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emManagement Information System EBC 2003 Summary of the Course Literature Summary - Management Information System – Josef Stenten Task 1 – Taxonomies of Information Systems Mastering the three worlds of information technology By Mc Afee 3 roles of executives in managing IT: 1) select technologies, 2) nurture adoption, 3) ensure their exploitation Building an Effective IT Model - IT in a historical context: IT is the latest in a series of general-purpose technologies (GPTs), innovations so important that they cause jumps in an economy’s normal march of progress. - GPTs deliver greater benefits as people invent or develop complements that multiply the power, impact, and uses of GPTs. Complements are organizational innovations, or…show more content…
decentralization), considering agency theory and transaction cost theory. Premise: firm size and allocation of decision-making authority among the various actors in a firm are, to a considerable degree, determined by the costs associated with acquiring, storing, processing and disseminating information. Agency Theory: View of the firm as a nexus of contracts among self-interested individuals. The firm represents a set of agency contracts under which a principal (entrepreneur) employs agents (employees) to perform some service on his behalf. The agent’s interest to maximize his own profit leads to a conflict between the agent’s and the principal’s interest, causing the agency costs. Agency costs: costs incurred as a result of discrepancies between the objectives of the principals and those of agents. Possible solutions to agency problem: - Owner can create contract in which payment is only made when output exceeds a prespecified level - Salesperson can pay a fixed amount to the owner and keep the remainder � of uncertainty is risk born by salesperson. - Owner can hire another person to monitor the salesperson all the time � monitoring costs - bonding
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