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Chapter 3 Information Systems, Organizations, and Strategy 111

3.1 ORGANIZATIONS AND INFORMATION SYSTEMS

I nformation systems and organizations influence one another. Information
systems are built by managers to serve the interests of the business firm.
At the same time, the organization must be aware of and open to the
influences of information systems to benefit from new technologies.
The interaction between information technology and organizations is
complex and is influenced by many mediating factors, including the organiza-
tion’s structure, business processes, politics, culture, surrounding environment,
and management decisions (see Figure 3.1). You will need to understand how
information systems can change social and work life in your firm. You will
not be able to design new systems successfully or understand existing systems
without understanding your own business organization.

FIGURE 3.1 THE TWO-WAY RELATIONSHIP BETWEEN ORGANIZATIONS
AND INFORMATION TECHNOLOGY

This complex two-way relationship is mediated by many factors, not the least of which are the
decisions made—or not made—by managers. Other factors mediating the relationship include the
organizational culture, structure, politics, business processes, and environment.

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