Information Systems, Organisations and Management Prof. Ciaran Murphy Department ofAccounting...

Information Systems, Organisations and Management

Prof. Ciaran MurphyDepartment ofAccounting Finance and Information Systems

National University of Ireland, CorkIreland

Some Questions

• Who is Ciaran Murphy ???– Accountant, Consultant, Academic, DSS, Mgt Acc, BPR,etc

• What are we doing this week ???

• What will we learn??

• What is on the exam paper !!!

• What time is coffee ???

Organisations and Management in the 1990s

New Business Environment

• Fundamental Shifts in Management Thinking :

Drucker, Porter,Senge etc

• New Markets

• Increased Competition in existing markets

• Redefinition of sectoral interests

• Falling Barriers

• Corporate Restructuring

Shifts in Management Thinking

Author

Drucker

Porter

Post Capitalist Society

The Competitive Advantage of Nations

The Fifth Discipline

The Empty Raincoat

Post Capitalist Society

“every few hundred years a sharp transformation

has taken place and greatly affected society - its

worldview, its basic values, its business and

economics and its social and political structure.”

The Knowledge Society

“ .... we are in the middle of another time of radical change , from the Age of Capitalism and the Nation-State to a Knowledge Society and a Society of Organisations.”

The primary Resource in the Post Capitalist Society will be knowledge and the leading

social groups will be Knowledge Workers.

The Competitive Advantage of Nations

“Why do some social groups, economic institutions and nations advance and prosper ?” (Porter1990)

JapanKorea

Progress and Change - The Empty Promise: Handy

“If economic progress means that we become

anonymous cogs in some great machine than

progress is an empty promise. The challenge must be

to show how paradox can be managed.”

We are not where we hoped to be !!

1/2 * 2* 3

There are limits to management

The Inevitability of paradox

“ .. we need a new way of thinking about our problems and our futures. The acceptance of paradox as a feature of our life is the first step towards living with it and managing it.”

New Markets

• Eastern Europe

• Former USSR

• China

• Pacific Rim

• Teen Agers

• Emerging Middle Classes

• Entertainment Games, Travel etc

• Service sector

• 24 Markets

• Global Brands Coke, Sony, etc

New Markets

Increased Competition in Existing Markets

• Airlines in Europe and north America

• Banking and Financial Services

• TV Cable, Computing etc

• Auto Industry Korea

• Crystal Eastern Europe

Redefinition of Sectoral InterestsRedefinition of Sectoral Interests

• Banks and Insurance

• Postal Services Royal Mail, La Poste

• Microsoft and Entertainment Industry

Falling Barriers to MarketsFalling Barriers to Markets

• 1970’s EEC Free Trade in a protected Environment

• 1990’s Three/Four Main Forces

• Expanded EU

• Pacific Rim - Asian Tigers

• China

• NAFTA

Corporate Restructuring

IBM At & T ICI Digital Iberia Mazda

Corporate Restructuring

Relocation

Acquisition

Merger

Downsizing

Hyperextension of Operations

Time Stresses

Discontinuities Political

Business

Economic

Social

Pressure for Change !!!

Competition Globalisation Deregulation Technology

Quality

Recession Learning World Class

Redefinition

ChangingRules

CoreCompetences

Alliances

MergersAcquisitions

Customers

Forces for Change

Routes to Transformation !!!

Benchmarking TQM Empowerment Teams

OutSourcing

Delayering Groupware Matrix Management

Balanced Score Card

CoreCompetences IT

Investment

ABC EIS

ISO 9000

Routes to Transformation

Organisational Decline

1/3 of 1970’s F0RTUNE 500 had vanished by 1983

The death rate is increasing

1/3 of today’s FORTUNE 500 will be gone in 10 years

year’s time

Environmental Complexity

Globalisation

Time Stresses

Business

Economic

Social

Business Restructuring Relocation

Acquisition

Merger

Downsizing

THE CHANGING ENTERPRISE

• Extended enterprise (EDI links)

