COMMERCE 2KA3 Chapter Notes - Chapter 2: Walmart, Product Differentiation, Value Chain
27 Apr 2018
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Chp. 3 – Info. Systems, Orgs., and Strategy
Features of Org. Managers
- Info. Systems are built by managers to serve the interests of the firm
-
- What’s a Org.?
o Organization: A stable, formal social structure that takes resources from the env.
And processes them to produce outputs
▪ Above is the technical definition, consisted of three elements
• Capital and Labor are primary prod. Factors provided by the env.
• The org. then transforms these inputs into gds/services in prod.
Function
▪ Formal legal entity with internal rules and procedures that must abide by
laws; Social structure because they are a collection of social element
▪ Behavioural definition of Org.
• A collection of rights, privileges, obligations, and resp. delicately
balanced over a pd. Of time thru conflict and conflict resolution
• Ppl. who work in firms with these values. They gain customary
ways of working..
o Gain attachment to existing rtlshps.
o Make arrgmt. w/ subordinates and superiors abt. How
work will be compltd., etc.
▪ A technical view of org. relate to info. System by
• Encourages us to focus on how inputs are combined to create
outputs when technology changes are introduced into the
company
• Firm seen as infinitely malleable
▪ A behavioural view of org. relate to info. System by
• Building new info. Systems/ rebuilding, involves that some info.
System change the org/ balance of rights, privileges, etc. over a
long pd. Of time
▪ The time it takes to implement a new info. System effectively is much
longer than usually anticipated due to the lag of teaching the system
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o Features of Orgs.
▪ All modern orgs. Share certain charac.
▪ Routines and Business Processes
• When indiv. In the firm dvlp. Routines, all orgs. Become very
efficient over time
• Routines (Standard Opr. Procedures): precise rules, procedures
and practices that have been dvlpd. To cope w/ virtually all
expctd. Situations
• Bus. Processes: collections of such routines
o Business Firm: collection of business processes
▪ Org. Politics
• Since ppl. have diff. positions, they naturally have divergent
viewpts. Abt. How resources, rewads and pshmt. Should be
distributed
o These viewpts. Create a diff. btwn indiv. In the firm,
causing political struggle for items and etc.
o Political resistance is a big problem when bringing org.
change- esp. dvlpmt. Of new info. Systems
o An org. will be successful if managers can understand how
to work w/ the politics of an org. than less-skilled
managers in implementing new info. Systems
▪ Org. Culture
• Encompasses these set of assump. Abt. What products the org.
should produce, how it should produce, where, and for whom
• Bus. Processes, the way bus. Firms produce value, are usually
ensconced in the orgs. Culture
• A pwrful. Unifying force that restrains political conflict and
promotes common understanding, agrmt. On procedures and
common practices
• A pwrful. Restraint on change, esp. tech. change
o Most firms will avoid making changes to basic assump.
▪ Org. Env.
• Reside in areas in which they can draw resources and allow to
supply gds. And services
• Org. and Env. Have a reciprocal rtlshp.
• Orgs. are open to and dependent on the social/ physical env.
o W/out Finance and HR, Orgs. might not exist
• Must respond to external env. (govt., cust., banks)
o Can also influence external env.
• Info. Systems is a key for env. Scanning, helping managers identify
external changes that might req. an org. response
• Env. Change faster than orgs.
• Political conflict is raised due to changes on the org. env.
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find more resources at oneclass.com
• Disruptive Tech.
o Subs. Products that perform as well or better than
anything currently produced
o Can simply extend with less functionality and less cost
o “oe a reate profits off these ites ad ride the
ae
o First Movers: Firms that invent disruptive technologies
o Fast Followers: firms w/ size and tech. to capitalize on
disruptive tech.
▪ Org. Structure
• Have structure or shape
• Five kinds of Org. Structure
Impact of Info. Systems
- Info. Systems have fundamentally altered the economies or orgs. and greatly increased
the possibilities for org. work
- Econ. Impacts
o IT changes both the relative costs of capital and the costs of info.
o Ifo. “stes teh. a e see as a fator of prod. Whih a e su’d for trad.
Capital and labour
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Systems are built by managers to serve the interests of the firm. What"s a(cid:374) org: organization: a stable, formal social structure that takes resources from the env. And processes them to produce outputs: above is the technical definition, consisted of three elements, capital and labor are primary prod. Factors provided by the env: the org. then transforms these inputs into gds/services in prod. Of time thru conflict and conflict resolution: ppl. who work in firms with these values. They gain customary ways of working. : gain attachment to existing rtlshps, make arrgmt. w/ subordinates and superiors abt. How: a technical view of org. relate to info. System change the org/ balance of rights, privileges, etc. over a long pd. Of time: the time it takes to implement a new info. System effectively is much longer than usually anticipated due to the lag of teaching the system: features of orgs, all modern orgs. Share certain charac: routines and business processes, when indiv.
