3. INFORMATION SYSTEMS, ORGANIZATIONS, & BUSINESS PROCESSES 3.1 ผศ. ดร. สมนึก คีรีโต ภาควิชาวิศวกรรมคอมพิวเตอร์

3. INFORMATION SYSTEMS, ORGANIZATIONS, &

BUSINESS PROCESSES


BUSINESS PROCESSES

3.1

ผศ . ดร . สมนึก คี�ร�โตภาคีวิ�ชาวิ�ศวิกรรมคีอมพิ�วิเตอร�

คีณะวิ�ศวิกรรมศาสตร� มหาวิ�ทยาลั�ยเกษตรศาสตร�

INFORMATION SYSTEMINFORMATION SYSTEMINFORMATION SYSTEMINFORMATION SYSTEM

INFORMATION INFORMATION

SYSTEMSYSTEM

BUSINESS BUSINESS

CHALLENGECHALLENGE

BUSINESS BUSINESS

SOLUTIONSSOLUTIONS

MANAGEMENTMANAGEMENT

INFORMATIONINFORMATION

TECHNOLOGYTECHNOLOGY

ORGANIZATIONORGANIZATION

3.2

MANAGING CHANGEMANAGING CHANGE

FITTING TECHNOLOGY TO FITTING TECHNOLOGY TO ORGANIZATIONORGANIZATION

LIMITS OF TECHNOLOGYLIMITS OF TECHNOLOGY

ORGANIZATIONS & INFORMATION TECHNOLOGY

ORGANIZATIONS & INFORMATION TECHNOLOGY

MEDIATING FACTORS: MEDIATING FACTORS: Environment Environment Culture Culture Structure Structure Standard Procedures Standard Procedures Politics Politics Management Decisions Management Decisions ChanceChance

ORGANIZATIONSORGANIZATIONS INFORMATION INFORMATION TECHNOLOGYTECHNOLOGY

3.3

MICROECONOMIC DEFINITION OF ORGANIZATION

MICROECONOMIC DEFINITION OF ORGANIZATION

INPUT FROM ENVIRONMENT

OUTPUT TO ENVIRONMENT

PRODUCTIONPROCESS

FEEDBACK

ORGANIZATIONORGANIZATION

3.4

BEHAVIORAL VIEW OF ORGANIZATIONSBEHAVIORAL VIEW OF ORGANIZATIONS

STRUCTURE:STRUCTURE: HierarchyHierarchyDivision of Division of

laborlabor Rules, ProceduresRules, Procedures

PROCESS:PROCESS: Rights/Rights/ObligationsObligations Privileges/ResponsibilitiesPrivileges/Responsibilities ValuesValues

NormsNormsPeoplePeople **

EN

VIR

ON

ME

NT

AL

RE

SO

UR

CE

SE

NV

IRO

NM

EN

TA

L R

ES

OU

RC

ES

EN

VIR

ON

ME

NT

AL

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TP

UT

SE

NV

IRO

NM

EN

TA

L O

UT

PU

TS

3.5

STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONS

STRUCTURAL CHARACTERISTICS OF ALL ORGANIZATIONS

• CLEAR DIVISION OF LABORCLEAR DIVISION OF LABOR• HIERARCHYHIERARCHY• EXPLICIT RULES & PROCEDURESEXPLICIT RULES & PROCEDURES• IMPARTIAL JUDGMENTSIMPARTIAL JUDGMENTS• TECHNICAL QUALIFICATIONSTECHNICAL QUALIFICATIONS• MAXIMUM ORGANIZATIONAL MAXIMUM ORGANIZATIONAL

EFFICIENCYEFFICIENCY

**3.6

ORGANIZATIONAL STRUCTURESORGANIZATIONAL STRUCTURES

• ENTREPRENEURIAL: Start up businessENTREPRENEURIAL: Start up business• MACHINE BUREAUCRACY: Mid-sized MACHINE BUREAUCRACY: Mid-sized

manufacturing firmmanufacturing firm• DIVISIONALIZED BUREAUCRACY: Fortune DIVISIONALIZED BUREAUCRACY: Fortune

500500• PROFESSIONAL BUREAUCRACY: Law PROFESSIONAL BUREAUCRACY: Law

firms, hospitalsfirms, hospitals• ADHOCRACY: Consulting firmADHOCRACY: Consulting firm

**3.7

SALIENT FEATURES OF ORGANIZATIONS


COMMON FEATURES:COMMON FEATURES:

• FORMAL STRUCTUREFORMAL STRUCTURE

• STANDARD OPERATING STANDARD OPERATING PROCEDURESPROCEDURES

• POLITICSPOLITICS

• CULTURECULTURE

**

3.8



UNIQUE FEATURES:UNIQUE FEATURES:

ORGANIZATIONAL TYPEORGANIZATIONAL TYPE

ENVIRONMENTS, GOALS, POWERENVIRONMENTS, GOALS, POWER

CONSTITUENCIES, FUNCTIONCONSTITUENCIES, FUNCTION

LEADERSHIP, TASKSLEADERSHIP, TASKS

TECHNOLOGYTECHNOLOGY

LEVELSLEVELS

**3.9

ORGANIZATION & ITS ENVIRONMENTORGANIZATION & ITS ENVIRONMENT

THE FIRM

INFORMATION SYSTEMS

3.10

ORGANIZATION & ITS ENVIRONMENTORGANIZATION & ITS ENVIRONMENT

THE FIRM

INFORMATION SYSTEMS

THE ENVIRONMENT:THE ENVIRONMENT:

RESOURCES & CONSTRAINTS

GOVERNMENTS

COMPETITORS

FINANCIAL INSTITUTIONS

CULTURE

KNOWLEDGE

TECHNOLOGY

3.11

ORGANIZATIONAL LEVELS & SUPPORT SYSTEMS


• INDIVIDUALINDIVIDUAL

• GROUPGROUP

• DEPARTMENTDEPARTMENT

• ORGANIZATIONORGANIZATION

• INTERORGANIZATIONINTERORGANIZATION

• ORGANIZATIONAL NETWORKORGANIZATIONAL NETWORK

**3.12



INDIVIDUAL:INDIVIDUAL:• ACTIVITY: Job, taskACTIVITY: Job, task• SUPPORT: Client database, DSSSUPPORT: Client database, DSS

GROUP:GROUP:• ACTIVITY: ProjectACTIVITY: Project• SUPPORT: Product scheduling, access to SUPPORT: Product scheduling, access to

TPS, external sources, dynamic info needs, TPS, external sources, dynamic info needs, group DSSgroup DSS

**3.13



DEPARTMENT:DEPARTMENT:• ACTIVITY: Major function ACTIVITY: Major function • SUPPORT: Accounts payable; payroll; SUPPORT: Accounts payable; payroll;

marketing; MIS; TPSmarketing; MIS; TPS

DIVISION:DIVISION:• ACTIVITY: Major product, serviceACTIVITY: Major product, service• SUPPORT: Systems to support functions; SUPPORT: Systems to support functions;

MIS; TPS; on-lineMIS; TPS; on-line

**3.14



ORGANIZATION:ORGANIZATION:

• ACTIVITY: Multiple products, ACTIVITY: Multiple products, services, goalsservices, goals

• SUPPORT: Integrated on-line, SUPPORT: Integrated on-line, interactive financial & planning interactive financial & planning systems; MIS; ESSsystems; MIS; ESS

**

3.15



INTERORGANIZATION:INTERORGANIZATION:

• ACTIVITY: Alliance; competition; ACTIVITY: Alliance; competition; exchange; contactexchange; contact

• SUPPORT: Communication systems; SUPPORT: Communication systems; intelligence, observation, monitoring intelligence, observation, monitoring systemssystems

**

3.16



ORGANIZATIONAL NETWORK:ORGANIZATIONAL NETWORK:• ACTIVITY: Sector of economy; related ACTIVITY: Sector of economy; related

products, services; products, services; interdependenciesinterdependencies

• SUPPORT: Informal communication SUPPORT: Informal communication systems; industry / sector-level systems; industry / sector-level formal reporting systemsformal reporting systems

**3.17

WORK GROUPS, PROBLEMS, SUPPORTWORK GROUPS, PROBLEMS, SUPPORT

TYPES:TYPES:

HIERARCHICALHIERARCHICAL

INTERDEPARTMENTAL COMMITTEESINTERDEPARTMENTAL COMMITTEES

PROJECT TEAMSPROJECT TEAMS

COMMITTEESCOMMITTEES

TASK FORCESTASK FORCES

PEER GROUPS / SOCIAL NETWORKSPEER GROUPS / SOCIAL NETWORKS

**3.18


PROBLEMS:PROBLEMS:

MAKING ARRANGEMENTSMAKING ARRANGEMENTS

ATTENDING MEETINGSATTENDING MEETINGS

LONG AGENDASLONG AGENDAS

COST OF MEETINGSCOST OF MEETINGS

BETWEEN-MEETING ACTIVITIESBETWEEN-MEETING ACTIVITIES

**3.19


SUPPORT:SUPPORT:

HIERARCHICAL: HIERARCHICAL: Video conferencing; Video conferencing; e-mail e-mail

INTERDEPARTMENTAL COMMITTEES: INTERDEPARTMENTAL COMMITTEES: Electronic messagingElectronic messaging

**

3.20


SUPPORT:SUPPORT:

PROJECT TEAMS: PROJECT TEAMS: Scheduling Scheduling software; Meeting support tools; software; Meeting support tools; Documents; IntranetDocuments; Intranet

COMMITTEES:COMMITTEES: e-bulletin boards; Video e-bulletin boards; Video conferencing; e-mail; Computer conferencing; e-mail; Computer conferencingconferencing

**3.21


SUPPORT:SUPPORT:

TASK FORCES:TASK FORCES: Graphics display; Info Graphics display; Info utility; Documents; Meeting support utility; Documents; Meeting support toolstools

PEAR GROUPS / SOCIAL NETWORKS:PEAR GROUPS / SOCIAL NETWORKS: Telephone; e-mail; CorrespondenceTelephone; e-mail; Correspondence

