essentials of management informations systems

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5 Chapter 3 Information Systems, Organizations, Management, and Strategy 3.1 ©0008 by Prevece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] سوه . What do managers need to know about organizations in order to build and use information systems successfully? . What impact do information systems have on organizations? . How do information systems support the activities of managers in organizations? ©0006 by Prevace “I 3.2 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] سوه 4. How can businesses use information systems for competitive advantage? 5. Why is it so difficult to build successful information systems, including systems that promote competitive advantage? اما عبط با ۵66069 33 

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وت ی مدا ما ات سس ‎en Oy‏ ] Oe Ola ree 1. Sustainability of competitive advantages 2. Fitting technology to the organization (or vice versa). 3.4 ©0008 by Prevece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] Oreo preter Che two-way rehicuship beiwers ‏روا مش لت تا‎ 94 سب ‎by Preece Wd‏ 0008© 35 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] 92 race a at ‏سس‎ a at Oke Is ‏ت0۲ مه‎ Technical Definition ٠ Stable, formal social structure that takes resources from the environment and processes them to produce outputs Behavioral Definition * Acollection of rights, privileges, obligations, and responsibilities that are delicately balanced over a period of time through conflict and conflict resolution 3.6 ©0008 by Prevece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎en Oy‏ ] Oreo preter ‘The tevkoird wiorperpurwir dePratiog oP the oryacizdiot Organization Inputs from the ———> ———> Outputs to the environment environment Production process Prue 9-O 339 ©0008 by Prevece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ۱ Oreo preter ‘he behaierd view oP orysntzdiow FORMAL ORGANIZATION و Rules, procedures ‏وع دوع 66م 5و6 ماون8‎ Eeyore 1 ‏را‎ که سول People Prue 9-9 38 ©0008 by Prevece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] 92 race a at ‏سس‎ a at Cowra Prctres oF Orcenizatoce Structural Characteristics of All Organizations * Clear division of labor ° Hierarchy ° Explicit rules and procedures ¢ Impartial judgments * Technical qualifications for positions ¢ Maximum organizational efficiency 3.9 ©0008 by Prevece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] 92 race a at ‏سس‎ a at Cowra Prctres oF Orcenizatoce Additional Features of Organizations Standard Operating Procedures (SOPs): Precise procedures to cope with all expected situations * Organizational Politics: Struggle to resolve divergent viewpoints within the organization * Organizational Culture: Fundamental assumptions about what products the organization should produce 3.10 ©0008 by Prevece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] Oreo preter Octque Pectres ‏ت0۷ ۳و‎ Organizational Types ¢ Entrepreneurial: Start up business * Machine bureaucracy: Midsize manufacturing firm * Divisionalized bureaucracy: Fortune 500 firms * Professional bureaucracy: Law firms, hospitals, school systems ¢ Adhocracy: Consulting firm 3.11 ©0008 by Prevece ‏ادنلا"‎ 

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لم الي ل ل اا ‎Le‏ 0 aa kel a ac Couronneds oad ornizdiow have 3 reviprord rekiiowhiy Prue O-F 3.12 ©0008 by Preece Wd 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] Oreo preter QOuiqur Poutures oP ‏ت0۳‎ ‎All organizations have different: Organizational type Function Environments Leadership Goals Tasks Power Technology Constituencies Business processes 3.13 ©0008 by Preece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎en Oy‏ ] 92 race a at Re a at Ordo oa Orquctraious E-Commerce French and German Style What organizational factors explain why France and Germany have had such different experiences adopting e- commerce? 3.14 ©0008 by Preece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] kG Ae a Ne cr eel oe Ola oa ae ‘kPorwdioa Teckwby IPrestirwtwe unt IPorwdios Neckoby Orruices Information Services Department Past: Consisted primarily of programmers, building own software and managing own computing facilities Today: A growing proportion of specialists, with department acting as powerful change agent in the organization 3.15 ©0008 by Preece ‏ادنلا"‎ 