• Total Quality Management

• Business Re-Engineering

• Enterprise Engineering

• Participative Management

• Empowered Workforce

• Massive automation

• Investment pressures to upgrade

technology and workforce

• Relentless technology innovation

• Massive growth in computer power

• Massive growth in network power

• Worldwide networks

• Worldwide corporations

• Computer-to-computer interaction among corporations, worldwide

• Robotic factories

• Instant money transfer

• Worldwide consumer demand

No-holds-barred competition among U.S., EC and Japan

Constant Change in Information Technologies

INFORMATION SYSTEMINFORMATION SYSTEM

INFORMATION INFORMATION

SYSTEMSYSTEM

BUSINESS BUSINESS

CHALLENGECHALLENGE

BUSINESS BUSINESS

SOLUTIONSSOLUTIONS

MANAGEMENTMANAGEMENT

INFORMATIONINFORMATION

TECHNOLOGYTECHNOLOGY

ORGANIZATIONORGANIZATION

MANAGEMENT, ORGANIZATION & MANAGEMENT, ORGANIZATION & TECHNOLOGY DIMENSIONSTECHNOLOGY DIMENSIONS

INFORMATION SYSTEMS & INTERNET INFORMATION SYSTEMS & INTERNET TRANSFORM ORGANIZATIONSTRANSFORM ORGANIZATIONS

PROCESS OF MANAGEMENTPROCESS OF MANAGEMENT

NEVER USE TECHNOLOGY FOR TECHNOLOGY’S SAKE

Improve competitiveness

Lower costs

Decrease cycle time

Delight the customer

Use technology to :

THE ROLE OF THE I.T ORGANISATION:A PARTNER IN ENTERPRISE REDESIGN

Business Evolution Information

Technology

RE-INVENTION OF ENTERPRISE

STRUCTURES

Fundamental Changes

in Technology

Changes inthe way we

A NEW INDUSTRIAL REVOLUTION

We Are Here

Competitive Pressures are Rising Rapidly

• Changing Technologies• Automated factories

• Fast redesign of products

• Increasing rate of change

• Shorter windows of opportunity

• Pervasive information systems

• Growth of high-tech countries (like Japan)

• Growth of cheap-labour countries(Ex-USSR, India, China)

CHANGING MARKETPLACE

• Globalism

• Trading Blocks

-Pacific Rim -EC -NAFTA

CHANGING MARKETPLACE

• Deregulation

• More competitors ; lower margins

• Oversupply of products ; greater choice

• Increased customer expectations

The Mission of the I.T. Organisation

Make the enterprise as competitve/profitable/successful as possible

The I.T. Organisation :

An aggressive change agent

EVERYTHING IS SPEEDING UP

• Many new ways to attack competition

• They must be sized quickly

• Rapid design of products

• Shorter windows of opportunity

• Just in-time manufacturing

• Computer-to-computer interaction with suppliers, purchasers, customers, ets.

• Rapid adaptability, flexibility

FASTER PRODUCT DEVELOPMENT

Company Product 1980 Now

Honda Cars 5 Years 3 Years

AT & T Phones 2 Years 1 Years

Navistar Trucks 5 Years 2.5 Years

Hewlett-packard Printers 4.5 Years 22 Months

Time from Inception to delivery

SPEEDING UP

Successful corporations

move fast, change fast

The least successful organisation :

trapped in bureaucracy, unchangeable procedures

FASTER PRODUCTION

(from order to finished goods)

Company Product 1980 Now

GE Circuit breaker boxes 3 Weeks3 DayMotorola Pagers 3 Weeks2 HoursHewlett-Packard Electronic testers 4 Weeks5 DaysBrunswick Fishing reels 3 Weeks1 Week

“ It is speed that is the deciding factor in most competitve situations-

in identifying a new end use,

in getting products to the market,

in implementing new services,

in resolving problems that reduce waste

in responding to fashion trends,

in designing better processes,

in making effective organisational changes,

in controlling inventories and distribution ,and

in scenario simulations to optimise the machine/product mix.”

