Information Systems and the Organization

Organization exist for a purpose

A Mission Statement is needed to

determine how to strategically manage.

A Mission Statement is the first element determined in a comprehensive strategic management model.

Strategic Management Model Strategy

FormulationStrategy

ImplementationEvaluation and Control

Mission

Objectives

Strategies

Feedback/Learning

Environmental Scanning

Societal Environment

General Forces

Task Environment

Industry Analysis

Structure Chain of Command

Resources Assets, Skills

Competencies, Knowledge

Culture Beliefs, Expectations,

Values

Reason for existence

What results to accomplish by when Plan to

achieve the mission & objectives

Programs

Activities needed to accomplish a plan

Budgets

Cost of the programs Procedures

Sequence of steps needed to do the job

Process to monitor performanceand take corrective action

Performance

External

Internal Go through decision-

making process and

Determine alternative

strategy To select

Mission Statement

An enduring statement or purpose distinguishing our organization from others.

Mission Statement are found in an organization’s literature such as in annualreports. Names associated with MissionStatements:

Statement of PhilosophyStatement of PurposeVision StatementStatement of Business Principles

As many as 1/3 of major companies don’t Have a Mission statement

Below are companies without a formal written Mission statement. Some are quite successful. The mission statement is usually implied in the corporate literature.In your cases you may have to assume a mission statement.

Wal-MartDisney

7

Why is a Mission Statement Important?Why is a Mission Statement Important?- To Insure Unanimity of Purpose- To Provide a Basis for Allocating Resources- To Serve as a Focal Point for Individuals- To Reconcile Differences Among Stakeholders- To Resolve Divergent Views Among Managers- To Arouse Positive Feelings About the Firm- To Provide a Basis for Goals and Strategies- To Provide Direction

©1999 Prentice Hall

8

Mission Statement

Answers the Question

Mission Statement

Answers the Question

“What is Our Business?”

“What is Our Business?”

Vision Statement Answers the

Question

Vision Statement Answers the

Question

“What Do We Wantto Become?”

“What Do We Wantto Become?”

Vision Versus Mission

©1999 Prentice Hall

A good Mission Statement has the elements described below according to McGinnis:1 Defines what the organization is and what

the organization aspires to be.2 Is limited enough to exclude some ventures

and broad enough to allow for creative growth.3 Distinguishes a given organization from

all others.4 Serves as a framework for evaluating both

current and prospective activities.5 Is stated in terms sufficiently clear to be widely

understood throughout the organization.

10

Components of a Mission Statement

Components of a Mission StatementCustomersProducts or ServicesMarketsTechnologyConcern for Survival and GrowthPhilosophySelf-ConceptConcern for Public ImageConcern for Employees

What Is a System?

System: array of components that work together to achieve goal or goals

System Accepts input Processes input Produces output

What is a system? (continued)

System may have multiple goals System may contain subsystems Subsystems have sub-goals that

meet main goal Subsystems transfer output to other

subsystems

What is a system? (continued)

Closed system: has no connections with other systems

Open system: interfaces and interacts with other systems Often a subsystem of a bigger system

Information system: processes data and produces information

Information and Managers Systems thinking: thinking of an

organization in terms of subsystems Database: collection of electronic

records Information systems automate exchange

among subsystems Information map: network of

information systems Information technology: technologies

that facilitate construction and maintenance of information systems

The Benefits of Human-Computer Synergy

Humans are relatively slow and make mistakes

Computers cannot make decisionsSynergy: combining resources to

produce greater output

The Benefits of Human-Computer Synergy (Continued)

Information Systems in Organisations

Computer-based Information system: system with computer at centre

Certain trends have made information systems important in business

Organisations lag behind if they do not use information systems

Components of information systems

The Four Stages of Processing Input: collect and introduce data to

system Transaction: a business event, usually

entered as input Data processing: perform calculations

on input Output: what is produced by the

information system Storage: vast amounts of data stored on

(for example) optical discs

Computer Equipment for Information Systems

Input devices: receive input Computer: process data Output: displays information Storage devices: store data Network devices: transfer data

Computer Equipment for Information Systems (continued)

Self-check