Question

What are the ways Information System help organizations respond to threats and opportunities present in the corporate environment?

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Answer 1

Answer:

Gallo Winery illustrates the interdependence of business environments, organizational culture, management strategy, and the development of information systems. Gallo developed a series of systems to increase service and operational efficiency in response to competitive pressures from its surrounding environment, but this systems effort could not succeed without a significant amount of organizational and management change. New information systems have changed the way Gallo and its customers run their businesses and make management decisions.

As a manager, you’ll need to know how to use information systems strategically and how systems can help you make better decisions. This chapter explains some things you need to know about the relationship between organizations, management, information systems, and business strategy. First, we introduce the features of organizations that you will need to understand when you design, build, and operate information systems. Next, we survey the role of management in organizations and to see where information systems have had an impact. Finally, we examine the problems firms face from competition and the ways in which information systems can provide competitive advantage.

Organizations and Information Systems

Information systems and organizations influence one another. Information systems are built by managers to serve the interests of the business firm. At the same time, the organization must be aware of and open to the influences of information systems to benefit from new technologies.

The interaction between information technology and organizations is complex and is influenced by many mediating factors, including the organization’s structure, standard operating procedures, politics, culture, surrounding environment, and management decisions (see Figure 3-1). As a manager, you will need to understand how information systems can change social and work life in your firm. You will not be able to design new systems successfully or understand existing systems without understanding your own business organization.