Perspectives of Information Systems in Organizations

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Perspectives of Information Systems in
Organizations
György Drótos, Ph.D. Associate Professor Faculty
of Business Administration Institute of
Management gyorgy.drotos_at_uni-corvinus.hu

• Research Seminar School of Information
  Management, Victoria University of Wellington

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The Country, the Capital, and the University
The Corvinus University of Budapest the legal
successor of the Budapest University of Economic
Sciences and Public Administration was founded
in 1948. After several enlargements today
Corvinus includes 7 faculties and teaches 17,000
students. Annually, more than 200 Hungarian
students spend a semester abroad and we accept
approximately the same number from 160 partner
universities. Corvinus defines itself as a
research university, its achievements are also
acknowledged internationally.
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COMMUNITY OF EUROPEAN MANAGEMENT SCHOOLS AND
INTERNATONAL COMPANIES
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Objectives

• To provide a relatively stable framework which
  helps individuals understanding
• what IT-based information systems do in
  organizations and
• what views organizational members hold on the use
  of these systems.
• To apply this framework as analytical tool to
  prepare interventions in organizations.

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Definition of Information Systems

• By their functions
• collecting,
• processing,
• displaying,
• transmitting,
• storing etc.
• data/information

• By their components
• Technical components hardware, software,
  network, databases etc.
• Human components system developers, data
  recording operators, business users etc.

The information systems of organizations are
complex socio-technical systems.
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Modern Science and Positivism
Modern science considers the world as an
objective entity, existing and understandable,
while regards itself as neutral to values. It
applies the rules of positivism, a methodology
based on the following elements

• formulation of hypotheses, assumption of general
  cause-and-effect relationships
• acceptance or rejection of hypotheses by means of
  empirical research
• priority of mathematical and quantitative
  methods.

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The Dominant Positivist Tradition of IS Research
does not fit the Domain

• In the field of IS management, up to the latest
  years the positivist research methodology has
  dominated.
• The application of the positivist model to
  information systems management is basically
  problematic, since it is unable to grasp several
  dimensions of the organizational instantiation of
  information technology, the very dynamic,
  iterative relationship between the system and its
  environment.
• The compulsory application of positivism may
  lead to compromises concerning the interest,
  practical applicability, and the currency of
  research.

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IT as an Intellectual Technology
Information System
Organizational Context
Based on Lee (1999)
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Postmodernism

• For postmodernism, social life is made up of
  texts (series of signals), that we read
  constantly and in very different ways.
• The focus of the postmodernism research is the
  examination of parallel interpretations on
  complex phenomena.
• Postmodernism is more inclined to reinterpret and
  recombine previous approaches, than to reject
  them unequivocally.

Postmodernism thrives on paradox and the
relativism of competing points of view. It
emphasises how in opening horizons and
perspectives we also close others, and how the
attempt to gain particular kinds of insights or
truths inevitably leads to distortions.


Source Morgan (1997, p.429)
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Gareth Morgan Images of Organization
Political Systems
Machines
Psychic Prisons
Organisms
ORGANIZATIONS AS
Flux and Transformation
Brains
Instruments of Domination
Cultures
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Perspective

• Refers to an angle (viewpoint) from which certain
  aspects of an organizational information system
  can be well observed.
• Refers to a new horizon, which opens up in front
  of the observer and offers new opportunities of
  applying information technology in
  organizations.

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Metaphor

• The application of a name or descriptive term or
  phrase to an object or action to which it is not
  literally applicable.
• It helps discovering the focus points of the
  perspectives, and not at least, tuning and
  inspiring the Reader.

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Interpretation

• An idiosyncratic (person and time specific)
  reading, representation, or explanation of an
  organizational phenomenon.
• By using the proposed perspectives as theoretical
  glasses, an observer can more easily create
  interpretations that are shared (or at least
  regarded valid) by others as well.