• Reduce inventories

• Just in-time inventory control

• Locate buying opportunities

• Shorten development cycle

Intercorporate Computing

Manufacturer Supplier

• Automatic re-ordering

• Catalogue look-up

• Customer can check order status

• Lock in customer

Intercorporate Computing

Selling Firm CustomerCorporation

AHS ASAP system

5000 customers on-line

“ ASAP was largely responsible for driving competitors like

A.S. Aloe & Will Ross Inc.from the national hospital supply

distrubution business”

Baxter could sell $5000/bed/hospital.

AHS could sell $12000/bed/hospital.

Baxter bought AHS.

INTERCORPORATE NETWORKING

CUSTOMER MANUFACTURER

SUPPLIER

SHIPPER

DISTRIB.

RETAILER

LESSONS FROM BENETTON

Systems geared to speed of changeWorldwide corporate transparency

Immediate knowledge of changes in demand

Everything integratedLow inventories; low capitalGrowth made possible by Many partnerships Many small manufacturers All on-line

Benetton

CentralDesign Ordering

of Material400Producers

DyeWorks

WarehouseManagement

Distribution

Central PlanningAds =3%of Sales

All shops on-line to central computer. Changes in demand, fashion, colour, immediately.

Robotic warehouses. Computerised logistics, worldwide.

Products in demand delivered immediately. Low inventory

Procurement controlled by central computer. Many small flexible subcontractors.

Factories on-line. CAD.CAM for cutting and sewingColour added at last possible minuteThe whole worldwide corporation is “transparent”.

Consolidated data and decision making.

Benetton

• Make airline bookings Travel agent

• Send electronic mail/fax Mail service

• Do banking from home Branch bank

• Analyse and buy stocks Stock broker

• Buy direct from factory Retailer/wholesaler

• Transmit music to home Music store

• Obtain sales info from store Market research

EMPLOY USER FACILITIES TO: BYPASS

BY PASS THE MIDDLEMAN

• Much faster

• Avoid the commision/fee

• Sometimes easier

• No translation & misunderstanding

• Highly flexible

Empower employeesSelf-directing teamsParticipative management

All employees can improve the design of theirwork processes when challenged to.

KREMLIN MODEL

Traditional hierarchy

ASSUMPTIONS

• Knowledge resides with the people at the top

• People at the bottom of the

hierachy

• Orders must be passed

down hierarchically

KNOWLEDGE WORKER MODEL

• Most workers are knowledge workers

• KW’s use computerised knowledge.

• Elaborate DSS, expert systems, etc

• KW’s have excellent training• KW’s are specialists who direct their own

•Performance and take responsibility

• KW,s are highly motivated• Financial rewards are related to value added• Kw teams and workgroups

MULTICORPORATE NETWORK MODEL

• Computers in separate corporations are interlinked

• KW,s can access databases in their trading partners

• KW,s interact directly with KW,s in other enterprises

KNOWLEDGEWORKER NETWORK MODEL

• Any information can be accessed by any KW

• Information passes directly from the bottom to the top

• KW’s can interact worldwide

• A KW workgroup may be in different locations

• KW’s develop highly specialised skills which may be applied in remote locations

• Managers cannot tell specialists how to work

• KW’s share a common mission, goals, and critical success factors

• Corporate wide connectivity is critical (broadband)

TRADITIONAL HIERARCHICAL MODEL:

The soldier must not think

MODERN CORPORATION

All employees think

• Have powerful thought-aid tools• Contribute to improving the enterprise• Multiply the use of knowledge

The Old View

• Division of labour• Divide and simplify work• Lowest cost per worker• Workers do not think• There is one best way to

do work

The New View

• Empower workers• Enrich work• Highest value-added per worker• Workers make maximum use of

their intelligence

Old Management New Management

• Taylorism• Hierarchical• Management gives orders• Workers have little effect on

quality

• Minimise cost through

• A static enterprise

• KAIZEN• Participative• Self-managed teams• Quality is everyone’s job• Train and grow every employee• A learning enterprise

THE FUTURE CORPORATION

• Massive automation

• Integration of value-stream systems

• Computer-to-computer links to trading partners

• Information Engineering ()

• Repository-based RAD

• KAIZEN - capable I.T.

