Ch03+IS,+Org,+Mgmt+and+Strategy

Chapter 3 Information Systems, Organizations, and Strategy Ch 3 Lecture notes **__ link to MIS-Eng Ch 03 __**, ,Laudon's presentation: Chapter Summary of 9th edition **__ Learning Objectives : __** ** 1. ** Features that organizations managers need to know to build and use IS successfully? What is the impact of IS on organizations? ** 2. ** How does Porter’s competitive forces model help companies develop competitive strategies using information systems? ** 3. ** How do the value chain and value web models help businesses identify opportunities for strategic information system applications? ** 4. ** How do info. systems help businesses use synergies, core competencies, and network-based strategies to achieve competitive advantage? ** 5. ** What are the challenges posed by strategic information systems and how should they be addressed? media type="file" key="IT&Org&Mgt.swf" align="center" width="324" height="243"

The Dynamics of Change and Fear Business, Performance, Change, Restructuring, Risk, Fear, Resisting Change media type="custom" key="10772098" align="center"

LECTURE DESCRIPTION:
So what do I know about CHANGE, first thing that I know is that everybody is afraid of something, everybody is afraid of something, all of you are afraid of something, all of us are afraid of something, What distinguish people who are successful in their life from those who are not, is what you do with your fear, some people are held back by their fears, and some people choose to move a head in spite of fear, Courage is not the absence of fear: courage is acting in spite of fear, but because everybody is afraid what most of the time people are afraid of ; is something new. The essence of entrepreneur is risk taking, The essence of business is risk taking. Taking a risk is all about trying something new, and yet as people go on in their lives they become afraid of trying something new, and so, CHANGE is always resisted, always; because people are afraid even if what they have is not satisfying to them, a lot of people are afraid to venture into the unknown, and that holds them back from CHANGE, and if you are trying to drive a company, an organization, or your colleagues towards change you have to know that they are afraid, and you have to know as well that the only way you can help people to get over their fear is to give them a vision of something worth taking a risk for, but the other reason that change is resisted is the natural momentum, the natural instinct of any institution, any institution, I do not care if that institution is a family, a board, a university, a company, a 5 people or 500,000 people. Today, one of the many very interesting things that I do is I chair the advisory board for the Central Intelligence Agency, so I can say without fear of contradiction that this is true, government or agencies, everybody, the natural momentum of any organization is to preserve the status quo, WHY?, because people who have position of power and influence want to keep them. And so, they invest their energies in maintaining their position of power and influence. This not because people are bad, it's just human nature, and so again if you are focused on risk taking, change. You have to understand that the MOMENTUM that works against you is the power of the status quo, and it is always there, and that is why CHANGE is hard. And the other power that pushes against change is FEAR and so change has to have enough power. **1) The power of the VISION about what could be different,**
 * 2) It has to have enough FORCE, and enough ENERGY to over come people's fears, and**
 * 3) to over come the power of the STATUS QUO.**

Fiorina talks about the dynamics of change and fear. She notes that entrepreneurship is about risk-taking, and this is always associated with trying something new. Fiorina concludes by asserting that change involves gathering enough energy and force to overcome the power of status quo. Citation: Carly Fiorina, HP: Management and Leadership, Spring 2007. (Stanford University: Stanford eCorner), http://ecorner.stanford.edu/ (Accessed September 15, 2009). License: Creative Commons Attribution-NonCommercial 3.0

