Transcript Lecture 2.ppt

LECTURE 2
ORGANIZATIONS AND
INFORMATION TECHNOLOGY
SUPPORT
Learning Objectives
• Discuss major information systems concepts
such as architecture and infrastructure.
• Describe the hierarchical structure of
organizations and the corresponding
information systems.
• Define various information systems and their
evolution, and categorize specific systems.
• Describe the support provided to different
types of employees in an organization.
• Describe how information resources are
managed.
Chapter Overview
Information
Systems
Infrastructure
and
Architecture
• Information
Infrastructure
• Information
Architecture
• Traditional
Architectures
• New
Architectures
Evolution and IT Support at
Different
Organizations: Types of
Structure and Information Organizational
Systems
Levels
Support
• Organizational • Transaction • Managers
Structure
Processing • Knowledge
• Corresponding Systems
Workers
Information • Management • Clerical
Information Staff
System
Systems
• Support
Systems
Managing
Information
Technology in
Organizations
• Which resources
are managed by
whom?
• What is the role
of the information
systems department?
• Who runs the ISD
and to whom does
the department report?
• What are the
relationships between
ISD and end users?
Case : Burlington Coat Factory
• The Business Problem
 Burlingion is the largest retailer of coats
in the United States
 sells clothes, linens, luggage, jewelry, baby furniture
and accessories
 faces extremely strong competition
 wants to offer up to 60% off department store prices
 needs information to respond to demand
 needs to communicate and collaborate with both
store mangers and suppliers quickly and effectively
Case (continued…)
 The Solution
– a corporate computer-based communication system
– networks to a main processor
– transfers sales data by satellite technology
– executes routine transactions on the headquarters’
computer
– feeds information from the corporate databases into
spreadsheets or word processors on desktop
computers for end-user computing and decision
support
The Results
 dramatic decrease in communication problems
 steady increase in sales volume and profits
Case (continued…)
• What have we learned from this case??
 Characteristics of a networked corporate
information system that are usually found
in organizations
» several different information systems exist in one
organization
» some of these systems may be completely independent, but
most are interconnected
» information systems are connected by means of electronic
networks
» the information system is composed of large and small
computers and other hardware connected by different types
of networks
» many information systems use client/server architecture
Information Systems Architecture
• Physical facilities, hardware, software,
databases services, and management that
support all computing resources in an
organization
• Five major components of infrastructure
– computer hardware
– general-purpose software
– networks and communication facilities
– database
– information management personnel
• Tells how specific computing resources are
arranged, operated, and managed
Information Systems Architecture
(continued …)
• Information Architecture
 a high-level map or plan of the information
requirements
 a manner in which these requirements will be satisfied
 a guide for current IT operations
 a blueprint for future IT directions
 meets the organization’s strategic business needs
 must tie together the information requirements, the
infrastructure, and the applications
 similar to the conceptual planning of a house
Information Systems Architecture
(continued …)
• Traditional Architectures
 mainframe environment
» processing is done by a mainframe computer - a relatively
large computer built to handle large amounts of data,
thousands of user terminals, and millions of transactions
» modern versions of this architecture : personal computers
(PCs) and network computing (NC)
 PC environment
» PCs form the hardware architecture
 distributed environment
» divides the processing work between two or more computers
» the participating computers can be all mainframe, all PCs, or
(usually) a combination of the two
Information Systems Architecture
(continued …)
• New Architectures
 client/server architecture
» several computers share resources and are able to
communicate with many other computers
» a client - a computer such as a PC attached to the
network, which is used to access shared network
resources
» a server - a machine that is attached to the same
network and provides clients with these services
» purpose : optimize the use of computer resources
Information Systems Architecture
(continued …)
• Enterprisewide Architectures
 access to data, applications, services, and real-time
flows of data in different LANs or databases
 use client/server architecture to create a cohesive,
flexible, and powerful computing environment
 provide total integration of departmental and
corporate IS resources
 increase the availability of information and
thereby maximize the value of an organization
Information Systems Architecture
(continued …)
• Internet-based Architectures
 based on the concepts of client/server architecture
and enterprisewide computing
 the Internet is the basis for a network connection
from the outside world to the company, as well as
with the organization’s web site
 organization’s internal private Internet (intranet) useful for distributing information throughout the
organization
Market
Distributors
Non-Company
Retailers
Non-Company
Manufacturers
Corporate
Extranet
Corporate
Intranet
Head Quarter
Toys Inc
Suppliers
(Purchasing)
Professional
Associations, large
suppliers, competitors
Toy Industry
Extranet
Manufacturing
Retail Stores
Other
Extranets
Employees
Liquidators
contractors
EDI, VAN
Internet
Customers
Travel
agency
Sales peoples
and other
mobile
employees
Small
retailers
Public
Banks and other
business partners
Government
Small
customers
Small
vendors
The network organization:
How a company uses the Internet, intranet and extranet
Organizations :
Structure and IT Support
 Organizations
 the nature of organizations determines their
activities, the information support they need, and the
type of information systems they use
 profit-making business versus not-for-profit
organizations exist
 manufacture goods versus services are delivered
 can be located in one place or in several places,
some are global or multinational organizations
Organizations : Structure
 Organizational Structure
 departmental functional structure
» specialize in the delivery of a certain function
» typical departments in an organization:
»
»
»
»
»
»
Accounting
Finance
Marketing and Sales
Production or Operations Management (POM)
Human Resources Management (HRM)
Information Systems and Technology
Organizations : Structure
 Hierarchical Structure
Headquarters
Division A
Plant C Plant D
Division B
Overseas
Division
Plant E Plant F
Administration
Services
(legal, etc.)
