Digital+Firms

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 * Managing the Digital Firm**

**1.3 Toward the Digital Firm: the New Role of Information Systems in Organizations**

Manager cannot ignore information systems because they play such a critical role in contemporary organizations. Responsibility for systems cannot be delegated to technical decision makers.

**The Widening Scope of Information Systems** The interdependence between organizations and information systems, in contemporary systems there is a growing interdependence between organizational business strategy, rule, and procedures and the organization’s information systems. ||
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**Figure 1.4** The interdependence between organizations and information systems || ||

** The Network Revolution and the Internet ** The world’s largest and most widely used network is the **Internet**. The Internet is an International network of networks that is a collection of private and public networks. **World Wide Web** is of special interest to organizations and managers. Information is stored and displayed as electric “page” that can contain text, graphics, animations, sound, and video. All of the Web page maintained by an organization or individual are called a **Web site**.

Flattening Organization In digital firms, hierarchy and organizational levels do not disappear. But digital firms develop “optimal hierarchies” that balance the decision-making load across an organization, resulting in flatter organizations.  || || Separating Work from Location   Communications technology has eliminated distance as a factor for many types of work in many situations. Collaborative teamwork across thousands of miles has become a reality as designers work on a new product together even if they are located on different continents.
 * New Options for Organizational Design: the digital firm and the networked enterprise **
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 * Figure 1.5** Flattening organizations. Information systems can reduce the number of levels in an organization by providing managers with information to supervise larger numbers of workers and by giving lower-level employees more decision-making authority.
 * Figure 1.5** Flattening organizations. Information systems can reduce the number of levels in an organization by providing managers with information to supervise larger numbers of workers and by giving lower-level employees more decision-making authority.

Reorganizing Workflows Redesigned workflows can have a profound impact on organizational efficiency and can even lead to new organizational structures, products, and services.

Increasing Flexibility of Organizations Large organizations can use information technology to achieve some of the agility and responsiveness of small organizations. **Mass customization** is use of software and computer networks to finely control production so that products can be easily customized with no added cost for small production runs.

The Changing Management process Information technology is recasting the management process, providing powerful new capabilities to help managers plan, organize, lead, and control.

Redefining Organizational Boundaries A key feature of the emerging digital firm is the ability to conduct business across firm boundaries almost as efficiently as it can conduct business within the firm. Interorganizational systems is information system that automate the flow of information across organizational boundaries and link a company to its customers, distributors, or suppliers.

Electronic market is a marketplace that created by computer and communication technologies that link many buyers and sellers. Companies are also taking advantage of the connectivity and ease of use of Internet technology to create internal corporate networks called **intranets** that are base on Internet technology. Private intranet extended to authorized users outside the organization are called **extranets** and firm use such networks to coordinate their activities with other firm for electronic commerce and electronic business.
 * The Digital Firm: electronic commerce and electronic business **