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‎ole‏ وس ده ما وم تست ‎Ot Ca‏ ات رت ] ‎| aCe Oar ‎ ‎ ‎ ‏مهو سب ‎3.16 ©0008 by Prevece ‏ادنلا"‎ ‎ ‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] kG Ae a Ne cr eel oe Ola oa ae ت0۲ 0۳۳ م0 مسش 1۳ سمل Economic Theories * Information system technology is a factor of production, freely substituted for capital and labor * Transaction cost theory: Information technology can help lower the cost of market participation 3.17 ©0008 by Preece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎en Oy‏ ] | aCe Oar Dhe ‏اجه تسم‎ theory oP the ‏سم‎ oF ‏تم همه وت تا مص نا‎ Firm size (employees) Prue 9-O 3.18 ©2006 ty Preece Wd 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] kG Ae a Ne cr eel oe Ola oa ae ت0۲ 0۳۳ م0 مسش 1۳ سمل Economic Theories - The Agency Theory * Agents (employees) need supervision * As firm grows, agency and coordination costs rise * Information technology reduces agency costs because it becomes easier for managers to oversee more employees 3.19 ©0008 by Preece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] | aCe Oar Dhe apy vost theory oP the teopart oF ‏سا وه واه ملظ‎ oryactzaion Firm size (employees) Crue 9-7 3.20 ©0008 by Preece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] kG Ae a Ne cr eel oe Ola oa ae ت0۲ 0۳۳ م0 مسش 1۳ سمل Behavioral Theories ¢ IT could change hierarchy of decision making by lowering costs of information acquisition and distribution * Organization shape could “flatten” as decision making becomes more decentralized * Growth of “virtual organizations” « Information systems seen as outcome of political competition between subgroups 3.21 ©0008 by Prevece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎en Oy‏ ] | aCe Oar Orrntraiced reststoue ond te cuir adkestay rebaiccrhiy between ‏وسقحتكميسن له روا(‎ Task Technology People Structure Prue 9-0 3.22 ©0008 by Preece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] kG Ae a Ne cr eel oe Ola oa ae Dhe Tetercet oad Orqactzaioe ٠ The Internet is capable of dramatically reducing transaction and agency costs * Businesses are rapidly rebuilding some key business processes based on Internet technology ٠ Internet technology becoming a key component of IT infrastructure 3.23 ©0008 by Preece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ‎ARO MM eas ae cat‏ متس( ‎ ‎۱ Roe of Ouaners ۰ ‏ت0۳‎ ‎Classical Model: Five Functions of Managers » Planning ۰ Organizing * Coordinating * Deciding * Controlling ‎3.24 ©0008 by Preece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] eer eR ran da eka ۱ Roe of Ouaners ۰ ‏ت0۳‎ Behavioral Models: Five Attributes of Managers Perform much work at non-stop pace Fragmented activities Prefer speculation, hearsay, current and ad-hoc information Prefer oral communication Maintain diverse web of contacts as informal information system. ©0006 by Prevace “I 3.25 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ‎ARO MM eas ae cat‏ متس( ‎ ‎The Roe oF Ouanprs ta Orquctzdiou Managerial Role Categories Interpersonal: Figurehead, leader, liaison ‎Informational: Nerve center, disseminator, spokesperson ‎Decisional: Entrepreneur, disturbance handler, resource allocator, negotiator ‎©0008 by Preece ‏ادنلا"‎ ‎3.26 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ‎ARO MM eas ae cat‏ متس( ‎ ‎Onxers ond Dereon Dobe ‎Decision Making Classified by Organizational Level ‎Strategic: determines long-term objectives, resources, policies ‎Management control: monitors effective usage of resources, performance ‎Operational control: determines how to perform tasks and ways to distribute information ‎©0008 by Preece ‏ادنلا"‎ ‎3.27 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ‎ARO MM eas ae cat‏ متس( ‎ ‎Onxers ond Dereon Dobe ‎Decisions are classified as: ‎Unstructured: Nonroutine, decision maker provides judgment, evaluation, and insights into problem definition, no agreed-upon procedure for decision making ‎Structured: Repetitive, routine, handled using a definite procedure ‎©0008 by Preece ‏ادنلا"‎ ‎3.28 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ‎ARO MM eas ae cat‏ متس( ‎ ‎oyetews wal evel oP devote wuhiny‏ رهم۵۸ ‎ ‎ ‏— ‏تست ‏م جد ‎a‏ ‏۳ ‏0 3 8 — = = سس 5 و ‎Prue 9-9‏ ‎3.29 ©0008 by Prevece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ‎ARO MM eas ae cat‏ متس( ‎ ‎Onxers ond Dereon Dobe ‎Stages of Decision Making ‎Intelligence: Collect information, identify problem ‎Design: Conceive alternative solution to a problem ‎Choice: Select among the alternative solutions ‎Implementation: Put decision into effect and provide report on the progress of solution ‎©0008 by Preece ‏ادنلا"‎ ‎3.30 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ‎ARO MM eas ae cat‏ متس( ‎ ‎problem?‏ دم وا ‎0 ‎sous you coors!‏ ار ‏الوم مامه من ءا ‎ ‎ ‏9-0 سب ‎3.31 ©0008 by Preece ‏ادنلا"‎ ‎ ‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ‎ARO MM eas ae cat‏ متس( ‎ ‎Onxers ond Dereon Dobe ‎Models of Decision Making ‎Rational model: people engage in consistent, rational decision making. Individuals rank all alternatives and select the one that most contributes to their goal ‎Critics point out that individuals can’t rank all possible alternatives; tend to select first viable alternative ‎Built-in biases, frame of reference, distort decision making ‎©0008 by Preece ‏ادنلا"‎ ‎3.32 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ‎ARO MM eas ae cat‏ متس( ‎ ‎Onxers ond Dereon Dobe ‎Models of Decision Making ‎Cognitive style: Describes underlying personality dispositions toward decision making ‎Systematic decision makers ‎Intuitive decision makers ‎©0008 by Preece ‏ادنلا"‎ ‎3.33 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ‎ARO MM eas ae cat‏ متس( ‎ ‎Onxers ond Dereon Dobe ‎Models of Decision Making * Organizational models ¢ Bureaucratic models * Political models ‎* “Garbage can” model ‎3.34 ©0008 by Preece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] eer eR ran da eka Orndow va Oucngeoet Why War Games Can’t Always Simulate the Battlefield How useful are war games in simulating combat scenarios and predicting outcomes? How would the models of decision making described here explain how they are designed and performed? ©0008 by Preece ‏ادنلا"‎ 3.35 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] eer eR ran da eka “Akophextiow Por te ‏نو(‎ vod Ouderstordiay of IPorwuios Opstews Organizational Factors in Planning New Systems Organization’s environment Structure of organization Organization’s culture and politics Type of organization and leadership style Principle interest groups and attitudes of workers Kinds of tasks, decisions, processes system will assist ©0008 by Preece ‏ادنلا"‎ 3.36 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] eer eR ran da eka ‎Por te Oesiqa word Oudersterdiay of IP orwuiod Gystews‏ شمه ‎Optimal Information Systems:‏ ‎Flexible; provide many options for handling and evaluating data ‎Support a variety of styles, skills, knowledge; keep track of many alternatives ‎Sensitive to organization’s bureaucratic and political requirements ‎©0006 by Prevace “I ‎3.37 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ۱ 0 م1 حبست 2 م12 من Computer system at any level of an organization Changes goals, operations, products, services, or environmental relationships Helps organization gain a competitive advantage ©0006 by Prevace “I 3.38 