POM
Accounting
Marketing
Finance
HRM
Organizations : IT Support
 The Corresponding Information Systems






Departmental Information Systems
Plant Information Systems
Divisional Information Systems
Enterprisewide Information Systems
Interorganizational Information Systems (IOS)
Global Information System for an International
or Multinational Corporation
Types of Information Systems
 Transaction Processing Systems
 organizations perform routine, repetitive tasks
 a TPS supports the monitoring, collection,
storage, processing, and dissemination of the
organization’s basic business transactions
 frequently, several transaction processing
systems exist in one company
 today’s transaction processing systems are much
more sophisticated and complex
Types of Information Systems (continued …)
 Management Information Systems (MIS)
 provides periodic reports
 generates weekly and monthly summaries by
product, customer, or salesperson
 initially, MIS had an historical orientation
 today, MIS reports may include summary reports, for
the current period or for any number of previous
periods - used for monitoring, planning, and control
 functional management information systems (MIS)
» access, organize, summarize, and display information for
supporting routine decision making in the functional areas
» geared toward middle managers
Types of Information Systems (continued …)
• Major Outputs of a Functional
Management Information System
OUTPUT
Statistical summaries
Exception reports
Periodic reports
Ad hoc reports
Comparative analysis
Projections
DESCRIPTION
Summaries of raw data such as daily production,
and weekly and monthly usage of electricity.
Highlights of data items that are larger or
smaller than designated levels.
Statistical summaries and exception reports
provided at scheduled, regular periods.
Special, unscheduled reports provided on
demand.
Performance comparison to that of competitors,
past performance, or industry standards.
Advance estimates of trends in future sales,
cash flows, market share, etc.
Types of Information Systems (continued …)
 Support Systems
 office automation systems (OAS)
» word processing systems





computer-aided design and manufacturing (CAD/CAM)
decision support systems (DSS)
end-user computing
executive information systems (EIS)
group support systems (GSS)
 Intelligent Systems
 expert systems (ES)
 artificial neural network (ANN)
Types of Information Systems (continued
…)
 Integrating Systems
 various computerized systems are being
integrated to increase their functionalities
 one popular form of integrated system is
enterprise resources planning (ERP)
 ERP plans and manages all of an organization’s
resources and their use, including contacts with
business partners
The Evolution
Computer Based Information Systems
1940
Scientific, military applications
1950
Routine business applications, TPS
1960
MIS, office automation
1970
DSS, LANs
1980
Client/server executive information system,
PC’s, AI, Groupware
1990
Integration, intelligent systems
the Web, intranets, extranets, ERP software
2000
Internet, Electronic commerce, Smart systems
IT Support at Different
Organizational Levels
Strategic
Systems
Staff Support
Top Managers
Knowledge Workers, Professionals
Managerial Systems
Middle Managers
Operation Systems
Office Automation and Communication Systems
Line Managers, Operators
Clerical Staff
Information Infrastructure and TPS
The information systems support of people in organizations
Knowledge Workers
• People who create information and knowledge and integrate it
into the business
• Engineers, financial and marketing analysts, production
planners, lawyers, and accountants
• Responsible for finding or developing new knowledge for the
organization and integrating it with existing knowledge
• Act as advisors and consultants to the members of the
organization
• Act as change agents by introducing new procedures,
technologies, or processes
• 60 to 80 percent of all workers are knowledge workers
• Supported by a large variety of information systems from
Internet search engines to expert systems, to computer-aided
design, and by knowledge bases
Clerical Staff
• Support managers at all levels
• Data workers - use, manipulate, or disseminate
information
– bookkeepers, secretaries who work with word
processors, electronic file clerks, and insurance
claim processors
• Supported by office automation and groupware,
including document management, workflow, email, and other personal productivity software
IT Support at Different
Organizational Levels : A Summary
System
Office automation
Communication
Group support
system
Decision support
system
Executive information
TPS
MIS
Intelligent systems
Employees
Supported
Office workers
All employees
People working in
groups
Decision makers,
managers
Executives, top
managers
Line managers and
employees
Middle management
Knowledge workers
Managing IT Resources
• IT resources are scattered throughout the organization
• Information systems have enormous strategic value
• Some IT resources change frequently. It may be rather difficult
to manage IT resources
• It is essential to manage information systems properly
• The responsibility for the management of information
resources is divided between a usually centralized information
systems department (ISD) and the end users
• Which resources are managed by whom?
