information technology and organizational decision making
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Information Technology and Organizational Decision Making. Chuck Davies. PREMISE. The Effects of Advanced Technologies on Organizational Design, Intelligence and Decision Making G.P Huber (1990). Contents . Traditional vs. Advanced IT Properties of Advanced IT Decision Variables Subunit - PowerPoint PPT PresentationTRANSCRIPT
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Information Technology and Organizational
Decision MakingChuck Davies
PREMISE
The Effects of Advanced Technologies on Organizational Design, Intelligence and Decision Making
G.P Huber (1990)
Contents
Traditional vs. Advanced IT Properties of Advanced IT Decision Variables Subunit Organizational Design Organizational Memory Organizational Intelligence
Traditional IT
Operating Systems Windows 7, XP, Linux Desktops “Simple” Applications- Microsoft Office, Notepad, Quick books
Advanced Technology
Basic Characteristics Data Storage: Hard drive, removable media, tapes Transmission capacity: WAN,LAN, Wireless Processing Capacity: CPU power, database
processing, memory storage
Organizational Decision Systems
Properties of Advance Technology
Task Relevant Improve overall user performance User Support in day-to-day activities
Context of the Properties
CommunicationIt allows the ability to: Communicate more easily and less expensively across time and
location Communicate more rapidly, with more precision to targeted groups Record and index more reliably an inexpensively the content of
communication More control in the group participation selectivity in the network
Decision Aiding
It facilitates the ability to: Store and retrieve large amounts of information more
quickly and inexpensively More rapidly and selectively access information created
outside the organization More rapidly and accurately combine and reconfigure
information so as to create new information More compactly store and quickly use the judgment
and decision models developed in the minds of experts More reliably and inexpensively record and retrieve
information about content and nature of organizational transactions
Impressions
It is a mistake to view advanced technology as substitutes for traditional technology?
“IT are frequently used as supplements… rather than substitutes”
Impressions cont’d
“For example, e-mail is often used to confirm with text what was said in a phone conversation”
- Virtual Companies/Enterprises
Image Transmission devices used to digitize ALREADY available images?
Drive for IT Advancement
External Competition:The need to beet competitors with rapid communication Internal Competition:In highly politicized organizations, project leaders need
task achievement, group control and coordination on demand
They may have a reputation to keep – Apple, Google
Decision Variables
Effect at the Subunit level
Proposition 1 Use of computer-assisted communication
technologies leads to a larger variety of people participating as information sources in the making of a decision
Subunit level
Proposition 2 Use of computer-assisted communication and
decision-support technologies leads to decreases in the number and variety of members comprising the traditional face-to-face decision unit
Subunit level
According to proposition 2 the unit becomes smaller, proposition 1 states it has a larger pool of contributors
Conflict?
Conflict Solution
This paradox results from having more experts specializing in certain areas
The beginnings of an Expert System
Subunit level
Proposition 3 Use of computer-assisted communication and
decision support technologies results in less of the organization’s time being absorbed by decision-related meetings
Mini-Meeting
DSS can allow analyses that provide information which can resolve disagreements about significant effects of assumptions
Allows progress to continue without adjournment and rescheduling
Mini-Meeting
DSS, email, IM, and other technology reduce the number of formal meetings
Using technology such as Google wave, IBM Lotus Domino, etc - virtual meetings
Organizational Level
Do Advancements in IT lead to more centralization or decentralization?
Answer
It decentralizes centralized organizations and centralizes decentralized organizations!
Proposition 4
For a given organization, use of computer-assisted communication and DSS leads to more uniform distribution across organizational levels
Evening the decision making ability of each level
Proposition 5
Broadened use of computer-assisted communication and DSS leads to greater variation across organizations in levels at which the particular type of decision is made
Is there a conflict with Prop 2 (smaller groups that are homogeneous)?
Diversity vs. Homogeneity
Prop 2 states the groups will be smaller and more homogeneous
Prop 5 states that the collection of these groups throughout the organization will lead to diversity at different levels as opposed to within the group
Proposition 6 & 7
Reduces the number of levels involved in authorizing proposed organizational actions
GSS actually destroys Hierarchy problems – direct access to relevant managers and stakeholders
Organizational Memory
Prop 8 – Advanced IT leads to a more reliance on databases to store data.
Improving organizational memory and transferability.Data bases are long lasting, index able, propriety
Organizational Memory
Prop 9 – easier to use advanced IT encourages the development of in-house expert systems
These are the ultimate form of labor capitalization. Decision Trees Regression Neural Networks
Organizational Intelligence
Use of Advanced IT ultimately leads to Rapid and efficient DSS.
They identify weaknesses and opportunitiesDecisions are more accurate and timely – An
example is Heart attack diagnosis Decision Trees
Questions
Thank You /end