Chapter 2: Information Systems in Organizations
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Questions and Answers

What distinguishes espoused values from in-use values in an organization?

  • Espoused values are only theoretical, while in-use values are practical.
  • Espoused values are adaptable, whereas in-use values remain static.
  • Espoused values are what people say, while in-use values are what people do. (correct)
  • Espoused values are more visible compared to in-use values.

Which of the following levels of organizational culture has the lowest visibility?

  • Artifacts and physical characteristics
  • Basic assumptions (correct)
  • Espoused values
  • In-use values

What component of the change management framework focuses on understanding organizational impacts?

  • Benefits
  • Assessments
  • Manage the Transition
  • Define What Is Changing (correct)

In business process reengineering, which element is primarily concerned with adapting software applications?

<p>IT reengineering (D)</p> Signup and view all the answers

What is the main objective of the ongoing monitoring of changes in a change management process?

<p>To assess business readiness and engagement (C)</p> Signup and view all the answers

Which type of values may be challenging for newcomers to understand in an organization?

<p>Basic assumptions (C)</p> Signup and view all the answers

What is the purpose of a business case in the change management framework?

<p>To justify and explain the need for change (D)</p> Signup and view all the answers

What is a key part of the process when transitioning to a preferred alternative in change management?

<p>Stakeholder engagement (A)</p> Signup and view all the answers

What term describes the connection between organizational subunits and their relationship with the overall organization?

<p>Organizational structure (B)</p> Signup and view all the answers

Which of the following categories is NOT a type of organizational structure?

<p>Intrastellar (D)</p> Signup and view all the answers

What is the primary goal of employing information systems within an organization?

<p>Lower costs and improve service (A)</p> Signup and view all the answers

What strategy is specifically used by organizations to achieve a competitive advantage through information systems?

<p>Enhancing integration across departments (A)</p> Signup and view all the answers

What role do information systems personnel play in an organization?

<p>Facilitating system improvement (B)</p> Signup and view all the answers

Which of the following is an example of a value-added process in the supply chain?

<p>Inbound logistics management (D)</p> Signup and view all the answers

What does the term 'change' relate to in the context of organizational culture?

<p>Adapting to external pressures (D)</p> Signup and view all the answers

What distinguishes a project organizational structure from a traditional structure?

<p>Flexibility in function assignment (D)</p> Signup and view all the answers

Which element is considered as an output in an organizational system?

<p>Products or services (B)</p> Signup and view all the answers

What could be a direct consequence of not integrating information systems effectively in an organization?

<p>Competitive disadvantage (C)</p> Signup and view all the answers

What is commonly associated with legacy systems?

<p>Weak documentation (B)</p> Signup and view all the answers

Which option is NOT a suggested approach for handling weak documentation?

<p>Creating extensive documentation regardless of time constraints (A)</p> Signup and view all the answers

What is the first step in the data restructuring process?

<p>Dissect the current data architecture (B)</p> Signup and view all the answers

What tool is used during code restructuring?

<p>Restructuring tool (C)</p> Signup and view all the answers

Which of the following is an outcome of reverse engineering?

<p>Extracting abstractions and interfaces (B)</p> Signup and view all the answers

What is a critical aspect of code restructuring?

<p>Testing to ensure no anomalies are introduced (C)</p> Signup and view all the answers

What may indicate that data restructuring is needed?

<p>Flat files being utilized where a relational approach would simplify processing (A)</p> Signup and view all the answers

What could be a consequence of not updating documentation when resources are limited?

<p>Difficulty in maintaining or upgrading the system (D)</p> Signup and view all the answers

What is the potential cost difference between maintaining one line of source code compared to its initial development?

<p>20 to 40 times (B)</p> Signup and view all the answers

What is one advantage of redesigning the software architecture?

<p>It can enhance future maintenance efforts. (C)</p> Signup and view all the answers

How can development productivity in reengineering be characterized?

<p>It is expected to be much higher than average. (D)</p> Signup and view all the answers

What role do CASE tools play in reengineering?

<p>They automate some parts of the reengineering job. (C)</p> Signup and view all the answers

Which parameter represents the predicted annual maintenance cost after reengineering?

