(1) IS 101 - Chapter 2.pdf

Information Systems in Organizations IS 101: Fundamentals of Information System JORDYLENE G. SAGUSAY Faculty, Department of Information System College of Computing and Information Sciences Learning Objectives ◦ Identify the value-added processes in the supply chain, and the role of IS; define s...

Information Systems in Organizations IS 101: Fundamentals of Information System JORDYLENE G. SAGUSAY Faculty, Department of Information System College of Computing and Information Sciences Learning Objectives ◦ Identify the value-added processes in the supply chain, and the role of IS; define strategies employed to lower cost and understand competitive advantage using IS. ◦ Discuss how organizations justify the need of IS and enumerate the types of roles and functions and careers available in the field of IS IS 101 – Fundamentals of Information Systems Organizations and Information Systems Organization ◦ Formal collection of people and other resources established to accomplish a set of goals ◦ A system ◦ Constantly uses money, people, materials, machines and other equipment, data, information, and decisions IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 3 Organizations and Information Systems (continued) 4  Organizations and Information Systems (continued) Value chain ◦ Series (chain) of activities that includes inbound logistics and warehouse and storage Supply chain management (SCM) ◦ Determines: ◦ What supplies are required for value chain ◦ What quantities are needed to meet customer demand IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 5  Organizations and Information Systems (continued) Supply chain management (SCM) ◦ Determines: ◦ How supplies should be processed into finished goods and services ◦ How shipment of supplies and products to customers should be scheduled, monitored, and controlled IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 6 Organizations and Information Systems (continued) 7 Organizations and Information Systems (continued) Customer relationship management (CRM) programs ◦ Help companies manage all aspects of customer encounters ◦ Can help a company collect customer data, contact customers, and educate them about new products IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 8 Organizational Structures Organizational structure ◦ Organizational subunits and the way they relate to the overall organization Categories of organizational structure ◦ Traditional ◦ Project ◦ Team ◦ Virtual IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 9 Traditional Organizational Structure Hierarchical structure Major department heads report to a president or top- level manager Flat organizational structure ◦ Empowers employees at lower levels Empowerment ◦ Gives employees and their managers more responsibility and authority to make decisions IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 10 Traditional Organizational Structure (continued) 11 Traditional Organizational Structure (continued) 12 Project and Team Organizational Structures Project organizational structure ◦ Centered on major products or services ◦ Many project teams are temporary Team organizational structure ◦ Centered on work teams or groups ◦ Team can be temporary or permanent, depending on tasks IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 13 Project and Team Organizational Structures (continued) 14 Virtual Organizational Structure and Collaborative Work Virtual organizational structure ◦ Employs business units in geographically dispersed areas ◦ People may never meet face to face ◦ Allows collaborative work ◦ Managers and employees can effectively work in groups, even those composed of members from around the world IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 15 Organizational Culture and Change Organizational culture ◦ Major understandings and assumptions ◦ Influences information systems Organizational change ◦ How organizations plan for, implement, and handle change Change model ◦ Represents change theories by identifying phases of change and the best way to implement them IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 16 Organizational Culture and Change (continued) Kurt Lewin and Edgar Schein propose a three-stage approach for change, Unfreezing ◦ Ceasing old habits and creating a climate that is receptive to change Moving ◦ Learning new work methods, behaviors, and systems Refreezing ◦ Involves reinforcing changes to make the new process second nature, accepted, and part of the job IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 17 Organizational Culture and Change (continued) 18 Reengineering and Continuous Improvement Reengineering ◦ Process redesign ◦ Radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results Continuous improvement ◦ Constantly seeking ways to improve business processes IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 19 Reengineering and Continuous Improvement (continued) 20 Reengineering and Continuous Improvement (continued) 21  Reengineering and Continuous Improvement (continued) Principles of Information Systems, Ninth Edition 22 User Satisfaction and Technology Acceptance Technology acceptance model (TAM) ◦ Specifies the factors that can lead to better attitudes about the information system Technology diffusion ◦ Measure of how widely technology is spread throughout an organization Technology infusion ◦ Extent to which technology permeates a department IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 23 Quality Ability of a product or service to meet or exceed customer expectations Techniques used to ensure quality ◦ Total quality management ◦ Six Sigma IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 24 