Organizations and

Information Systems
Learning Outcomes
By the end of this lesson, you will be able to:
Identify features of organizations to build and use information systems
Explain the impact of information systems on organizations
Through an exercise describe how companies can use information systems to
help make improved decisions about their customers
Business strategy and Information Systems(IS)

Information systems:
• add purposeful value
• influence managers and organizations
• enhance business strategies and operations
• create more efficiency and effectiveness
Organizations and Information Systems
Introducing or upgrading information systems may:
• modify and disrupt existing setup of an organization
structure
Culture
Business processes
• create resistance among internal and external stakeholders
• potentially affect various organization’s tasks, structures and people
Impact of information systems
Economic Impact
Information system reduce transaction costs and agency costs.
Organizational Impact
Flattens organizations. Why?
What management, organization, and technology issues would you consider if you wanted to move
from a traditional bureaucracy to a flatter organization?
Internet and organizations
The Internet increases the accessibility, storage, and distribution of information and knowledge for
organizations.
The Internet can greatly lower transaction and agency costs.
Class activity and participation exercise
FoodPanda seems to be popular among customers for its competitive prices.
However, management wants to figure out other ways in which to attract and
retain customers.
Are customers concerned about customer service, meal deals, variety of options
or something else? How can FoodPanda use information systems to help find
answers? What management decisions could be made using information of these
systems?
Discuss with your group for 20-25 minutes and submit your answer on paper
(mention group member names, id, section and date, week)