Session 4: Organization Management and Information systems

Session 4: Organization Management and

Information systems

学习目标• 理解组织与信息系统之间的关系• 理解组织的特征• 理解组织如何影响信息系统• 理解信息系统如何影响组织结构

2.3

Management

• 管理的定义不严格地说就是通过其他人来完成某种任务或达到某个目标的一切活动。

• 这些活动总体上包括计划、组织、领导和控制。管理者的主要任务是利用已有的和可以争取到的各种资源，包括人、财、物、设备、技术等，以最少的投入去获取最大的产出。

• 管理者在实现其目标的过程中所应用的一切思想、理论和方法就构成了管理的主要内容。

A Company System

INPUTof raw materials/

information

OUTPUT of finished products/

service

Manufacturing/operation

PROCESS

Control byManagement

Control signals

Control signals

Feedback signals

Feedback signals

System Boundary

Environment

Operational Process

Management Process

What is an organization?

– Technical definition: a stable, formal social structure that takes resources from the environment and process them to produce output.

– Behavioral definition: a collection of rights, privileges, obligations, and responsibilities that are delicately balanced over time through conflict and conflict resolution.

ORGANIZATIONS AND INFORMATION SYSTEMS

MEDIATING FACTORS:MEDIATING FACTORS: EnvEnvironment Culironment CulturetureStructure SStructure Standard Procedures(tandard Procedures( 制度制度 ))

Politics MPolitics Management Decisions anagement Decisions ChanceChance

ORGANIZATIONSORGANIZATIONS INFORMATION INFORMATION TECHNOLOGYTECHNOLOGY

The Two-Way Relationship Between Organizations and Information Technology


• Organization:– Stable, formal structure– Takes resources from environment and

processes them to produce outputs


• Behavioral definition of Organization:– Collection of rights, privileges, obligations,

responsibilities– Delicately balanced– Conflict resolution


• Common Features of Organizations– Organizations are bureaucracies that have certain struct

ural features Clear division of labor Hierarchy Explicit rules and procedures( 规则和程序 ) Impartial judgments Technical qualifications Maximum organizational efficiency

– Standard Operating Procedures: Precise rules, procedures, and practices Enable organizations to cope with all expected situations


• Common Features of Organizations– Organizational Politics:

Divergent viewpoints leads to political struggle, competition, and conflict

Hamper organizational change

– Organizational Culture: a set of fundamental assumptions about: What products the organization should produce How and where it should produce them For whom they should be produced

ORGANIZATIONS & INFORMATION SYSTEMS

• Unique Features of Organizations– Structures/Organizational types – Goals – Constituencies( 顾客 )– Leadership Styles, Tasks– Surrounding Environment

ORGANIZATIONS & INFORMATION SYSTEMS

• Organizational Structures – Entrepreneurial: Start up business– Machine bureaucracy: Midsize manufacturing f

irm– Divisionalized bureaucracy: Fortune 500– Professional bureaucracy: Law firms, hospitals,

school systems– Adhocracy( 暂时体制 ): Consulting firm

THE CHANGING ROLE OF INFORMATION SYSTEMS IN

ORGANIZATIONS

• Information Technology Infrastructure and Information Technology Services– Information systems department:– Formal organizational unit– Responsible for information systems in the

organization

THE CHANGING ROLE OF INFORMATION SYSTEMS IN ORGANIZATIONS

•Information Technology Services

The Systems Analyst as a facilitator

System Analyst

Steering committeeIT Vendors

Applications programmers

Databaseadministrator

Interface design expert

Mgt/system owner

Networkadministrator

User 1

User 2

User N

How Information Systems Affect Organizations

• Economic theories( 经济理论 ) Information technology is a factor of production, like ca

pital and labor

Figure 3-7

Transaction cost theory(交易成本理论 ): Firms can conduct marketplace transactions internally more cheaply to grow larger

Figure 3-8

Agency theory(代理理论 ): Firm is nexus of contracts among self-interested parties requiring supervision

Figure 3-9

Flattening Organizations

• Behavioral theories( 行为理论 ): Information technology could change hierarchy of d

ecision making Lower cost of information acquisition Broadens the distribution of information

Implement Change

Source: Leavitt, Handbook of Organization (1965)

Tasks

PeopleTechnology

Structure

Resistant

相互调整MUTUAL ADJUSTMENT

MANAGERS, DECISION MAKING, AND INFORMATION SYSTEMS

• The Role of Managers in Organizations– Classical model of management:

Traditional description of management Focuses on formal functions: plan, organize, coordinate, decid

e, control(计划、组织、协调、决策和控制）– Behavioral model of management:

Describes management based on observations of managers on the job

– Managerial roles Expectation of activities that managers should perform in an or

ganization

• 人际关系角色 : Managers act as figureheads and leaders.

• 信息角色 : Managers receive and disseminate critical information, nerve centers.

• 决策角色 : Managers initiate activities, allocate resources, and negotiate conflicts.