Outsourcing, On-Demand Computing, and Downsizing Outsourcing ◦ Contracting with outside professional services On-demand computing ◦ Contracting for computer resources to rapidly respond to an organization’s varying workflow ◦ Also called on-demand business or utility computing Downsizing ◦ Reducing number of employees IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 25 Competitive Advantage Significant and (ideally) long-term benefit to a company over its competition Ability to establish and maintain competitive advantage is vital to the company’s success IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 26 Factors That Lead Firms to Seek Competitive Advantage Rivalry among existing competitors Threat of new entrants Threat of substitute products and services Bargaining power of customers and suppliers IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 27 Strategic Planning for Competitive Advantage Cost leadership Differentiation Niche strategy Altering the industry structure IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 28 Strategic Planning for Competitive Advantage (continued) Creating new products and services Improving existing product lines and service Other strategies ◦ Growth in sales ◦ First to market ◦ Customizing products and services ◦ Hiring the best people IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 29 Performance-Based Information Systems Major stages in the use of information systems ◦ Cost reduction and productivity ◦ Competitive advantage ◦ Performance-based management IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 30 Performance-Based Information Systems (continued) 31 Productivity A measure of output achieved divided by input required Higher level of output for a given level of input means greater productivity Productivity = (Output / Input) × 100% IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 32 Return on Investment and the Value of Information Systems Earnings growth Market share and speed to Market Customer awareness and satisfaction Total cost of ownership IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 33 Risk Information systems can sometimes be costly failures Costs of development and implementation can be greater than the returns from the new system IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 34 Careers in Information Systems Degree programs ◦ Degrees in information systems ◦ Business degrees with a global or international orientation Students are increasingly completing business degrees with a global or international orientation Opportunities in information systems are not confined to single countries IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 35 Roles, Functions, and Careers in IS Primary responsibilities in information systems ◦ Operations ◦ Systems development ◦ Support ◦ Information service units IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 36 Typical IS Titles and Functions Chief Information Officer (CIO) ◦ Employs the IS department’s equipment and personnel to help the organization attain its goals LAN administrators ◦ Set up and manage the network hardware, software, and security processes IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 37 Typical IS Titles and Functions (continued) Internet careers ◦ Internet strategists and administrators ◦ Internet systems developers ◦ Internet programmers ◦ Internet or Web site operators Certification ◦ Process for testing skills and knowledge resulting in an endorsement by the certifying authority IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 38 Other IS Careers New and exciting careers have developed in security and fraud detection and prevention Other IS career opportunities include being employed by technology companies, such as: ◦ Microsoft (www.microsoft.com), Google (www.google.com), Dell (www.dell.com), and many others IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 39 Finding a Job in IS Developing an online résumé can be critical to finding a good job Job search approaches ◦ On campus visits ◦ Referrals from professors, friends, and family members ◦ The Internet ◦ Online job sites, Company Web sites, Social networking sites, Blogs IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 40 Summary (continued) Organizations ◦ Systems with inputs, transformation mechanisms, and outputs Categories of organizational structure ◦ Traditional, project, team, and virtual IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 41 Summary Organizational culture ◦ Major understandings and assumptions Reengineering ◦ Radical redesign of business processes, organizational structures, information systems, and values of the organization IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 42 Summary (continued) Continuous improvement ◦ Constantly seeking ways to improve business processes Outsourcing ◦ Contracting with outside professional services IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 43 Summary (continued) Downsizing ◦ Reducing number of employees Competitive advantage ◦ Significant, and (ideally) long-term benefit to a company over its competition IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 44 Summary (continued) Performance-based information systems ◦ Consider both strategic advantage and costs Productivity ◦ Measure of output achieved divided by input required IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 45 Summary (continued) Primary responsibilities in information systems ◦ Operations, systems development, and support Typical IS titles ◦ Chief Information Officer (CIO), LAN administrators, and Internet strategists IS 101 – Fundamentals of Information Systems Principles of Information Systems, Ninth Edition 46