– Generally speaking, ISD is responsible for corporate-level and shared
resources, and the end users are responsible for departmental
resources
Managing IT Resources(continued …)
• What is the role of the information systems
department?
– Traditional major IS functions:
• Managing systems development and systems project
management
• Managing computer operations, including the computer
center
• Staffing, training, and developing IS skills
• Providing technical services
Managing IT Resources (continued …)
• What is the role of the information systems
department? (continued)
– New (additional) major IS functions:
•
•
•
•
•
•
•
•
•
•
•
Initiating and designing specific strategic information systems
Infrastructure planning, development, and control
Incorporating the Internet and electronic commerce into the business
Managing system integration including the Internet, intranets, and
extranets
Educating the non-IS managers about IT
Educating the IS staff about the business
Supporting end-user computing
Partnering with the executive level that runs the business
Actively participating in business processes reengineering
Proactively using business and technical knowledge to the line with
innovative ideas about IT
Creating business alliances with vendors and IS departments in other
organizations
Managing Information Technology
• Key MIS issues in two recent time periods
Key Issues, 1994/1995
1. Building a responsive IT
infrastructure
2. Facilitating and managing
business process redesign
3. Developing and managing
distributed systems
4. Developing and implementing
an information architecture
5. Planning and managing
communication networks
Key Issues, 1997
1. Improving productivity
2. Reducing costs
3. Improving decision
making
4. Enhancing customer
relationships
5. Developing new
strategic applications
Managing Information Technology
(continued …)
• Who Runs the ISD and to whom does ISD Report?
 run by MIS Director, Manager of Computing Services,
Manager of Information Technology, or Chief Information
Officer (CIO)
 reports to
»
»
»
»
Chief Executive officer
Functional Vice President
Senior vice president
Chief knowledge officer (CKO) - the director assigned to capture and
make effective use of IT knowledge for an organization
 The executive committee provides the top-level oversight for
the organization’s information resources. It guides the IS
steering committee, which is usually chaired by the CIO.
Managing Information Technology
(continued …)
• What are the relationships between the ISD and end users?
 A steering committee that represents all end users and the ISD. This
committee sets IT policies, decides on priorities, and coordinates IS
projects.
 Joint ISD/end-user project teams for planning, budgeting,
applications development, and maintenance
 ISD representation on the top corporate executive committee
 Service agreements that define computing responsibilities and
provide a framework for services rendered by the ISD to end users
 Technical and administrative support (including training) for end
users
 A conflict resolution unit established by the ISD to handle end-user
complaints quickly and resolve conflicts as soon as possible
 An information center that acts as help center to end users regarding
purchase, operations, and maintenance of hardware and software
What’s in IT for Me?