<p>P4 (C)</p> Signup and view all the answers

How is the cost of maintenance defined when reengineering is not performed?

<p>Cmaint = (P3 - (P1 + P2)) x L (A)</p> Signup and view all the answers

What does the overall benefit of reengineering represent mathematically?

<p>cost benefit = Creeng - Cmaint (D)</p> Signup and view all the answers

What does the parameter P9 represent in the context of reengineering?

<p>Reengineering risk factor (C)</p> Signup and view all the answers

What is a significant advantage of a multidimensional organizational structure?

<p>Ability to manage traditional and product lines simultaneously (B)</p> Signup and view all the answers

Which of the following is a disadvantage of a virtual organizational structure?

<p>Lack of team integrity due to absence of physical contact (A)</p> Signup and view all the answers

In which type of organizational structure might you find several structures incorporated at once?

<p>Multidimensional Organizational Structure (C)</p> Signup and view all the answers

What defines the essential knowledge a new employee needs to assimilate within an organization?

<p>Organizational culture (D)</p> Signup and view all the answers

Which of the following contributes to lower operating costs in a virtual organizational structure?

<p>Absence of physical office setups (D)</p> Signup and view all the answers

Which of the following does NOT typically qualify as an artifact of organizational culture?

<p>Organizational finances (A)</p> Signup and view all the answers

What is a key feature of temporary project teams in an organizational context?

<p>They are formed for specific projects and disband after completion. (B)</p> Signup and view all the answers

Which is a common challenge faced by virtual organizations due to different time zones?

<p>Delayed responses to communications (A)</p> Signup and view all the answers

Which driver focuses on enhancing the capability and satisfaction of employees?

<p>Personnel development and empowerment (B)</p> Signup and view all the answers

What is the primary purpose of process evaluation in business process reengineering?

<p>To analyze and measure existing processes (D)</p> Signup and view all the answers

What should be created based on the information obtained during process specification and design?

<p>Use-cases for redesigned processes (D)</p> Signup and view all the answers

Which step follows prototyping in the business process reengineering sequence?

<p>Refinement and instantiation (C)</p> Signup and view all the answers

What is the goal of restructuring in software reengineering?

<p>To transform unstructured code into structured code (C)</p> Signup and view all the answers

Which activity involves uncovering design specifications from existing code?

<p>Reverse engineering (C)</p> Signup and view all the answers

During inventory analysis, which of the following is not typically recorded?

<p>User satisfaction ratings (B)</p> Signup and view all the answers

What is the main intention of the reengineering process?

<p>To improve operational efficiency without disrupting user functionality (D)</p> Signup and view all the answers

Flashcards

Organizational Structure

The way an organization is structured; how subunits and their relationships operate within the organization.

Traditional Organizational Structure

A hierarchical structure where department heads report to a top manager. A managerial pyramid illustrates decision-making authority.

Value Chain

A series of activities in a business, including things like inbound logistics, production, sales, and customer service.

Organizational Culture

The shared values, beliefs, norms, and behaviors of an organization. It affects the use of information systems.

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Information Systems Personnel

The people responsible for implementing, managing, and supporting information systems.

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Information Systems Value

Information systems create value by lowering costs, increasing profits, improving service, and gaining a competitive advantage.

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Competitive Advantage

An advantage over competitors that makes a business more profitable or successful.

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Organization as a System

An organization is a system with inputs (resources) and outputs (goods/services).

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Upstream Management

Managing raw materials, inbound logistics, and warehouse/storage in the value chain.

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Downstream Management

Managing finished product storage, outbound logistics, sales and customer service in the value chain.

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Multidimensional Organizational Structure

A structure combining traditional corporate areas with product lines, stressing both.

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Virtual Organizational Structure

A structure where teams work across different locations, often without meeting face-to-face.

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Virtual Structure Advantages

Faster, cost-effective, lower operating costs, flexible work arrangements.

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Virtual Structure Disadvantages

Lack of team integrity, communication challenges (timing, resources), training needed.

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Artifacts (Culture)

Visible aspects of organizational culture: logos, architecture, dress code, language

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Project Teams

Temporary, focused on specific products or services.

