Four%20Levels%20of%20Organizational%20Hierarchy

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Four Levels of Organizational Hierarchy

• Operational Level
• TPS order tracking, payroll, sales, marketing
• Knowledge Level
• CAD/CAM, Lotus Notes, spreadsheet/financial
  planning, OA
• Management Level
• decision support/mis budgeting, cost analysis,
  production mix/scheduling,
• Strategic Level
• ESS forecasting, profit planning, manpower
  planning

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Major types of information systems

• TPS lower level work (order entry)
• OA document management (WP/storage)
• KWS design and analysis
• DSS cost analysis, pricing analysis
• MIS inventory control, capital budgeting
• ESS strategic planning, profit planning

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TPS Types

• Sales/marketing systems
• Manufacturing/production systems
• Human resources systems
• Industry specialized (vertical markets)

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Knowledge Work Systems OA Systems

• KWS Engineers, data analysts (Wall Street
  rocket scientists), scientists
• Example MRIs and CAT scans, biomedical
• OAS knowledge workers, managers
• Word processing/desktop publishing/presentation
  programs,
• document imaging/management

5
MIS

• MIS supports management level by providing
  routine summary reports and exception reports
• Example Which students were here in the Fall
  who did not choose to return in the Spring?

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DSS

• DSS provides material for analysis for the
  solution of semi-structured problems, unique or
  rapidly changing problems
• provides the ability to do what if analysis
• DSS uses the data from MIS but is
• more a right now analysis than a long-term
  structure like MIS

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MIS vs. TPS

• MIS differs from TPS in that MIS deals with
  summarized and compressed data from the TPS.
• TPS (data) to MIS (information)

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DSS vs. ESS

• DSS provides material for analysis for
• semi-structured problems, unique or rapidly
  changing problems
• Ability to do what if analysis
• ESS supports senior managers with unstructured
  decision-making.
• Less analytical than DSS with less use of models
  (linear or forecasting)

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Strategic Information System vs. Strategic-Level
System

• Strategic information system
• Changes the goals, operations, products,
  services, environmental relationships of
  organizations
• Changes the very nature of the firms business
• Strategic-level system
• Provide long-term planning information to senior
  executives
• Not as far reaching and deeply rooted
• Does not transform the organization itself
  (fundamentally)

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Value chain vs. competitive forces Models

• Both models complement each other
• Both models are used to aid firms in identifying
  where information systems can provide a
  competitive advantage
• Competitive force model examines external
  environment to identify threats/opportunities
• Value chain model highlights specific activities
  within firm to identify where competitive
  strategies can be best applied.

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Four Basic Competitive Strategies

• Product differentiation
• Unique products/services
• Distinct from competititor
• Focused differentiation
• Mine information to focus on previously
  unexploited market niche
• The new, under 14 millionaires (bacon holder)
• Tight linkages to customers/suppliers
• Lock in customers and suppliers
• facilitate purchasing/raise switching costs
• Low-cost producer
• produce goods and services at a lower price or
  with greater efficiency than competitors

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Strategic Systems???

• Strategic systems are difficult to build
• Entail massive sociotechnical changes within the
  organization
• Organizational boundaries between firm and
  customer and suppliers and departments must be
  broken down
• New relationships among parts of the company and
  customers and suppliers must be redefined.
• An entirely new organizational structure (Saturn
  GM
• Resistance to change impacts responsibilities and
  jobs

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Information Partnerships Do they work?

• Retailers cooperate with airlines to award
  frequent flier miles
• Each gains access to customers of the others and
  information on good customers
• Does this relationship benefit the customer?

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Universal Characteristics of organizations

• Clear division of labor
• Hierarchy
• Explicit rules and procedures
• Impartial judgments
• Technical Qualifications for positions
• Maximum organizational efficiency

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Organizational Differences

• Organizational type
• Environment
• Goals
• Power
• Constituencies
• Function
• Leadership
• Tasks
• Technology

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Environmental and Institutional Model of
Information Systems

• Environmental (Constraints and Opptys)
• Rising cost of labor, competitive action of other
  organizations, changes in govt regulations
• New technologies, new sources of capital, demise
  of competitor, new govt program
• Institutional
• Values, norms, vital strategic interests

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The modern manager in an IS environment

• Highly fragmented activities
• Changing activities rapidly
• Spending time pursuing personal goals
• Shying away from sweeping policy decisions

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IS Management Support Strengths and Weaknesses

• Strengths
• Nerve center (email, information)
• disseminator
• spokesman
• resource allocator
• Weaknesses
• figurehead
• leader
• disturbance handler
• negotiator roles

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Structured vs. Unstructured Decisions

• Unstructured
• Nonroutine decisions in which decision maker must
  provide judgment and evaluations for which there
  is no standard procedure for doing so.
• Example a decision to invest in a country of an
  untested product history
• Structured
• Repetitive and routine with standard operating
  solutions. Example product mix, plant
  scheduling

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Four Stages of Decision Making by Simon

• Intelligence data and information gathering
• Design Alternatives are established
• Choice Make the choice among the alternatives
• Implementation Put decision into effect

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Organizational Choice Models
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Assignments

• Proctor and Gamble
• Greyhound
• Group Quiz
• To be Announced (info processing)

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