IT Lecture 3

  1. What is an organization?
    A stable, formal, social structure that takes inputs from the environment and processes them to produce outputs
  2. What is a strategic inflection point?
    • Image Upload 2
  3. Digital Darwinism
    Organizations that cannot adapt fail
  4. The value chain: Who created it and explain
    • Porter
    • Divides activities into 2 categories - Primary activities are directly related to production and distribution. Support activities make the delivery of a firm's activities possible
  5. How is the value chain broken down?
    Image Upload 4
  6. What is the value chain used for?
    • To decide where to invest the company's resources, IT and otherwise
    • IT uses it to see the strategy of the firm and make it the strategy of IT
  7. Define supply chain
    Network of organizations and business processes for production and distribution of products
  8. What is IT's role in the supply chain?
    • To create integrations or tight process and information linkages between functions within a firm
    • Image Upload 6
  9. Four specific impacts of IT on the organization
    • Reduce transaction costs: search, negotiation, and enforcement costs
    • Reduce agency costs: IT makes it easier and cheaper to make a decision
    • Improve collaboration
    • Facilitate new organizational strategies: helps in all five of Porter's forces
  10. Four different system types used by the organization
    • Systems by level
    • Systems across all levels
    • System by functional area
    • Integrating levels and functions
  11. Four levels of organizational structure
    • Operational: elementary activities and transactions: TPS
    • Tactical - Knowledge workers: systems support knowledge and data workers: OAS/KWS
    • Tactical - Middle managers: systems support monitoring, controlling, decision-making, and administrative activities: MIS/DSS/GDSS
    • Strategic: long range planning: EIS
  12. TPS
    • Transaction processing systems
    • Input: transactions
    • Processing: sorting, listing, merging, updating
    • Output: detailed reports, lists, summaries
    • Users: Operations personnel, supervisors
    • Ex: accounts payable and receivable, order tracking and processing, payroll
  13. OAS
    • Office automation systems
    • Computer systems that are designed to increase the productivity of data workers in the office
    • Users: clerical workers
    • Ex: word processing, desktop publishing, document imaging systems
  14. KWS
    • Knowledge based(work) systems
    • Captures the expertise of human beings: ES - expert system - used for limited domains of knowledge, KMS - knowledge management system
    • Some companies use AI and neural networks so that the systems learn from their history
  15. MIS
    • Management Information Systems
    • Provide reports and access to company data
    • Input: high volume data
    • Processing: routine reports, simple models, low-level analysis
    • Output: Summary and exception reports
    • Users: middle managers
  16. DSS
    • Decision Support Systems
    • Combine data and analytic models to support nonroutine decision making for individuals
    • Use input from TPS data plus external sources
    • Users: Professionals, staff managers
    • Input: data, analytic models, data analysis tools
    • Processing: interactive, simulations, analysis
    • Output: special reports, decision analyses, responses to queries
  17. GDSS
    • Group Decision Support System
    • Facilitates the solution to unstructured problems for decision makers working in a group
    • AKA collaboration system
    • Uses software tools called groupware to help it arrive at a decision: questionnaire/voting software, electronic brainstorming tools, idea organizer, electronic meeting system
  18. Differences between DSS and GDSS
    • Users: DSS - individuals; GDSS - groups
    • Objective of use: DSS - build models using data; GDSS: facilitate interaction between individuals
    • Effectiveness: DSS - depends on how well the tool is built by designers; GDSS: depends on facilitators, tools selected, participants
  19. ESS
    • Executive Support System
    • Address nonroutine decision making
    • Incorporate data from TPS, MIS, DSS and external sources
    • Users: senior managers
    • Input: external and internal aggregate data
    • Processing: graphics, simulations, interactive
    • Output: projections, responses to queries
  20. Relationship ESS, MIS, DSS, and TPS systems
    Image Upload 8
  21. IOS
    • Interorganizational System
    • Automates the flow of information between organizations to support the planning, design, development, production, and delivery of products and services
    • Ex. extranet
  22. Extranet
    • Private intranet that is accessible to authorized outsiders
    • Used to coordinate value chains between organizations to collectively produce a product or service - more customer driven, less linear, flexible
  23. How do companies integrate their manufacturing, accounting, finance, marketing, and HR systems?
    • Build their own patches
    • Use enterprise systems, or firm-wide information systems that integrate key business processes so that information can flow freely between parts of the firm
    • Known as ERP: enterprise resource planning
  24. ERP
    • Enterprise Resource Planning
    • Automate business processes
    • Integrates all aspects of the firm
    • Image Upload 10
  25. Advantages of using an ERP
    • Creation of one unified organization
    • Automation of manually-intensive processes
    • Better reporting and decision making
    • Unified technology platform
    • More efficient company and customer driven business
Card Set
IT Lecture 3
IT Lecture 3