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وت ی مدا ما ات سس ‎en Oy‏ ] Dae een Coot veress-Level Giraey odd the Ocke Okota Dodel Business Competitive Strategies ¢ Become the low-cost producer ¢ Differentiate product or service * Change scope of competition by enlarging or narrowing market ما سم ‎by‏ 0008© 3.39 

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توت ام ما مس اه مت ‎Ot Ca‏ ات رت ] ۱ 2:۱ 0۳۵۰ عله) ع وت و62 امرورلجووبی) Value Chain Model Firm seen as series or “chain” of activities that add a margin of value to firm’s products or services Highlights activities in business where competitive strategies are best applied Primary or support activities Firm’s value chain linked to value chains of other partners ©0006 by Prevace “I 3.40 

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‎ole‏ وس ده ما وم تست بجوت لج ,اومحوحج 0 ,صطادت اك 0 ,ومصاو را دطتدمس جلها" ‎CO‏ ‎Dae een Coot ‎ ‎“he Pew voke chats cod the tecketry vue chat ‎ ‎ ‏مج | شمیت | میت | سم ‎Nomar,‏ ‏سس | ‎ortery‏ | شمه ایس | مه زو رد ‎ ‎ ‎ ‎ ‎ ‎ ‎> » > > Industry Valve Chain ‎Pree 9-0 ‎3.41 ©0008 by Preece Ws ‎ ‎ ‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ۱ 2:۱ 0۳۵۰ عله) ع وت و62 امرورلجووبی) Value Web Value chain extended by Internet technology that connects all the firm’s suppliers, partners, and customers Collection of independent firms using IT to coordinate value chains to collectively produce a product or service More customer-driven, less linear than value chain Flexible, adaptive to changes in supply and demand. ©0006 by Prevace “I 3.42 

