Management information systems in organization.pptx

Information system, organisation and strategy

1. INFORMATION SYSTEMS, ORGANIZATIONS, AND STRATEGY GROUP 3 MEMBERS: AGABA ARNOLD NAMANDA JOANITA WASSWA VIANNEY

2. ORGANISATIONS An organisation is a stable, formal social structure that processes resources to produce outputs. It encompasses capital and labour as primary production factors and transforms inputs into products and services. ELEMENTS OF AN ORGANISATION Capital and labour are primary production factors provided by the environment. The organization (the firm) transforms these inputs into products and services in a production function. The products and services are consumed by environments in return for supply inputs.

3. FEATURES OF ORGANIZATIONS The organization is devoted to the principle of efficiency: “Maximizing output using limited inputs.” Other features of organizations include: Routine and Business Process. Organizational Culture. Organizational Politics. Organizational Environment. Organizational Structure. Other organizational features. (goals, constituencies, and leadership styles) These also serve as the factors that influence interaction between the organization and Information Systems.

4. ROUTINE AND BUSINESS PROCESS. Routines; Sometimes called Standard Operating Procedures (SOP), are precise rules, procedures and practices that have been developed to cope with virtually all expected situations. Example; When you visit a doctor’s office, the receptionist knows exactly what information to ask for, the nurses know how to prepare you to see the doctor, and the doctor knows how to diagnose you because they all have their own routines. Business Processes; These are like bundles of these routines put together. Example; A recipe that chefs follow to cook a dish perfectly every time. (Routine) A set of different recipes needed to run a restaurant smoothly.(Business Process) And when you put all these processes together you’ve got yourself a business.

5. ORGANIZATIONAL CULTURE. Organizational culture refers to the shared values, beliefs, behaviors , and practices that define how people within a company interact and work together. Example; A traditional company, like a law firm, where the culture is more formal, hierarchical, and focused on precision and attention to detail. Employees in this type of organization may have strict dress codes(Suits), work in individual offices, and follow established protocols and procedures for everything they do.

6. ORGANIZATIONAL POLITICS. Organizational politics refers to the dynamics and power struggles that occur within an organization regarding the control, access, and distribution of information. Example; IT department wants to upgrade the software used for project management. The IT manager believes that investing in a new, more advanced system will help streamline processes and increase productivity. However, the finance department is hesitant to approve the budget for the upgrade because they are focused on cutting costs to meet financial targets. In this scenario, organizational politics come into play. The IT manager may need to navigate relationships and persuade key stakeholders in the finance department to support the upgrade. This could involve presenting data and examples of how the new software will benefit the company, building alliances with influential individuals within finance, or even making compromises to address their concerns.

7. ORGANIZATIONAL ENVIRONMENT. Organization environment refers to all the external factors that influence how a company operates and manages its information systems. Example; For a retail company that sells outdoor equipment, its organizational environment includes various factors such as competition, technological advancements, government regulations, and customer preferences.

8. ORGANIZATIONAL STRUCTURE. Organizational structure refers to how a company is organized and how tasks, roles, and responsibilities are divided among its employees. It’s a framework that helps everyone know who does what and how information flows within the organization. Example; F or a large tech company that develops software, its organizational structure determines how different departments like engineering, marketing, sales, and customer support are organized and how they interact with each other.

9. How Information Systems Impact Organizations and Business Firms. Information systems are essential for organizations and businesses, revolutionizing operations and decision making. By integrating technology with business processes, these systems enhance efficiency, communication, and collaboration among employees. Additionally, information systems provide valuable insights through data analytics, enabling informed decision-making, strategic planning, and improved customer relationship management. In today’s digital landscape, effective utilization of information systems is crucial for organizations to adopt, innovate, and maintain competitiveness.

10. The Economic Impacts of IS Cost savings: Information Systems automate tasks, reducing the need for manual labor and lowering operational expenses. Increased productivity: By providing easy access to information and efficient tools, information systems enable employees to work more productively and accomplish tasks faster. Improved decision-making: Access to timely and accurate data allows managers to make informed decisions, leading to better resource allocation and strategic planning. Market expansion: Information systems facilitate market research and analysis, helping businesses identify new opportunities for growth and expansion. Enhanced competitiveness: Firms that effectively utilize information systems can respond more quickly to market changes, innovate faster, and maintain a competitive edge. Adaptation to change: Information systems enable firms to adapt to technological advancements, regulatory requirements, and evolving market trends.

11. The Organizational and Behavioral Impacts. Improved communication: Information Systems facilitate faster and more efficient communication channels within the organization, fostering collaboration and teamwork. Changed business processes: Implementation of Information systems often requires firms to adopt or redesign their business processes to leverage technology effectively. Increased transparency: Information systems promote transparency by providing access to relevant data and information across the organization, promoting accountability and trust. Shift in organizational structure: Adoption of Information systems mat lead to changes in organizational structure, roles, and responsibilities to accommodate new technology-driven workflows. Influence on Employee behavior: Information systems can influence employee behavior by shaping their work habits, communication styles, and approaches to problem-solving, ultimately impacting organizational culture.

12. Understanding Organizational Resistance to Change Organizational resistance to change is a common phenomenon that arises when individual or groups within an organization resist or oppose proposed changes to existing processes, structures, or systems. Certainly, organization resistance to change can stem from various factors: Fear of the unknown Comfort with the status quo Lack of communication and involvement Perceived loss of control Past experiences with change Understanding these factors can help organizations address resistance more effectively by fostering open communication, involving employees in the change process, and cultivating a culture that embraces innovation and continuous improvement.

13. Leveraging Internet Technology for Competitive Advantage The Internet has revolutionized industries and business models, presenting both challenges and opportunities for firms. Industries like printed encyclopaedias and travel agencies have been severely impacted, while others like retail, music, and newspapers have faced significant threats to traditional business models. Despite challenges, the Internet has also created entirely new markets and opportunities for firms like Amazon, eBay, and Google, transforming entire industries and forcing businesses to adapt.

14. Business Value Chain Model The Porter model identifies competitive forces but lacks specificity in achieving competitive advantages. The value chain model highlights specific activities where competitive strategies can be applied and where information systems can have a strategic impact. Primary activities directly related to production and distribution include inbound logistics, operations, outbound logistics, sales and marketing, and service. Support activities make primary activities possible and consist of organization infrastructure, human resources, technology, and procurement.

15. Value Web and Core Competencies Internet technology enables the creation of synchronized industry value chains called value webs. A value web consists of independent firms coordinating their value chains using information technology to produce goods or services collectively. Examples include making it easy for suppliers to display goods on platforms like Amazon, simplifying payment processes for customers, and developing shipment tracking systems. Information systems play a crucial role in tying disparate business units together, enhancing core competencies, and facilitating strategic transitions within organizations.

16. Network-Based Strategies for Competitive Advantage Network-based strategies leverage networks or network with other firms for competitive advantage. Network Economics: Businesses benefit from network effects where the value of a network increases as more users join. Virtual Company Model: Firms utilize networks to ally with other companies, enabling them to create and distribute products and services without traditional organizational boundaries. Business Ecosystems: Firms participate in industry sets or ecosystems characterized by loosely coupled but interdependent networks of suppliers, distributors, and technology manufacturers.

17. Management Issues and Strategic Systems Analysis Successfully using information systems for competitive advantage requires precise coordination of technology, organizations, and management. Strategic systems confer competitive advantages but may not be sustainable in the long term due to market changes and technological advancements. Aligning IT with business objectives is crucial for achieving profitability and competitive advantage. Performing a strategic systems analysis involves evaluating industry structure, value chains, and alignment of IT with business goals.