Agatha Carissa

sites.google.com/site/agathacarissa2709/tutorial-answers/tutorial-answers/tutorial-3
1. Identify and describe the features of organizations that help explain differences in
organizations’

use of information systems.

Routines and business process: all organization become more efficient in producing goods
and services because they develop routines. Sometimes, routines is called as standard
operating procedure which means precise rules, procedures, and practices that have been
developed to cope with virtually all expected situations. As the employees learn these
routines, they can be more efficient and productive, and the firm is able to reduce its costs.
Organizational politics: people in organization occupy different positions with different
specialties, concerns, and perspectives. Therefore, they have different viewpoints about how
resources, rewards, and punishments should be distributed. This can lead into political
struggle for resources, competition, and conflict within every organization. Political resistance
greatly hampers organizational change. By using information system, managers can bring
significant changes in strategy, business objectives, business processes, and procedures
become politically charged events.
Organization culture: all organization have bedrock, unassailable, unquestioned assumptions
that define their goals and products. Organization culture encompasses this set of assumptions
about what products the organization should produce, how it should produce them, where,
and for whom. Organization culture is a powerful restraint on change, especially technological
change. However, there is time when the only sensible way for a firm to more forward is to
employ a new technology that directly opposes an existing organization culture.
Organization environment: organization and environment have a reciprocal relationship.
However, Organizations are open to, dependent on, the social and physical environment.
Organizations can influence their environment and generally, environments change faster than
organization. So, information system can be an instrument of environmental scanning, act as a
lens.
Organization structure: there are five basic kinds of organization structure such as
entrepreneurial, machine bureaucracy, divisionalized bureaucracy, professional bureaucracy,
and adhocracy (Mintzberg, 1979). The kind of information systems you find in a business
firm and the nature of problems with these systems often reflects the type of organizational
structure. Furthermore, there are many other features of organization such as goals,
constituencies, leadership style, tasks and surrounding environments.

2. Describe the impact of the Internet and disruptive technologies on organizations.

Internet: it has an important impact on the relationships between many firms, external
entities, and even for internal. Internet increases the accessibility, storage, and distribution of
information and knowledge for organization. Then, internet is capable to lowering the
transaction cost (cost of participating in market such as vertical integration, hiring more
employees, and buying suppliers and distributions) and agency cost (cost of managing and
supervising which rise as firms grow). For example, a global sales force can receive instant
product price information updates using the web or instruction from management sent by E-
mail.
Disruptive technology: it is technology that brings about sweeping change to business,
industry, and market. It is called disruptive technology because this is substitute product that
performs well compared with currently produced. Disruptive technologies simply extended
the market with less functionality and much less cost, than existing product. So, the impact of
disruptive technology is existing company should learn and adapt faster with the new
1/3
 technology if they do not want to lose because their products, services, and business model
become obsolete.

3. Define Porter’s competitive forces model and explain how it works.

Porter’s competitive forces model is defined as a model that used for understanding
competitive advantage about the firm and its general business environment. In here, this
model provides a general view of the firm, its competitors, and its environments such as new
market entrants, substitute products, suppliers, and customers.

Competitors: All firms share market space with other competitors who are
continuously devising new, more efficient ways to produce by introducing new
products and services, and attempting to attract customers by developing their
brands and imposing switching costs on their customers.
New market entrants: In free market economy with mobile labor and financial
resources, new companies can entry the industry. Some industries have low
barriers to entry like fast food business and some have high barriers to entry like
automobile business. These new entrants have advantages such as hiring younger
workers who are less expensive and perhaps more innovative. However, these
new entrants have less-experienced workforce and little brand recognition.
Substitute products and services: There are many substitutes that you customers
might use if your price is high. New technology creates new substitute all the
time. For example, iPod has changed CD player. The more substitute products
and services in your industry, the less you can control pricing and the lower your
profit margin.
Customers: is also the one of the competitive force, almost many companies
depend in large measure on its ability to attract and retain customers, and charge
high prices.
Suppliers: can have the significant impact on firm profits, especially when the
firm cannot raise the price as fast as suppliers. The more different suppliers a
firm has, the greater control it can exercise over suppliers in terms of price,
quality, and delivery schedule.

4. Describe how information systems can support each of these competitive strategies and
give examples.

Low-cost leadership: it produces products and services at lower prices than competitors
2/3
 and enhancing quality and level of service.

For example: Walmart is using a legendary inventory replenishment system to keep

prices low and shelves stock well. Because of this system, Walmart does not need to
spend much money on maintaining large inventories of goods in its own warehouse.

Product differentiation: information system is used for enabling new products and
services, greatly change the customers convenience in using your existing products and
services.

Focus on market niche: use information system to enable a specific market focus and
serve this narrow target market better than competitors. In here, information system
support in analyzing data for finely tuned sales, marketing techniques, and customer
buying patterns, tastes, and preferences. So, they can efficiently pitch advertising and
marketing campaigns to smaller and smaller target markets.

For example: Hilton Hotels, they analyze customer’s data to determine the preferences
of each guest and each guest’s profitability.

Strengthen customer and supplier intimacy, information system is used to tighten

linkages with suppliers and develop intimacy with customers.

For example: Chrysler Corporation, they use the information system to facilitate direct
access by suppliers to production schedules and permits suppliers to decide how and
when to ship supplies.

3/3