• For Accounting
– Many of the transactions handled in a TPS are data that
the accounting department records and tracks
• For Finance
– Financial departments often use specialized DSS for
forecasting and portfolio management
• For Marketing
– Marketing uses such IT-related concepts as customer
databases, marketing decision making, sales
automation, and customer relationship management
(CRM)
What’s in IT for Me? (continued …)
• For Production/Operations Management
– Organizations are competing on price, quality, time (speed), and
customer service which are enhanced and supported by IT
• For Human Resources Management
– Intranets help to disseminate relevant information throughout the
organization. Internets are used for recruiting
• For MIS
– IS management function continues to grow in strategic value
• For Non-Business
– In all organizations, IT provides essential support to all functional
areas`
INFORMATION SYSTEM
BUSINESS
CHALLENGE
MANAGEMENT
INFORMATION
INFORMATIO
N
TECHNOLOGY
SYSTEM
BUSINESS
SOLUTIONS
MANAGING CHANGE
ORGANIZATION
FITTING TECHNOLOGY TO
ORGANIZATION
LIMITS OF TECHNOLOGY
ORGANIZATIONS & INFORMATION TECHNOLOGY
ORGANIZATIONS
MEDIATING FACTORS:
Environment
Culture
Structure
Standard
Procedures
Politics
INFORMATIO
Management Decisions
Chance
N
TECHNOLOGY
MICROECONOMIC DEFINITION OF
ORGANIZATION
ORGANIZATION
INPUT FROM
ENVIRONMENT
PRODUCTION
PROCESS
FEEDBACK
OUTPUT TO
ENVIRONMENT
STRUCTURE:
Hierarchy
Division of labor
Rules, Procedures
PROCESS:
Rights/Obligations
Privileges/Responsibilities
Values
Norms
People
*
ENVIRONMENTAL
OUTPUTS
ENVIRONMENTAL RESOURCES
BEHAVIORAL VIEW OF ORGANIZATIONS
STRUCTURAL CHARACTERISTICS OF ALL
ORGANIZATIONS
•
•
•
•
•
•
CLEAR DIVISION OF LABOR
HIERARCHY
EXPLICIT RULES & PROCEDURES
IMPARTIAL JUDGMENTS
TECHNICAL QUALIFICATIONS
MAXIMUM ORGANIZATIONAL EFFICIENCY
*
ORGANIZATIONAL STRUCTURES
• ENTREPRENEURIAL: Start up business
• MACHINE BUREAUCRACY: Mid-sized manufacturing
firm
• DIVISIONALIZED BUREAUCRACY: Fortune 500
• PROFESSIONAL BUREAUCRACY: Law firms, hospitals
• ADHOCRACY: Consulting firm
*
SALIENT FEATURES OF ORGANIZATIONS
COMMON FEATURES:
• FORMAL STRUCTURE
• STANDARD OPERATING PROCEDURES
• POLITICS
• CULTURE
*
3.8
ORGANIZATION & ITS ENVIRONMENT
THE FIRM
INFORMATION SYSTEMS
ORGANIZATION & ITS ENVIRONMENT
THE ENVIRONMENT:
RESOURCES & CONSTRAINTS
GOVERNMENTS
COMPETITORS
THE FIRM
FINANCIAL INSTITUTIONS
CULTURE
KNOWLEDGE
TECHNOLOGY
INFORMATION SYSTEMS
ORGANIZATIONAL LEVELS & SUPPORT SYSTEMS
•
•
•
•
•
•
INDIVIDUAL
GROUP
DEPARTMENT
ORGANIZATION
INTERORGANIZATION
ORGANIZATIONAL NETWORK
*
ORGANIZATIONAL LEVELS & SUPPORT SYSTEMS
INDIVIDUAL:
• ACTIVITY: Job, task
• SUPPORT: Client database, DSS
GROUP:
• ACTIVITY: Project
• SUPPORT: Product scheduling, access to TPS,
external sources, dynamic info needs, group DSS
*
ORGANIZATIONAL LEVELS & SUPPORT SYSTEMS
DEPARTMENT:
• ACTIVITY: Major function
• SUPPORT: Accounts payable; payroll; marketing;
MIS; TPS
DIVISION:
• ACTIVITY: Major product, service
• SUPPORT: Systems to support functions; MIS;
TPS; on-line
*
ORGANIZATIONAL LEVELS & SUPPORT SYSTEMS
ORGANIZATION:
• ACTIVITY: Multiple products, services, goals
• SUPPORT: Integrated on-line, interactive
financial & planning systems; MIS; ESS
*
ORGANIZATIONAL LEVELS & SUPPORT SYSTEMS
INTERORGANIZATION:
• ACTIVITY: Alliance; competition; exchange;
contact
• SUPPORT: Communication systems;
intelligence, observation, monitoring systems
*
ORGANIZATIONAL LEVELS & SUPPORT SYSTEMS