• Corporate wide Distributed Computing Environment

• A learning information infrastructure

TECHNOLOGY

• KAIZEN/TQM

• Empowered employees

• Maximum-value-added work

• Participative management

• Self-driving teams

• Knowledge worker - Network management

• Motivated by a common vision & mission

• A constantly learning enterprise

THE FUTURE CORPORATION

• Catalyst for change with technology

• Aggressive change agent

• Value-stream modeling

• Builder of Value-stream platform

• Fast implementation

• Technology architects

ROLE OF I.T. DEPT IN CHANGING ENTERPRISES

Key drivers of the New Business Environment

Productivity of Knowledge WorkersQualityResponsivenessGlobalisationOutsourcingPartneringSocial and environmental Responsibility

The New Enterprise

From Closed Hierarchy to the Open Networked Organisation

NameTitle

NameTitle Name

NameTitle

The New EnterpriseThe New Enterprise

Structure Scope Resource Focus State Personnel/focus Key drivers Direction Basis of Action Individual Motivation Learning Basis forCompensation Relationships Employee attitude Dominant Requirements

StructureStructure

NameTitle

NameTitle Name

NameTitle

From Hierarchial to Networked

ScopeScope

From Internal/Closed to external/open

Resource FocusResource Focus

Capital to Human, Information

Static and Stable to Dynamic and Changing

Personnel/focusPersonnel/focus

From Managers to professionals

Key driversKey drivers

Reward and Punishment to Commitment

Direction

Management Commands to Self management

Basis of Action

Control to Empowerment to Act

Individual MotivationIndividual Motivation

Satisfy Superiors to Achieve Team Goal

LearningLearning

From specific Skills to Broader Competencies

Basis for CompensationBasis for Compensation

NameTitle

Position in Hierarchy Accomplishment

RelationshipsRelationships

Competitive versus Cooperative

Employee attitude

Detachment to Identification

Dominant RequirementsDominant Requirements

Leadership

The Promise

The High Performance Business Team

The Integrated Organisation

The Extended Enterprise

The Promise

The High Performance Team

The Business Team and the Open Networked Organisation

• A Transformation in the way business functions are executed and organisations are structured

• Shifting the Focus from Traditional Highlt Structured Hierarchial Organisation to the Business Team

• Cutting Across Traditional Organisational Boundries

NameTitle

Removing Traditional Hierarchies

NameTitle

Command and Control

Direction Setting and Coordination

The Open Networked Organisation

Based on Cooperative, Multidisciplinary Teams and Businesses Networked Togeather across the Enterprise

Client Server Functions

• Teams are Both Clients and Servers for Other Teams

• Knowledge Repositories

• Building Value Networks

Client Server Teams

Knowledge Repository

Value Networks

Supporters

• Drucker - Networked Organisations

• Moss Kanter - Dancing Elephants

• Keen - Relational Organisations

• Savage - Human Networking

• Peters - Life Without Hierarchy

Driving Forces

Increased Competition in existing marketsEnvironmental ComplexityGlobalisationExtension of Operations Competing in TimeEmpowermentProductivity of Knowledge WorkersQualityResponsivenessOutsourcingPartnering

