Transcript 投影片 1 - National Chung Cheng University

The Impact of IT on Hospitals
Dr. Hsin-Ginn Hwang
Graduate Institute of Information
Management
National Chung Cheng University
[email protected]
0939-318-863
Introduction
• Hospitals are also organizations
• IT improves medical quality
• IT improves the efficiency and
effectiveness of hospital operations
Facts to Remind
• IT offers new ways to change the structure
of an existing organization or design an
entirely new non traditional one
• IT can substitute for physical proximity and
contact in a number of situations
• Top management has a key role to play in
the management of information processing
activities in the organization
What are Information Systems?
• Information systems exist in the context of
an organization; they do not operate in
isolation
What are Hospitals?
• An organization is a rational coordination
of activities of a group of people for the
purpose of achieving some goal
• How about “Hospitals?”
Modern Organizations
• They are many factors that influence the
structure and design of modern
organizations
– Uncertainty
– Specialization
– Coordination
– Interdependence
Uncertainty
• Managers try to eliminate or reduce
uncertainty
• Where “Uncertainty” comes from?
– Outside or inside of an organization?
• There is some evidence that uncertainty is
most effectively handled by decentralizing
decision making to management level in
the organization with information to
resolve it
Specialization
• Why specialization can influence the
structure and design of modern
organizations?
Coordination
• When there is specialization, one task of
management is to coordinate the diverse
specialties to achieve the goals of the
organization
• Management must balance differing
orientation and resolve disputes between
specialized subunits
Interdependence
• The type of interdependence affects the
amount of power one unit has in the
organization
• Three types of mutual dependence
– Pooled interdependence
– Sequential interdependence
– Reciprocal interdependence
What Is Organization Flexibility?
• Flexibility is the ability to adapt when
confronted with new circumstances
• A flexible organization defends quickly
against threats and moves rapidly to take
advantage of opportunities
IT and Organizational Flexibility
• IT has the ability to change the pace of
work and to alter time and space
boundaries for work
• With properly designed systems, the
organization can increase its ability to
respond to customers, competitors, and
the environment in general
MIS Belief
• The purpose of employing any technology
is to obtain an advantage over old ways of
doing business
Framework
• A framework provides you with a view to
organize your thoughts and analyze a
problem
• A framework is not necessary accepted by
everyone
Anthony’s Framework of MIS
• MIS support management activity, that is,
the structure of IS can be classified in
terms of hierarchy of management
planning and control activities (Anthony,
1965)
Simon’s Framework of DM
• The decision making stages of intelligence,
design, and choice proposed by Simon
(1965)
• Programmed and Nonprogrammed
decisions
Gorry and Scott Morton’s
Framework of MIS
• A framework synthesizing the work of
Anthony and Simon is very appealing
because it helps us classify a variety of
systems (Gorry and Scott Moton, 1971)
Harold Leavitt’s Framework for
IT Applications
• An organization develops some internal
structure so the people who work in the
organization can perform their tasks
• People undertake these tasks so the firm
can accomplish its mission or purpose
Harold Leavitt’s Framework
for IT Applications
Environment
Task
Organizational
Structure
Information
Technology
People
Environment
Firm’s
Technology
Contemporary Framework for IT
Applications
• IT supports individuals, workgroups,
organizations, and linkages among
organizations
• The changing technology enables the
organization to develop applications to
support all the tasks involved in managing
the firm
Contemporary Framework for IT
Applications
• A focus on the organization as the most
important component of the study of IT
• The role of technology in supporting
managerial tasks
• The pervasive nature of technology in the
organization
Decision Support, Executive IS,
and Expert Systems
•
•
•
•
Decision Support Systems
Executive Information Systems
Expert Systems
Group Support Systems
Knowledge Work Support
• Personal Computers
• Office Software
• Portable Computer:
– Notebooks
– PDAs (Personal Digital Assistants)
Supporting Groups and
Cooperative Work - Groupware
• Groupware such as Lotus Notes can
provide the coordination mechanism
among individuals in different locations.
• Groupware support individuals in different
locations can share information on a
distributed network.
