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to teach

1. Information Systems, Organizations and Strategy LESSON 4

2. Today’s Class Agenda i Do it! Organization definition Features of organization IS impact on organization and business firm IS strategies for dealing with competitive advantages Value web, synergies, core competencies, and network strategies

3. Snapshot of Previous Lesson i Do it! Business process Major types of Information systems in the organization Enterprise applications, E-business, E-commerce and E-government Tools and technologies for collaboration and teamwork IS departments

4. What is an Organization? i Can i Do it! The word is derived from the Greek word organon , which means tool or instrument, musical instrument, and organ An organization or organization is an entity , such as a company, an institution, or an association, comprising one or more people and having a particular purpose Stable, formal social structure that takes resources from environment and processes them to produce outputs A formal legal entity with internal rules and procedures, as well as a social structure

5. What is an Organization?... i Can i Do it! In the microeconomic definition of organizations, capital and labor (the primary production factors provided by the environment) are transformed by the firm through the production process into products and services (outputs to the environment). The products and services are consumed by the environment, which supplies additional capital and labor as inputs in the feedback loop.

6. Features of Organization i Can i Do it! Use of hierarchical structure Accountability, authority in system of impartial decision making Adherence to principle of efficiency Routines and business processes Organizational politics, culture, environments and structures

7. i Can i Do it! IS Impact on Organization and Business Firm Economic impacts IT changes relative costs of capital and the costs of information Information systems technology is a factor of production , like capital and labor IT affects the cost and quality of information and changes economics of information Information technology helps firms contract in size because it can reduce transaction costs (the cost of participating in markets) Outsourcing

8. i Can i Do it! IS Impact on Organization and Business Firm… Transaction cost theory Firms seek to economize on transaction costs (the costs of participating in markets ) Vertical integration, hiring more employees, buying suppliers and distributors IT lowers market transaction costs for a firm, making it worthwhile for firms to transact with other firms rather than grow the number of employees

9. i Can i Do it! IS Impact on Organization and Business Firm… Agency cost theory: Firm is nexus of contracts among self-interested parties requiring supervision Firms experience agency costs (the cost of managing and supervising ) which rise as firm grows IT can reduce agency costs, making it possible for firms to grow without adding to the costs of supervising , and without adding employees

10. i Can i Do it! IS Impact on Organization and Business Firm… Organizational and behavioral impacts IT flattens organizations Decision making pushed to lower levels Fewer managers needed (IT enables faster decision making and increases span of control) Postindustrial organizations Organizations flatten because in postindustrial societies, authority increasingly relies on knowledge and competence rather than formal positions

11. i Can i Do it! IS Impact on Organization and Business Firm… FLATTENING ORGANIZATIONS Information systems can reduce the number of levels in an organization by providing managers with information to supervise larger numbers of workers and by giving lower-level employees more decision-making authority.

12. i Can i Do it! IS Impact on Organization and Business Firm… Organizational resistance to change Information systems become bound up in organizational politics because they influence access to a key resource – information Information systems potentially change an organization’s structure, culture, politics, and work Most common reason for failure of large projects is due to organizational and political resistance to change

13. i Can i Do it! IS Impact on Organization and Business Firm… ORGANIZATIONAL RESISTANCE AND THE MUTUALLY ADJUSTING RELATIONSHIP BETWEEN TECHNOLOGY AND THE ORGANIZATION Implementing information systems has consequences for task arrangements, structures, and people. According to this model, to implement change, all four components must be changed simultaneously.

14. i Can i Do it! IS Strategies for Dealing with Competitive Advantages Why do some firms become leaders in their industry? Michael Porter’s competitive forces model Provides general view of firm, its competitors, and environment Five competitive forces shape fate of firm Traditional competitors New market entrants Substitute products and services Customers Suppliers

15. i Can i Do it! IS Strategies for Dealing with Competitive Advantages… PORTER’S COMPETITIVE FORCES MODEL In Porter’s competitive forces model, the strategic position of the firm and its strategies are determined not only by competition with its traditional direct competitors but also by four other forces in the industry’s environment: new market entrants, substitute products, customers, and suppliers.

16. i Can i Do it! IS Strategies for Dealing with Competitive Advantages… Four generic strategies for dealing with competitive forces, enabled by using IT Low-cost leadership Product differentiation Focus on market niche Strengthen customer and supplier intimacy

17. i Can i Do it! Value web Collection of independent firms using highly synchronized IT to coordinate value chains to produce product or service collectively The value web is a networked system that can synchronize the value chains of business partners within an industry to respond rapidly to changes in supply and demand.

