Information Technology in Business
Information Technology in Business
Research Methods for Business
Subject: Transforming the Enterprise
The Alignment of Business and Information Technology Strategies
THE FUNCTIONS OF INFORMATION TECHNOLOGY IN CHANGING THE BUSINESS
THE CONFIGURATION OF BUSINESS AND IT STRATEGIES
METHODS FOR TRANSFORMATION
IT STRATEGY AND PLANNING METHODS
BUSINESS TRANSFORMATION METHODS
RELEVANCE OF THE STRATEGIC CONFIGURATION STRUCTURE IN CATEGORIZING A WAY OF CHANGE
IDENTIFYING THE INITIAL FIELD REVOLVE AND OUTLOOK
ESTABLISHING THE DIRECTION
In the transformation of contemporary industrial world aspect of the introduction of business technology hay greatly contributed in the expansion of more sectors within the economies. Organizations have been striving hard to attain the goals due ton the highly competitive standards that have been seen. It is from this reason that the aspect of introducing information technology in the business world has manifested to effective performance on the organizations with the use of the technology (Henry, 1996).
The strategic use of IT is now a fundamental issue for every business all around the globe. The successful and competent employment of Information Technology necessitate the arrangement of the IT tactics with the business strategies, an aspect that was not completed productively in the ancient times with conventional approaches .Information Technology significantly have an effect on the competence of the entire business. The important issue that evolves in this concept entails how the concept of Information Technology can facilitate the realization of aggressive and tactical benefit for the business. The world is currently undergoing thoughtful changes on political, environmental, and social events factors that suggest that stability is rare (Davis and Davidson, 1991). The one thing that will never change for sure is a change itself. These transformations to our globe transmit challenges and chances in that the changes demand dramatic business transformation in order to control those changes and take advantage of opportunities.
The resources for successive uploads in a more and more aggressive and competitive, global setting are frequently being look at by executives all around the world in order to attain the overall successive objectives and goals of their companies and organization. Conventional obstruction such as currencies, directive, state boundaries are relevant to be moved out perpetually. The disputes and prospect for companies are incredible and innovative changes have to be deployed to achieve these goals. To be able to participate in these surroundings demands the revolution of business such that it is able to meet the standards in the marked and lifting itself to apposition that will guarantee effective success. The implication of the business alteration are prolonged and linked to the placement of business strategies and IT tactics (Morton 1990).
Dissimilarity is going down amid small and big businesses in the competitive aggressive sectors in that small organization are now successfully in the competition with big industrial successors. The increasingly alliances flanked by small and large companies are on the rise probably to effectively come yup with strategies that are able to facilitate fast development and attain the overall goals of meeting and satisfying the consumers of the products and services that are being delivered. Strategic coalition and most of the association support the business through these transformations by the use of join ventures, holdings, and syndicates. Such preparations can create small companies to be perceived and also have a perception of acting as the other big companies (Henry, 1996). This can also make huge companies experience small and close to the market. The innovative partnerships have greater than before been on the rice to sustain companies as they progress into worldwide markets. The “triad” realm (consisting of USA, the European group of people centred in Germany and Pacific Rim which based in Japan) identified that the most powerful based on their per capital gross general yield are structure the primary advertiser for each and every one foremost industries. Globalization of the activity shows that the most businesses will have to participate in a borderless environment. Success in global markets demands more flexible business structures and achievement of business and Information Technology alignment.
The entire work force is changing from blue collar to knowledge workers an attribute that entails highly skilled, self-disciplined; highly specialized personnel's who are able to generate massive input in the organization. These employees require more increase of edification hold up with the aptitude to contribute to information, acquaintance and understanding. The majority of business and organisations pay their workforce for what they are acquainted with rather than the total output and power they have invested , a factor that has to be changed in order to meet the overall goals of attaining [perfection. The capacity to change human intellectual capital into service is becoming essential. Management skills are changing the conventional function of a management from those in total control to a leader who encourages guides, enlarge and support the employees by setting goals, priorities, and standards (Davis and Davidson, 1991).
The goal of serving the widest range of customers needs with the most cost –effectiveness and responsive way represents new competitive strategies within the business world. One new strategy transforms mass production to mass customization. The Companies that are involved in mass customization are flexible and responsive (Morton, 1991). The technology swiftness will amplify and be overblown by new system connections opportunities when they are able to ensure that each and every association is adhered to. Approaches of evaluating the value of investments using traditional measures such as revenues, breakeven analyses are no longer coping with environment demands. These measures were suitable when customers were less demanding and product change was infrequent however the contemporary customer's satisfaction, quality, time reduction, and moral of employees, should be very much consider .The aptitude of Information Technology to offer the potential of improved invention diversity, decrease the time, support increasing transaction volume (New York Stock Exchange) are good examples of business values that should be consider (Morton 1990).