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Map of Scientific Paradigms
Relation to dominant social discourse
Critical studies
Dialogic studies

Dissensus
Late modern,

Postmodern,
reformist
deconstructionist
Origin of concepts
Local /
Elite /
and problems
emergent
a priori
Interpretative
Normative studies Modern, progressive
Consensus
Studies
Premodern,
traditional
Source Alvesson Deetz (1996, p. 190)
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Non-positivist Antecedents in IS Research

• In the Age of the Smart Machine by Zuboff
  (1988). An outstanding ethnography till now,
  which is also recognized by other sciences.
• From the mid 80s some good handbooks on
  alternative paradigms and qualitative methodology
  in IS research (i.e. Mumford Hirschheim
  Fitzgerald Wood-Harper, 1985 Cash Lawrence,
  1989 Nissen Klein Hierchheim, 1991
  Galliers, 1992)
• More and more field research, mainly from
  interpretative and critical epistemological
  stance are published from the mid 90s.

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Metaphors in IS Research / 1

• Spontaneous use of metaphors. Behind the
  impressive wording there were often very simple
  intentions
• to discredit an old-fashioned concept (i.e. early
  mainframes as number crunching tools) or
• to make a new concept fashionable (i.e. internet
  as information superhighway).
• Hierscheim and Klein (1989) defined four
  potential roles system analysts
• Functionalist paradigm the system analyst as an
  expert
• Interpretative paradigm the system analyst as a
  moderator
• Radical structuralism paradigm the system
  analyst as a partisan
• Radical humanist paradigm the system analyst as
  an emancipator

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Metaphors in IS Research / 2

• Zuboff (1985) differentiates the automating and
  informating capabilities of IT.
• Wiseman (1988) confronts the conventional and
  the strategic perspectives of information
  systems.
• Walsham (1993) uses Morgans metaphors to
  produce an understanding of the context of the
  information system, and the process whereby the
  information system influences and is influenced
  by its context (Walsham, 1993, pp. 4-5).
• Kumar and Dissel (1998), following King (1980),
  refer to the technical-economical (system
  rationalism) and socio-political (segmented
  institutionalism) perspectives of information
  systems.
• El Sawy (2003) distinguishes connection,
  immersion and fusion views of IT.
• Publications aiming at managerial audience are
  dominated by eras, stages, or levels models
  of IT. This does not match our definitions on
  metaphor.

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Eras of Information Systems
Example
Source Applegate McFarlan McKenney, 1996
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What is Wrong with the Eras of IT Models?

• They are based only on the experiences of the
  largest (mainly US) companies.
• They prompt organizations to change directions
  even if their particular context would not
  require it.
• They suggest that previous objectives and system
  capabilities have become obsolete.
• They are exclusively managerial with no attention
  to sociological and psychological aspects.
• In sum, they convey a simplified view on the
  role of IT in organizations.

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Selection Criteria for IS Perspectives/Metaphors

• academic acceptance
• credibility
• perceived usefulness
• explanation power to seemingly absurd or
  irrational behaviors

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Perspectives/Metaphors Selected
Organizational Memories
Automatons
Power Sources
Aids of Decision Making
INFORMATION SYSTEMS AS
Electronic Panopticons
Strategic Weapons
Autonomous Organisms
Catalysts of Processes
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The Structure of the Planned Publication
(Also the Rest of the Presentation)
A Priori Assumptions
Related Theories and Concepts
Related Technologies and Systems
FOR EACH PERSPECTIVE
System Development and Implementation
The IT Organization
Strengths and Limitations
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The Structure of the Planned Publication
(Also the Rest of the Presentation)
A Priori Assumptions
Related Theories and Concepts
Related Technologies and Systems
FOR EACH PERSPECTIVE
System Development and Implementation
The IT Organization
Strengths and Limitations
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A Priori Assumptions of the
Automaton Perspective

• The effectiveness of the organizations are
  determined by the efficiency of the different
  parts.
• The oldest and most stable capability of
  computers is processing data according to
  standard algorithms.
• The primary role of information systems is to
  reduce cost and increase the speed and accuracy
  of fulfilling tasks by substituting manual work.

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Details of the Automaton Perspective
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Strengths and Limitations of the
Automaton Perspective
Strengths
Limitations

• The efficiency gain brought about by automaton
  type of systems is well documented.
• This is the base on which higher level system
  functions (see next perspectives) are built.
• Still relevant for smaller organizations in less
  IT intensive sectors and/or less developed
  countries.
• There are some challenges remained for larger
  organizations as well (e.g. the Y2K bug).

