Ch.2 information system, organization, and strategy

Ch.2 information system, organization, and strategy - Ch.2...

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Ch.2 information system, organization, and strategy 2.1 organizations and information system Organization and information system are influence one another. Manager builds information system to serve the interests of the business firm. Same time, organization must be aware of the influences of IS to benefit from new technologies. The interaction between IT and organization is influenced by organization s structure, business processes, politics, culture, environment, management decision. What is an organization? Formal social structure that takes resources from the environment and processes them to produce outputs. It is focuses on 2 elements of an organization. Capital and labor are primary production factors provided by environment. The organization transforms these inputs into final product and then the final products are consumed by environment. Organization encourages us to focus on how inputs are combines to create output when technology changes are introduced into company. To implement a new IS, takes a long time because require more resources to support training and learning Features of organizations It includes their business processes, organizational culture, organizational politics, environments, structure, goals, constituency and leadership styles. Routines and business processes Routines sometimes called standard operating procedures. As employees learn these routines, they become highly productive and efficient and the firm is able to reduce its costs over time as efficiency increase. E.g. doctor s office, receptionists, nurses, doctor have a different set of routine. receptionists routines for gathering basic information from patients nurses routines for preparing patients for an interview with a doctor doctor routines for diagnosing the patients Business processes are collections of such routines. A business firm in turn is a collection of business processes. organizational culture people in organization have different position with different specialties perspectives. organizational politics environments
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Ch.2 information system, organization, and strategy structure, goals constituency leadership styles 2.2 How information system impact organizations and business firms 2.3 Using information system to achieve competitive advantage p.52 Porter s competitive forces model is all about the firm s general business environment In porter s competitive forces model, the strategic position of the firm and its strategies are determined by traditional competitors, new market entrants, substitute product, customers and suppliers. Traditional competitors All competitors are continuously devising new, more efficient ways to produce by introducing new products and services. And also they are attempting to attract customers by developing their brands and imposing switching cost on their customers.
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