18. i Can i Do it! Synergies Information systems can improve overall performance of business units by promoting synergies and core competencies Synergies When output of some units used as inputs to others, or organizations pool markets and expertise Example: merger of Bank of NY and JPMorgan Chase Purchase of YouTube by Google

19. i Can i Do it! Core Competencies & Network Strategy Core competency Activity for which firm is world-class leader Relies on knowledge, experience , and sharing this across business units Examples: Innovation expertise Speed and flexibility in the marketplace Superior product development skills Greater marketplace and customer understanding Strong analysis and database skills Industry/market knowledge and expertise Experts in marketing communications Network-based strategies Take advantage of firm’s abilities to network with each other

20. Disruptive technologies i Can i Do it! Technology that brings about sweeping change to businesses, industries, markets Examples: personal computers, word processing software, the Internet, the PageRank algorithm First movers and fast followers First movers – inventors of disruptive technologies Fast followers – firms with the size and resources to capitalize on that technology

21. i Can i Do it! The Internet Worldwide network of computer networks built on common standards Created in late 1960s Services include the Web, e-mail, file transfers, and so on Can measure growth by number of Internet hosts with domain names

22. i Can i Do it! Most popular Internet service Developed in early 1990s Provides access to Web pages HTML documents that may include text, graphics, animations, music, videos Web content has grown exponentially Google reports 30 trillion unique URLs; 120 billion Web pages indexed The Web

23. i Can i Do it! The first version of the Web consisted of a few people creating web pages and content for a large group of readers, allowing them to access facts, information, and content from the sources.  It was designed to help people better find information. This web version dealt was dedicated to users searching for data. This web version is sometimes called “ Static Web ” or “ The Read-only Web ” because it lacks the necessary forms, visuals, controls, and interactivity we enjoy on today’s Internet. WEB 1.0

24. i Can i Do it! WEB 2.0 The 2 nd Generation of web services also known as the The “ participative social Web ” . This Internet form emphasizes User-Generated Content (UGC), ease of use, interactivity, and improved compatibility with other systems and devices. Web 2.0 is all about the end user's experience. Consequently, this Web form was responsible for creating communities, collaborations, dialogue, and social media. As a result, Web 2.0 is considered the primary form of web interaction for most of today's users.

25. i Can i Do it! Web 2.0 characteristics: It offers free information sorting, allowing users to retrieve and classify data collectively It contains dynamic content that responds to the user’s input It employs Developed Application Programming Interfaces (API) It encourages self-usage and allows forms of interaction like: Podcasting/Blogging Social media Tagging Commenting

26. Although there are elements of Web 3.0 currently available today, it still has a way to go before it reaches full realization. Web 3.0, which is also referred to as Web3 or future web or semantic web, is built on a foundation consisting of the core ideas of decentralization, openness, and more excellent user utility. Web 3.0 is the "read, write, execute Web." This Web interaction and utilization stage moves users away from centralized platforms like Facebook, Google, or Twitter and towards decentralized, nearly anonymous platforms. WEB 3.0

27. Web 3.0 characteristics: It's a semantic web, where the web technology evolves into a tool that lets users create, share, and connect content via search and analysis. It incorporates Artificial Intelligence and Machine Learning . If these concepts are combined with Natural Language Processing (NLP), the result is a computer that uses Web 3.0 to become smarter and more responsive to user needs. It presents the connectivity of multiple devices and applications through the Internet of Things ( IoT ). Semantic metadata makes this process possible, allowing all available information to be effectively leveraged. In addition, people can connect to the Internet anytime, anywhere, without needing a computer or smart device. WEB 3.0

28. i Can i Do it! 4IR is a way of describing the blurring of boundaries between the physical, digital and biological world .It includes concepts like IOT, Cyber-Physical Systems, Cloud Computing ,Cognitive Computing, Artificial Intelligence and Machine Learning etc. 4 th Industrial Revolution/4IR/Industry 4.0

29. IOT IOT , internet of things describes everyday objects with sensors, processing ability ,software & other technology that enables them to connect and exchange data with other device/systems over the internet/communication network. Consumer IOT Industrial IOT I IOT

30. I Cyber-Physical Systems Cyber-Physical systems integrate sensing, computation control and networking into physical objects & infrastructure, connecting them to the internet and to each other. Three fundamental attribute need to be present, also known as 3cs-Communication,Control & Computing.

31. ROBOTS Intelligent Homes Implantable Medical Devices Self-Driven Cars I

32. I Cloud Computing Delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet (“the cloud ”). Types according to services given: IaaS : Microsoft Azure PaaS:Facebook SaaS:Gmail,Microsoft office

33. I Types according to ownership & Access: Public Cloud Private Cloud Hybrid Cloud Cognitive Computing An attempt to mimic human brain behavior by computers, to accomplish this, cognitive computing uses AI and Machine learning.

34. I Artificial Intelligence Simulation of human intelligence process by machine, especially computers, include expert systems ,speech recognition, natural language processing etc. Machine learning Application of AI, that enable systems to learn without explicit programming from experiences, inferences, inputs and other forms.

35. What is ChatGPT ?

36. The end of Lesson-4 Thanks!