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Multidimensional Structure Disadvantage

Multiple lines of authority can lead to conflicts and confusion.

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Espoused Values

What members of an organization SAY are the values.

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In-use values

What members of an organization ACTUALLY do.

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Basic Assumptions

Unclear, ingrained beliefs about how things work in an organization, often taken for granted.

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Organizational Culture Levels

Different layers of organizational culture, from easily visible artifacts to underlying assumptions.

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Change Management Framework

A system for planning and implementing organizational changes.

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Business Process Reengineering

Reconstructing business processes to improve efficiency and effectiveness.

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Business Process Definition

The process of establishing clear descriptions of the business activities and actions within the organization.

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Legacy System Documentation

Existing documentation for older systems, often lacking quality or completeness.

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Redocumentation Options

Different approaches to addressing outdated or inadequate documentation for legacy systems.

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Reverse Engineering

The process of analyzing existing software to understand its functionality, structure, and design.

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Code Restructuring

The process of reorganizing and improving the structure of software code.

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Data Restructuring

Reorganizing and optimizing data structures within a system.

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Data Architecture Dissection

Analyzing the existing data structure and how it's used.

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Data Quality Review

Evaluating the accuracy, completeness, and consistency of existing data.

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Data Reengineering

Replacing outdated or inefficient data structures with better ones.

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Business Process Reengineering (BPR) steps

A structured approach to improving business processes. Four key drivers (cost, time, quality, and personnel) are used for defining goals. Then, processes for achieving these goals are identified, evaluated, and redesigned via prototyping and instantiation.

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Process identification

Identifying the business processes critical to achieving defined goals.

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Process Evaluation

Analyzing the current process, including measuring different aspects

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Process Specification & Design

Creating use-cases for redesigned processes, based on prior BPR activities.

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Prototyping

Testing a redesigned process before full implementation.

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Refinement & Instantiation

Adjusting the redesigned process based on feedback and implementing it fully in the business system.

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Software Reengineering - Restructuring

Converting unstructured code into structured code without affecting user functionality.

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Software Reengineering - Reverse Engineering

Discovering design specifications from existing code and applying forward engineering to create new versions or features.

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Reengineering Cost

The total expense associated with re-designing software, including development, maintenance, and risk factors.

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Maintenance Cost

The ongoing expenses incurred to keep a software system operational and bug-free.

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Reengineering Benefit

The difference between the cost of re-engineering and the cost of continuing with existing software.

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Business Value

The worth of a software application to the business, measured by its contributions to revenue, efficiency, or customer satisfaction.

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Operations Cost

The ongoing expenses involved in running a software application, such as server costs, user support, and data storage.

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Reengineering Risk

The potential for unforeseen issues or failures during the re-engineering process.

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Why is Reengineering Costly?

Reengineering a software system involves significant effort in redesigning architecture, rewriting code, and updating data structures. This requires specialized skills and expertise, and it can be time-consuming.

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How does Reengineering Impact Maintenance?

Reengineering aims to simplify and improve the software's design, resulting in reduced maintenance costs, more efficient bug fixes, and easier future updates.

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Study Notes

Chapter 2: Information Systems in Organizations

  • Information systems are crucial for adding value to an organization
  • Organizational structure, culture, and change significantly influence the use of these systems
  • Key objectives include identifying value-added processes in supply chains, defining organizational structure, culture, and change, and assessing their impact on system implementation
  • Organizations need information systems for cost reduction, profit increase, service improvement, and achieving a competitive advantage
  • Strategies employed for cost reduction or service improvement are to be identified
  • Competitive advantage and its achievement through information systems are topics to discuss
  • The justification for information systems usage by organizations should be discussed
  • Information systems personnel play a vital role in unlocking the potential of new/modified systems
  • Defining the roles, functions, and careers within information systems is a learning goal

Organizations and Information Systems

  • Organizations are formal collections of people and resources with goals.
  • Organizations function as systems.
  • Inputs include materials, people, and money
  • Outputs include goods and services
  • A value chain includes inbound logistics, warehousing, production, finished goods storage, outbound logistics, marketing, sales, and customer service.
  • Upstream management focuses on raw materials, inbound logistics, and warehousing.
  • Downstream management focuses on finished goods storage, outbound logistics, and customer service.

