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Chapter 3
Organizational Impacts of
Information System Use
Managing and Using Information Systems: A
Strategic Approach
by Keri Pearlson & Carol Saunders
Copyright 2006 John Wiley & Sons, Inc. 2
IT Impacts Organizations
• Real World Examples
– Diamon d Technology Partners (DTP) - Intense use of
computers, shared data, extensive electronic
communications foster high levels of interaction &
fluid, highly adaptable work arrangements
– Mrs. Fields - IS focused on sales skills, not simply
production
• IS is fundamental to the way these companies
are organized to do business
• IS helps leverage human resources, capital and
materials, ie the managerial levers
• Most organizations recognize the need to
become “Information Age” organizations
Copyright 2006 John Wiley & Sons, Inc. 3
IT As Enabler
• IT enhances the way managers thru collection,
communication & evaluation processes
–Monitor: IS makes possible new ways to track
performance and behavior
–Evaluate: models are easily built, making it easier to
understand progress and performanc e
–Provide Feedback: IS makes rapid feedback
possible (e.g., through electronic for ms)
–Compensate & Reward: team-based efforts can be
evaluated and complex formulas used
–Control Processes: IS also used extensively in
industrial processes, and makes it easier to collect,
analyze and move information
