Lecture 0
1. Organizations
Definition of an organization:
o Social entity: people and their relationships
o Goal-directed: purpose and shared goals to achieve
o Structured/coordinated activity system: Coordinated activities to
reach the goals.
o Linked to external environment: Partners, customers, providers
Types of organizations:
o Size
o Products vs. service – production or advice
o Age/maturity
o Local/global
o Sector
2. Organizations are systems
Systems definitions:
A regularly interacting or interdependent group of items forming a unified whole,
surrounded and influenced by an environment.
Closed systems perspective:
- Exclusive focus upon organisation
- Minimal consideration to the environment
- Sealed of from the outside world
- Old-fashioned view of organisations
Open systems perspective:
- Organization is connected to its environment
- The structure should manage these interactions
- Takes in inputs and produces outputs
Strategic business objectives:
- O1: Operational excellence
- O2: New products services and business models
- O3: Customer and supplier intimacy
- O4: Improved decision making
- O5: Competitive advantage
- O6: Survival
Lecture 1
,1.Information systems in business today
- Emerging mobile digital platform
- Growing business use of big data
- Growth in cloud computing
ICT capital investment, defined as the acquisition of hardware software and
communications equipment, that is used in production for more than one year.
2. New technology and impact on business
- Dunning-Kruger effect:
The Dunning-Kruger effect is a cognitive bias where people with low ability in a
task overestimate their competence, while those with high ability tend to
underestimate their expertise.
3. New in ICT for organizations
- ICT innovations – GMAIL, Dropbox
- New business models – Google Store, Apple Store
- Expansion of e-commerce – AliExpress, Amazon
- Changes in management – Skype, Teams
- Changes in firms
4. Perspectives on information systems
Information system
- Set of interrelated components that collect, process, store and distribute
information to support decision-making, coordination and control.
Three activities of information systems produce information that organisations
need:
1. Input: Captures raw data from organisation or external environment
2. Processing: Converts raw data into meaningful form
3. Output: Transfers processed information to people or activities that use
it
Data vs. Information
- Data: Streams of raw facts, codified perceptions of world phenomena.
- Information: Data shaped into meaningful form, typically with a purpose.
,Main take-aways Lecture 0 & 1:
Organisations consist of a coordinated set of people. But
they differ significantly one from another!
You cannot study organisations by looking only at their internal
functioning.
Main take-aways Lecture 2:
ICT is a key enabler of organisational transformation
ICT is a strategic asset for organisations
ICT and its relationships with organisations are always evolving
ICT investment does not necessarily guarantee return on investment
Information systems collect, process, store and distribute information to
support decision making, coordination and control
Lecture 2
Organisational Configuration – Mintzberg’s Theory
Every organisation has five parts, which are highly interrelated in practice:
1. Technical Core – Support staff who do the basic work of the organisation.
o Relates to the production subsystem.
2. Technical Support – Engineers and researchers seeking problems,
opportunities, and technological innovation.
o Includes R&D departments, marketing research, and IT
department.
3. Administrative Support – Ensures smooth operation and upkeep of the
organisation.
o Recruiting and hiring
o Establishing compensation and benefits
o Employee training and development
o Maintenance activities such as:
Cleaning of buildings
Repair of machines
4. Top Management – Responsible for direction, strategy, goals, and
policy for the entire organisation.
5. Middle Management – Implements and coordinates at the departmental
level.
o Mediates between top management and technical core.
, Dimensions of Organisation Design
Structural Dimensions
Labels that distinguish key internal characteristics of an organisation:
Formalisation – The extent to which rules, procedures, and policies
are documented and enforced.
Specialisation – The degree to which tasks are divided into specific
jobs or roles.
Hierarchy of Authority – The distribution of decision-making power.
Centralisation – Determined by the hierarchical level that has
authority to decide.
Professionalism – The level of formal education and training of
employees.
Personnel Ratios – The deployment of people to various functions
and departments.
Contextual Dimensions
Internal and external factors influencing organisational structure:
1. Size – Number of employees or scale of operations.
2. Technology – Tools, processes, and systems used to produce goods
and services.
3. Environment – External forces such as competition, regulations, and
market dynamics.
4. Goals and Strategy – The organisation’s purpose, vision, and plan to
achieve objectives.
5. Culture – The values, beliefs, and behaviours that define the
organisation’s identity.
Example:
A large organisation with routine technology and a stable environment →
Great formalisation, specialisation, and centralisation.
Thus, structural and contextual dimensions differ per organisation and
influence each other.
