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1
Management Information Systems - - Chap. 3
By: Prof. Y. Peter Chiu By: Prof. Y. Peter Chiu
2 / 20092 / 2009
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Information Systems, Organizations, Information Systems, Organizations, Management, and StrategyManagement, and Strategy
3.1 Organizations & Information System3.1 Organizations & Information System
3.2 The Changing Role of Information 3.2 The Changing Role of Information Systems in Organizations Systems in Organizations
3.3 Managers, Decision Making, and 3.3 Managers, Decision Making, and Information Systems Information Systems
3.4 Information Systems and Business 3.4 Information Systems and Business Strategy Strategy
Chap. 3
3
3.1 Organizations & Information System3.1 Organizations & Information System
Technical Definition:
Stable, Formal, Social Structure
Takes Resources From Environment
Processes Them
To Produce Outputs
ORGANIZATION
4Fig 3-2: The Technical view of Organizations .
3.1 Organizations & Information System3.1 Organizations & Information System
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Behavioral Definition :
Collection Of
Rights, Privileges, Obligations,Responsibilities
Delicately Balanced
Conflict Resolution
3.1 Organizations & Information System3.1 Organizations & Information System
ORGANIZATION
6Fig 3-1: The Two-way relationship b/w Organizations and I.S.
3.1 Organizations & Information System3.1 Organizations & Information System
MEDIATING FACTORS:MEDIATING FACTORS: Environment Environment Culture CultureStructure Structure Standard Procedures Standard ProceduresBusiness ProcessesBusiness ProcessesPolitics Politics Management Management Decisions ChanceDecisions Chance
ORGANIZATIONSORGANIZATIONS INFORMATION INFORMATION TECHNOLOGYTECHNOLOGY
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Structural Characteristics of All Organizations
Clear Division Of Labor Hierarchy Explicit Rules & Procedures Impartial Judgments Technical Qualifications Maximum Organizational Efficiency
3.1 Organizations & Information System3.1 Organizations & Information System
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Common Features of Organizations
Formal Structure
Standard Operating Procedures
Politics
Culture
3.1 Organizations & Information System3.1 Organizations & Information System
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Unique Features of Organizations
Organizational Types
Environments, Goals, Power
Constituencies, Function
Leadership, Tasks
Technology
Business Processes
3.1 Organizations & Information System3.1 Organizations & Information System
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Organization & Its Environment
3.1 Organizations & Information System3.1 Organizations & Information System
Figure 3-4
11Table 3-3: Summary of Salient Features of Organizations.
3.1 Organizations & Information System3.1 Organizations & Information System
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Fig 3-5: Information Technology Services.
3.2 The Changing Role of Info Systems In Organizations3.2 The Changing Role of Info Systems In Organizations
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How Information Systems affect Organizations
The Impact of Information Systems on The Impact of Information Systems on OrganizationOrganization
Reduces Operating costs
Reduces Organizational size – middle managers – clerical workers
3.2 The Changing Role of Info Systems In Organizations3.2 The Changing Role of Info Systems In Organizations
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Changes Organizational Structure – decentralize – less reliance on SOPs
Increase Information and knowledge workers Self- guided workers
– information access: automated, timeliness, and accuracy
Shortens Decision Making Process
3.2 The Changing Role of Info Systems In Organizations3.2 The Changing Role of Info Systems In Organizations
How Information Systems affect Organizations
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How Organizations Affect Information Systems ?
Decisions about The Role of information systems
Decisions about
The Computer Package : - Who delivers information technology services ?
Decisions aboutWhy information systems are built ?
3.2 The Changing Role of Info Systems In Organizations3.2 The Changing Role of Info Systems In Organizations
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Fig 3-8: Organizational Resistance and the mutually adjusting relationship between technology and the organization.
