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Lecture Notes - CHAPER 2 ORGANIZATIONAL STRUCTURE AND INFORMATION

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Lecture Notes - CHAPER 2 ORGANIZATIONAL STRUCTURE AND INFORMATION Powered By Docstoc
					1                               Introduction to Information Technology
                                              Turban, Rainer and Potter
           Chapter 2 Organizations and Information Technology Support




         CHAPTER 2
      ORGANIZATIONS AND
    INFORMATION TECHNOLOGY
           SUPPORT
2                                      Introduction to Information Technology
                                                     Turban, Rainer and Potter
                  Chapter 2 Organizations and Information Technology Support


        Learning Objectives
     Discuss major information systems concepts
      such as architecture and infrastructure.
     Describe the hierarchical structure of
      organizations and the corresponding
      information systems.
     Define various information systems and their
      evolution, and categorize specific systems.
     Describe the support provided to different
      types of employees in an organization.
     Describe how information resources are
      managed.
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                   Chapter Overview
Information
Systems                             Evolution and IT Support at    Managing
Infrastructure     Organizations: Types of        Different        Information
and                Structure and Information Organizational        Technology in
Architecture       Support          Systems       Levels           Organizations
• Information      • Organizational • Transaction • Managers       • Which resources
  Infrastructure     Structure        Processing • Knowledge         are managed by
• Information      • Corresponding Systems          Workers          whom?
  Architecture       Information • Management • Clerical           • What is the role
• Traditional        System           Information Staff              of the information
  Architectures                       Systems                        systems department?
• New                               • Support                      • Who runs the ISD
  Architectures                       Systems                        and to whom does
                                                                     the department report?
                                                                   • What are the
                                                                     relationships between
                                                                     ISD and end users?
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       Case : Burlington Coat Factory
     The Business Problem
       Burlingion is the largest retailer of coats
        in the United States
       sells clothes, linens, luggage, jewelry, baby furniture
        and accessories
       faces extremely strong competition
       wants to offer up to 60% off department store prices
       needs information to respond to demand
       needs to communicate and collaborate with both
        store mangers and suppliers quickly and effectively
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            Case (continued…)
     The Solution
       a corporate computer-based communication system
       networks to a main processor
       transfers sales data by satellite technology
       executes routine transactions on the headquarters’
        computer
       feeds information from the corporate databases into
        spreadsheets or word processors on desktop computers
        for end-user computing and decision support
    The Results
       dramatic decrease in communication problems
       steady increase in sales volume and profits
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          Case (continued…)
    What have we learned from this case??
       Characteristics of a networked corporate
        information system that are usually found
        in organizations
         » several different information systems exist in one
           organization
         » some of these systems may be completely independent, but
           most are interconnected
         » information systems are connected by means of electronic
           networks
         » the information system is composed of large and small
           computers and other hardware connected by different types
           of networks
         » many information systems use client/server architecture
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       Information Systems Architecture
    Physical facilities, hardware, software,
     databases services, and management that
     support all computing resources in an
     organization
    Five major components of infrastructure
         computer hardware
         general-purpose software
         networks and communication facilities
         database
         information management personnel
    Tells how specific computing resources are
     arranged, operated, and managed
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          Information Systems Architecture
          (continued …)
     Information Architecture
       a high-level map or plan of the information
        requirements
       a manner in which these requirements will be satisfied
       a guide for current IT operations
       a blueprint for future IT directions
       meets the organization’s strategic business needs
       must tie together the information requirements, the
        infrastructure, and the applications
       similar to the conceptual planning of a house
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          Information Systems Architecture
          (continued …)
     Traditional Architectures
       mainframe environment
         » processing is done by a mainframe computer - a relatively
           large computer built to handle large amounts of data,
           thousands of user terminals, and millions of transactions
         » modern versions of this architecture : personal computers
           (PCs) and network computing (NC)
       PC environment
         » PCs form the hardware architecture
       distributed environment
         » divides the processing work between two or more computers
         » the participating computers can be all mainframe, all PCs, or
           (usually) a combination of the two
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        Information Systems Architecture
        (continued …)

      New Architectures
        client/server architecture
          » several computers share resources and are able to
            communicate with many other computers
          » a client - a computer such as a PC attached to the
            network, which is used to access shared network
            resources
          » a server - a machine that is attached to the same
            network and provides clients with these services
          » purpose : optimize the use of computer resources
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        Information Systems Architecture
        (continued …)

      Enterprisewide Architectures
        access to data, applications, services, and real-time
         flows of data in different LANs or databases
        use client/server architecture to create a cohesive,
         flexible, and powerful computing environment
        provide total integration of departmental and
         corporate IS resources
        increase the availability of information and
         thereby maximize the value of an organization
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         Information Systems Architecture
         (continued …)