Responsive Information Systems

Uncertain Fast Moving Decision Making Environment

Shorter Feedback Loops

Increased Volatility of Decision Making

Shorter Product

Life-Cycles

VolatileMarkets

GlobalCompetition

Recession

Driving Forces

WorkGroup Computing Support Teams Through Technology

• Information Exchange

• Document Creation

• Information Storage and Retrieval

• Decision Support: Analytical and Modelling Tools

• Time and Resource Management

• Educational Tools

The Promise

TechnologyPush

BusinessPull

PhysicalResources

HumanResources

Financial Resources

IntegratedInformation

Systems

Physical Resource Management

Process Control

Production Control & Robotics

Automated Warehouses

ATM’s etc

Human Resource Management

Financial Resource Management

E-Mail

Messaging Systems

DSS & EIS

Groupware

CAD / CAM

Accounting Information Systems

Marketing Information Systems

The Benefits of Organisational Transformation

• Increase Service to Customers

• New Business Opportunities

• Streamlining Business Practices

• Lower Unit Costs of Production

• Leveraging Experience from Different Areas

• Responsive Organisation

The Promise

Competitors

Suppliers

Customers

AffinityOrganisations

• Electronic Mail

• Electronic Data Interchange

• Groupware

• ATM’s

• Teleconferencing

• On Line Ordering

InterenterpriseComputing

IntegratedSystems

WorkgroupComputing

The Promise

InterenterpriseComputing

IntegratedSystems

WorkgroupComputing

The Extended Enterprise External

Relationships

OrganisationTransformation

The Promise

The reality - Organisational Pathologies

• Field HQ Tensions

• Leadership is Depersonalised

• Fragmented Understanding

• Inefficient Project Work and Team Work

• A Growing Subservence to Documents

• Middle Management Dilema

• Negative Value of Experience

Field Headquarters Tensions

• Remoteness of Corporate HQ’s

• Peer Competition

• Site V’s HQ Loyalty

• Pressure to Perform

• Income Smoothing

Leadership is Depersonalised

• Absence of Face to Face Contact

• Delays in Dissemination of Information

• Lack of Direct Communication

Fragmented Understanding

“In a long chain of paperwork stretched over time, people and geography, no single may have a complete picture of the system.”

Inefficient Project Work and Team Work

Distance, Time and Place

Lines of Communication are Stretched

Coordination Becomes Expensive and Complex

Travel Increases

A Growing Subservence to Documents

• Ritualisation of Documents

• Purchase oders, GRN’s,Invoives, Confirmations etc

• Organisational Slack

Middle Management Dilema

• Eroding Competitiveness

• Rigid Organisations

• Most to Lose from Loss of Status Quo

• “..Costs Walk and Wear a Suit.”

Negative Value of Experience

• Experience becomes a liability rather than an asset

• The Value of Experience rests on the Status Quo

• The more Things Change the Less Experience is Worth

• IROC’s

“The 1990’s is a Decade of paradigm Shifts in I.T.

Organisations which fail to master

these shifts will be unable to compete

Critical Shifts in the Application of IT

• From Personal Computing to Workgroup Computing

• From Systems Islands to integrated Systems

• From Internal to Inter Enterprise Computing

WorkGroup ComputingWorkGroup Computing

WorkGroup Computing Support Teams Through Technology

• Information Exchange

• Document Creation

• Information Storage and Retrieval

• Decision Support: Analytical and Modelling Tools

• Time and Resource Management

• Educational Tools

WorkGroup ComputingWorkGroup Computing

• Permit Electronic Communication

• Facilitate the Management of Common Information

• Used by Groups

WorkGroup Computing

• Administration

• Information Management

• Communications Management

• Realtime Meeting Facilitation

WorkGroup Computing - Guiding principles

• Connectivity

• Coordination

• Control

• Collaboration

• Change

WorkGroup Computing - Technology

• High Powered Desktop Computers

• Graphical User Interface

• Multimedia

• Remote Working

• WorkGroup LANS

• Mobile and Wireless Communications

WorkGroup Computing - Typical Objectives

Streamline Communications or Business processes

Eliminate unproductive activities in the business process

Improve Collaborative creation of work products such as documents, ,specifications, designs and code

Exercise more efficient division of labour strengthen Brainstorming, synergy Alert Group Members to important events Improve Decision Making

