Chapter Seven - California State University, Sacramento

Chapter Seven - California State University, Sacramento

Chapter Eight Using IT for Coordination and Control 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Evolution of Organizational Applications of Technology 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 2

Information for Decision Making and Control Technology provides vehicle for managers to access information for decision-making Management information systems include: Information reporting systems Decision support systems Executive information systems Technology provides systems for controls:

Executive dashboards Balance scorecards 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 3 Managerial Control and Decision Making 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

4 A Simplified Feedback Control Model 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 5 Management Control Systems Formal routines, reports and procedures

Formalized information based activities Controls include: Budgets, financial reports Reward systems Quality control systems Managers must define standards and measure performance 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 6

The Level and Focus of Control Systems Organizational Level: The Balanced Scorecard Measure financial, customer, employee and market concerns Comprehensive management control system Strategy map visualization of organization success drivers and how they are linked Departmental Level: Behavior versus

Outcome Control How people do their jobs Outcomes people produce 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 7 Major Perspectives of the Balanced Scorecard 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

8 Adding Strategic Value Strengthening Internal Coordination with information systems Intranets Knowledge Management

Web 2.0 Tools Enterprise Resource Planning 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 9

Two Approaches to Knowledge Management 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 10 Example of ERP Network 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

11 Adding Strategic Value Strengthening External Coordination with information technology Uses IT to coordinate with suppliers, customers & partners Supply Chain Management Information linkages are key for coordination

Horizontal relationships coordinate the supply chain to meet customer needs 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 12 The Integrated Enterprise 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 13

Customer Relationships Strengthening customer relationships are paramount for organizations Apply IT tools to build relationship Customer Relationship Management (CRM) systems help customers: Track customer interactions Maintain sales and service records Coordinate sales, marketing and customer service

Many organizations are applying web technologies to enhance customer relationships: blogs, wikis, social networking 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 14 Customer Web Ordering Process 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

15 E-Business Organization Design E-business is any business that takes place over a computer network Many organizations have Internet operations Managers may choose from different Ebusiness strategies: In-house Division Spin-Off

Strategic Partnership 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 E-business Strategies 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 17

IT Impact on Organization Design Smaller Organizations Decentralized Organizational Structures Improved Horizontal Coordination Improved Interorganizational Relationships Enhanced Network Structures 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 18

Key Characteristics of Traditional vs. Emerging Interorganizational Relationships 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 19 Design Essentials Successful organizations leverage technology Technology aids in better decision-making Organizations must employ controls to measure

performance Technology is adding strategic value internally and externally Technology is impacting the design of organizations 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 20

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