3.2 The Changing Role of Info Systems In Organizations3.2 The Changing Role of Info Systems In Organizations
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Internet & Organizations
The internet increase the
■ Accessibility
■ Storage ■ Distribution of Info & Knowledge
For organizations ■ Lowering the transaction and agency
costs
3.2 The Changing Role of Info Systems In Organizations3.2 The Changing Role of Info Systems In Organizations
◆
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Role Of Managers
Classical Descriptions of Management Describe functions-
plan, organize, coordinate, decide, control
Behavioral Models
Based on observations of managers on the job
3.3 Managers, Decision Making, and Information Systems3.3 Managers, Decision Making, and Information Systems
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Behavioral model of management activities :
High-volume, High-speed work
Variety, Fragmentation, Brevity
Issue preference current, ad hoc, specific
Contacts, complex web of interactions
Strong preference for verbal media
Control of the agenda
What Managers Do ?
3.3 Managers, Decision Making, and Information Systems3.3 Managers, Decision Making, and Information Systems
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Managerial Roles: Mintzberg (1971)
Interpersonal roles Figurehead
Leader
Liaison
Informational roles Nerve center
Disseminator
spokesperson
3.3 Managers, Decision Making, and Information Systems3.3 Managers, Decision Making, and Information Systems
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Managerial Roles: Mintzberg (1971)
Decisional roles
Entrepreneur
Disturbance handler
Resource allocator
Negotiator
3.3 Managers, Decision Making, and Information Systems3.3 Managers, Decision Making, and Information Systems
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How information systems can benefit managers ?
What managers do ?
What information managers need for decision making ?
How decisions are made ?
What kinds of decisions can be supported by formal
information systems ?
◇◇
3.3 Managers, Decision Making, and Information Systems3.3 Managers, Decision Making, and Information Systems
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3.3 Managers, Decision Making, and Information Systems3.3 Managers, Decision Making, and Information Systems
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Levels of Decision MakingLevels of Decision Making
Operationalcontrol
Operationalcontrol
Knowledge-level decision
making
Knowledge-level decision
making
Managementcontrol
Managementcontrol
Strategicdecisionmaking
Strategicdecisionmaking
3.3 Managers, Decision Making, and Information Systems3.3 Managers, Decision Making, and Information Systems
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Decisions are classified as:Decisions are classified as:
Unstructured:Unstructured: Non routineNon routine, decision maker provides , decision maker provides
judgment, evaluation, and insightsjudgment, evaluation, and insights into into problem definition, problem definition, no agreed-upon no agreed-upon procedureprocedure for decision making for decision making
Structured:Structured: Repetitive, routine, handled using a definite Repetitive, routine, handled using a definite procedureprocedure
3.3 Managers, Decision Making, and Information Systems3.3 Managers, Decision Making, and Information Systems
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Fig. 3-9: Different kinds of information systems at the various organization levels support different types of decisions.
TPS
OAS MIS
KWS
DSS
ESS
ORGANIZATIONAL LEVELTYPE OFDECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC
STRUCTURED ACCOUNTS RECEIVABLE
ELECTRONIC PRODUCTIONSCHEDULING COST OVERRUNS
SEMI- BUDGETSTRUCTURED PREPARATION
PROJECTSCHEDULING
FACILITYLOCATION
UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTSNEW MARKETS
3.3 Managers, Decision Making, and Information Systems3.3 Managers, Decision Making, and Information Systems
27Fig 3-10: The decision making process.
3.3 Managers, Decision Making, and Information Systems3.3 Managers, Decision Making, and Information Systems
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Stages of Decision Making
Intelligence : Collect information; identify problem
Design : Conceive alternatives; select criteria
Choice : Use criteria to evaluate alternatives; select
Implementation: Put decision into effect; allocate resources;
control
3.3 Managers, Decision Making, and Information Systems3.3 Managers, Decision Making, and Information Systems
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Management ChallengesManagement Challenges
Unstructured nature of important decisions
Diversity of managerial roles
Complexity of decision making
3.3 Managers, Decision Making, and Information Systems3.3 Managers, Decision Making, and Information Systems
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Strategic Information Systems ( S.I.S )
Computer systems at any level of the organization that change
The goals, operations, products, services, or environmental relationships, to
help the organization gain a competitive advantage .
