Chapter 3

Information Systems, Organizations, and Business Processes

Chapter 32

The Relationship Between Organizations and Information

Systems• Undeniable that information systems have

contributed to organizational efficiency and effectiveness, but the exact of their relationship is a source of vigorous debate.

• The Two-Way Relationship– They have mutual influence on each other.– Information systems provide information needed by

important groups within the org.– Org. must be influenced by IS to benefit from new tech.– The relationship between the two include org’s structure,

standard operating procedures, (cont.)

Chapter 33

The Relationship Between Organizations and Information

Systems– (cont.) politics, culture, surrounding environment, and

management decisions.– Managers and organizations choose how they will be

impacted by IT.– Sometimes outcomes are result of pure chance and of

both good and bad luck.

• What is an Organization?– (technical) Organization is a stable, formal social

structure that takes resources from the environment and processes them to produce outputs.

– The org transforms inputs into products and services

Chapter 34

The Relationship Between Organizations and Information

Systems– (behavioral) Organization is a collection of

rights, privileges, obligations, and responsibilities that are delicately balanced over time through conflict and conflict resolution.

– The technical definition tells how the firms in competitive markets combine capital, labor, and information technology.

– The behavioral definition takes us inside the individual firm to see how specific firms use capital and labor to produce outputs.