Organizational subunits and the way they relate to the overall organization
Types of organizational structures
Traditional
Project
Team
Virtual
Traditional organizational structure
Hierarchy of decision making and authority flows from the strategic management at the top down to operational management and nonmanagement employees
Flat organizational structure empowers employees at lower levels
Empowerment
Gives employees and their managers more responsibility and authority to make decisions
Project organizational structure
Centered on major products or services
Many project teams are temporary
Team organizational structure
Centered on work teams or groups
Team can be temporary or permanent, depending on tasks
Virtual organizational structure
Uses individuals, groups, or complete business units in geographically dispersed areas
Can reduce costs for an organization
Collaborative work
Managers and employees can effectively work in groups, even those composed of members from around the world
Organizational culture
Major understandings and assumptions for an organization
Organizational change
How organizations plan for, implement, and handle change
Change model
1. Unfreezing: Ceasing old habits and creating a climate that is receptive to change
2. Moving: Learning new work methods, behaviors, and systems
3. Refreezing: Reinforcing changes to make the new process second nature, accepted, and part of the job
Organizational learning
The adaptations to new conditions or adjustments based on experience and ideas over time
Reengineering
Radical redesign of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough in business results
Continuous improvement
Constantly seeking ways to improve business processes and add value to products and services
Technology acceptance model (TAM)
Specifies the factors that can lead to better attitudes about the use of a new information system, which leads to higher acceptance and usage of the new information system
Technology diffusion
Measure of how widely technology is spread throughout an organization
Technology infusion
Extent to which technology permeates(spread throughout) a department
Quality
Ability of a product or service to meet or exceed customer expectations
Techniques used to ensure quality
Total quality management
Six Sigma
Outsourcing
Contracting with outside professional services
On-demand computing
Also called on-demand business or utility computing
Resources are made available to users when required
Rapidly responding to the organization's flow of work as the need for computer resources varies
Downsizing
Reducing number of employees to cut costs
Competitive advantage
Significant and (ideally) long-term benefit to a company over its competition
The five forces model
Rivalry among existing competitors
Threat of new entrants
Threat of substitute products and services
The bargaining power of buyers
The bargaining power of suppliers
Strategies for competitive advantage
Cost leadership
Differentiation
Niche strategy
Altering the industry structure
Creating new products and services
Improving existing product lines and service
Other strategies for competitive advantage
Seek growth in sales
First to market
Customizing products and services
Hiring the best people
Innovation
Productivity
A measure of output achieved divided by input required
Return on investment (ROI)
One measure of IS value
Investigates the additional profits or benefits that are generated as a percentage of the investment in IS technology
Earnings growth
The increase in profit that the system brings
Market share and speed to market
The percentage of sales that a product or service has in relation to the total market
Customer awareness and satisfaction
Performance measurement is based on feedback from internal and external users
Total cost of ownership
The sum of all costs over the life of the information system
Managers must consider the risks of designing, developing, and implementing systems
Information systems can sometimes be costly failures
Primary responsibilities in information systems
Operations
Systems development
Support
Typical IS titles and functions
Chief information officer (CIO)
LAN administrators
Certification
Process for testing skills and knowledge resulting in an endorsement by the certifying authority
It is always good for IS professionals to have good communications skills and the ability to work with other people
Getting the best team of IS personnel to work on important projects is critical in successfully developing new information systems or modifying existing ones
Organizations are systems with inputs, transformation mechanisms, and outputs