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Multidimensional Organizational Structure
May incorporate several structures at the same time
Advantage:– ability to simultaneously stress both
traditional corporate areas and important product lines
Disadvantage:– multiple lines of authority
Continuous Improvement
Constantly seeking ways to improve business processes
Benefits:– Increased customer loyalty– Reduction in customer dissatisfaction– Reduced opportunity for competitive
inroads
Technology Diffusion, Infusion, and Acceptance
Technology diffusion - measure of widespread use of technology
Technology infusion - extent to which technology permeates a department
Technology Acceptance Model (TAM) - specifies factors that can lead to higher usage of technology
Competitive Advantage
Significant, long-term benefit to a company over its competition
Ability to establish and maintain a competitive advantage is vital to the company’s success
Competitive Advantage
Five forces motivate firms to seek competitive advantage– Rivalry among existing competition– Threat of new entrants– Threat of substitutions– Buyers’ bargaining power– Suppliers’ bargaining power
Strategic Planning for Competitive Advantage
Change the structure of the industry Create new products or services Improve existing products or services Use information systems for strategic
planning
Productivity
A measure of output achieved divided by input required
Higher level of output for a given level of input means greater productivity
Return on Investments and the Value of Information
Systems
Earnings growth Market share Customer awareness and satisfaction Total cost of ownership
Justifying Information Systems
Ensure that the system supports business needs
Assess risks Identify benefits
Justifying Information Systems
Assessment of Risk:– How well are the requirements understood?– To what degree does the project require
pioneering effort in technology?– Is there a risk of severe business repercussions
if the project is poorly implemented?
Justifying Information Systems
Most IS projects fall into one of the following categories:– Tangible Savings– Intangible Savings– Legal Requirement– Modernization– Pilot Project
Careers in Information Systems Department
Operations - focuses on the efficiency of information
Systems development - focuses on specific development projects and ongoing maintenance and review
Support - provides user assistance
Typical IS Titles and Functions
Chief Information Officer (CIO) - employs the IS department’s equipment and personnel to help the organization attain its goals
LAN administrators - set up and manage the network hardware, software, and security processes
Typical IS Titles and Functions
Internet careers– Strategists– Programmers– Website operators– Chief Internet Officer
Consulting firms
Summary Value-added processes increase the relative worth of
combined inputs on their way to becoming final outputs
Business process reengineering involves the radical redesign of business processes, organizational structures, and information systems
Information systems personnel typically work in an information systems department that employs a chief information officer, systems analysts, and computer programmers