Interorganizational Systems
• Partnerships and strategic alliances are
created and enhanced with
interorganizational systems. (IOSs)
• IOSs can vary from e-mail connections to
full system-to-system connections.
• IOSs make possible Virtual Components
in which a partner substitutes for some
component of your company. (eg. Federal
Express)
Key Technology
• Communications
• Networking
• Database
The Basics of Information
Systems
• Some Generic Types of Systems
– Transactions Processing Systems
– Decision-oriented Systems
– Communications-oriented Systems
Transactions Processing
Systems
Workstation
User
Input
Validate
Update
Database
Output
Report
Decision-Oriented Systems
Workstation
User
Analysis
and
Presentation
Retrieval
System
Database
Model
Management
Model Base
Communications-oriented Systems
Workstation
User
Workstation
Communications
Link
Computer
Mail Box
User
Different Types of Technology
•
•
•
•
•
•
Simple Batch Systems
Inquiry
Fully On-line
Command and Control
Internet/Intranet
Client-Server
Is There Value in IT?
• Various Observers have criticized
information technology for not providing a
satisfactory return on investment.
• How valid is this criticism?
• The Investment Opportunities Matrix
shows that there is not the same likelihood
of a return from each IT investment.
What is Value?
• Investment can be measured in
– Direct measurement: Money, NPV, ROI,…etc.
– Indirect measurement: preventing negative
return, keeping up with a competitor, avoiding
loss in market share.
– Indirect measurement is hard to measure
Implications for Management
• Why should you care about different kinds
of technology?
• How do you adapt and use a combination
of old and new technologies when you
work in a business with old technologies?
The Nature of Information
• Information can be defined as some
tangible or intangible entity that reduces
uncertainty about some state or event
• Information is data that has been
processed into a form that is meaningful to
the recipient and is of real perceived value
in current or prospective decisions
Characteristics of Information
Decision Type
Operational Control Managerial Control Strategic Planning
• Time Frame
• Expectation
• Source
External
• Scope
• Frequency
• Organization
Structured
• Precision
Historical
Anticipated
Largely Internal
Predictive
Surprise
Largely
Detailed
Real Time
Highly Structured
Summary
Periodic
Loosely
Highly Precise
Not Overly
From Information to Knowledge
• Knowledge can be defined as information
plus know-how (Kogut and Zander, 1992)
• Information alone is not enough to
produce knowledge
• We must also understand the best way to
use information to solve a problem,
contribute to a product or service, or make
a similar contribution to the organization
From Information to Knowledge
• Knowledge builds over time in the heads
of employees in the form of past decisions,
processes in the organization,
characteristics of products, interests of
customers, and similar experiences
Explicit Knowledge
• Explicit knowledge is represented by facts.
• Textbook, Manual, Document, …,etc.
Tacit Knowledge
• Tacit knowledge is something we
understand but have difficulty explaining.
• Riding bicycle, cooking,…,etc.
Concepts of Decision Making
• Decisions differ in a number of ways
• These differences affect the formulation of
alternatives and the choice among them
• They also affect the design of IS support
for decision activities
Decision Types
• Four dimensions of decision:
– Level of knowledge of outcomes
– Level of programmability
– Criteria for the decision
– Level of decision impact
Knowledge of Outcomes
• If the outcomes are known and the values
of outcomes are certain
• The making of decisions under risk, when
only the probabilities of various outcomes
are known
• Decisions under uncertainty (outcomes
known, but not the probabilities)
Programmed versus
Nonprogrammed Decisons
• Programmed decisions are those
decisions that can be prespecified by a set
of rules or decision procedures
• Programmed decisions imply decision
making under certainty because all
outcomes must be known
• Programmed decisions can be delegated
to low levels in an organization or
automated
Criteria for Decision Making
• A model of decision making which tells the
decision maker how to make a class of decisions
is normative or prescriptive
– Normative models have generally been developed by
economists and management scientists, such as LP,
Game theory, etc
• The criteria for selecting among alternatives in
the normative model is maximization or
optimization of either utility or expected value
Criteria for Decision Making
• A model which describes how decision
makers actually make decisions is
descriptive
– Descriptive models attempt to explain actual
behavior and therefore have been developed
largely by behavioral scientists
• Satisfaction is an alternative view of
decision making which comes from the
descriptive models
How Do Individuals Make
Decisions
• Herbert Simon (1965) suggests a series of
descriptive stages for decision making to
help understand the decision process
– Intelligence
– Design
– Choice
– Implementation
Intelligence
• “Problem finding” is conceptually defined
as finding a difference between existing
situation and some desire state
• The purpose of “problem formulation” is to
clarify the problem, so that design and
choice activities operate on the “right”
problem
Design
• The act of generating alternatives is
creative, and creativity may be taught.
