Organizations

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Organizations Systems

• Sept. 12, 2005

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Outline

• What is an Organization?
• Interaction of IT with the Organization
• Network Effects Economics
• Classifying Business Organization Units
  Information Systems

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What is an Organization?

• Technical Definition "A stable, formal, social
  structure that takes resources from the
  environment and proceses them to produce
  outputs." (Laudon Laudon)
• Information Technology is introduced into this
  structure to make the production of outputs more
  efficient.

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What is an Organization?

• Structural, Behavioural and Other
• Hierarchy of authority
• Impersonality
• Written rules of conduct (operating procedures)
• Promotion based on achievement (technical
  qualifications for positions meritocracy)
• Specialized division of labor
• Efficiency (maximal organizational efficiency)
• IT innovations can create conflicts between these.

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A Pre-IT Insurance Claims Office (c 1965)
Giuliani, V. E. The Mechanization Of Office
Work. in Forester, T., ed. The Information
Technology Revolution. MIT Press 1985.
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A Post-IT Insurance Claims Office (c 1985)
Giuliani, V. E. The Mechanization Of Office
Work. in Forester, T., ed. The Information
Technology Revolution. MIT Press 1985.
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A Post-IT Insurance Claims Office (c 2004)
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IT THE ORGANIZATION BEFORE AFTER
IP Pre-IT
IP Post-IT
Information Needs

• structured flows
• limited access

• structured storage
• broad access

Skill Levels

• relatively low

• relatively high

Responsiveness

• relatively slow

• relatively fast

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IT THE ORGANIZATION BEFORE AFTER
IP Pre-IT
IP Post-IT
Tasks

• specialized
• compartmentalized
• repetitive

• generalized
• interconnected
• varied/novel

Work Flow

• batch oriented

• event-driven

Standard of Performance

• follow the rules

• understand the process

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IT THE ORGANIZATION BEFORE AFTER
IP Pre-IT
IP Post-IT
Workforce

• relatively larger

• relatively smaller

Organizational Structure

• strongly hierarchical
• weakly networked

• strongly networked
• weakly hierarchical

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3 Economic effects of IT on the Organization

• 1.Information technology costs generally fall,
  labour costs generally rise. IT can be
  substituted for labour, and result in fewer
  middle managers and clerical workers.
• 2.Information technology lowers transaction
  costs. Firms should therefore become smaller, and
  have more external transactions (e.g. through
  outsourcing).
• 3.Information technology lowers internal
  management (supervision and coordination) costs.
  Firms can therefore become larger. (?)

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Org. Units IT Systems
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Examples Webtrends

• See learningspaces.org/1311

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Enterprise Systems the Org
old integration of ITs
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Enterprise Systems the Org
new integration of ITs
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The Major Eras Of The Computer Age
1964-1980 The System Centric Era 1964
introduction of the IBM 360
1981-1993 The PC Centric Era 1981 introduction
of the IBM PC
1994-2005 The Network Centric Era
2006-2015 The Content Centric Era?
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FEATURE Audience Technology Principle Offering
s Network Focus User Focus Supplier
Structure Supplier Leadership Users at
end Market Size
SYSTEMS CENTRIC Corporate Transistor Groschs
Law Proprietary Systems Data Center Efficiency
Vertical Integration US systems 10
million 20 billion
20
FEATURE Audience Technology Principle Offering
s Network Focus User Focus Supplier
Structure Supplier Leadership Users at
end Market Size
SYSTEMS CENTRIC Corporate Transistor Groschs
Law Proprietary Systems Data Center Efficiency
Vertical Integration US systems 10
million 20 billion
PC CENTRIC Professional Microprocessor Moores
Law Standard Products LAN/WAN Productivity Hor
izontal value chain US Components 100
million 460 billion
21
FEATURE Audience Technology Principle Offering
s Network Focus User Focus Supplier
Structure Supplier Leadership Users at
end Market Size
SYSTEMS CENTRIC Corporate Transistor Groschs
Law Proprietary Systems Data Center Efficiency
Vertical Integration US systems 10
million 20 billion
PC CENTRIC Professional Microprocessor Moores
Law Standard Products LAN/WAN Productivity Hor
izontal value chain US Components 100
million 460 billion
22
FEATURE Audience Technology Principle Offering
s Network Focus User Focus Supplier
Structure Supplier Leadership Users at
end Market Size
PC CENTRIC Professional Microprocessor Moores
Law Standard Products LAN/WAN Productivity Hor
izontal value chain US Components 100
million 460 billion
NETWORK CENTRIC Consumer Bandwidth Metcalfes
Law Value Added Services Public
Network Customer Service Unified Computer
Communications Chain National Carriers 1
Billion 3 trillion
23
FEATURE Audience Technology Principle Offering
s Network Focus User Focus Supplier
Structure Supplier Leadership Users at
end Market Size
PC CENTRIC Professional Microprocessor Moores
Law Standard Products LAN/WAN Productivity Hor
izontal value chain US Components 100
million 460 billion
NETWORK CENTRIC Consumer Bandwidth Metcalfes
Law Value Added Services Public
Network Customer Service Unified Computer
Communications Chain National Carriers 1
Billion 3 trillion
24
FEATURE Audience Technology Principle Offering
s Network Focus User Focus Supplier
Structure Supplier Leadership Users at
end Market Size
NETWORK CENTRIC Consumer Bandwidth Metcalfes
Law Value Added Services Public
Network Customer Service Unified Computer
Communications Chain National Carriers 1
Billion 3 trillion
CONTENT CENTRIC Individual Software Transforma
tion Law Custom Services Transparent Virtualiz
ation Embedded Content Providers Universal Too
embedded to measure
25
FEATURE Audience Technology Principle Offering
s Network Focus User Focus Supplier
Structure Supplier Leadership Users at
end Market Size
NETWORK CENTRIC Consumer Bandwidth Metcalfes
Law Value Added Services Public
Network Customer Service Unified Computer
Communications Chain National Carriers 1
Billion 3 trillion
CONTENT CENTRIC Individual Software Transforma
tion Law Custom Services Transparent Virtualiz
ation Embedded Content Providers Universal Too
embedded to measure