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What is the impact of information systems on organizations?

Information systems have a greater impact on an organization. It may be affected in several ways. Let’s see-

  1. Economic impact
  • From an economic point of view, there are three types of changes we can see.
  • The relative cost of capital and the cost of information are changed by IT.
  • IT is viewed as a factor of production which can be substituted for traditional capital and labor
  • IT also affect the cost and quality of the information.
  1. Organization and behavioral impacts
  • IT flattens organizations

Now, most of the decision making done by lower levels. There is no need for many managers. Only fewer managers can do this .having technological development, large organizations are reducing their employees and number of business levels. The managers are received accurate information on time.  They are going faster than previous at making their decision. Management costs are declining day by day. The percentage of revenues and hierarchy becomes more efficient.

  • Postindustrial organizations are based on history and sociology. In the postindustrial period, managers are chosen by competencies, skills, knowledge, and experience. The professional workers are much more decentralized, self-managing in their decision making. Task force networked is done by workers. They meet face to face to do specific work. After completing one work, they move to the next work.
  • Understanding organizational resistance to change

Sometimes, Organizations are affected by organizational politics. Because, it can influence the key resources like who does what to whom, where, when, why, how etc. one can visualize the organizational resistance. There are four factors that suggest innovating the organization.

  1. The nature of the IT innovation
  2. The structure of the organizations
  3. The culture of the organization
  4. Tasks impacted by the innovation

Moreover, organizational task management, structure, and people influenced by technology. In this model, you need to change the technology, structure, people, procedures, tasks, and management. Organizational resistance is very hard to change. Because it is so powerful.

  • The internet and organizations

The internet increases some factors like the accessibility, storage, and distribution of information and knowledge for organizations. The internet can greatly lower costs. Businesses are growing rapidly because of access to internet technology. It is a key component of the business infrastructures. Now, organizations enjoy lower costs, fewer employees, better production and efficiency.

  • Implications for the design and understanding of information systems

If you want to deliver real benefits to the organization, you must build information systems. Which is important for understanding the clear information of the organization. There exist some factors which are important for planning a new system.

  1. Organizational environment
  2. Structure of the organization like hierarchy, specialization, the division of labor, routines, rules and regulations and business processes.
  3. Organizational culture and politics
  4. The types of organizations
  5. The style of the leadership
  6. Who are the principal interest groups?
  7. Attitudes of the workers
  8. Under which situation information system is designed to assist.

So here we learn about the impact of information technology on an organization. Hope, we understand it.

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