COMMERCE 2KA3 Lecture Notes - Lecture 3: Mass Customization, Marginal Cost, Product Differentiation

• School: McMaster University
• Department: Commerce
• Course: COMMERCE 2KA3
• Professor: Ali Montazemi

Document Summary

There is a 2 way relationship between organization and information technology. Stable, formal social structure that takes resources from environment and processes them to produce outputs. A formal legal entity with internal rules and procedures as well as a social culture inputs from environment > production process (organization) > outputs to the environment. A collection of rights, privileges and obligation and responsibilities that is delicately balanced over a period of time though con ict and con ict resolution environmental resources > structure and processes (formal organization) > environmental output. Structure: hierarchy, division of labor, rules and procedures, business processes, culture. Process: rights/ obligations, privileges/ responsibilities, values, norms, people. Technical view: how inputs are combined to create outputs when technology changes are introduced. Behavioural view: information systems could change the organizational balance of rights, obligations and responsibilities. Precise rules, procedures and practices developed to cope with virtually all expected situations.