Choice
• Decision maker selects one of the
alternatives.
• The criteria of choice is different among
individuals or organizations.
Implementation
• Implementation is a series of executions
that ensure the solution is carried out
Organizational Decision Making
• How does an organization make a
decision?
• Major concepts used to explain
organizational decision making are quasiresolution of conflict, uncertainty
avoidance, problemistic search,
organizational learning, and incremental
decision making
Quasi Resolution of Conflict
• Conflicts among different units are solved
by three methods:
– Local rationality
– Acceptable level decision rules
– Sequential attention to goals (The
organization responds first to one goal, then
to another , so that each conflicting goals has
a chance to influence organizational behavior)
Uncertainty Avoidance
• The behavioral theory of organizational
decision making assumes that the
organization will seek to avoid risk and
uncertainty at the expense of expected
value
• Some legal methods used to reduce or
avoid uncertainty are the following:
– Short run feedback and reaction cycle
– Negotiated environment
Problemistic Search
• The search for solution is problemstimulated; there is very little planned
search for solutions not motivated by
problems
– Search locally either close to the present
symptom or close to the present solution
– If local search fails, expand the search first to
organizationally vulnerable areas before
moving to other areas
Organizational Learning
• Organizations change their goals and
revise their problem search procedures on
the basis of experience
Incremental Decision Making
• An incremental decision making in
organization is confined to small changes
from existing policy and procedures
• The emphasis is on correcting or
improving existing policies and actions
Types of Organizations
• The nature of different organization will
influence the decision and the kind of
information required
• Three types of Organizations
– Bureaucracy
– Charismatic
– Adaptive
The Influence of the
Organization
• Bureaucracies try to survive and to
minimize uncertainty; members of these
organizations stress in job security
• We would expect decisions in
bureaucracies to be conservative and
require modest changes to existing
procedures
The Influence of the
Organization
• The charismatic organization is dominated
by a strong leader
• It is safe to say that the leader is likely to
make the decision that subordinates then
execute
The Influence of the
Organization
• The adaptive organization tries to respond
quickly to its environment
• The organization stresses rapid response
times and does not have a large number
of layers of management
The Role of CEO
• A key task of top management is
formulating corporate strategy
– What opportunities for new directions are
available?
– What are competitors doing?
The Role of IT
• IT offers new ways of doing business
• IT can speed up the pace of work and
increase the capacity of processing
• IT can alter the space and time boundaries
of work
The Value Chain
• The activities in an organization add value
to its products or services (Porter and
Millan, 1985)
• The primary activities in the value chain
include inbound logistics, operations
outbound logistics, marketing and sales,
and service
The Value Chain
• Each of these activities adds value directly
to the firm’s output
• Supporting these primary activities are the
firm’s infrastructure, human resource
management, technology development,
and procurement
The Value Chain
• What is the potential impact of IT on the
value chain?
