Impact of Information Systems on Organizations

A set of flashcards based on key concepts from the lecture notes on the impact of information systems on organizations.

Organization

A stable, formal social structure that takes resources from the environment and processes them to produce outputs.

Technical Definition of an Organization

Formal social structure that processes resources from the environment to produce outputs.

Behavioral Definition of an Organization

A collection of rights, privileges, obligations, and responsibilities that are balanced over time through conflict and resolution.

Economic Impact of Information Systems

Information systems technology affects the cost and quality of information and changes the economics of information.

Transaction Cost Theory

Firms and individuals economize on transaction costs, influencing decisions on whether to use internal or external resources.

Agency Theory

Suggests that IS/IT enables firms to reduce management costs while increasing revenues by making it easier to supervise employees.

Routines

Standard operating procedures developed to cope with expected situations, improving productivity and efficiency.

Business Processes

Collections of routines that define how tasks are completed within an organization.

Organizational Politics

Divergent viewpoints about resource distribution that lead to political struggles and conflicts within an organization.

Organizational Culture

The set of assumptions about what products to produce, how to produce them, and for whom, which can resist change.

Impacts of Information Systems

Information systems influence organizations economically and behaviorally, affecting structure, decision-making, and processes.

Sustaining Competitive Advantage

Challenges in maintaining advantages gained through strategic IS due to rapid technological and market changes.

Intangible Benefits

Benefits that cannot be immediately quantified but may lead to quantifiable gains later, such as enhanced decision-making.

Tangible Benefits

Benefits that can be quantified and assigned monetary value, such as increased productivity and lower operational costs.