Information Technology Reference
In-Depth Information
What role does an information system play in these processes? A traditional view of
information systems holds that organizations use them to control and monitor processes and
ensure effectiveness and efficiency. An information system can turn feedback from the sub-
systems into more meaningful information for employees. This information might summa-
rize the performance of the subsystems and be used to change how the system operates. Such
changes could involve using different raw materials (inputs), designing new assembly-line
procedures (product transformation), or developing new products and services (outputs). In
this view, the information system is external to the process and serves to monitor or control it.
A more contemporary view, however, holds that information systems are often so inti-
mately involved that they are
part of
the process itself. From this perspective, the information
system plays an integral role in the process, whether providing input, aiding product trans-
formation, or producing output. Consider a phone directory business that creates phone
books for international corporations. A corporate customer requests a phone directory listing
all steel suppliers in Western Europe. Using its information system, the directory business
can sort files to find the suppliers' names and phone numbers and organize them into an
alphabetical list. The information system itself is an integral part of this process. It does not
just monitor the process externally but works as part of the process to transform raw data
into a product. In this example, the information system turns input (names and phone num-
bers) into a salable output (a phone directory). The same system might also provide the input
(data files) and output (printed pages for the directory).
The latter view provides a new perspective on how and why businesses can use informa-
tion systems. Rather than attempting to understand information systems independent of the
organization, we consider the potential role of information systems within the process itself,
often leading to the discovery of new and better ways to accomplish the process.
Organizational Structures
Organizational structure
refers to organizational subunits and the way they relate to the
overall organization. An organization's structure depends on its goals and approach to man-
agement, and can affect how it views and uses information systems. The types of organiza-
tional structures typically include traditional, project, team, and virtual. Organizational
structure can have a direct impact on the organization's information system.
organizational structure
Organizational subunits and the
way they relate to the overall
organization.
