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By,Afsal A A

Faisal HSagar P SVipin G Das

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Information SystemyAn Information system is a set of organizational

procedures that, when executed, provides information tosupport the organization in decision making.

y Information is a tangible or intangible entity that servesto reduce uncertainty about some state or event.

yAnOrganization is a rational coordination of activities

of a group of people for the purpose of achieving somegoal.

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Impact of Information Systemy Uncertainty: One of the major variables influencing

organizational activities is uncertainty. A properinformation system helps to reduce uncertainty.

y Specialization: The information service department ishighly specialized and requires a level of technologicalproficiency on the part of its staff.

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Impact of I S .contdy Coordination: When there is specialization, one task

of management is to coordinate the diverse specialties.

So that the goals of organization are achieved.y Interdependence: The information system will sub

connect different departments n such a way that theorganization depend on each other.

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Impact of I S .contdy Flexibility: Flexibility is the ability to adopt when

confronted with ne circumstances. A good information

system creates more flexibility in the organization, bydefend against threats and moves rapidly to takeadvantage of opportunities.

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Creating new types of organizations

y Information technology has often been used toreinforce existing organizational structures.

yA more exciting role for IT is to create a new type oforganizations. Like:

Type 1 Virtual Organizations

Type 2 Negotiated Agreement Organizations

Type 3 Traditional Organizations withElectronic Components

Type 4 Electronic Conglomerates

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1. Virtual Organizations

yOrganizations have no recognizable structures.They are created as adhoc agreements amongthe party.

2. Negotiated Agreement

Organizations

Organizations are created through negotiableagreements and electronic communications.

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3. Traditional Organizations with

Electronic ComponentsyCloser to a notion of traditional organizations.It has substituted electronic components for

more familiar parts of the organization.

4. Electronic conglomerates

Here a firm extends its influence and possibledominance through electronics withoutadding to its own organization.

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Changes in Organization Strategies

yAc r rati ca c a e its strate iesra atically y eci i a c eti

alter atives f r e ve t res.

y evels f i te rati f I i Or a izatitrate ies:

Levels Primary Objective Secondary Effect

Independent Operational Efficiency Managerial informationPolicyFormulation

Aid repetitive decisionmaking

Better understanding of problemdynamics

PolicyExecution

Offer new products,markets, directions.

Change the decision makingprocess, alternatives considered

and evaluation criteria.

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Some generic strategies1. Low cost production

2. Product differentiation

3. Focus on market niche4. Technological incorporation on products and

services

5. Technological tie ups with other organization

6. Changes in organizational functioning

7. Integrate technology for future development(R&D)

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Thank you