**

3.22

THE COMPUTER PACKAGETHE COMPUTER PACKAGE

• ORGANIZATION: ORGANIZATION: Senior Management; Senior Management; Major end usersMajor end users

• INFORMATION SYSTEMS DEPARTMENTINFORMATION SYSTEMS DEPARTMENT– Technology: Hardware; SoftwareTechnology: Hardware; Software– Information Systems SpecialistsInformation Systems Specialists

**

3.23

THE COMPUTER PACKAGETHE COMPUTER PACKAGE

INFORMATION SPECIALISTS: INFORMATION SPECIALISTS:

• ManagersManagers• Systems analystsSystems analysts• Systems designersSystems designers• Systems programmersSystems programmers• Applications programmersApplications programmers• Maintenance programmersMaintenance programmers• Database administratorDatabase administrator

**

3.24

WHAT SOME SPECIALISTS DOWHAT SOME SPECIALISTS DO

• PROGRAMMERS: PROGRAMMERS: Write softwareWrite software

• SYSTEMS ANALYSTS: SYSTEMS ANALYSTS: Translate Translate business problems into solutionsbusiness problems into solutions

• IS MANAGERS: IS MANAGERS: Department leadersDepartment leaders

• END USERS: END USERS: Department reps for Department reps for whom applications are developed whom applications are developed

**

3.25

SYSTEM DEVELOPMENT PROCESSSYSTEM DEVELOPMENT PROCESS

EXTERNALEXTERNAL Uncertainties UncertaintiesOpportunitiesOpportunities

INTERNALINTERNALValuesValuesNormsNormsInterestsInterests

SYSTEM DEVELOPMENTSYSTEM DEVELOPMENT Adoption Adoption Utilization Utilization Management Management

3.26

HOW INFO SYSTEMS AFFECT ORGANIZATIONS


• MICROECONOMIC THEORY: MICROECONOMIC THEORY: Info Info technology is a factor of production, technology is a factor of production, like capital & laborlike capital & labor

• TRANSACTION COST THEORY: TRANSACTION COST THEORY: Firms attempt to minimize Firms attempt to minimize transaction costs internally & transaction costs internally & externallyexternally

**VP VP VP

CEO

3.27



VP VP VP

CEO

• AGENCY THEORY: AGENCY THEORY: Firm is nexus of Firm is nexus of contracts among agents who make contracts among agents who make decisions; IS shrink number of agents & decisions; IS shrink number of agents & reduce costreduce cost

• BEHAVIORAL THEORIES: BEHAVIORAL THEORIES: Concepts from Concepts from Sociology, Psychology, Political Science; Sociology, Psychology, Political Science; Organizations & Information Technology Organizations & Information Technology mutually influence each othermutually influence each other

**3.28



• DECISION & CONTROL THEORY: DECISION & CONTROL THEORY: Decisions are made under conditions Decisions are made under conditions of risk & uncertainty; centralization & of risk & uncertainty; centralization & hierarchy reduce uncertaintyhierarchy reduce uncertainty

• SOCIOLOGICAL THEORY: SOCIOLOGICAL THEORY: Bureaucracy, SOPs help stabilize orgBureaucracy, SOPs help stabilize organizations, but slow ability to changeanizations, but slow ability to change

**VP VP VP

CEO

3.29



• POSTINDUSTRIAL THEORY:POSTINDUSTRIAL THEORY: Flatter Flatter organizations; dominated by organizations; dominated by knowledge workers; decentralized knowledge workers; decentralized decision makingdecision making

• CULTURAL THEORY: CULTURAL THEORY: Info Info technology must fit organization’s technology must fit organization’s culture to be acceptedculture to be accepted

**VP VP VP

CEO

3.30



• POLITICAL THEORY:POLITICAL THEORY: Info systems Info systems are outcome of political competition are outcome of political competition for policies, procedures, resourcesfor policies, procedures, resources

**

VP VP VP

CEO

3.31

IMPLEMENTING CHANGEIMPLEMENTING CHANGE

Source: Leavitt, Handbook of Organization (1965)

TASKTASK

PEOPLEPEOPLETECHNOLOGYTECHNOLOGY

STRUCTURESTRUCTURE

RESISTANCERESISTANCE

MUTUALMUTUALADJUSTMENTADJUSTMENT

3.32

HOW WEB AFFECTS ORGANIZATIONSHOW WEB AFFECTS ORGANIZATIONS

• MORE INFO, ANYWHERE, ANYTIMEMORE INFO, ANYWHERE, ANYTIME• MORE SCOPE, DEPTH, RANGE OF MORE SCOPE, DEPTH, RANGE OF

KNOWLEDGE: KNOWLEDGE: Global encyclopediaGlobal encyclopedia• LOWERS COST, RAISES QUALITY OF LOWERS COST, RAISES QUALITY OF

INFO DISTRIBUTION: INFO DISTRIBUTION: Enhances Enhances attention span of vendors, customers, attention span of vendors, customers, employeesemployees

**3.33


BUSINESS PROCESSES


BUSINESS PROCESSES

3.34