ORGANIZATIONAL NETWORK:
• ACTIVITY: Sector of economy; related
products, services; interdependencies
• SUPPORT: Informal communication systems;
industry / sector-level formal reporting
systems
*
WORK GROUPS, PROBLEMS, SUPPORT
TYPES:
HIERARCHICAL
INTERDEPARTMENTAL COMMITTEES
PROJECT TEAMS
COMMITTEES
TASK FORCES
PEER GROUPS / SOCIAL NETWORKS
*
WORK GROUPS, PROBLEMS, SUPPORT
PROBLEMS:
MAKING ARRANGEMENTS
ATTENDING MEETINGS
LONG AGENDAS
COST OF MEETINGS
BETWEEN-MEETING ACTIVITIES
*
WORK GROUPS, PROBLEMS, SUPPORT
SUPPORT:
HIERARCHICAL: Video conferencing; e-mail
INTERDEPARTMENTAL COMMITTEES: Electronic
messaging
*
WORK GROUPS, PROBLEMS, SUPPORT
SUPPORT:
PROJECT TEAMS: Scheduling software; Meeting
support tools; Documents; Intranet
COMMITTEES: e-bulletin boards; Video
conferencing; e-mail; Computer conferencing
*
WORK GROUPS, PROBLEMS, SUPPORT
SUPPORT:
TASK FORCES: Graphics display; Info utility;
Documents; Meeting support tools
PEAR GROUPS / SOCIAL NETWORKS: Telephone;
e-mail; Correspondence
*
THE COMPUTER PACKAGE
• ORGANIZATION: Senior Management; Major end
users
• INFORMATION SYSTEMS DEPARTMENT
– Technology: Hardware; Software
– Information Systems Specialists
*
THE COMPUTER PACKAGE
INFORMATION SPECIALISTS:
•
•
•
•
•
•
•
Managers
Systems analysts
Systems designers
Systems programmers
Applications programmers
Maintenance programmers
Database administrator
*
WHAT SOME SPECIALISTS DO
• PROGRAMMERS: Write software
• SYSTEMS ANALYSTS: Translate business
problems into solutions
• IS MANAGERS: Department leaders
• END USERS: Department reps for whom
applications are developed
SYSTEM DEVELOPMENT PROCESS
EXTERNAL
Uncertainties
Opportunities
SYSTEM DEVELOPMENT
Adoption
Utilization
Management
INTERNAL
Values
Norms
Interests
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
• MICROECONOMIC THEORY: Info technology is
a factor of production, like capital & labor
• TRANSACTION COST THEORY: Firms attempt
to minimize transaction costs internally &
externally
*
CEO
VP
VP
VP
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
• AGENCY THEORY: Firm is nexus of contracts
among agents who make decisions; IS shrink
number of agents & reduce cost
• BEHAVIORAL THEORIES: Concepts from
Sociology, Psychology, Political Science;
Organizations & Information Technology
mutually influence each other
CEO
*
VP
VP
VP
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
• DECISION & CONTROL THEORY: Decisions are
made under conditions of risk & uncertainty;
centralization & hierarchy reduce uncertainty
• SOCIOLOGICAL THEORY: Bureaucracy, SOPs
help stabilize organizations, but slow ability to
change
*
CEO
VP
VP
VP
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
• POSTINDUSTRIAL THEORY: Flatter
organizations; dominated by knowledge
workers; decentralized decision making
• CULTURAL THEORY: Info technology must fit
organization’s culture to be accepted
*
CEO
VP
VP
VP
HOW INFO SYSTEMS AFFECT
ORGANIZATIONS
• POLITICAL THEORY: Info systems are outcome
of political competition for policies,
procedures, resources
*
CEO
VP
VP
VP
IMPLEMENTING CHANGE
TASK
RESISTANCE
TECHNOLOGY
PEOPLE
MUTUAL
ADJUST
MENT
STRUCTURE
Source: Leavitt, Handbook of Organization (1965)
HOW WEB AFFECTS ORGANIZATIONS
• MORE INFO, ANYWHERE, ANYTIME
• MORE SCOPE, DEPTH, RANGE OF
KNOWLEDGE: Global encyclopedia
• LOWERS COST, RAISES QUALITY OF INFO
DISTRIBUTION: Enhances attention span of
vendors, customers, employees
*
THANKYOU
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