Chapter 3 MIS - Chapter3 SUMMARYchapter3

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Chapter 3   SUMMARY chapter 3 1.   Identify and describe important features of organizations that managers need to know about in order to build and use  information systems successfully.       Managers need to understand certain essential features of organizations to build and use information systems successfully. All modern  organizations are hierarchical, specialized, and impartial, using explicit routines to maximize efficiency. All organizations have their  own cultures and politics arising from differences in interest groups, and they are affected by their surrounding environment.  Organizations differ in goals, groups served, social roles, leadership styles, incentives, types of tasks performed, and type of  structure. These features help explain differences in organizations’ use of information systems. 2.   Evaluate the impact of information systems on organizations.       Information systems and the organizations in which they are used interact with and influence each other. The introduction of a new  information system will affect organizational structure goals, work design, values, competition between interest groups, decision  making, and day-to-day behavior. At the same time, information systems must be designed to serve the needs of important  organizational groups and will be shaped by the organization’s structure, task, goals, culture, politics, and management. Information  technology can reduce transaction and agency costs, and such changes have been accentuated in organizations using the Internet. Information systems are closely intertwined with an organization’s structure, culture, and business processes. New systems disrupt  established patterns of work and power relationships, so there is often considerable resistance to them when they are introduced.  The complex relationship between information systems, organizational performance, and decision making must be carefully  managed. 3.   Demonstrate how Porter’s competitive forces model and the value chain model help businesses use information systems for  competitive advantage.       In Porter’s competitive forces model, the strategic position of the firm and its strategies are determined by competition with its  traditional direct competitors but also they are also greatly affected by new market entrants, substitute products and services,  suppliers, and customers. Information systems help companies compete by maintaining low costs, differentiating products or  services, focusing on market niche, strengthening ties with customer and suppliers, and increasing barriers to market entry with high  levels of operational excellence.       The value chain model highlights specific activities in the business where competitive strategies and information systems will have the 
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This note was uploaded on 08/09/2011 for the course INFORMATIO --- taught by Professor --- during the Spring '11 term at Universidad Iberoamericana.

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Chapter 3 MIS - Chapter3 SUMMARYchapter3

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