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Level 62

Organizational Perspective of Business Information

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Drivers Behind the Use of BIS (2-4,5)
- Knowledge-/ information-based economies
Rise of the Information Economy
Transformation of the Business Enterprise
Emergence of the Digital Firm
Digitally enabled relationships with customers, suppliers, employees
Toward the Digital Firm
Electronic Commerce (e-commerce):
New Options for Organizational Design:
The Digital Firm and the Collaborative Enterprise
Systems Theory
Interdisciplinary study of systems in general, with the goal of elucidating principles that can be applied to all types of systems at all nesting levels in all fields of research. Can be applied to gai…
System according to Systems Theory
Collection of inter-related components that work together towards a collective goal. The function of a system is to receive inputs and transform these into outputs.
System Characteristics - System's Objective
Components of a system work towards collective goal
System Characteristics - Environment, Boundary, Interface
Systems do not operate in complete isolation. Are contained within an environment that contains other
System Characteristics - Subsystems
Systems can be complex and made up of other, smaller systems = subsystems. Systems composed of one or more subsystems = supra systems
System Characteristics - Open Systems
Organization interacts with elements beyond the system boundary in the environment = open system
System Characteristics - Totally Closed
Systems which do not interact with their environment are unusual = Totally closed
System Characteristics - Interface
Subsystems in an information system interact by exchanging information. This is known as the interface between systems. For BIS having clearly defined interfaces is important to an efficient organization.
System Characteristics - Coupling
Linkage or coupling between subsystems varies. The degree of coupling defines how closely linked different subsystems are. It is a fundamental principle of systems theory and BIS design that subsystems should be loosely coupled.
System Characteristics - Close-Coupled Systems
Systems or subsystems that are highly dependent on one another. The outputs of one system are the direct inputs of another.
System Characteristics - Decoupled Systems
Are less dependent on one another than coupled systems and so are more able to deal with unexpected situat…
System Characteristics - Interdependence
Systems are hierarchical. Systems are made up of subsystems that may themselves be made up of other subsystems. From this, one should realize that the parts of a system are dependent on one anothe…
Consideration of BIS in a Systems Theory Modeling Approach (2-26,27)
From a Systems Theory perspective BIS can be modeled as an organizational control mechanism (closed-loop feedback)
IS Literacy
broad-based understanding of is
Computer Literacy
Having a current knowledge and understanding of computers and their uses.
Management Information Systems (MIS)
1970: focus on the use of computer-based IS in business firms and government agencies
Return on IT Investment (2-36)
Considerable variation in the returns firms receive from their IT investment:
Reasons for Variation in return on IT Investments
IT investments alone cannot make organizations and managers more effective unless they are accompanied by complementary assets. Assets are required to derive value from a primary investment. They can be organizational, managerial, or social ass…
Organizational Assets
Supportive Organizational culture valuing efficiency and effectiveness
Managerial Assets
strong senior management support for technology investment and change
Social Assets
the internet and telecommunications infrastructure
Sociotechnical Perspective on IS (2-42)
The performance of a sociotechnical system is optimized when both the technology and the organization mutually adjust to one another until a satisfactory fit is obtained. The first three alternatives impose a gap between…
The Interdependence between Organizations and IS (2-44)
In contemporary systems there is a growing interdependence between a firm's information systems and its business capabilities. Changes in strategy, rules, and business processes increasingly require changes in hardware, software, databases, and telecommunications. Often, …
faster calculations and paperwork
Potential Positive Implications of IS
Potential Negative Implications of IS
Automation leading to job elimination