Organizational Structure Using Information Systems

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An organization can utilize information systems as an integral part of the company to gain an advantage over large competitors in the real world. It involves implementing strategies with Organizational structure including decision rights, reporting relationships, and informal networks like social media. The association between information systems innovation and firm is complex and is impacted by numerous factors, for example, the firm structure, business forms, governmental issues, culture, and executives’ choices (Hill, 2019). We must see how information systems can change social and work life in the firm and we won’t almost certainly plan new systems effectively or comprehend existing systems without understanding the business association. This assumes an incredibly critical job in the association’s prosperity.

How Information Systems (IS) impact Organizations

First and foremost, Organizational structure is the key to the success of the company by utilizing technology trends to gain a competitive advantage. For example, the two largest airlines cargos in the United States are American and United Airlines, which make use of information systems strategies to implement the right structure and decisions. They have both used complex technology that has a robust customer range to book their reservations using air travel ticketing. Whereas existing airlines or competitors like Frontier couldn’t able to achieve the same success since they relied majorly on reservations technology owned by major competitors. The cost involved to build such systems involves a corporate strategy (Vitale, 2016) and custom build and satisfaction.

The use of the Networks concept in information technology offers several advantages in cost-cutting their resources and offering contracts with external vendors. This will solve the problem of handling the production costs and minimize transaction costs. It also aids in shrinking the employee size of the company and gives freedom to think about other factors in the business. For example, Dell Inc outsourced its production to contract vendors who can manufacture and deliver the products in time. This saves a lot of effort and energy for the company and it’s one of the keys to the company’s success (Vitale, 1986)

Reporting Relationships

Most of the company’s technological decisions depend on Managerial decisions that flip the coin effectively, by saying that one can take advantage of the Information Systems (IS) and achieve company’s success at a fast-paced or fall rapidly when decisions are not applied correctly using IS technology. There might be a chance of gaining success without IS but that comes only with luck.

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In addition, reporting relationships must be clear so all individuals from the association comprehend what their obligations are and know to whom they are responsible; otherwise, duty regarding an errand may become lost despite a general sense of vigilance. These reasonable relationships make it simpler for managers to oversee those in lower association levels. Every employee benefits by knowing whom they can go to for direction or help. Moreover, Managers know about who is outside the extent of their power, so they don’t exceed their limits and meddle with other Manager’s duties (Hill, 2019).

Informal Networks

The use of informal networks like social networking gives a boost to the company’s success and is a critical part of communication apart from the official collaboration. There are greater benefits to connecting with colleagues offline, having conversations effectively, sharing ideas about projects, building good relationships among the team, and getting support from other colleagues or co-workers. Social networking acts as the backbone of communication for conversations outside of an enterprise. It also provides the advantage of having information stored or presented to all employees when outside the Organizational structure.

As a good example (Pearlson, Saunders, & Galletta, 2015), IBM has a genuine case of how a social network penetrates an association, changing its way of life, structure, and cooperation forms. With more than 400,000 workers, the organization has a whirlwind of social movement epitomized by more than 17,000 individual online journals, 1 million daily hits of internal wikis and Web sites, and 400,000 representative profiles on IBM Connections. Its social network enables workers to share announcements, team up on internal systems, and share documents. There have been 15 million downloads of workers-created recordings and digital broadcasts up until now.

Conclusion

To sum up, Information technology strategies play a big role in achieving a company’s goals by connecting business processes with Organizational structure. For the given example IBM employees have utilized IBM connections to interact both internally and externally. However, this is just a version of how IS can be utilized effectively.

References

  1. Hill, B. (2019, March 07). The Importance of a Good Organizational Structure. Retrieved from Chron: https://smallbusiness.chron.com/importance-good-organizational-structure-3792.html
  2. Pearlson, K. E., Saunders, C. S., & Galletta, D. F. (2015). Managing and using information systems: a strategic approach. Hoboken, NJ: John Wiley & Sons, Inc.
  3. Vitale, M.R., Ives, B., & Beath, C.M. (1986). Linking Information Technology and Corporate Strategy: An Organizational View. ICIS Proceedings. Paper 30. http://aisel.aisnet.org/icis1986/30
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