We now can look more closely at the two-way relationship between information systems and organizations. We first need to explain how organizations affect technology and systems. Organizations have an impact on information systems through the decisions made by managers and employees. Managers make decisions about the design of systems: they also use information technology. Managers decide who will build and operate systems, and ultimately managers provide the rationale for building systems.
There are four important questions to consider in studying this issue.
O How have organizations actually used information systems?
O How has the organizational role of information systems changed?
O Who operates information systems?
O Why do organizations adopt information systems in the first place?
Decisions About the Role of Information Systems
Organizations have a direct impact on information technology by making decisions about how the technology will be used and what role it will play in the organizations. Chapter 1 and 2 described the ever widening role of information systems in organizations. Supporting this changing role have been changes in the technical and organizational configuration of system that have brought computing power and data much closer to the ultimate end users.
Decisions about the Computer Package:
Who Delivers Information Technology Services?
A second way in which organizations affect information technology is through decisions about who will design, build, and operate the technology within the organization. Information systems require a package of services, organizations, and people specialized organizational subunits, information specialists, and a host of other supportive groups. Managers make the key decisions about the computer package: These decisions determine how technology serves will be delivered, and by whom, how, and when.
- Information systems department: The formal organizational unit that is responsible for the information systems functions in the organization.
- Programmers: Highly trained technical specialists who write computer software instructions.
- Information Systems Managers: Leaders of the various specialists in the information systems department.
- End Users: Representatives of departments outside the information systems group for whom information systems application are developed.
Decisions About Why Information Systems Are Built
Managers provide the public and private rationales for building information systems. Managers can choose to use systems primarily to achieve economies, or to provide better service, or to provide a better workplace. The impact of computers in any organization depends in part on how managers make decisions. Environmental factors: Factors external to the organization that influence the adoption and design of information systems.
Institutional factors: Factors internal to the organization that influence the adoption and design of information systems. They include values, norms, and vital interests that govern matters of strategic importance to the organization. For instance, the top management of corporation can decide that it needs to exercise much stronger control over the inventory process and therefore decides to develop an inventory information system.