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28 Cards in this Set
- Front
- Back
Technical definition of an Organization
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stable, formal social structure that takes resources from the environment & processes them to produce outputs; uses capital & labor to create outputs & value
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Behavioural definition of an Organization
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a collection of rights, privileges, obligations & responsibilities that is delicately balanced over a period of time through conflict & conflict resolution
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Features of Organizations
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1. Routines & Business Procedures
2. Organizational Politics 3. Organizational Culture 4. Organizational Environment 5. Organizational Structure 6. Other Organizational Features |
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Routines
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Standard Operating Procedures
- precise rules, procedures & practices developed to cope with virtually all expected situations |
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Business Processes
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Collection of routines
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Business Firm
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Collection of business processes
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Organizational Politics
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Divergent viewpoints lead to political struggle, competition & conflict
Not bad but can lead to resistance |
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Organizational Culture
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Encompasses a set of assumptions that define goals & products
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Organizational Environments
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- organizations & environments have a reciprocal relationship
- organizations are open to & dependent on the social & physical environment - organizations can influence their environments - environments generally change faster than organizations - information systems can be instruments of environmental scanning, act as a lens |
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Disruptive Technologies
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technology that brings about sweeping change to business, industries, markets
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First Movers
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inventors of disruptive technologies
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Fast Followers
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firms with the size & resources to capitalize on that technology
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IS Impacts on Organizations
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1. Economic Impacts
2. Organizational & Behavioral Impacts 3. The Internet & Organizations 4. Implications for the design & understanding of informational systems |
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Economic Impacts
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- IT changes relative costs of capital & costs of information
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Transaction Cost Theory
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-Firms seek to economize on cost of participating in markets
-IT lowers market transaction costs for firm, making it worthwhile for firms to transact with other firms rather than grow the number of employees |
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Agency Theory
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-Firm is web of contracts among self-interested parties requiring supervision
-firms experience agency costs, which rise as the firms grow -IT can reduce agency costs, making it possible for firms to grow without adding to the costs of supervising & without additional employees |
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Internet & Costs
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Internet can greatly lower transaction and agency costs
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Porter's 5 Forces Model
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1. Traditional competitors
2. New market entrants 3. Substitute products & services 4. Customers 5. Suppliers |
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IS Strategies to Deal with Forces Model
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1. Low-cost Leadership
2. Product Differentiation 3. Focus on Market Niche 4. Strengthen customer & supplier intimacy |
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Business Value Chain Model
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- View firms as series of activities that add value to products or services
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Synergies
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When output of some units used as inputs to others, or organizations pool markets & expertise
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Core Competencies
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Activity for which firm is world-class leader, relies on knowledge, experience, & sharing this across business units
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Network-based Strategies
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Take advantage of firm's abilities to network with each other
- network economics - virtual company model - business ecosystems |
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Virtual Organization Model
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Uses networks to ally with other companies to create & distribute products without being limited by traditional organizational boundaries or physical locations (AMAZON)
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Business Ecosystems
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Industry sets of firms providing related services & products
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Keystone Firms
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Dominate ecosystem & create platforms used by other firms
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Niche Firms
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Rely on platforms developed by keystone firms
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Using IS for Competitive Advantage
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1. Sustaining competitive advantage
2. Aligning IT with Business Objectives 3. Managing strategic transitions |