value Web Extend the value chain Customer-driven network of Customer-driven independent firms Uses information technology to Uses coordinate value chains for collectively producing a product or service for a market collectively market 22 Value Web es ? ? ? xampl E 23 Enhancing Core Competencies Core competence:
– Is an activity for which a firm is a world-class leader • E.g., being the world’s best miniature parts designer, best package delivery service, or the best thin-film manufacturer – Relies on knowledge that is gained over many years of experience How can we use information systems to enhance core competencies?
– Using KMS, ERP, CRM and/or…?
24 Implications for the Design of Information Systems When we plan for a new system, we need to consider the following organizational factors:
– The environment in which the organization must – – – – function The structure of the organization: hierarchy, specialization, routines and business processes The type of organization and its style of leadership The principal interest groups affected by the system and the attitudes of workers who will be using the system The kinds of tasks, decisions and business processes that the information system is designed to assist 25 ...
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- Spring '10
- Management, Information Organizations Systems Systems Business Strategy and Information Business Systems Systems