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وت ی مدا ما ات سس ‎en Oy‏ ] ‎a ar RUN eel asl as‏ مس سم ‎ ‎he uche web ‎ ‎‘Sippy Chain Management ‎=e ‎CCastomer Relationship ‎Systems Management Sans ‎Prat Industrial Networks emer ‎ ‎Net Marketplace ‎3.43 ©0008 by Prevece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ۱ 2:۱ 0۳۵۰ عله) ع وت و62 امرورلجووبی) Product Differentiation Strategy for creating brand loyalty by developing new and unique products and services not easily duplicated by competitors Information systems used to create new information technology-based products and services Examples: ATMs, computerized reservation services ©0008 by Preece ‏ادنلا"‎ 3.44 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ۱ 2:۱ 0۳۵۰ عله) ع وت و62 امرورلجووبی) Focused Differentiation Strategy for developing new market niches for specialized products and services Information systems used to produce data for sales and marketing; analyze customer behavior Examples: One-to-one and customized marketing ©0006 by Prevace “I 3.45 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ۱ 2:۱ 0۳۵۰ عله) ع وت و62 امرورلجووبی) Efficient Customer Response Systems Links consumer behavior back to distribution, production, and supply chains Information systems used to link customer’s value chain to firm’s value chain Reduce inventory costs; deliver product or service more quickly to customer ©0008 by Preece ‏ادنلا"‎ ۰ 3.46 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ۱ 2:۱ 0۳۵۰ عله) ع وت و62 امرورلجووبی) Switching Costs Cost of switching to competitive product; higher switching costs discourage customers going to competitors Information systems offer convenience, ease of use, raise switching costs Stockless inventory systems ©0006 by Prevace “I 3.47 

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توت ام ما مس اه مت ‎Ot Ca‏ ات رت ] مه مس سم @Gtckess hwedory cowpored to ‏له‎ oad stoke supply ‏حادم‎ ‎waren ‏وه‎ a ah ‎at ees Tove hsp Moor‏ ا ‎ ‎3.48 ©0008 by Preece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] مه مس سم وه اورولوییی) Vendors usness-Level Strategy Customers 3.49 ©0008 by Preece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ۱ CProLlevel Crratew ond IePorwatos Terk At firm level, information technology can: Promote synergies between business units, pool resources Tie together operations of disparate business units Improve core competencies ©0008 by Preece ‏ادنلا"‎ 3.50 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ۱ Aeon Leve Crdteq wed “bPorwdios Neck Industry-Level Strategies: Information partnerships Competitive forces model; e.g., developing industry standards Network economics: cost of adding new participant negligible, but adds great marginal gain ©0006 by Prevace “I 3.51 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ۱ Porter's cowpetive Porves ‏ای‎ ‎—~ “The Industry ‘(= c= |<—+| industry 9 ‘competitors | Prue SAS: 3.52 ©0008 by Prevece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ۱ Aeon Leve Crdteq wed “bPorwdios Neck Impact of Internet on Competitive Forces ٠ Reduces barriers to entry ٠ Enables new substitute products and services ٠ Shifts bargaining power to customer ٠ Raises firm’s bargaining power over suppliers ٠ Suppliers benefit from reduced barriers to entry and from elimination of intermediaries * Widens geographic market, increases number of competitors, reduces differentiation among competitors 3.53 ©0008 by Prevece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] ۱ 9-9 سب 3.54 ©0008 by Prevece ‏ادنلا"‎ 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] (ie OE OS SS SS ODotaq Gpstews Por Orwpetive Odvackre: Oornpwrd Ines Strategic Transitions A movement from one level of sociotechnical system to another Often required when adopting strategic systems that demand changes in the social and technical elements of an organization ©0006 by Prevace “I 3.55 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] 3 ALow Duck Ova ‏اهنا" و0۵ م1۱۵۲ نوت‎ BO? Analyze GM by using the value chain and competitive forces models. Describe the relationship between GM’s organization and its information technology infrastructure. What management, organization, and technology factors influenced this relationship? ©0006 by Prevace “I 1 3.56 

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وت ی مدا ما ات سس ‎Ot Ca‏ ات رت ] 3 7 را 0 م۱ سا 0۰ ای مسا Evaluate the current business strategy of GM in response to its competitive environment. What is the role of information systems in that strategy? How do they provide value for GM? How successful have GM’s strategy and use of information systems been in addressing the company’s problems? What kind of problems can they solve? What are some of the problems that they cannot address? ©0006 by Prevace “I 3.57