WorkGroup Computing - Barriers

• Change– Lack of Strategic vision

– Lack of Accountability

• Coordination– Separate units and island of competence have to give up

perceived independence

– People rooted in stand alone PC mode

• Collaboration– Threatens those with expert derived status

– Technical problems with H\W platforms

• Control– More effective control not always welcome

• Connectivity– Unlearning Traditional Approaches

– Technical Connectivity Problems

– Critical Mass

WorkGroup Computing - Barriers

WorkGroup Computing - Approaches to Implementation

• Downsizing but lack of resource to replace IT Infrastructure

• Change Possible in some areas but not all

• Radical Change from the Top

WorkGroup Computing - Barriers to Implementation

Range of ProductsLearning Curve and Financial Costs InvolvedLack of Data Integration Between ProductsThe PC, Group Computing and Enterprise

Computing Seperation

TechnologyPush

BusinessPull

PhysicalResources

HumanResources

Financial Resources

IntegratedInformation

Systems

Establishing New Service Levels for increased customer satisfaction

Creating new business opportunities through the extension of existing product and service offerings

Streamlining organisational proceduresLowering computing Costs through Common IT PlatformsLeveraging experienceMore Responsive organisation

Examples

• Federal Express

• Smith Klein Beecham

• Otis Elevator

• British Airways

• Price Waterhouse

Physical Resource Management

Process Control

Production Control & Robotics

Automated Warehouses

ATM’s etc

Human Resource Management

Financial Resource Management

E-Mail

Messaging Systems

DSS & EIS

Groupware

CAD / CAM

Accounting Information Systems

Marketing Information Systems

The Benefits of Organisational Transformation• Increase Service to Customers

• New Business Opportunities

• Streamlining Business Practices

• Lower Unit Costs of Production

• Leveraging Experience from Different Areas

• Responsive Organisation

Competitors

Suppliers

Customers

AffinityOrganisations

The Extended Enterprise - Examples

• Digital

• Auto Industry GM

• Supervalue

• AHS Baxter

• Benetton

• Electronic Mail

• Groupware

• ATM’s

• Teleconferencing

• On Line Ordering

• Reaching out to Customers

• Reaching out to Suppliers

• Reaching Out to Competitors

• Reaching out to Affinity Organisations

Emerging Technology Trends

• More Powerful Memory Chips

• Microprocessors

• RISC

• Client Server Computing

• Graphics User Interface GUI

• Mobile Communications

• CASE Tools

• OOP’s

• Parallelism

• Image processing

• Speech recognition

• Intelligent Documents

• Smart Cards

• Bar Scanners

Emerging Technology TrendsEmerging Technology Trends

Emerging Technology Trends

• Broadband Networks

• Video Conferencing

• TeleWorking

• Multimedia Computing

• Downsizing

• Broadband Networks

• Video Conferencing

• TeleWorking

• Multimedia Computing

• Downsizing

Client Server ComputingClient Server Computing

• GUI

• Extending PC Capability

• Lower Cost

• Sharing devices

• Sharing local databases

• Workgroup Environment

• Fast Flexible Development

Client Server

A Software Issue not a Hardware Issue !!!

Why Network Computing

• Operational Alignment

• Platform Specialisation

• Cost savings

• Integration

• Flexibility

• Innovation

Client Server

Four Waves of ComputingFour Waves of Computing

• The First Wave: Mainframes 1950’ 1960’s

• The second Wave: Minicomputers 1970’s

• The Third Wave: personal computers 1980’s

• The Fourth Wave: Client server systems

1990’s

• The First Wave: Mainframes 1950’ 1960’s

• The second Wave: Minicomputers 1970’s

• The Third Wave: personal computers 1980’s

• The Fourth Wave: Client server systems

1990’s

MAINFRAME LAN SERVER PC

Hardware Costs$k/MIPS

DOWNSIZING

BENEFITS DANGERS

Greater flexibility

Faster innovation

Bypass the I.T. backlog

Helps value-stream re-invention

Tower of Babel

Loss of control

Incompatible data

Redesigning The Organisation Through Information Technology

NameTitle

Management Challenges of the 1990’s

• Extreme fragmentation of Industrial era Organisations

• Accountability in Flat Organisations

• Focussing and Coordination of Multiple Cross Functional Task Teams

• Continual Learning

The key Concepts

Connectivity

Interfacing

Integrating

Steep Hierarchies and Fox Hole Management (Savage)Steep Hierarchies and Fox Hole Management (Savage)

