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Organization theory and design: Lecture 18 provides students with content about: information technology and knowledge management; e-commerce; inter-organizational relationships; IT impact on organizational design;... Please refer to the lesson for details!
18 Information Technology and Knowledge Management E-Commerce • • • • • • • Examples: Virtual libraries, universities, buying and selling houses E-commerce is a broad term which means any commercial activity that takes place by digital processes over a computer network E-commerce and other advances in IT are having a significant impact on organizational design Example of virtual teams where people around the globe participate through computer networks A growing trend is for companies to limit themselves to only a few activities that they extremely well and left outside specialists handle the rest This a Network Organization Structure, a company subcontracts most of its major functions to separate companies and coordinates their activities from small HQ organization It is a horizontal structure Its major strategic advantage is that the organization, no matter how wall, can be truly global Inter-organizational Relationships Traditional Relationships Suppliers at arm’s length Use of telephones, mail, some EDI for ordering Limited communication with customers and vice versa Emerging Relationships Interactive electronic relations Electronic ordering, invoicing, payments Direct lines open between customer and manufacturer, real time information exchange Electronic access to product information, customer rating, customer service data IT Impact on Organizational Design Smaller organizations Decentralized structures Improved internal and external coordination Additional professional staff and departments Greater employee participation ... they extremely well and left outside specialists handle the rest This a Network Organization Structure, a company subcontracts most of its major functions to separate companies and coordinates their... service data IT Impact on Organizational Design Smaller organizations Decentralized structures Improved internal and external coordination Additional professional staff and departments Greater... activities from small HQ organization It is a horizontal structure Its major strategic advantage is that the organization, no matter how wall, can be truly global Inter-organizational Relationships