Ch 3: IS, Organization, and Strategy

Question 1

What are the 6 mediating factors that affect the relationship between information systems and organizations?

Answer 1

Structure

Business Processes

Politics

Culture

Environment

Management Decisions

Question 2

The technical definition of an org

Answer 2

A formal social structure that processes resources from the environment to produce output to the environment

A formal legal entity with internal rules and procedures, as well as social structure

Question 3

Behavioural definition of an organization

Answer 3

A collection of rights, privileges, obligations, and responsibilities that is delicately balanced over a period of time through conflict and conflict resolution

• It emphasises group relationships, values, and structures

Question 4

What are the Five features of Organizations?

Answer 4

Use of hierarchical structure

Accountability, authority in system of impartial decision making

Adherence to principle of efficiency

Routines and Business processes

Organizational politics, culture, environments, and structures

Question 5

Routines and Business Processes

Answer 5

Routines- standard operating procedures; precise rules, procedures and practices developed to cope with virtually all expected situations.

Question 6

Business Processes and Business Firm

Answer 6

BP: Collection of routines
BF: Collection of Business Processes

Question 7

Disruptive Technology

Answer 7

Technology that brings about a sweeping changes to business, industries and markets

-Personal Computers, word processing software, Internet, PageRank Algorithm

Question 8

First Movers and Fast Followers

Answer 8

First Movers: Inventors of Disruptive Technologies

First Followers: Firms with the size and resources to capitalize on that technology

Question 9

Economic Impacts of IT

Answer 9

• Changes relative costs of capital and cost of information
• IS is a factor of production like capital and labour
• IT affects the cost and quality of Information and changes economics of information.

Question 10

Transaction Costs Theory

Answer 10

• IT helps firms contract in size as it can reduce transaction costs (cost incurred when a firm buys from the market what it cannot make itself).
  -Is can aid vertical integration or cheaper outsouring

-According to the theory- firms and individuals seek to economomize on transaction costs as much as on production costs

-vertical integration

Question 11

Agency Theory

Answer 11

-Firm is a “nexus of contracts” among self-interested parties rather than unified, profit-maximizing entity.

The owner employs “agents” (employees) to perform work on their behalf. Agents will need constant supervision; else they will pursue their interests than those of their owners.

• IS helps managers to easily manage a large group of employees- which reduce agency costs. By reducing overall management costs, IT enables firms to increase revenues while shrinking the number of middle managers and clerical workers. (shrinks hierarchy and no of people to employ)

Question 12

Organization Resistance to Change

Answer 12

Most common reason for failure of large projects is due to organizational and political resistance to change.

Question 13

Four Factors Paramount to Resistance to change– Things that must change

Answer 13

• Nature of IT Innovation
• The Org Structure
  -Culture of People
  -Job Tasks affected by innovation

Question 14

Implemem