• The Division an Subdivision of Labour and self interest

• Pay for narrowly defined tasks

• Division and subdivision of management (Foxhole Management)

• Seperation of ownership and Management

• Seperation of thinking and Doing

• One person one Boss

• Automation

Difficulties in the New Organisations (Drucker)

Developing rewards,recognition and career opportunities for specialists

Creating a unified vision in an organisation of specialists

Management Structures for an organisation of Task forces

Ensuring the supply, preparation, and testing of top management

Networking will need to encompass hierarchiesNetworking will need to encompass hierarchies

NameTitle

Computerisation Critical Issues with new Organisations

• Ownership of Information

• Managed information systems

• Hidden assumptions and levels of abstraction embedded in software applications

• Multiple applications with inconsistent definitions

• Social Norms about transmission of information

• The values and politics of the organisation

NetworkingNetworking

Peer to peer Networking

Integrative Processes

Work as dialogue

Human Time and Timing

Virtual task focusing teams

The Transition

• Industrial to knowledge Era

• From Routine to complexity

• From Sequential to Parallel

• Chain of Command to Networked and networking

• Command and Control to Focus and Coordination

• Authority of Position to Authority of Knowledge

• Vertical communications to Horizontal Communications

• Distrust and compliance to Trust and Integrity

Managing the Networked Organisation

• Develop Visioning Capabilities

• A data Integration strategy

• Functional Centres of Excellence

• a Technical Networking Infrastructure

• Identify and Track Multiple Task teams

• Develop Learning and Unlearning Capabilities

• Develop Norms ,Values and rewards to support task focussed teams

• Extend Task focussed teams to outsiders.

Management Decision Process for IT

Awareness

Business Vision

Compelling Business Message

Abdication

Delegation

Enlightened Delegation

Management Policy DrivesIT Planning

Awareness

Senior Management Acknowledges Links Between IT and Competitive Positioning

Awareness

Business Vision

Abdication

Delegation

Business Vision

Senior Management has a clear business vision that sets the criteria and priorities for investing in IT

Awareness

Business Vision

Abdication

Delegation

Senior management Perceives a compelling business message for developing a corporate IT platform

Awareness

Business Vision

Abdication

Delegation

The Reach and Range of the I.T. Platform

Anyone,Anywhere

Customers,Suppliers,with the same ITBase as Ours

Intercompanylocationsabroad

AcrossintercompanydomesticLocations

Within aSingleLocation

The Integrated ITPlatform for Integrated BusinessProcesses

Standard Access to Independant Multiple Cross LinkedMessages Stored data Transactions Transactions

REACH : Who is accessible ThroughOur IT Platform

RANGE: What Services CanWe Automatically andDirectly Share Acrossthe Platform

Organisational Complexity: Causes, Consequences and Solutions through IT

Organisational Complexity

IT Countermeasures Organisational pathologies

Attack

Gives Rise to

Globalisation

Time Stresses

Business

Economic

Social

Business Restructuring Relocation

Acquisition

Merger

Doensizing

Attack

Gives Rise to

More Managerial Layers

Elaboration of Procedures and Controls

Administrative Overhead

Relience on communications by paper and

reporting systems

Attack

Gives Rise to

Organisational Pathologies

Field Headquarter Tensions

Depersonalisation of Management

Inefficent Project and team work

Subservience to Documents

Middle Management Dilemmas

Negitive Value of Experience

Attack

Gives Rise to

IT CounterMeasures

• Re create organisational Simplicity

• Design structure and location independant organisations

• Facilitate the Collaborative Organisation

• Make it easier to communicate than not to do so

• Repersonalise Management

Attack

Gives Rise to

Summary

Information Systems, Organisations and Management Prof. Ciaran Murphy Department ofAccounting...

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