Module 3

technical perspective organization

a formal social structure with internal rules and procedures that process resources from environment to produce outputs

behavioural perspective on organisation

collection of right, privileges, obligations, responsibilities and feelings

importance of collaboration (6)

changing nature, culture, scope and organization of the firm; growth of professional work; emphasis on innovation

transaction cost theory

the cost of participating in markets; firms try to minimise TC through vertical integration; hiring more employees; buying supplies and distributors; IT lowers TC via outsourcing

agency theory

firm is nexus of contracts among self-interested parties; firms experience agency costs (costs of managing and supervising)

collaborative business culture

senior managers rely on teams of employees; policies, products and designs rely on teams; managers purpose is to build teams

business benefits from collaboration technology

investment in CT can return large rewards in sales and marketing; better productivity, quality, more ideas for products; faster handling of customers complaints

Same time, same place collaboration technology choice

face-to-face; decision rooms, shared table, roomware

same time, different place collaboration technology choice

remote interactions; video conferences

different time, same place collaboration technology choice

continuous task; team rooms, large public displays, project management

different time, different place collaboration technology choice

communication + coordination; email, bulletin boards, blogs

Resistance to Change (4 pillars)

organisational structure, job tasks, people, IT

Transaction Processing Systems (TPS)

keeps track on the elementary activities and transactions of the organisation (sales, receipts, deposits, payroll)

business intelligence

contemporary term for data and software tools for organising, analysing and providing access to data to help managers and allow enterprise users make more informed decisions

Decision-support systems (DSS)

focus on problems that are unique and rapidly changing

Executive-support systems (ESS)

helps senior managers with long-term decision making

Enterprise systems

used to integrate business processes in manufacturing and production

social business

the use of social networking platforms (Facebook, Twitter)

applications of social businesses

social networks; crowdsourcing; shared workspaces; blogs; social commerce; file sharing; social marketing; communities

IT governance

strategy and policies for using IT within an organisation

Features of organisations

routines and business processes; organisational politics; organisational culture; organisational environments; organisational structures;

1. feature of org -> routines and business processes

routines -> standard operating procedures; precise rules that have been developed to cope with all expected situations; business processes - collection of routines

4th feature of org -> organisational environments

environments and organisations have reciprocal relationships -> environments shape what organisations can do, but organisations can influence their environments and change them

organisational structures (5)

entrepreneurial structure (start-up); machine bureaucracy (midsize manufacturing firms); divisionalised bureaucracy (General Motors); professional bureaucracy (law firms); adhocracy (consulting firms)

economical impact of IS

cost of IT decreases and is substituted for labor, IT should result in a decline in the number of middle managers and clerical workers; IT reduces internal management costs and transaction costs

organisational and behavioural impacts of IS

IT flattens organisations by broadening the distribution of information to empower lower-level employees and increase management efficiency

IS Strategies for Dealing with porter's competitive forces

low-cost leadership (IS lowers operational costs); differentiation (IS enables new products or changes consumer convenience); focus on market niche (use IS to serve a narrow target market better than competition)

Internet of Things

growing use of sensors in industrial and consumer products; smart products

synergies

when the output of some units can be used as inputs to other units or two organisations pool markets and expertise, these relationships lower costs and generate profits; IS can help two companies to consolidate operations