3.4 Information Systems and Business Strategy3.4 Information Systems and Business Strategy
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Fig. 3-15: Porter’s competitive forces model
3.4 Information Systems and Business Strategy3.4 Information Systems and Business Strategy
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Competitive forces model
Model used to describe the interaction
of external influences, specially threats
and opportunities, that affect an
organization’s strategy and ability to
compete.
3.4 Information Systems and Business Strategy3.4 Information Systems and Business Strategy
◆
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Four basic Competitive StrategiesFour basic Competitive Strategies
Product
Differentiation
Product
Differentiation
Focused
Differentiation
Focused
Differentiation
Tight Linkages
to customers& suppliers
Tight Linkages
to customers& suppliers
Low-cost
producer
Low-cost
producer
New & UniqueProducts and
Services•ATM by Citibank•C-M-A by Merrill
Lynch
New Market Nichesfor specialized
Products or Services
•Sears Roebuck•American Express
“Lock” customers &Suppliers ;
Raises SwitchingCosts
• Federal Express• Baxter International
• Wizard by Avis• C-R-S by Wal-Mart• Yield mgmt by Airlines
3.4 Information Systems and Business Strategy3.4 Information Systems and Business Strategy
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Data-mining Analysis of large pools of data to find patterns and patterns and
rulesrules that can be used to guide decision making and to predict future behaviorto predict future behavior.
Switching Costs The expense a customer or company incursThe expense a customer or company incurs in lost
time and expenditure of resources when changing when changing fromfrom one supplier supplier or system to a competing supplier or system.
3.4 Information Systems and Business Strategy3.4 Information Systems and Business Strategy
Competitive forces model
35Fig. 3-13: Stockless inventory compared to traditional and just-
in-time supply methods.
3.4 Information Systems and Business Strategy3.4 Information Systems and Business Strategy
◆
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Value Chain model
Model that highlights the primary or support activities that add a margin of value to a firm’s products or services where information systems can best be applied to achieve a competitive advantage.
3.4 Information Systems and Business Strategy3.4 Information Systems and Business Strategy
Primary ActivitiesPrimary Activities
Activities most directly related to the production and distribution of a firm’s products or services .
Support ActivitiesSupport Activities
Activities that make the delivery of a firm’s primary activities possible. Consists of the organization’s infrastructure, human resources, technology, and procurement.
37
3.4 Information Systems and Business Strategy3.4 Information Systems and Business Strategy
Figure 3-11
38Figure 3-14
Business-Level StrategyBusiness-Level Strategy
3.4 Information Systems and Business Strategy3.4 Information Systems and Business Strategy
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Strategic Strategic Information Information
SystemsSystems
Strategic Strategic Information Information
SystemsSystems
Competitive Forces Model
The Value Chain Model
3.4 Information Systems and Business Strategy3.4 Information Systems and Business Strategy
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What managers should do ?
How is the industry currently using information systems ?
Can significant strategic opportunities be gained by introducing new information system technology ?
3.4 Information Systems and Business Strategy3.4 Information Systems and Business Strategy
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What is the current business strategic plan, and how does that plan mesh with the current strategy for information services ?
Does the firm have the technology and capital required to develop a strategic information systems initiative ?
3.4 Information Systems and Business Strategy3.4 Information Systems and Business Strategy
What managers should do ?
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HOMEWORK CHAP.3# 1 What are the Mediating Factors between organizations and
Information Technology ?
# 2 Describe briefly what common features and unique features of organizations are?
# 3 Describe how information systems affect organizations; and how organizations affect information systems.
# 8 What specific managerial roles can information systems support ? Where are information systems particularly strong in supporting managers, and where are they weak?
# 9 What are the four stages of decision making described by Simon?
# 12 What is a strategic information system?
# 13 Describe what competitive forces model and value chain model are? Name four basic competitive strategies.
# 14 What managers should do after understanding the impact of strategic information system?
~ THE END ~~ THE END ~
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