INFORMATION SYSTEMS,ORGANIZATIONS,AND STRATEGY

1. USING INFORMATION SYSTEMS TO ACHIVE COMPETITIVE ADVANTAGE

1.1. ‏Management Information Systems ‏•Why do some firms become leaders in their industry? ‏•Michael Porter’s competitive forces model ‏–Provides general view of firm, its competitors, and environment ‏–Five competitive forces shape fate of firm ‏1.Traditional competitors ‏2.New market entrants ‏3.Substitute products and services ‏4.Customers ‏5.Suppliers

1.2. ‏Clients / Clients' strength increases if ‏they can easily switch to competitor ‏products and services such as the ‏school textbook market in the college ‏used online. Students (clients) can ‏find multiple suppliers for all ‏textbooks.

1.3. ‏Suppliers have a significant impact on ‏the company’s profits when the ‏company cannot raise prices as ‏quickly as possible to suppliers ‏meaning that the greater the number ‏of the company’s suppliers the greater ‏its ability to control suppliers in terms ‏of price and quality such as / ‏manufacturers that manufacture ‏computers

1.4. ‏every industry there are alternatives ‏that your customers use if your prices ‏become too high, i.e. create ‏alternatives all the time the more ‏alternative products and services ‏increase in your field of work, the ‏lower your ability to control prices ‏and low profit margins such as / oil as ‏ethanol replaces gasoline in cars

1.5. In a free economy with mobile labor ‏and financial resources, new ‏companies are always entering the ‏marketplace. In some industries, there ‏are very low barriers to entry, whereas ‏in other industries, entry is very ‏difficult. For instance, it is fairly easy ‏to start a pizza business or just about ‏any small retail business,

1.6. ‏Traditional competitors : ‏All firms share market space with competitors who are continuously devising new products, services, efficiencies, switching costs .

1.7. ‏New market entrants : ‏- Some industries have high barriers to entry . ‏- New companies have new equipment, younger workers, but little brand recognition .

1.8. ‏Substitute products and services : ‏Substitutes customers might use if your prices become too high .

1.9. ‏Customers ‏* Suppliers : Market power of suppliers when firm cannot raise prices as fast as suppliers .

1.10. ‏Business value chain model : ‏* activities that add value to products or services . ‏* Highlights activities where competitive strategies can best be applied . ‏* Utilize benchmarking, industry best practices . ‏* Determine how information systems can improve operational efficiency and improve customer and supplier intimacy .

1.11. ‏Value web / A group of independent companies that use technology concurrent information to coordinate value chains to collectively produce a product or service

1.12. ‏Core competencies –Activity for which ‏firm is world-class leader –Relies on ‏knowledge, experience, and sharing this ‏across business units –Example: Procter ‏& Gamble’s intranet and directory of ‏subject matter experts

1.13. Network based strategies Take advantage of the company's capabilities to communicate with each other where it includes a network economy, a virtual company model, ecosystem system for the work

1.14. ‏VIRTUAL COMPANY ‏STRATEGE ‏Networks are used to ally with other ‏companies to create and distribute products ‏without being limited ‏EXAMPLE : 1) fung manages ‏production 2)shipment of garments ‏for major fashion compaines

2. HOW INFORMATION SYSTEM IMPACT ORGANIZATION AND BUSINESS FIRMS

2.1. ‏TRANSACATION COST ‏THEORY [the costs of ‏participating In markets] ‏EXAMPLE : 1) vertical ‏interation 2) buying ‏suppliers 3) hiring more ‏employees

2.2. ‏ORGANIZATIONAL ‏RESITANCE TO CHAN ‏Information systems ‏become bound up in ‏organeziation because ‏: A key resource can be ‏accessed ‏Information systems can ‏change the structure in ‏terms of: / culture / politics ‏/ work ‏Most of the time, the large ‏company loses because of ‏the organization / ‏organization rejecting the ‏change

2.3. ‏THE INTERNET AND ‏ORGANAZIATIONS ‏The Internet increased the ability ‏to store and distribute knowledge ‏of organizations and contributed ‏to reducing transaction and ‏agency costs ‏EXAMPLE : saving millions of ‏dollars in distribuation costs

2.4. ‏Management Information Systems ‏•Central organizational factors to consider when planning a new system: ‏–Environment ‏–Structure ‏•Hierarchy, specialization, routines, business processes ‏–Culture and politics ‏–Type of organization and style of leadership ‏–Main interest groups affected by system; attitudes of end users ‏–Tasks, decisions, and business processes the system will assist

3. ORGANIZATIOS AND INFORMATION SYSTEMS

3.1. ‏Parameterial technology and the ‏organization affect each other and are ‏influenced by structure, business ‏process, politics, culture, ‏environment, ‏

3.2. ‏Information systems and organizations affect each other. Information systems are built by managers to serve the company's commercial interests. At the same time, the organization should be aware of the effects of information systems and open its doors to take advantage of new technologies. ‏  The interaction between information technology and organizations is complex and is influenced by many intermediaries, including organizational structure, business processes, politics, culture, the surrounding environment, and management decisions.

3.3. ‏What is an organization? - Technical definition ‏ Stable, formal social structure that takes resources from environment and processes them to produce outputs Behavioral definition: A collection of rights, obligations, and responsibilities that is delicately balanced over a period of time through conflict and conflict resolution

3.4. ‏Routines and business processes ‏•Routines (standard operating procedures) ‏•Precise rules, procedures, and practices developed to cope with virtually all expected situations ‏•Business processes: Collections of routines ‏•Business firm: Collection of business

3.5. You can see organizational culture at work by looking around your univer-sity or college. Some bedrock assumptions of university life are that professors know more than students, the reason students attend college is to learn, and classes follow a regular schedule. Organizational culture is a powerful unifying force that restrains political conflict and promotes common understanding, agreement on procedures, and common practices.

3.6. ‏Organizational politics •Divergent ‏viewpoints lead to political ‏struggle, competition, and conflict ‏•Political resistance greatly ‏hampers organizational change

3.7. ‏Organizational culture: ‏•Encompasses set of assumptions ‏that define goal and product •May be ‏powerful unifying force as well as ‏restraint on change

3.8. ‏Organizational environments : ‏•Organizations and environments have a ‏reciprocal relationship. •Organizations can ‏influence their environments. ‏•Environments generally change faster than ‏organizations.

3.9. ‏Disruptive technologies •Technology that ‏brings about sweeping change to ‏businesses, industries, markets. Examples: ‏personal computers, word processing ‏software, the Internet. Fast followers - firms ‏with the size and resources to capitalize on ‏that technology

3.10. ‏basic kinds of organizational structure ‏•Entrepreneurial: Small start-up business. •Machine ‏bureaucracy: Midsize manufacturing firm. •Divisionalized ‏bureaucracy: Fortune 500 firms. •Professional ‏bureaucracy: school systems, hospitals. •Adhocracy: ‏Consulting firms.