02 - IS In Organizations Flashcards
Organization
A formal collection of people and other resources established to accomplish a set of goals.
The function of an organization is to convert input into output. Use IS to achieve this goal.
IS improvements can change how business is conducted.
Value Chain
A series of activities that includes inbound logistics, warehouse and storage, production and manufacturing, finished product storage, outbound logistics, marketing and sales, and customer service.
First described by Michael Porter in a 1985 Harvard Business Review article - How Information Gives You Competitive Advantage
Upstream and Downstream Management
Upstream management -
Raw Materials
Inbound Logistics - Tracking IS
Warehouse/Storage - Inventory IS
Production - Process and Control IS
Downstream Management
Finished Product Storage - Retrieval IS
Outbound Logistics - Dist. planning IS
Marketing and Sales - Pomo Plan IS
Customer Service - CRM IS
Two key elements of Value Chain Management
Supply Chain Mgmt. SCM
Customer Relationship Mgmt. CRM
Supply Chaim Management
What supplies are required for value chain
What quantities are needed to meet customer demand
How supplies are to be processed into finished goods
How to ship raw supplies and finished goods
All aspects through to customer service
Customer Relationship Mgmt.
Includes all aspects of customer encounters including marketing, advertising, sales, customer service and loyalty programs.
Can aggregate customer feedback to inspire innovation and product development.
Organizational Structure
Organizational subunits and the way they relate to the overall organization.
Depends on organization’s goals and its approach to management.
Traditional
Project
Team
Virtual
Traditional Organizational Structure
An org in which the hierarchy of decision making and authority flows from the strategic management at the top down to operational management and non-management employees.
Strategic (Top)
Tactical
Operational
Non-management (Bottom)
Decision Dimensions
Strategic Management faces high decision dimensions high uniqueness of problems.
Non-management face low decision authority, impact on goals and low problem uniqueness.
Staff vs Line Positions
Positions that are directly involved with the functional areas of the firm are called line positions. Production, Finance, Marketing and HR.
Positions that assist other areas and are not a part of operational activity are called staff positions. IS and Legal.
Staff positions are frequently options to outsource.
Empowerment
Giving employees and their managers more responsibility and authority to make decisions, take action, and have more control over their jobs.
A flatter organizational structure empowers employees at lower levels.
Project Org Structure
A structure centered on major projects or services.
Group member assignments change with each project and teams are temporary.
Team Org. Structure
A structure centered on work teams or groups.
Team membership stays fairly stable.
Virtual Org. Structure
A structure that uses individuals, groups or complete businesses units in geographically dispersed areas; these groups can last a few weeks or years, often requiring telecommunications and the Internet.
Innovation
Can create new revenue streams
Help companies explore new markets and business approaches
Use IS personnel to increase innovation
Some firms establish separate IS resources to explore new and innovative ideas.
Culture
A set of major understandings and assumptions shared by a group, such as within an ethnic group of a country.
Easier to copy products, organizational structure and way business is run.
Much harder to copy a firm’s culture.