• Taking it as an exclusive perspective may result
  in islands of applications, i. e. suboptimal
  solutions for the organization as a whole.
• Because of their smooth operations, automatons
  usually do not require significant managerial
  attention.

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A Priori Assumptions of the
Decision Making Perspective

• The effectiveness of an organisation is
  determined by the quality of decisions made.
• The quality of decisions depends on the
  availability of necessary information.
• In organisations managers make the decisions.
• The mission of information systems is to supply
  managers with the information necessary for
  making their decisions.

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Details of the
Decision Making Perspective
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Strengths and Limitations of the
Decision Making Perspective
Strengths
Limitations

• It discovers that structured and semi-structured
  planning and control tasks can be well supported
  (sometimes even automated) by IT.
• If applied to groups, it can decrease some of the
  negative effects of group decision making
  (groupthink, domination, escalation of commitment
  etc.)

• According to behavioral studies, the availability
  of right information in the right place and time
  does not guarantee that it will be taken into
  account in the decision.
• Limited use for unstructured decisions.
• Its focus on administrative processes (as opposed
  to primary value creation) hinders to exploit the
  full potential of IT.
• It may reinforce a conservative organizational
  setting and culture.

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A Priori Assumptions of the
Strategic Weapon Perspective

• Information technology has an unprecedented
  effect on economy it changes the nature of
  products and services, multiplies the number of
  accessible markets, creates a new foundation for
  inter-firm co-operation etc.
• These changes do not necessarily leave the
  relative competitive position of economic actors
  unchanged.
• The creative application of information systems
  can result in competitive advantages.
• IT is a strategic factor also because it
  requires significant investment and represents
  considerable risk due to the accelerated
  development of the technology.

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Details of the Strategic Weapon Perspective
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Strengths and Limitations of the
Strategic Weapon Perspective
Strengths
Limitations

• It is a radical change of mind compared to
  previous perspectives.
• Even if advantages are difficult to maintain in
  long term, the strategic implications of IT are
  profound.
• It contributes to the better appreciation of the
  IT function in organizations.

• Little guidance is given how to achieve strategic
  advantage.
• The sustainability of IT based advantages could
  not be proved.
• With the proliferation of internet-based
  applications and the off-the-self software
  packages imitation is easier.

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A Priori Assumptions of the
Process Catalyst Perspective

• Customers look for complete products and
  services, and not just for separate outputs of
  organizational units/employees.
• The co-ordination of value creation steps
  require information.
• Based on this rationale, the role of information
  technology is to simplify, support, and monitor
  business processes over organizational boundaries
  in order to increase
• their efficiency (faster cycle times, faultless
  production, decreased costs)
• and effectiveness (e.g. outstanding services,
  satisfied customers).

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Details of the Process Catalyst Perspective
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Strengths and Limitations of the
Process Catalyst Perspective
Strengths
Limitations

• A kind of operationalization to the Strategic
  Weapon perspective.
• Makes new business models possible, built also on
  the internet.
• It can lead to quantum leap improvements is cost
  and time.

• People and organizations badly tolerate radical
  changes in operations and structure.
• Advantaged achieved may be short-lived because of
  benchmarking.
• Accumulation of niche expertise is limited in
  process-based units.
• Streamlined operations, lack of any
  organization slack can be risky in crisis
  situations.

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A Priori Assumptions of the
Organizational Memory Perspective

• In the period of clever products and
  customized services, shortening product life
  cycles, and more and more complex
  inter-organizational relationships companies
  compete on the basis of their available knowledge
  base.
• A part of this knowledge base exists solely in
  the mind of a few colleagues, so the
  organization, as a whole, cannot make full use of
  it, and it can even be lost if these employees
  quit.
• Another part of this knowledge base though is
  recorded (e.g. on paper, in traditional computer
  systems), but often is not available in the
  appropriate place and time.
• Thus, the mission of information systems is to
  grasp the existing knowledge and experience
  accumulated in and around the organization, and
  by doing so, to create a kind of
  electronic organizational memory.

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Details of the Organizational Memory Perspective
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Strengths and Limitations of the
Organizational Memory Perspective
Strengths
Limitations

• A kind of operationalization to the Strategic
  Weapon perspective.
• It discovers that technology itself as well as
  other tangible resources are less and less able
  to form a solid basis for competition.
• By focusing on knowledge it challenges
  technological as well as organizational limits.
• It is in line with other theories of
  globalization like Sustainable Development.

