Project management, strategy, benefits and value of information systems Flashcards
Give a technical and behavioral definition of organization and then compare them.
Technical definition- Formal social structure that processes raw material to produce outuputs, with internal rules and procedures and a social structure.
Behavioral definition- A collection of right, previlleges, obligations and responsabilities that is delicately balanced over a period of time through conflict and conflict resolution.
Comparison- The technical definition describes how thousands of firms in competitive markets combine capital and labor with information technology, whereas the behavioral model describes how technology affects the organization’s inner workings.
What’s the microeconomic technical definition of organization?
This definition is a loop that refers to capital and work as being provided by the environment. These two are transformed into outputs in the production process and consumed by the environment creating a infinite loop.
Name the features of organizations.
Hierarchical structure, authority in system of impartial decision making, focus on efficiency, routines and business processes, organizational politcs, culture, environments and structures.
Correlate routines, bussines processes and firms
Routines are standard operating procedures, business processes are all the routines in a company, and a firm is a collection of business processes.
What’s meant with disruptive technologies?
Disruptive technology is an innovation that significantly alters the way that consumers, industries, or businesses operate. A disruptive technology sweeps away the systems or habits it replaces because it has attributes that are recognizably superior.
What are the 5 basic kinds of organizational structure?
Entrepreneurial, Machine Bureaucracy, Divisionalized Bureaucracy, Adhocracy and Professional Bureaucracy.
Explain the Transaction Cost Theory.
Firms seek to economize on transaction costs so by investing in IT they can do so making it worth for firms to transact with other firms rather then grow the number of employees.
Explain the Agency Theory.
Firms experience agency costs which rise as the firm grows. IT can reduce agency costs, making it possible for firms to grow without adding to the costs of supervising and without adding employees.
Explain the Porter’s Competitive Force Model and refer it’s importance in defining corporate strategies.
Porter’s Five Forces is a model that identifies and analyzes five competitive forces that shape every industry and helps determine an industry’s weaknesses and strengths. Five Forces analysis is frequently used to identify an industry’s structure to determine corporate strategy.
What are the 5 competitive forces?
Traditional Competitiors, Customers, New Market Entrants, Suppliers, Substitute Products and Services.
How can companies deal with the competitive forces. Explain each strategy.
Low-cost leadership- Produce products at lower prices than competitors;
Product differentiation- Make products that change costumers experience;
Focus on market niche;
Strengthen customer and supplier relationships.
How did the internet mold the competitiveness of the different markets?
The internet tranformed and threatened some industries, made rivalry more intense, created new entrants in the market and created new opportunities for building brands with loyal customer bases.
What’s the Value Chain Model?
A model that sees companies as a serie of activities that add value to products and also differentiates the functions that directly impact on the creation of a product, primary activities, and the ones that support those function, considered as the indirect costs of a business, the support activities.
What’s a value web?
A value web is the link between the value chain of a firm and it’s suplliers, distributors and customers.
When outputs of some units are used as inputs to others we have?
Synergies
