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 systems 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
 As freshmen students, you have recently transitioned from school
to university environment.
1. As an organization, what are possible structure, culture,
business processes of a school?
2. What could be transaction and agency costs schools face and
how can IS help reduce them?
3. In what ways can IS and IT help flatten hierarchies in this type of
organization.

Discuss with your group for 20-25 minutes and submit your answer
on paper (mention group member names, id, section and date, week)