Management Information Systems

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Management Information Systems
Management
MANAGING THE DIGITAL FIRM, 12TH EDITION, GLOBAL EDITION

Chapter 3
INFORMATION SYSTEMS,
ORGANIZATIONS, AND STRATEGY
VIDEO CASES

Case 1: National Basketball Association: Competing on Global Delivery With Akamai OS Streaming
Case 2: Customer Relationship Management for San Francisco's City Government

Management Information Systems
Management
CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS,
AND STRATEGY

Learning Objectives

• Identify and describe important features of
organizations that managers need to know about in
order to build and use information systems
successfully.
• Demonstrate how Porter’s competitive forces
model helps companies develop competitive
strategies using information systems.
• Explain how the value chain and value web models
help businesses identify opportunities for strategic
information system applications.
2

© Pearson Education 2012

Management Information Systems
Management
CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS,
AND STRATEGY

Learning Objectives (cont.)

• Demonstrate how information systems help
businesses use synergies, core competencies, and
network-based strategies to achieve competitive
advantage.
• Assess the challenges posed by strategic
information systems and management solutions.

3

© Pearson Education 2012

Management Information Systems
Management
CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS,
AND STRATEGY

Verizon or AT&T: Which Company Has the Best Digital Strategy?

• Problem: High-stakes competition in the wireless market
• Solutions:
– AT&T is marketing leading-edge devices
• Has 43% of U.S. smartphone users, but poorer network

– Verizon is investing in updating, expanding, and
improving network
• Fewer smartphone customers, but most reliable in U.S.

• Demonstrates IT’s central role in defining competitive strategy
4

© Pearson Education 2012

Management Information Systems
Management
CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS,
AND STRATEGY

Organizations and Information Systems

• Information technology and organizations
influence one another
– Complex relationship influenced by
organization’s
• Structure
• Business processes
• Politics
• Culture
• Environment, and
• Management decisions
5

© Pearson Education 2012

Management Information Systems
Management
CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS,
AND STRATEGY

Organizations and Information Systems
THE TWO-WAY
RELATIONSHIP
BETWEEN
ORGANIZATIONS
AND INFORMATION
TECHNOLOGY
This complex two-way
relationship is mediated by
many factors, not the least of
which are the decisions
made—or not made—by
managers. Other factors
mediating the relationship
include the organizational
culture, structure, politics,
business processes, and
environment.
FIGURE 3-1

6

© Pearson Education 2012

Management Information Systems
Management
CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS,
AND STRATEGY

Organizations and Information Systems

• What is an organization?
– Technical definition:
• Stable, formal social structure that takes resources from environment and processes them to produce outputs
• A formal legal entity with internal rules and procedures, as well as a social structure

– Behavioral definition:
• A collection of rights, privileges, obligations, and
responsibilities that is delicately balanced over a period
of time through conflict and conflict resolution
7

© Pearson Education 2012

Management Information Systems
Management
CHAPTER 3: INFORMATION SYSTEMS, ORGANIZATIONS,
AND STRATEGY

Organizations and Information Systems
THE TECHNICAL MICROECONOMIC DEFINITION OF THE ORGANIZATION

FIGURE 3-2

8

In the microeconomic definition of organizations, capital and labor (the primary production factors provided by the environment) are transformed by the firm through the production process into products and services (outputs to the...
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