      Internet-based Architectures
        based on the concepts of client/server architecture
         and enterprisewide computing
        the Internet is the basis for a network connection
         from the outside world to the company, as well as
         with the organization’s web site
        organization’s internal private Internet (intranet) -
         useful for distributing information throughout the
         organization
Market
           Distributors
                                                                                   Professional
         Non-Company                                                        Associations, large
             Retailers    Corporate                                      suppliers, competitors
                                          Corporate                         Toy Industry
                          Extranet        Intranet                            Extranet
         Non-Company
         Manufacturers
                                 Toys Inc         Head Quarter
             Suppliers                                                              Other
                                 Manufacturing         Retail Stores
          (Purchasing)                                                           Extranets
                                             Employees
          Liquidators
          contractors                                                  EDI, VAN

            Customers                                Internet                Banks and other
                                       Travel          Public               business partners
                                       agency
                                                       Government
          Sales peoples
              and other                                Small
                                         Small         customers
                 mobile               retailers
             employees                                 Small
                                                       vendors
                     The network organization:
         How a company uses the Internet, intranet and extranet
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        Organizations :
        Structure and IT Support
      Organizations
        the nature of organizations determines their
         activities, the information support they need, and the
         type of information systems they use
        profit-making business versus not-for-profit
         organizations exist
        manufacture goods versus services are delivered
        can be located in one place or in several places,
         some are global or multinational organizations
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        Organizations : Structure

      Organizational Structure
        departmental functional structure
          » specialize in the delivery of a certain function
          » typical departments in an organization:
             »   Accounting
             »   Finance
             »   Marketing and Sales
             »   Production or Operations Management (POM)
             »   Human Resources Management (HRM)
             »   Information Systems and Technology
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           Organizations : Structure
      Hierarchical Structure
                                         Headquarters


                 Division A                Division B                     Overseas
                                                                          Division

                 Plant C Plant D                 Plant E Plant F
Administration
Services
(legal, etc.)

                 POM      Accounting           Marketing          Finance        HRM
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       Organizations : IT Support

      The Corresponding Information Systems
          Departmental Information Systems
          Plant Information Systems
          Divisional Information Systems
          Enterprisewide Information Systems
          Interorganizational Information Systems (IOS)
          Global Information System for an International
           or Multinational Corporation
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            Types of Information Systems
      Transaction Processing Systems
         organizations perform routine, repetitive tasks
         a TPS supports the monitoring, collection,
          storage, processing, and dissemination of the
          organization’s basic business transactions
         frequently, several transaction processing
          systems exist in one company
         today’s transaction processing systems are much
          more sophisticated and complex
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           Types of Information Systems
          (continued …)
      Management Information Systems (MIS)
        provides periodic reports
        generates weekly and monthly summaries by
         product, customer, or salesperson
        initially, MIS had an historical orientation
        today, MIS reports may include summary reports, for
         the current period or for any number of previous
         periods - used for monitoring, planning, and control
        functional management information systems (MIS)
          » access, organize, summarize, and display information for
            supporting routine decision making in the functional areas
          » geared toward middle managers
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              Types of Information Systems
         (continued …)
     Major Outputs of a Functional Management
      Information System
OUTPUT                  DESCRIPTION
Statistical summaries   Summaries of raw data such as daily production,
                        and weekly and monthly usage of electricity.
Exception reports       Highlights of data items that are larger or
                        smaller than designated levels.
Periodic reports        Statistical summaries and exception reports
                        provided at scheduled, regular periods.
Ad hoc reports          Special, unscheduled reports provided on
                        demand.
Comparative analysis    Performance comparison to that of competitors,
                        past performance, or industry standards.
Projections             Advance estimates of trends in future sales,
                        cash flows, market share, etc.
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             Types of Information Systems
        (continued …)
  Support Systems
      office automation systems (OAS)
          » word processing systems
        computer-aided design and manufacturing (CAD/CAM)
        decision support systems (DSS)
        end-user computing
        executive information systems (EIS)
        group support systems (GSS)
  Intelligent Systems
      expert systems (ES)
      artificial neural network (ANN)
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            Types of Information Systems
            (continued …)
      Integrating Systems
         various computerized systems are being
          integrated to increase their functionalities
         one popular form of integrated system is
          enterprise resources planning (ERP)
         ERP plans and manages all of an organization’s
          resources and their use, including contacts with
          business partners
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            The Evolution
            Computer Based Information Systems
     1940          Scientific, military applications
     1950        Routine business applications, TPS
     1960              MIS, office automation
     1970                        DSS, LANs
             Client/server executive information system,
     1980               PC’s, AI, Groupware
                   Integration, intelligent systems
     1990    the Web, intranets, extranets, ERP software

     2000   Internet, Electronic commerce, Smart systems
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             IT Support at Different
             Organizational Levels

                       Strategic
                                        Top Managers
                       Systems

                      Staff Support        Knowledge Workers, Professionals

                  Managerial Systems               Middle Managers
                   Operation Systems                   Line Managers, Operators

