FIS - Module 2 Flashcards
formal collection of people and other resources to accomplish a set of goals
a system that has input, processing, output and feedback
it constantly use money, people, materials, machines and other equipment
Organization
For-profit
vs. Non-profit
Org
For-profit - maximize shareholder value, price of the company stock (has income
)
Nonprofit - social groups, religous groups, universities (no income
)
support and work within all parts of an org’al process
org use this to cut cost and increase profits
Information Systems
focuses on outperforming others, often aiming to be the best.
Competitive
focuses on efficiency and effectiveness, aiming to accomplish goals successfully.
Productive
a series (chain) of act
* inbound logistics
* warehouse & storage
* production
* finished product storage
* outbound logistic
* marketing and sales
* customer service
value chain
helps determine the ff:
* supplies
* quantities
* how should it be processed
* shipment
Supply Chain Management
Help a company manage all aspects of customer encounters, including:
1. Marketing and advertising, 2. Sales, 3. Customer service after the sale, and 4. Programs to retain loyal customers.
- help get customer data/feedback
Customer Relationship Management
- Refers to organizational
sub-units
and the way they relate to the overall organization. - An organization’s structure depends on its
goals
andapproach
to management, and can affect how it views and uses information systems. - The types of organizational structures typically include
traditional, project, team,
andvirtual
.
Organizational Structure
- Also called as a “
hierarchica
l” structure. - It is like a
managerial pyramid
where the hierarchy of decision making and authority flows from the strategic management at thetop down
to operational management and non-management employees.
Traditional Organizational Structure
- Includes the
president
of the company andvice presidents
. - They have the
highest degree of decision
authority and has the most impact on corporate goals.
Strategic Level
- Includes the
major department heads
. - Usually
divided according to function
and can include marketing, production, information systems, finance and accounting, research and development, and so on.
Tactical Level
- Known as the “
Line positions
”. - These positions or
departments
are directly associated with making, packing, or shipping goods.
Operational Level
- Known as the “
Staff positions
”. - These are positions that might
not be directly involved
with the formal chain of command but instead assist a department or area.
NOn-Management Level
Empowers
employees at lower levels to make decisions and solve problems without needing permission from midlevel managers.
Flat Organizational
Structure
- Centered on
major products
or services. - Project teams are
temporary
— when the project is complete, the members go on to new teams formed for another project.
Project Organizational
Structure
- Centered on
work teams
orgroups
. In some cases, these teams are small; in others, they are very large. - Typically, each team has a
leader
who reports to an upper-level manager. - Depending on its tasks, the team can be
temporary or permanent
.
Team Organizational
Structure
- Employs individuals, groups, or complete business units in
geographically dispersed areas
that can last for a few weeks or years, often requiringtelecommunications
or theInternet
- .Allows work to be separated from location and time.
- Work can be done
anywhere
,anytime
.
Virtual Organizational
Structure
- People might never meet physically, which explains the use of the word
virtual
, and highlights the difference between virtual organizations and traditional ones that have operations in more than one location. - A Virtual organization is geographically distributed, and uses information technology to communicate and coordinate the work.
- It can last for a
few weeks, months, years or decades
.
Virtual Organizational
Structure
A ____________ is geographically distributed, and uses information technology to communicate and coordinate the work.
Virtual organization
A set of major understandings
and assumptions
shared by a group, such as within an ethnic group or a country
.
Culture
Consists of the major understandings (common beliefs, values, and approaches to decision making) and assumptions for a business
, corporation
, or other organization
.
Organizational Culture
Deals with how for-profit and nonprofit organizations plan for, implement, and handle change.
Organizational Change
INTERNAL vs EXTERNAL CHANGE
Internal change – factors initiated by employees at all levels
.
External change- activities created by competitors, stockholders, federal and state laws
, community regulations, natural occurrences (such as hurricanes), and general economic conditions.
Can help an organization improve the supply of raw materials, the production process, and the products and services it offers.
Sustaining Change
Often harms
an organization’s performance or even puts it out of business.
Disruptive Change
CHANGE MODEL
by
Kurt Lewin and Edgar Schein
- Unfreezing - stopping old habits and creating a climate that is receptive to change.
- Moving - learning new work methods, behaviors, and systems.
- Refreezing - reinforcing changes to make the new process second nature, accepted, and part of the job.
