The Impact of Information Systems on Organizations and Markets

The Impact of Information Systems on Organizations and Markets, Gurbuxani, Vijay, and Whang, S., Communications of the ACM, 34(1), 59-73
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조직과 시장에서 IS의 실질적 영향은 무엇일까?

본 논문은 경제학의 이론을 이용하여 조직과 시장에서 IS의 영향력을 명료하게 설명해주고 있다.
기본적으로 기업의 활동을 비용의 관점에서 접근하고 있어, 경제학에서 자주 인용되는 대리인 이론과 거래비용이론을 IS의 비용효율성을 설명하기 위해 차용하고 있다.

쉽게 말하면 대리인이론의 대리인 비용, 의사결정 비용과 거래비용이론의 계약비용, 운영비용은 각 영역별로 IS에 의해효용성이 있다는 점과 IS에 의해서 조직의 구조와 시장구조에 영향을 주는 것도 설명이 가능하다.

이것을 통해 기본적으로 IS가 가진 비용효율성적 측면이 명확하게 이해가 될것이다. 특히, 디지털 상품의 규모의 경제, Market Maker들의 시장 전략, 네트워크 외부성 효과가 극대화 등 쉬운 이해를 제공한다.

그러나 본 논문에서도 역시 IS가 비즈니스를 리딩하기는 어렵다.  설사 IS가 지원과 운영을 위한 툴이라고 한다고 해도 IS에 의한 효과를 강조하진 못한것이 못내 아쉽기만 하다.

Digital Assets의 가치에 대한 성과를 분석할때도 참고하면 좋은 이론적 틀을 제공해 준다.

Warren.pak
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Impact of IS on Organizations and Markets

Foundation Theories	Model of a Firm	Organization and IS
•      Agency Theory   - Agency Costs - How Does a Firm Exist   - Decision Info. Costs   - Internal Coordi. Costs •      Transaction Cost Theory   - Contractual Costs   - Operational Costs   - External Coordi. Costs	•      Costs Component          - Internal Coordi. Costs - External Coordi. Costs - Operations Costs •      E.O.S. in Operations      - Production E.O.S         - Informational E.O.S    - Network Externalities •      Size of a Firm :   Vertical vs. Horizontal	•      Roles of IS inOrganization  - Operation  - Transaction Processing  - Monitoring/P.E.  - Documentation / Comm.  - Decision Support •      Impact of IT on Organ.  - IT and Decision Rights  - IT and Firm Size

Foundation Theories

Agency Theory

•      Proposed By Jensen and Meckling

•      Agent has an objective of maximizing the agent’s individual utility

•      How does a firm exist ?

  - Direct Monitoring

  - Efficient or Semiefficient Contracts

  - Outside Market Forces

  - Monitoring by External Institutions

  - Human Nature

 

Transactional Cost Theory

•      Proposed by Coase, and Williamson

•      There are costs in using a market as a coordination mechanism and a firm is an alternative mechanism

•      Costs associated with using markets :  ex ante costs & ex post costs

•      A firm is essentially a way of bypassing market system  - an economic entity created to min. market transaction costs

Cost Components of the Model of a Firm

Internal Coordination Costs	Agency Costs	- Monitoring Costs - Bonding Costs - Residual Loss
	Decision Information Costs	- Information Processing Costs - Opportunity Costs
External Coordination Costs	Operational Transaction Costs	- Search Costs - Transportation Costs - Inventory holding Costs - Communication Costs
	Contractual Transaction Costs	- Costs of Writing Contracts - Costs of Enforcing Contracts
Operations Costs

Impact of IS on Organizations and Markets

 

Economies of Scale in Operations

•      Production Economies of Scale : Technology of production is increasingly cost-effective as the scale grows

•      Informational Economies of Scale : Information is not consumed by use, Technical information can be used cost- effectively for larger scale of operation

•      Network Externalities : It becomes dominant as it increases market share or geographical scope

 

The Size of a Firm

•      Vertical Size : Range of value chain which the firm spans using its own hierarchy

•      Horizontal Size : Number and share of markets in which firm sells its goods and services

 

Roles of Information Systems in Organization

•      Operations : IT increases scale efficiencies of the firm’s operation

 - Production economies of scale, informational economies of scale

 - High flexibility in production, low cost of manufacturing broad line 

 

•      Transaction Processing IT processes basic business transactions

 - Large portion of service industry heavily depends on IS

 - IT provides more efficient market mechanism such as VAP

 

•      Monitoring / Performance : Evaluation IT monitors & records performance of employees and func. Units

 - IT provides effective tool to monitor agent’s actions directly

 - IT gives the ability to keep track of performance at individual level

 

•      Documentation / Communication : IT maintains records of status and change in the fundamental business functions within organization

-       IT maintains communication channels in cost-effective way

 

•      Decision Support : IT collects and provides info. Relevant to managerial decisions

 - Reduced decision information costs by providing powerful tools

 - Improved decision quality lead to increased operational efficiency

 

IT and Decision Rights

•      IT can lead to more centralized mgmt

 - Organizations came to process decision- relevant info. more cost-effectively

 - Improved quality and speed of upper mgmt’s decision making processes

•      IT can lead to decentralization

 - Improved monitoring and performance measurement reducing agency costs

•      IT can lead to hybrid structure

 

IT and Firm Size

•      Reduced external coordi. costs è Decreased vertical size

•      Reduced internal coordi. costs è Increased vertical & horizontal size

•      (In some info. intensive industry)è Increased vertical & horizontal size

•      Increased scale economies in operation è Increased horizontal size

•      Net effect may vary case by case