– Low-cost producer
– Differentiation
– Market niche
Four Steps to Take Advantages
of IT
• Look for ways to incorporate technology in
a product or service
• Seek ways to use technology to connect
with other firms
• Look for ways to use technology to make
dramatic changes in the way your
structure the organization
• Integrate technology with planning
Creating and Sustaining A
Competitive Edge
• Using resources to advantage
• Protecting an IT innovation
– To sustain an advantage is to overwhelm the
competition with technological leadership
Integrating Technology with the
Business Environment
• Managers must consider how technology
affects their decisions and how their
decisions affect the technology
Information
technology
Search for new
technology
(find out what
technology offers)
The Mgmt
Challenge of
Integrating Tech
Seek
opportunities
+
Technological
constraints
Manage existing
technology
Constraints
Technology
Opportunities
Impact
Decision making
Planning
Execution
Manage
development of
new technology
Impact
Facts
• Visions are rare and difficult to create;
leaders are frequently criticized for lack of
vision
• For an organization, the vision thing is
important, especially given the ability of
technology to change the structure of the
firm, the nature of its business, and the
basis for competition
Facts
• A fundamental responsibility for
management is to develop a vision for the
business and for the role of IT in achieving
that vision
Facts
• The vision should:
– Describe the mission of the organization
– Identify the products and services it produces
and the markets
– Describe plans for mergers, partnerships,
alliances, and acquisitions
Facts
• Firm’s structure is highly related with its
strategy
• A significant responsibility of management
is to integrate technology with all business
decisions
• Integration means that the manager is
aware of how new technology can create
opportunities
Facts
• A corporate strategic plan comes from the
firm’s vision for its future activities
• This plan includes the vision
• It is a road map for bringing about the
vision
• IT should be an integral part of the firm’s
strategic plan
A Framework for Managing IT
Vision for the Organization
& Information Technology
IT and Organization
Structure
Strategy
Alliances &
Partnership
Corporate Strategic Plan
IT Initiative
IT Infrastructure
Integration of
IT and Decision
Making
Ongoing IT
Operations
System Concepts
• The term “system” is in common use.
• System concepts provide a useful
framework for describing and
understanding many organizational
phenomena.
• Definition of a system
• General model of a system - IPO model
System Concepts
• Subsystems
– The use of subsystems as building blocks is
basic to analysis and development of systems
• Principles of building a system from
subsystems:
– Decomposition
– Simplification
– Decoupling
System Concepts
– Preventing system entropy
– System stress and system change
• A stress is a force transmitted by a system’s
suprasystem that causes a system to change, so
that the suprasystem can better achieve its goals.
Definition of A System
• Systems can be abstract or physical
• An abstract system is an orderly
arrangement of interdependent ideas or
constructs
• A physical system is a set of elements
which operate together to accomplish an
objective
General Model of A System
• A general model of a physical system is
input, process, and output
• The system is inside the boundary
• The environment is outside the boundary
• Each system is composed of subsystems
which in turn are made up of other
subsystems
General Model of A System
• The interconnections and interactions
between the subsystems are termed
interfaces
• Interfaces occur at the boundary and take
the form of inputs and outputs
• A subsystem at the lowest level is often
not defined as the the process
• This system is termed a black box
Subsystems
• The use of subsystems as building blocks
is basic to analysis and development of
systems (Divided and Conquer)
• Decomposition
• Simplification
• Decoupling
Decomposition
• A complex system is difficult to
comprehend when considered as a whole
• The process of decomposition is continued
with subsystems divided into smaller
subsystems until the smallest subsystems
are of manageable size
• The subsystems resulting from this
process generally form hierarchical
structures
Decomposition
• In the hierarchy, a subsystem is one
element of a suprasystem
• Decomposition into subsystems is used
both to analyze an existing system and to
design and implement a new system
Decomposition
• The general principle in decomposition
which assumes that system objectives
dictate the the process is functional
cohesion
• Components are considered to be part of
the same subsystem if they perform or are
related to the same function
Decomposition
• In design, the identification of functionally
cohesive subsystems is the first step
• The boundary then needs to be clearly
specified, interfaces simplified, and
appropriate connections established
among the subsystems
Simplification
• The process of decomposition could lead
to a large number of subsystem interfaces
to define
• Simplification is the process of organizing
subsystems so as to reduce the number of
interconnections
Simplification
• Clusters of subsystems are established
which interact with each other, then a
single interface path is defined from
cluster to other subsystems or clusters of
subsystems
• Methods are established for decoupling
systems so that the need for
interconnection is reduced
Decoupling
• If two different subsystems are connected
very tightly, very close coordination
between them is required
• The solution is to decouple or loosen the
connection so that the two process of
decoupling and allowing each subsystem
some independence in managing its
affairs has many benefits, but it is not
without costs
System Concepts and
Organizations
• Organizations are open systems, since
they receive unplanned and unscheduled
inputs from their environment and adapt in
such a way as to continue their existence
Questions & Discussion