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Managing and Using Information System by Carol S. Saunders, Keri E. Pearlson

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ORGANIZATIONAL STRATEGY AND INFORMATION SYSTEMS

In order for Information Systems to support an organization in achieving its goals, they must reflect the business strategy and be coordinated with the organizational strategy. This chapter focuses on linking and coordinating the IS strategy with the three components of organizational strategy:

  • organizational design (decision rights, formal reporting relationships and structure, informal networks)
  • management control systems (planning, data collection, performance measurement, evaluation, incentives, and rewards)
  • organizational culture (organizational, national)

Started in 1994, Cognizant Technology Solutions grew fast to become a $1.45 billion revenue company providing IS outsourcing services. However, growing at such a break-neck speed, it had to reinventits organization structure many times to make sure that it facilitated the flow of information which was supported by the development of IS and the delivery of IS services. Initially, its India-centric structure located the managers of each group in India along with software engineers. Employees at customer locations worldwide reported to the managers. As the company grew and its focus shifted from simple, cost-based solutions to complex, relationship-based solutions, this model had to be changed to be more customer-oriented. Under the redesigned reporting structure, the managers ...

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