     Office Automation and Communication Systems           Clerical Staff

           Information Infrastructure and TPS

       The information systems support of people in organizations
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           Knowledge Workers
 People who create information and knowledge and integrate
  it into the business
 Engineers, financial and marketing analysts, production
  planners, lawyers, and accountants
 Responsible for finding or developing new knowledge for the
  organization and integrating it with existing knowledge
 Act as advisors and consultants to the members of the
  organization
 Act as change agents by introducing new procedures,
  technologies, or processes
 60 to 80 percent of all workers are knowledge workers
 Supported by a large variety of information systems from
  Internet search engines to expert systems, to computer-aided
  design, and by knowledge bases
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         Clerical Staff
      Support managers at all levels
      Data workers - use, manipulate, or disseminate
       information
        bookkeepers, secretaries who work with word
         processors, electronic file clerks, and insurance
         claim processors
      Supported by office automation and groupware,
       including document management, workflow, e-
       mail, and other personal productivity software
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           IT Support at Different
           Organizational Levels : A Summary
                             Employees                         Detailed
  System                      Supported                      Discussion in
 Office automation       Office workers                       Chapter 7, 9
 Communication           All employees                        Chapter 6, 8
 Group support           People working in                    Chapter 10
 system                  groups
 Decision support        Decision makers,                     Chapter 10
 system                  managers
 Executive information   Executives, top                      Chapter 10
                         managers
 TPS                     Line managers and                    Chapter 9
                         employees
 MIS                     Middle management                    Chapter 9
 Intelligent systems     Knowledge workers                    Chapter 11
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             Managing IT Resources
  IT resources are scattered throughout the organization
  Information systems have enormous strategic value
  Some IT resources change frequently. It may be rather
   difficult to manage IT resources
  It is essential to manage information systems properly
  The responsibility for the management of information
   resources is divided between a usually centralized
   information systems department (ISD) and the end users
  Which resources are managed by whom?
      Generally speaking, ISD is responsible for corporate-level and
       shared resources, and the end users are responsible for
       departmental resources
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           Managing IT Resources (continued …)

     What is the role of the information systems
      department?
        Traditional major IS functions:
          » Managing systems development and systems project
            management
          » Managing computer operations, including the computer
            center
          » Staffing, training, and developing IS skills
          » Providing technical services
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             Managing IT Resources (continued …)
What is the role of the information systems
 department? (continued)
      New (additional) major IS functions:
       » Initiating and designing specific strategic information systems
       » Infrastructure planning, development, and control
       » Incorporating the Internet and electronic commerce into the business
       » Managing system integration including the Internet, intranets, and extranets
       » Educating the non-IS managers about IT
       » Educating the IS staff about the business
       » Supporting end-user computing
       » Partnering with the executive level that runs the business
       » Actively participating in business processes reengineering
       » Proactively using business and technical knowledge to the line with
         innovative ideas about IT
       » Creating business alliances with vendors and IS departments in other
         organizations
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          Managing Information Technology
 Key MIS issues in two recent time periods
Key Issues, 1994/1995            Key Issues, 1997
1. Building a responsive IT      1. Improving productivity
infrastructure
2. Facilitating and managing     2. Reducing costs
business process redesign
3. Developing and managing       3. Improving decision
distributed systems              making
4. Developing and implementing 4. Enhancing customer
an information architecture      relationships
5. Planning and managing         5. Developing new
communication networks           strategic applications
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                               Chapter 2 Organizations and Information Technology Support
                Managing Information Technology
                (continued …)
 Who Runs the ISD and to whom does ISD Report?
      run by MIS Director, Manager of Computing Services,
       Manager of Information Technology, or Chief Information
       Officer (CIO)
      reports to
        »   Chief Executive officer
        »   Functional Vice President
        »   Senior vice president
        »   Chief knowledge officer (CKO) - the director assigned to capture and
            make effective use of IT knowledge for an organization
      The executive committee provides the top-level oversight for
       the organization’s information resources. It guides the IS
       steering committee, which is usually chaired by the CIO.
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                            Chapter 2 Organizations and Information Technology Support
               Managing Information Technology
               (continued …)
 What are the relationships between the ISD and end users?
      A steering committee that represents all end users and the ISD. This
       committee sets IT policies, decides on priorities, and coordinates IS
       projects.
      Joint ISD/end-user project teams for planning, budgeting,
       applications development, and maintenance
      ISD representation on the top corporate executive committee
      Service agreements that define computing responsibilities and
       provide a framework for services rendered by the ISD to end users
      Technical and administrative support (including training) for end
       users
      A conflict resolution unit established by the ISD to handle end-user
       complaints quickly and resolve conflicts as soon as possible
      An information center that acts as help center to end users regarding
       purchase, operations, and maintenance of hardware and software
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           What’s in IT for Me?
 For Accounting
      Many of the transactions handled in a TPS are data that
       the accounting department records and tracks
 For Finance
      Financial departments often use specialized DSS for
       forecasting and portfolio management
 For Marketing
      Marketing uses such IT-related concepts as customer
       databases, marketing decision making, sales automation,
       and customer relationship management (CRM)
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             What’s in IT for Me? (continued …)
  For Production/Operations Management
      Organizations are competing on price, quality, time (speed), and
       customer service which are enhanced and supported by IT
  For Human Resources Management
      Intranets help to disseminate relevant information throughout the
       organization. Internets are used for recruiting
  For MIS
      IS management function continues to grow in strategic value
  For Non-Business
      In all organizations, IT provides essential support to all functional
       areas`

				
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