1. Organizations
Definition of an organization:
o Social entity: people and their relationships
o Goal-directed: purpose and shared goals to achieve
o Structured/coordinated activity system: Coordinated activities to
reach the goals.
o Linked to external environment: Partners, customers, providers
Types of organizations:
o Size
o Products vs. service – production or advice
o Age/maturity
o Local/global
o Sector
2. Organizations are systems
Systems definitions:
A regularly interacting or interdependent group of items forming a unified whole,
surrounded and influenced by an environment.
Closed systems perspective:
- Exclusive focus upon organisation
- Minimal consideration to the environment
- Sealed of from the outside world
- Old-fashioned view of organisations
Open systems perspective:
- Organization is connected to its environment
- The structure should manage these interactions
- Takes in inputs and produces outputs
Strategic business objectives:
- O1: Operational excellence
- O2: New products services and business models
- O3: Customer and supplier intimacy
- O4: Improved decision making
- O5: Competitive advantage
- O6: Survival
Lecture 1
,1.Information systems in business today
- Emerging mobile digital platform
- Growing business use of big data
- Growth in cloud computing
ICT capital investment, defined as the acquisition of hardware software and
communications equipment, that is used in production for more than one year.
2. New technology and impact on business
- Dunning-Kruger effect:
The Dunning-Kruger effect is a cognitive bias where people with low ability in a
task overestimate their competence, while those with high ability tend to
underestimate their expertise.
3. New in ICT for organizations
- ICT innovations – GMAIL, Dropbox
- New business models – Google Store, Apple Store
- Expansion of e-commerce – AliExpress, Amazon
- Changes in management – Skype, Teams
- Changes in firms
4. Perspectives on information systems
Information system
- Set of interrelated components that collect, process, store and distribute
information to support decision-making, coordination and control.
Three activities of information systems produce information that organisations
need:
1. Input: Captures raw data from organisation or external environment
2. Processing: Converts raw data into meaningful form
3. Output: Transfers processed information to people or activities that use
it
Data vs. Information
- Data: Streams of raw facts, codified perceptions of world phenomena.
- Information: Data shaped into meaningful form, typically with a purpose.
,Main take-aways Lecture 0 & 1:
Organisations consist of a coordinated set of people. But
they differ significantly one from another!
You cannot study organisations by looking only at their internal
functioning.
Main take-aways Lecture 2:
ICT is a key enabler of organisational transformation
ICT is a strategic asset for organisations
ICT and its relationships with organisations are always evolving
ICT investment does not necessarily guarantee return on investment
Information systems collect, process, store and distribute information to
support decision making, coordination and control
Lecture 2
Organisational Configuration – Mintzberg’s Theory
Every organisation has five parts, which are highly interrelated in practice:
1. Technical Core – Support staff who do the basic work of the organisation.
o Relates to the production subsystem.
2. Technical Support – Engineers and researchers seeking problems,
opportunities, and technological innovation.
o Includes R&D departments, marketing research, and IT
department.
3. Administrative Support – Ensures smooth operation and upkeep of the
organisation.
o Recruiting and hiring
o Establishing compensation and benefits
o Employee training and development
o Maintenance activities such as:
Cleaning of buildings
Repair of machines
4. Top Management – Responsible for direction, strategy, goals, and
policy for the entire organisation.
5. Middle Management – Implements and coordinates at the departmental
level.
o Mediates between top management and technical core.
, Dimensions of Organisation Design
Structural Dimensions
Labels that distinguish key internal characteristics of an organisation:
Formalisation – The extent to which rules, procedures, and policies
are documented and enforced.
Specialisation – The degree to which tasks are divided into specific
jobs or roles.
Hierarchy of Authority – The distribution of decision-making power.
Centralisation – Determined by the hierarchical level that has
authority to decide.
Professionalism – The level of formal education and training of
employees.
Personnel Ratios – The deployment of people to various functions
and departments.
Contextual Dimensions
Internal and external factors influencing organisational structure:
1. Size – Number of employees or scale of operations.
2. Technology – Tools, processes, and systems used to produce goods
and services.
3. Environment – External forces such as competition, regulations, and
market dynamics.
4. Goals and Strategy – The organisation’s purpose, vision, and plan to
achieve objectives.
5. Culture – The values, beliefs, and behaviours that define the
organisation’s identity.
Example:
A large organisation with routine technology and a stable environment →
Great formalisation, specialisation, and centralisation.
Thus, structural and contextual dimensions differ per organisation and
influence each other.