Involves the radical redesign
of business processes, organizational structures, information systems, and values of the organization to achieve a breakthrough
(advancement) in business results.
Business Process
Reengineering
- Constantly seek ways to
improve
business processes andadd value
to products and services. - This continual change will
increase
customer satisfaction and loyalty and ensureong-term
profitability.
Continuous Improvement
A model that describes the factors leading to higher levels of acceptance and usage of technology.
Technology Acceptance Model (TAM)
TECHNOLOGY DIFFUSION
vs INFUSION
-
T. Diffusion - A measure of how widely technology is
spread throughout the organization
. -
T. Infusion - The extent to which technology is
deeply integrated
into anarea or department
.
The ability of a product (including services) to meet or exceed customer expectations.
Quality
- Involves contracting with
outside
professional services to meet specific business needs. - Organizations often outsource a process to focus more closely on their
core business
—and target limited resources to meet strategic goals.
Outsourcing
- Involves
rapidly responding
to the organization’s flow of work as the need for computer resources varies. - Organization pays for
computing resources
from a computer or consulting company.
On-demand Computing
- Instead of purchasing hardware, software, and database systems, the organization only pays a
fee
for the systems it needs atpeak times
. - It also allows the organization’s IS staff to concentrate on
more-strategic
issues.
On-demand Computing
- Involves reducing the number of employees to
cut costs
. - Rather than pick a specific business process to downsize, companies usually look to downsize across the entire company.
- Reduces total payroll costs, though employee morale can suffer.
Downsizing
- Employers need to be open to alternatives for reducing the number of employees but use
layoffs
as the last resort. - It’s simpler to encourage people to leave
voluntarily
through early retirement or other incentives.
Downsizing
- A significant and (ideally)
long-term benefit
to a company over its competition, and can result in higher-quality products, better customer service, and lower costs. - Establishing and maintaining a competitive advantage is complex, but a company’s survival and prosperity depend on its success in doing so.
Competitive Advantage
- To gain an advantage over competitors, companies constantly analyze how they use their resources and assets.
- For example, a transportation company might decide to invest in radio-frequency technology to tag and trace products as they move from one location to another.
Rivalry Among Existing Competitors
When the threat of new market
entrants is high, the desire to seek and maintain competitive advantage to dissuade / discourage new entrants is also usually high.
Threat of New Entrants
- Companies that offer one type of goods or services are threatened by other companies that offer similar goods or services.
- The more consumers can obtain
similar products
and services that satisfy their needs, the more likely firms are to try to establish competitive advantage.
Threat of Substitute Products and Services
- Large customers tend to influence a firm, and this influence can increase significantly if the customers can threaten to switch to rival companies.
- When the bargaining power of suppliers is strong, companies need to improve their competitive advantage to maintain their bargaining position.
Bargaining Power of Customers and Suppliers
- Deliver the
lowest possible cost
for products and services. - Achieved by
reducing the costs of raw materials
through aggressive negotiations with suppliers, becoming more efficient with production and manufacturing processes, and reducing warehousing and shipping costs.
Cost Leadership
- Deliver
different products and services
. - This strategy can involve
producing a variety of products
, giving customersmore choices
, or delivering higher quality products and services.
Differentiation
- Deliver to
only a small, niche market
. - Porsche, for example, doesn’t produce inexpensive station wagons or large sedans. It makes high-performance sports cars and SUVs. \
- Rolex only makes high-quality, expensive watches. It doesn’t make inexpensive, plastic watches.
Niche strategy
- Introduce
new products
and servicesperiodically or frequently
. - If an organization does not introduce new products and services every few months, the company can quickly stagnate, lose market share, and decline.
Creating New Products and Services
Make real or perceived improvements to existing product lines and services.
Improving Existing Product Lines and Services
- A measure of the
output
achieveddivided by
theinput
required. - A higher level of output for a given level of input means greater productivity; a lower level of output for a given level of input means lower productivity.
Productivity
Productivity = (Output / Input) × 100%
This measure investigates the additional profits or benefits
that are generated as a percentage of the investment in IS technology.
Return on Investment (ROI)
The percentage of sales that a product or service has in relation to the total market.
Market Share
Bringing new products and services to customers in less time.
Speed to Market
The measurement of the total cost of owning computer equipment
, including desktop computers, networks, and large computers.
Total Cost of Ownership (TCO)