In
this chapter we will know how information systems and organizations are related
each other. The interaction between information technology and organizations is
complex and is influenced by many mediating factors, including the
organization’s structure, business processes, politics, culture, surrounding
environment, and management decisions.
Information systems and the organizations in which
they are used cooperate with and influence each other. The introduction of a
new information system will affect organizational structure, goals, work
design, values, competition between interest groups, decision making, and
day-to-day behaviour. At the same time, information systems must be designed to
serve the needs of important organizational groups and will be shaped by the
organization’s structure, business processes, goals, culture, politics, and
management. Information technology can reduce transaction and agency costs, and
such changes have been accentuated in organizations using the Internet. New
systems disrupt established patterns of work and power relationships, so there
is often considerable resistance to them when they are introduced.
Over the last decade, information systems have
fundamentally altered the economics of organizations and greatly increased the
possibilities for organizing work Information systems have become integral,
online, interactive tools deeply involved in the minute-to-minute operations
and decision making of large organizations. The Internet increases the
accessibility, storage, and distribution of information and knowledge for
organizations. In essence, the Internet is capable of dramatically lowering the
transaction and agency costs facing most organization . that’s mean information
system have are connection to organization success.
Other than that, we always think why some company more
success than other company. This is can be different by its competitive
advantage. Arguably, the most widely used model for understanding competitive
advantage is Michael Porter’s competitive forces Model. This model provides a
general view on the firm , its competitors, and the firms environment.
In Porter’s competitive forces model, the strategic
position of the firm, and its strategies, are determined by competition with
its traditional direct competitors, but they are also greatly affected by new
market entrants, substitute products and services, suppliers, and customers.
Information systems help companies compete by maintaining low costs,
differentiating products or services, focusing on market niche, strengthening
ties with customers and suppliers, and increasing barriers to market entry with
high levels of operational excellence.
Another model is the value chain model highlights
specific activities in the business where competitive strategies and
information systems will have the greatest impact. The model views the firm as
a series of primary and support activities that add value to a firm’s products
or services. Primary activities are directly related to production and
distribution, whereas support activities make the delivery of primary
activities possible.A firm’s value chain can be linked to the value chains of
its suppliers, distributors, and customers. A value web consists of information
systems that enhance attractiveness at the industry level by promoting the use
of standards and industry-wide consortia, and by enabling businesses to work
more efficiently with their value partners.
As of firms involve of several business units,
information systems achieve additional efficiencies or enhance services by binding
together the operations of disparate business units. Information systems help
businesses leverage their basic competencies by promoting the sharing of
knowledge through business units. Information systems simplify business models
based on large networks of users or subscribers that take advantage of network
economics. A virtual company strategy uses networks to link to other firms so
that a company can use the competences of other companies to build, market, and
distribute products and services. In business ecosystems, multiple industries
work together to deliver value to the customer. Information systems upkeep a
dense network of interactions among the participating firms.