• It can impose threats on knowledge workers.
• Due to its instrumental attitude it cannot fully
  reveal the psychological and cultural barriers of
  knowledge sharing and learning.
• There is no robust technology for recording and
  disseminating tacit knowledge.
• It may divert the attention of executives from
  factors that are more pressing in a short run.

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A Priori Assumptions of the
Power Sources Perspective

• The operation of information systems takes place
  in power fields, in the context of conflicting
  interests.
• Information systems and the information produced
  by them are primarily sources of power, and serve
  the power aspiration of individuals and groups.
• These aspirations are often surface in the guise
  of rational goals.
• To appreciate the real role of power factors in
  IT implementation projects both the successful
  and the failed systems have also to be examined.

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Details of the Power Sources Perspective
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Strengths and Limitations of the
Power Sources Perspective
Strengths
Limitations

• It gives an explanation why a number of system
  development projects that have clear economic or
  strategic advantage fail, or become severely
  distorted.
• Equipped with this theory on power, we are not
  only capable to better understand past events,
  but also to predict future power struggles and
  their expected outcomes as well.

• Not all system development efforts are led by
  power motives.
• Not all resistance is power related.
• Power is a very complex phenomenon, the
  functional power theory, on which this
  perspective is based, is only one existing
  approach.

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A Priori Assumptions of the
Electronic Panopticon Perspective

• Organizational members continuously try to
  escape the law, written and latent rules of the
  organization in order to follow their individual
  interests.
• In such a context the function of information
  technology is constant control either to
  discover typical deviations and prepare
  corrective actions (e.g. education) or to detect
  responsible persons and secure evidence to
  sanctions.
• The permanent presence of surveillance has a
  normalizing effect on organizational members,
  since it prompts for constant self-control. If
  this is achieved, then the actual operation of
  technology becomes secondary the required norms
  are already internalized and the system only
  reinforces them.

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Details of the Electronic Panopticon Perspective
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Strengths and Limitations of the
Electronic Panopticon Perspective
Strengths
Limitations

• Focuses on transparency as a special feature of
  our networked world and on the potential to use
  it for continuous control.
• Sheds light on the partly or fully hidden
  motivations behind many IT implementations and
  usage.
• It can expanded to monitor customers and
  suppliers in Panopticon-like systems.

• Some characteristics of the original Panopticon
  design may not be met in their electronic
  reincarnations.
• Probably it is misleading to overemphasize the
  significance of this metaphor in connection with
  the application portfolio of an average
  contemporary organization.

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A Priori Assumptions of the
Autonomous Organism Perspective

• The technical components of information systems
  are more and more developed and can be combined
  in a very complex way.
• The behavior of the human components (e.g.
  users, system developers) is often unpredictable.
• Information systems are in continuous connection
  with their context.
• The operation of computer information systems
  cannot be forecasted exactly, even if it appears
  that we have total control over it and its
  environment.

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Details of the
Autonomous Organism Perspective
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Strengths and Limitations of the
Autonomous Organism Perspective
Strengths
Limitations

• Sheds lights on the limitations of rationality in
  connection to the development and operation
  information systems.
• Acknowledges technical complexity.
• Recognizes that IT is an intellectual technology.
• Helps to understand how systems evolve over time.

• Typical anti-managerial approach, which mainly
  emphasizes what NOT to do.
• In extreme form it allows for metaphysical
  speculations or nihilistic resignation.

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The Use of IS Perspectives
in Organizational
Analysis and Intervention
Influencing

• What are those actions (system development,
  training etc.) which can enhance the
  representation of the most relevant perspectives
  to meet the challenges?

Evaluating

• What are the external and internal challenges
  the organization faces?
• What are those IS perspectives which are most
  relevant to the challenges?
• Is their representation in the organization
  sufficient to meet the challenges?

Understanding

• To what extent the different IS perspectives are
  represented in the declared and followed values
  of the main stakeholders user groups / managers
  and executives / the IT organization?
• To what extent the different IS perspectives are
  represented in the actual IT application
  portfolio and the development plans? Is this
  consistent with the views of the key stakeholders?

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Cross-Sectional View of the Original Panopticon
Back-up
Central tower
Cells