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Information Systems 301 > 4. IT IN Organizations > Flashcards

4. IT IN Organizations Flashcards

1
Q

Organisations (Characteristics (4))

A

Organizations are:

  • social entities
  • goal-directed
  • designed as deliberately structured and coordinated activity systems
  • linked to the external environment
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2
Q

Key Elements of an Organization (3)

A
  1. Organizational context (strategy, culture, leadership, reward structures)
  2. Organizational structure
    • functional structure (division, functions, roles)
    • procedural structure (processes, tasks)
    • rules
  3. Resources (individuals, technology, infrastructure)
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3
Q

Structural View of Organization: Silo Perspective (Purpose/Definition, Characteristics (5)

A

A typical hierarchical structure is organized by function or core competency -> Divisions work independently and avoid sharing information (in “Silos”)
Silos are self-contained functional units that:
- optimize expertise and training
- avoid redundancy in expertise
- are easier to benchmark with outside organizations
- utilize bodies of knowledge created for each function
- make it easier to understand the role of each silo

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4
Q

Enterprise Systems

A

= represents a specific category of IS

  • Build on pre-packaged industry best practices embedded in standardized product software
  • target large-scale integration of data and business processes across all company’s functional areas and beyond company borderlines
  • interplays with work practices of individuals and is shaped by individual’s behavior
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5
Q

Traditional IS (6 Characteristics)

A
  • lower organizational scope
  • high flexibility
  • integrates selected functions within/across business processes
  • developed to suit existing processes
  • in-house or specialized vendors
  • low complexity and risk
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6
Q

Enterprise Systems (6 Characteristics oppose to Traditional IS)

A
  • organization wide resources required (scope)
  • low flexibility
  • integrates broad spectrum of business processes
  • best practices adopted or customized
  • vendors with industry best practices
  • high complexity & risk
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7
Q

Product Software (vs. Tailor Made Software) (Definition, Source, Characteristics (4))

A

= standard software
-> generally purchased from vendor via service contract

  • shared development costs
  • best-practices established
  • development and maintenance by supplier
  • documentation and education material available
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8
Q

Tailor Made Software (vs. Product Software) (Definition, Source, Characteristics (4))

A

= custom software
-> made to order or in-house (Purchase)

  • tailored solutions, focus on required functionalities only
  • competitive advantage
  • company-specific changes possible
  • independency of software supplier
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9
Q

Process-Centric Software Products (5)

A
  • Enterprise Resource Planning (ERP)
  • Customer Relationship Management (CRM)
  • Supply Chain Management (SCM)
  • Product Lifecycle Management (PLM)
  • Business Process Management (BPM)
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10
Q

Information-Centric Software Products (4)

A
  • Master Data Management (MDM)
  • Business Intelligence (BI)
  • Enterprise Content Management (ECM)
  • Information Access (IA)
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11
Q

People-Centric Software

A
  • Enterprise Portals (EP)
  • Collaboration Technology (CSCW)
  • Social Websites (SWS)
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12
Q

Forms of In-House IT (3)

A
  1. Highly Centralized IT department
  2. Highly Decentralized IT department
  3. Autonomous Centralized IT
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13
Q

Forms of In-House IT 1/3: Highly Centralized IT (Pros and Challenges)

A

Highly Centralized IT department
+ high synergies for development and operation (standardization, economies of scale)
Challenge: alignment with business (conflicting requirements from different business units)

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14
Q

Forms of In-House IT 2/3: Highly Decentralized IT (Pros and Challenges)

A

Highly Decentralized IT department
+ better business alignment (more business process knowledge, less conflicts in requirements)
Challenge: Control of costs and redundancy, standardization

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15
Q

Forms of In-House IT 3/3: Autonomous Centralized IT (Pros and Challenges)

A

Autonomous Centralized IT
+ flexible adjustment of alignment efforts (“Internal” Outsourcing, innovations and standardization can be triggered by IT)
Challenge: Less business process knowledge, conflicting requirements from different business units)

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16
Q

Advantages of In-House IT (5)

A

+ IT knowledge stays in-house
+ more stable long-term control over IT knowledge
+ easier introduction of new IT service processes by using hierarchical power
+ “Quick fixies” can be achieved with hierarchical power
+ locus of control for technology management stays within the firm

17
Q

Disadvantages of In-House IT (2)