• Managers and Decision Making – Process of Decision Making

Strategic Decision Making: Determines long-term objectives, resources, and policies

Management Control: Monitors effective or efficient usage of resources and performance of operational units

Operational control: Determines how to perform specific tasks set by strategic and middle-management decision makers

Knowledge-level decision making: Evaluates new ideas for products, services, ways to communicate new knowledge, ways to distribute information


• Decisions are classified as:– Unstructured: Non routine, decision maker

provides judgment, evaluation, and insights into problem definition, no agreed-upon procedure for decision making

– Structured: Repetitive, routine, handled using a definite procedure


TPS

Organizational Level

OAS MIS

KWS

DSS

ESS

TYPE OFTYPE OFDECISIONDECISION OPERATIONAL KNOWLEDGE MANAGEMENT STRATEGIC

STRUCTURED ACCOUNTS RECEIVABLE

ELECTRONIC PRODUCTIONSCHEDULING COST OVERRUNS

SEMI- BUDGETSTRUCTURED PREPARATION

PROJECTSCHEDULING

FACILITYLOCATION

UNSTRUCTURED PRODUCT DESIGN NEW PRODUCTSNEW MARKETS

Different Kinds of Information Systems

Business Model, Business Processes, and Information

systems

CASE: Dell COMPUTER CORPORATION

• Analyze the PC industry and its market segments

PC Industry• Product life cycles in the PC industry have shrunk

from about 22 months in 1988 to six months in 1997, and the price/performance of key components has continued to double every 18 months or less. As a result, excess inventory depreciates rapidly (an estimated 10% per month . )

• driven by rapid technological improvements • getting new, quality products to market on time is

critical to maintaining competitiveness in an industry where customers are willing to pay a premium for the latest technologies and reward quality by repeated purchases.

PC Industry

• companies that minimize inventory and bring new products to market faster can reduce costs, increase market share and maintain higher margins.– the standardized, modular nature of the PC. – the structure of distribution.

Dell’s Direct Distribution Channel

• Selling direct removes two links in the supply chain where inventory could build up and also enables Dell to know its final customers, provide better service to them, and promote repeat or expanded sales to them.

• Build-to-order production allows Dell to introduce new technologies as soon as customers want them and makes it possible to adjust production to demand very quickly. It also means that Dell does not purchase components and assemble PCs until it has received payment from the customer, giving the company a negative cash conversion cycle in which it receives payment from customers before it must pay suppliers.

Dell’s Global Sales Characteristics

Dell: Build-to-Order Production

• The build-to-order production system is the focal point of Dell’s business operations, the common contact point for sales, procurement, logistics, manufacturing and delivery.

• This requires very close coordination between Dell’s sales and manufacturing arms and between Dell and its suppliers. It achieves this by refining its business processes, developing close relationships with a limited number of suppliers, and by using IT to facilitate communication within and outside the company.

Dell: 总结• Direct sales eliminates inventory in the channel, provides

Dell with information on and access to the final customer, and allows Dell to offer other services to the customer.

• Build-to-order allows Dell to offer the latest technologies which carry a higher margin, allows it to customize its products to user specifications, and means that Dell doesn’t lay out cash for parts until it receives payment for the PC.

• Together, direct sales and build-to order help create a strong relationship between Dell and its customers, as both require direct interaction and allow Dell to gather information on its customers’ needs.

Dell’s Use of Information And Technology----Refinement of the Dell Model

Extension of the Dell Model

Dell: Sales Revenue ($Millions )

Dell: Worldwide Market Share in % (based on unit shipments)

Dell: U.S. Market Share in % (based on unit shipments)

Dell's Share Price

Dell: Net Income

Dell Online HistoryLate1980’s 1994 1995 1996 1997 1998 1999 2000

Dell Launches an FTP site for customers to download

OCT.Configurator generating online quotes is launch

ed

FEB.Marketing content added to site

JulyDell starts selling systems online. 80,000 online user sessions per week

JUNEwww.dell.com site launched with technical support content and e-mail gateway

MARCH

Asian/European Internet site launched, 225,000 online user session per week

NOV.

•Over 200 site•$3 mil. Per day

MAY

•Focus efforts on business customers•$4mil. Per day•Focus on value added service

DEC•$14mil. Per day•12500 PP sites

OCT

•$30mil. Per day•27,500 PP site

NOV

•$45mil. Per day•50,500+ PP site•$30b revenues

What advantages had Dell Online in comparison to its competitor?

• Transaction segment:– Market access: 250000 visits per week to

dell.com website. (?The website sale is incremental or merely cannibalization of existing customers)

– Cost saving: A website sale rep was able to carry 1.5 time

monthly quota as a traditional sale rep Service efficiency

• Relationship Segment: – Premier Pages will build switching costs and

build customer loyalty ?!– Market access:– Provide them with an opportunity to offer

customers a differentiated service/product.

What advantages had Dell Online in comparison to its competitor?

What role does information system play in the business model?

• Differentiate product/service• Reduce the cost, improve the business process.• Increase the revenue• Increase the customer switch cost• Lock in customers and in suppliers• Change industry business model:

– unpick the internally built products and outside distributors, dealers, resellers, and retailers

– Mass customization

Traditional Business Model

DealerComputer

Manufacturing

(e.g. IBM, HP)

CustomerDistributor

O

$

O

$ $

O

Dell Online Customer

New Business Model

O

$

小结：信息系统对企业经营模式的影响

• 使价值链上活动作业处理自动化或半自动化；• 使价值链上各环节的信息集中，整合各环节上的资源；• 为价值链上的各环节提供增值信息服务；• 通过减少物交接的环节，降低物流的总成本；• 物流与信息流控制分离；• 运营控制更加集中化，更加精细化（ T.Q.C.S ），控制粒度

更细；• 通过直接获取市场信息，使得新产品研发更加有效，反应敏

捷；• 利用 IT 把相关的服务商整合起来，为客户提供全面服务；• 利用 IT 实现客户的自我服务，使服务更加个性化；• IT 使分销渠道层级减少（集中化）。

讨论题

P 105

2.

Documents

Session 4: Organization Management and Information systems