Chapter 3 Information Systems, Organisations and Strategy Flashcards
All modern organisations are..
hierarchical, specialised, and impartial, using explicit routines to maximise efficiency.
All organisations have their own..
cultures and politics arising from differences in interest groups, and they are affected by their surrounding environment.
Organisations differ in..
goals, groups served, social roles, leadership styles, incentives, types of tasks performed, and type of structure. These features help explain differences in organisations’ use of information systems.
Information systems and the organisations in which they are used..
Interact with and influence each other. The introduction of a new information system will affect organisational structure, goals, work design, values, competition between interest groups, decision making, and day-to-day behaviour.
At the same time, information systems must be..
designed to serve the needs of important organisational groups and will be shaped by the organisation’s structure, business processes, goals, culture, politics, and management.
Information technology can…
reduce transaction and agency costs, and such changes have been accentuated in organisations using the Internet. New systems disrupt established patterns of work and power relationships, so there is often considerable resistance to them when they are introduced.
In Porter’s competitive forces model..
the strategic position of the firm, and its strategies, are determined by competition with its traditional direct competitors, but they are also greatly affected by new market entrants, substitute products and services, suppliers, and customers.
Information systems help…
compete by maintaining low costs, differentiating products or services, focusing on market niche, strengthening ties with customers and suppliers, and increasing barriers to market entry with high levels of operational excellence.
The value chain model..
Highlights specific activities in the business where competitive strategies and information systems will have the greatest impact. The model views the firm as a series of primary and support activities that add value to a firm’s products or services. A firm’s value chain can be linked to the value chains of its suppliers, distributors, and customers.
Primary activities are directly related to..
production and distribution, whereas support activities make the delivery of primary activities possible.
A value web consists of…
information systems that enhance competitiveness at the industry level by promoting the use of standards and industry-wide consortia, and by enabling businesses to work more efficiently with their value partners.
What are the challenges posed by strategic information systems and how should they be addressed?
Implementing strategic systems often requires extensive organisational change and a transition from one sociotechnical level to another. Such changes are called strategic transitions and are often difficult and painful to achieve. Moreover, not all strategic systems are profitable, and they can be expensive to build. Many strategic information systems are easily copied by other firms so that strategic advantage is not always sustainable.