A
  • Knowledge retention and acquisition required for IT innovation becomes a concern for the firm
  • high overhead costs (administration, resources, global coordination)
18
Q

Outsourced IT (2 Forms)

A
  1. External IT service provider with centralized internal IT
    - biggest part of IT is outsourced
    - small internal IT remains for coordination purposes
  2. External IT service provider with decentralized internal IT
    - IT is completely outsourced
    - small internal decentralized IT remains for every department
    - good “IT business alignment”
19
Q

Advantages of Outsourced IT (4)

A

+ lower overhead costs
+ knowledge required for IT innovation can be sourced
+ knowledge retention and acquisition is a concern for the service partner
+ more flexibility in case of unsatisfying performance

20
Q

Disadvantages of Outsourced IT (4)

A
  • tool choices and technology choices depend on services partner’s capabilities
  • lock-in situations: in case of complex IT landscapes, knowledge transition to a new vendor has high cost
  • missing trust in service provider causes extra cost
  • lower transparency and control on real operation costs
21
Q

Dimensions to consider when setting up IT (4)

A
  1. Assignment of Task to Roles = assignment of IT tasks either focusses on:
    • integration: people are not dedicated to specific IT tasks
    • specialization: people use most of their time on certain IT tasks
  2. Service breadth and depth = delivery of service distinct by:
    • breadth: how many units are served horizontally
    • depth: are customers served directly vs. standard solutions
  3. Formalization = coordination of tasks
    • formal: using roles, defined processes, etc.
    • informal: centers that freely “contract” among each other
  4. Centralization = central vs. decentralized, however, most companies do not have one way or another => are set up in a hybrid way
22
Q

IT Governance (Definition)

A

= it’s about making decisions that define expectations, grant authority, or ensure performance
-> focusses on how decision rights can be distributed differently to facilitate centralized, decentralized or hybrid modes of decision making

23
Q

Centralized vs. Decentralized Organizational Structures (3)

A
  1. Centralized = brings together all staff, hardware, software, data, and processing into a single location.
  2. Decentralized = the components are scattered in different locations to address local business needs.
  3. Federalism = a combination of centralized and decentralized structures.
24
Q

Sourcing decisions (Possible Decisions (2), subsequent decisions)

A

Step 1: “Make-“ (Insource) or “Buy-“ (Outsource) decision.

Step 2: The company must decide “how”.
-> Outsourcing: How (scope or contract)? Where
(Onshore or Offshore -> close or far away)?
-> Insourcing: How?

25
Q

Insourcing (Definition, Drivers (4) and Challenges (2))

A

= when a firm provides IS services or develops in its own in-house organization -> “make” decision

Drivers:
- keeping core competencies in-house
- IS service or product requires considerable security
or confidentiality
- time available in-house to complete IS-projects
- in-house IT personnel

Challenges:

  • getting needed IT resources from management
  • presence of a competent outsource provider
26
Q

Outsourcing (Definition, Drivers (4) and Challenges (6))

A

= the purchase of a good or service that previously was (or could be) provided internally but is now provided by outside vendors

Drivers:
- cost reduction achieved through economies of
scale
- need for help transitioning to new technologies
though access to larger IT talent pools
- ability to handle peaks in processing
- focusing management’s attention on core activities

Challenge:
   - control of the project
   - scope creep
   - technologies
   - costs
   - contract terms may leave clients highly dependent 
     on their providers
   - competitive secrets may be harder to keep
27
Q

Decision About How to Outsource Successfully (3 Steps)

A
  1. Selection = finding contractors whose capabilities, managers, internal operations, and culture complement those of the client
  2. Contracting = many “how” decisions center around the outsourcing contract
    -> ensure that contract terms allow flexibility to
    manage
    -> Service Level Agreements (SLAs) = delivery time
    and expected performance of the service
  3. Scope = client must decide whether to pursue outsourcing fully or selectively
28
Q

Fully vs. Selective Outsourcing (3 Approaches)

A
  1. Full Outsourcing = implies that an enterprise outsources all its IS functions from desktop services to software development
  2. Selective Outsourcing (strategic outsourcing) = an enterprise chooses which IT capabilities to retain in-house and which to give to an outsider
  3. “Best-of-breed” Approach: supplies are chosen for their expertise in specific technology areas (e.g. Website Hosting, business process application development, networking and communications, etc.)

Information Systems 301 (10 decks)

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