Organizational Structure

  • Organizational structure refers to subunits and their relationship to the large organization
  • Types of organizational structures include: traditional, project, multidimensional, and virtual
  • Traditional structures are hierarchical, with department heads reporting to upper management

Traditional Organizational Structure

  • Traditional structures are hierarchical.
  • Major department heads report to high-level managers
  • A pyramid visual representation of decisions and authority

Project Organizational Structure

  • An essential configuration used to determine the order of people, tasks, and reporting processes within a project organization
  • Projects are centered around major products or services
  • Teams are temporary and are disbanded after project completion

Multidimensional Organizational Structure

  • A multidimensional structure uses multiple structures simultaneously.
  • It stresses traditional business areas alongside important product lines
  • A disadvantage is the existence of multiple lines of authority.

Virtual Organizational Structure

  • Organizations utilizing remote locations and teamwork
  • Teams manage projects from any location.
  • Resources can be spread to team members regardless of location
  • Members may never meet face-to-face.
  • Examples include Amazon and eBay
  • Advantages include cost-effectiveness, lower operating costs (no need for office space) and greater employee flexibility with work options
  • Disadvantages include lack of team integration, training requirements, and difficulties coordinating across time zones

Organizational Culture and Change

  • Organizational culture comprises values guiding organizational behavior.
  • It defines what new employees need to learn to become members.
  • Organizational culture levels include artifacts (visible elements), values (adopted standards), and basic assumptions (unstated values).
  • Organizational culture comprises values and beliefs that direct employee behavior.
  • New hires learn organization's accepted norms, behaviors, and attitudes through their interaction

Change Management Framework

  • Identifying changes in business processes, stakeholders, organization structure
  • Managing transitions in workflows, roles, and operational procedures
  • Maintaining a clear path towards desired results

Reengineering

  • Reengineering is the complete overhaul of business processes to improve efficiency and effectiveness.
  • This often involves IT and software applications
  • Reengineering can include redesigning and streamlining business processes, and modernizing software applications.
  • Reengineering is a systematic way to review and redesign existing business processes and software applications. Processes are evaluated to find inefficiencies and are designed and prototyped to produce a more efficient, functional business system

Software Reengineering

  • Software reengineering encompasses restructuring, re-engineering, and reverse engineering.
  • Restructuring improves code structure
  • Re-engineering modifies old code to meet new requirements or improve operations
  • Reverse engineering discovers design specifications from existing code to support reengineering.

Inventory Analysis

  • A process for assessing application suitability for re-engineering
  • Criteria, such as the application's name and creation year, are used for determining candidates for re-engineering projects

Document Restructuring

  • Many legacy systems have weak documentation.
  • Options to document include minimal documentation or a complete restructuring effort
  • The system's criticality to the business may weigh into the level of necessary documentation effort

Reverse Engineering

  • Reverse engineering is a process for analyzing existing software to understand how it works and identify improvements
  • Reverse engineering involves restructuring and simplifying software code, extracting abstractions, and clarifying specifications

Code Restructuring

  • Restructuring existing code by using tools to re-design segments of code
  • Identifying and correcting violations of structured programming rules
  • Reviewing the restructured code to resolve issues
  • Updating internal documentation

Data Restructuring

  • Restructuring data involves re-architecting the system
  • Dissecting the existing data architecture to understand its components
  • Identifying data objects and relationships
  • Evaluating existing data structures
  • Re-engineering data structures where they are weak and a structured approach is desired

Forward Engineering

  • Forward engineering is a process for designing or upgrading software
  • Using the current design specifications to guide the development is forward engineering
  • Modifying existing software architecture or creating a new architecture can be forward engineering.

Economics of Reengineering

  • Models for evaluating the economic value and return on investment from reengineering activity, utilizing cost-benefit analysis metrics.

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Description

This quiz explores the critical role of information systems within organizations. It covers how organizational structure, culture, and change influence the effectiveness of these systems, as well as strategies for cost reduction and competitive advantage. Participants will assess the value of information systems in enhancing organizational performance.

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