The functions of IT in altering the business
Information Technology encompasses the expand range of equipment (computers, data devices, network and communications devices) and services (help desk, application development) used by business to distribute information and knowledge. It therefore provides strategic value to the business. The all round Support of the managerial communications entailing the authorities of the enterprise, key business processes detailing how functions operates and operational skills enlisting daily support of the staff clearly signify three major areas that entail effective management. Information Technology improves product and service quality, improve customer's service and bring all the communication patterns within the various partners within the organization into constant communication and agreements. The strategic use of IT makes a powerful impact on business nowadays.
By the year 2020, 80 % of business profits will come from the enterprises that is builds the business of information (Davis & Davidson).The pioneering submission of Information Technology present instant benefits over competitors in that the capability of having technology itself shift the companies and organizations effectiveness in service delivery to a higher standard. With information flowing freely between nations, citizens are open to the elements of innovative products when they turn out to be available all over. Competitors will become more aware and try to carry out similar, improved strategies.
There is no industry or organization which is immune from the opportunity from IT, in that the management must always be familiar with successful and efficient tactical management which can be consequent and executed only in the course of the partnership of the production and IT. The association of IT with the business is vital to the concept of renovation this aspect ensures that organizations are able to adversely focus on how IT can strengthen the competitive performance of the company. Organization should think of competitive supremacy, not computing influence.
The configuration of business and IT strategies
In its fundamental character, the IT can change the critical temperament of a business. IBM has sponsored the important investigation in revolutionary this insight, which emerged out as a work, started in mid-1980s. It used the results in that research as the basic matter for methods applied in its consultant group. The strategic framework entail that strategic alignment model reflects the view that business depends on the harmony of business policy, IT strategy, managerial communications and procedures. The consideration paid to the accord of IT and the company considerably has an effect on the effectiveness of the business. IT has altered the indispensable scenery of numerous industries. Business and IT policy are in alliance when the business goals are stimulated by the same strategies.
Creating strategies and competitive returns are not new concepts, but use of IT to create those rewards quickly is new. IT can be employed to sustain the business in attaining its goals. IT can also distribute aggressive benefit by being a practical supplier to critical task systems. It is important that the company is as fast in applying IT as its competitors. Strategic advantage and competitive advantage can become strategic necessity and competitive requirement when company lags behind its competitors. For example, the airlines which were unable to present fast act in response to the untimely use of on-line stipulation systems established a loosing ground in their business. This in itself entailed a vital challenge to them therefore improvements had to be made to ascertain the effective examination relief to the people on the ground. Innovative skill will maintain offering new chances for competitive advantage and strategic advantage.
Strategic alliance is a constant passage of alteration. IT, itself, does not generate importance, but the business processes that utilize the equipment bring about the overall advantage. Strategic alignment is a method for constantly thinking about how to analyze and derive executive path. Even though most companies have a clear business strategy a certain percentage often lacks a rational skill strategy or path for communications and processes. Business objectives must be well supported and inspired by IT strategies and capabilities whether or not the company has applied IT to transform the company is understanding obscurity in construction of strategic use of IT.
Methods for transformation
In 1992, IBM created the IBM inquiry and consulting Group to bring its know-how to clients trying to change their business. IBM's consulting performance has used tactical configuration as a fundamental point for creating techniques used in conducting client's activities. The new systems have been combining the most brilliant of previous skill with innovative advancement. The effect has been managed by means of the symbiosis of current consulting knowledge with changes in the industry.
IT strategy and planning methods
The methods that can be applied in order to effectively carry out the changes involve the use of UNIX which is a firs and effective software that enhances massive communication within the organizations. IT strategy and planning are key aspects for an enterprise to venture in the competitive environment. Business module and development tactic compel assessment that determine where and how the enterprise will compete. These pronouncements compel the IT policy and development to maintain the business. Companies should have developed a set of solution business strategies that will position their products or services in the markets in which they want to compete. In addition, they should have considered the managerial structure and all the processes that have to be tackled to carry out the business strategies efficiently. With the implementation of business tactics, business structure, and perceptive of process, the creation of an IT strategy will develop a set of IT program that will offer the venture with a hi-tech advantage in competing.
Business transformation methods
Business alteration offers a detailed loom to alter an enterprise in the course of entirety eminence management and manufacturing progress manufacturing for business of all category and sizes. The majority of the businesses are under growing stress to improve business performance. Recuperating the old developments by merely applying IT pay no attention to organizational infrastructure, processes, and performance deficiencies (Morton, 1991). Organizational structure, processes, proficiency, that were generating in a very unusual aggressive surroundings should be assessed for occasions of redefinition prior to technology is practical. The competitive environment will continue to change radically. To keep ahead and handle change most of the businesses have no option but to change their business to advanced status hat will enable competitiveness. Business process re-structuring and total quality management provide methods to meet the challenges.
Fast prototyping methods get better the ongoing business progression by capturing the business visualization and rapidly representing the significance of the relevance to the organization. The basic principle is to exploit the current IT communications by letting loose the electronic information that is present today on record and presenting the data as information to create serious business decisions. The IT task should turn out to be more important during the creation of business strategies.