CH 3: · What is eBay ? eBay is the world's online marketplace; a place for buyers and sellers to come together and trade almost anything. · eBay derive the bulk of its revenues from the fees and commissions associated with its sales transactions. · A part of eBay’s revenues comes from the advertising on the website and some comes from service providers such as PayPal. · EBay started loosing market share to amazone and other online retailers who can provide better services than eBay. · The relationship between mngmt and organization : Information systems are built by the managers in order to help them manage the firm and serve the interests of the business firm. The interaction between the firm and the information system is complex and is influenced by many mediated factors including the Org structure, business process, politics, culture, surrounding environment and mngmnt decisions. Managers can not design new business style and worklife without understanding the realtionship between the Org and the IS. · What is Organization ? A stable formal culture that takes resources from the environment and process them to produce outputs which can be product or services. · The elements of the organization : inputs, processing, and outputs. · Another definition for the Org : a collection of rights, obligations, privileges, and responsibilities that is delicately balanced over a period of time through conflict and conflict resolution. · What are the features of the modern Orgs? They are bureaucracies with clear-cut divisions of labor and specialization Put the suitable person in the suitable place, hierarchy (هرمية), routine and business process. · In every org there are resistant to the change. Who resists the change? The culture, the mngmt, the member. · What makes the change difficult? The resistant from the culture and members and mngmt. · What makes the resistant increase? The age of the human managers and the culture which don’t get on with change, and the knowledge? · there is two types of assumptions. What are they? · الافتراضيات المتعارف عليها ضمنياً · الافتراضيات المكتوبة على الورق. · what is disruptive technology? (*)The firms that keep up to date with the environment will be always, but firms which does not, will go away. There are many variables affect into the Org. and they are two types: 1- Tangible ملموس: like the production factors: computers, infrastructure, and buildings. 2- Intangible معنوي: mngmt, IS, How to use (HTU). · When you want to make a system you have to do the following (SDLC) System development life circle: 1- Select the problem/ the goal. 2- Analyze the problem/goal. 3- Design the solution. 4- Code the solution to make the program (or make the solution). 5- Apply the solution. Transaction cost: تكاليف الصفقات The costs that comes from the firm project التكاليف التي تدفعها شركة ما على الـمشروعات التي تصنعها الشركة خطوات صناعة قرار 1- تحديد الهدف 2- تجميع المعلومات 3- دراسة البدائل وتصميمها 4- دراسة التكاليف 5- اختيار القرار المناسب. · The mind of the human is unlimited. * Q) Why do most of the projects of (IT) fail? كيف يمكن أن يصبح لشركة ما ميزة تنافسية ؟ Q) How can you make competitive advantages ? ملاحظة: في حالة وجود عوامل قوة للشركة (strength) تكون الخطة الاستراتيجية هي للتنمية والنمو .. Growth أما في حالة وجود عوامل ضعف كالاجتياحات وو... الخ تكون الخطة الاستراتيجية للحصول على اقل خسارة واكبر ربح وللبقاء... أو حتى للتصفية (liquidation) When the firm has strength the strategic plan will be for growth, but when it has weaknesses the strategic plan will be for having the least loss and the biggest profit or for liquidation. · What is the difference between internet, intranet and extranet? The difference between internet and intranet is that internet is global but intranet is a local network. The difference between internet and extranet is that extranet is internet with adding suppliers to it. (*) IT is the infrastructure to implement all mngmt concepts. · What is organizational culture? Organizational culture is an idea in the field of Organizational studies and management which describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. · What is the relationship between environment and Org? On the on hand, Orgs are open to and depend on the social environment surrounds them. On the other hand, Orgs can influence their environments. For example, business firms form alliances with other businesses to influence the political process; they advertise to influence customer acceptance of their products. · Organizational goals: 1- Prisons: coercive-الزامي/قسري 2- Businesses :utilitarian نفعي/مفيد 3- Universities/ religious groups: normative – معياري · The relationship between the firm size and transaction costs is logarithmic (when the firm size increases, the firm transaction costs will increase less than the previous point). · The relationship between the agency costs and the firm size is logarithmic (when the firm size increases, the agency costs increase less than the previous point). · Why do many organizations resist changing? There are many reasons, like the culture of the surrounding environment, and the organizational culture, another reason is afraid from the result, and the age. Age is an essential part of the reasons, that is because the older the age, the bigger resistance of the change · The internet and the organizations: The internet is the World Wide Web or the wonderful writable web, is an essential for the relationship between the organizations, and the business processes in the main firm or organization, because it increases the accessibility, storage and distribution the information between the firms and in the main firm. On the other hand, internet makes the connection between firms easier, so the firm can choose what it wants to buy and its price and amount in a few minutes, and it can buy and sell electronically by internet. · The main factors to consider when planning new information system: 1- The environment in which the Org must function 2- The structure of the firm. 3- The Org culture and politics. 4- The type of the Org and its style. 5- The kinds of tasks, decisions, and BP. · Traditional competitors: There are many competitors for the Org, they try to give the best services and best product to attract the customers. · New market entrants: In some industries there are very low barriers to entry, but in another industries, entery is difficult. For example, the entry to pizza business is very easy, whereas the entry to mobile or computer industry is very difficult because of the capital tasks. · Substitute products and sevices: Csutomers use the substitue products if your products prices become too high. New technology presents substitute products for every product. For example, Ethanol can substitute for gasoline in cars, and internet telephone service can substitute for traditional telephone service. · Customers: The profitable company depends on its ability to attract its customers, whereas customers will have the power if they can easily switch to another company, or to force the company to compete on price alone. · Suppliers: The market power of suppliers can have a significant impact on firm profit. The more different suppliers which company has, the more control on its prices will be. Khalid Taha