impact organizations and business firms Using information systems to achieve competitive advantage Which features of organizations do managers need to know about to build and use information systems successfully? Using information systems to achieve competitive advantage
relate to information systems technology? 8 The technical definition tells us how thousands of firms in competitive markets combine capital, labor, and information technology. The behavioral model takes us inside the individual firm to see how that technology affects the organization’s inner workings.
(standard operating procedures) •Precise rules, procedures, and practices developed to cope with virtually all expected situations Business processes •Collections of routines Business firm •Collection of business processes
that define goal and product • What products the organization should produce • How and where it should be produced • For whom the products should be produced May be powerful unifying force as well as restraint on change
a reciprocal relationship. Organizations are open to, and dependent on, the social and physical environment. Organizations can influence their environments. •Information systems can be instrument of environmental scanning, act as a lens. Environments generally change faster than organizations.
or better, often much better, than anything currently produced First movers and fast followers • The car substituted for the horse- drawn carriage; the word processor for typewriters; the Apple iPod for portable CD players; digital photography for process film photography. • First movers—inventors of disruptive technologies • Fast followers—firms with the size and resources to capitalize on that technology
bureaucracy Midsize manufacturing firm Divisionalized bureaucracy Fortune 500 firms Professional bureaucracy Law firms, school systems, hospitals Adhocracy Consulting firms 5. Organizational Structure All organizations have a structure or shape. Mintzberg’s classification, identifies five basic kinds of organizational structure
Each organization shares common characteristics that an information system can enhance. On the other hand, each organization has unique characteristics that should be taken into account when incorporating technology. The organization should determine how the technology is incorporated and not let the information system totally dictate the organizational structure.