Relevance of the strategic configuration structure in categorizing a way of change
It is significant to identify that the assortment of an approach to increase tactic and plans over and over again enforce diverse point of view (Morton, 1991). The managerial team must guarantee that it has selected the right approach. Strategic supervision progression should be viewed as vibrant and uninterrupted. In addition, executives should regularly revise their planning process. The preparation process must constantly adapt to guarantee that over time an effective IT strategy, business strategy and communications process is attained. There entail 3 foremost steps concerned with the application of the strategic framework: categorizing the original field turn around and outlook, therefore fitting the technique to the viewing and establishing the approach to be embraced.
Identifying the initial field revolve and outlook
In this concept, the competitive potential ,technology potential, service level and the strategy execution are focused upon in order to come up with a more concrete approach in the execution of this process.
The approach focuses on how IT strategy view will be able to reflect how technology influences new business strategies, therefore creating new competitive advantage. This is a management process that considers how IT may be applied to enhance business strategy and that results in the transformation of the organizational infrastructure. Two well documented examples of companies that have exploited the use of IT for competitive advantage are American Hospital Supply (Automated System for Analytical Purchasing-ASAP, an electronic order entry, order tracking and supplies management) and American Airlines, INC. (computerized reservation system).This method is based on Porter's concept of competitive strategy and value analysis. IT strategy methods are effective for competitive potential entailing a tight link to business transformation.
Here the focus is on establishing strategic fit for IT .Here IT is used to enable new business strategies. Executives must understand both the technology market as the strengths and weaknesses of their own internal IT infrastructure. Two familiar examples of companies that incorporate technology to assemble the business strategy are Otis Elevator, Inc. and Frito –Lay, Inc.(Product marketing and delivery).There is a tight link to business transformation here and rapid prototyping techniques are very effective (Henderson and Venkatraman 1993).
Strategic management is here a process of deciding how to respond to the wants and needs of a customer. Company decisions such as the one Eastman Kodak Company made to subcontract its data centre operations are well-documented results of an enterprise IT domination decision. There is a tight link to the formation of organization architectures and obtaining and putting into practice scientific plans for system management and network management
The strategy recognizes the need to look down from the top and recognize the critical areas for the achievement of the business. Development is implementing to sustain those areas. There is not always IT influence the business strategies here. The move toward is smart for the reason that it recognizes that systems must be developed with strong link to the business strategy and that IT strategy is based on future needs. For example, Google search provider.
Establishing the direction
We must establish the direction for using our strategy. It should be continuously balance between internal and external factors, business, and IT organizations. Historically, IT has been considered a support function (Henderson and Venkatraman 1993). The enterprise should recognize and exploit the capabilities of IT to positively affect business and competitive forces. Establishing harmony between IT and business policy should be incorporated as a key fraction of organization development for the enterprise. Without the managerial structure and position of interior progression that reveal the interdependence of the business with IT, the enterprise will not be able to apply innovative opportunities available from IT (Henry, 1996). The importance is to make IT an important constituent of the business and the course of action that sustain the business. It is up to every administrator to take advantage of the information and experience accessible as the business go on board towards being sustainable and highly competitive from improved technology.
Leadership in Organizations
Gary YUKL of New York in Albany is a Professor of Management and Leadership at the State University .I would like to use a review of his book as reference for my resume of this study.
His book Leadership the Organizations has a specific focus on managerial leadership in large organizations and it shows the importance of a leader for research methods within the company especially through its transformation process ( chapter 7 Gary Yuki…)
The question of how the power is won or lost, and how much power a leader should have are shown in this book, as well as traits and skills approach.
Here we can find the important five personality traits, such as:
All these traits are very relevant to successful leadership and the most important would be: stress tolerance, self confidence, internal control orientation, emotional maturity and integrity.
This shows to us that the human factor is one of the most important and relevant variables that are directly influencing the transition process of change in a company and its further growth.
One of the most important and difficult responsibilities of a leader is leading change an aspect that is a major factor in its contribution.
Yuki suggests in the end of his book that what is missing are mediating variables necessary to explains leadership functions for enhancing processes and organizational change and effectiveness (Gary 1981).
Davis and Davidson, (1991) 2020 Vision Transforms Your Business Today to Succeed in Tomorrow's Economy,Simon & Schuster: New York J.C.
Gary Yuki, (1981) Leadership in Organizations,. 7: 10- 15 partly refereeing
Henderson and Venkatraman V, (1993) Strategic Alignment : Leveraging Information Technology for Transforming Organizations, IBM System Journal 32, No: 1,4-16 ).
Henry . P, (1996) Belongings and modernism in the worldwide Information communications network, 996 U. Chi. Legal F. 261
Morton S., (1991) The Business of the 1990's in embracing I T and executive conversion: Oxford University Press,
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