Introduction
The fast growth and use of information technology has attracted significant interest among information system researchers and decision makers. The researchers and decision makers alike remain keen into determining the economic benefits and the ways in which the economic advantage of information technology can be reaped. There is a heated discussion on the high cost of IT whereas; other studies realize that IT boosts the company’s performance including raising the profit margins. Despite the heated controversies surrounding the application of information system, organizations that tend to ignore the use of IT suffer a great deal and might even be pushed out of the market (Carr, 304).
Discuss the multifaceted arguments (pros and cons)
Process oriented models of information technology create value for the firms in question. The statement is favored by the ability of system which remains measurable through the use of their intermediate process outputs. This applies as the stage happens to release the first order IT effects. There exists other factors that facilitate the payoff of IT along with organizational resources and IT related investments. The resource based view of the firm (RBV) has experienced mixed views from experts where; the experts’ view that the effectiveness of an IT system relies heavily on the generation of IT applied in the system (Filipe et al, 56).
The inducement coming from explicit IT resources, for example, raw IT expenses and standard hardware and soft ware from the shelf and access at factor markets, allows for contingency in the rare and costly valuables. The duplication of such products remains a challenge to the basis of shared knowledge. Shared knowledge allows for mutual understanding and identical knowledge between line managers in business and IT managers. This emphasizes the use of IT in facilitating and improvement of business performance. Understanding the IT assets and managerial aptitudes on IT relies heavily on the design of the organization (Filipe et al, 51).
The system takes into a consideration a procedure that involves internal system interactions that incorporates elements of IT assets and aptitudes in conjunction with non IT systems. The system has to be related with RBV’s framework of the firm proving a significance amount of the resources. The affiliation that links resources with results can either take the additive or an interactive form. Additive resources results in the same results and remains independent on each other; where one boosts the results of the other. On the other hand, interactive resource is dependent on each other (Jeffers et al, 713).
Additionally, the relationship that binds two resources can take the form of a synergetic resource, this way one resource maintains the capability of providing the other with light. Suppresive resources come into existence when one resource limits or exhausts the powers displayed by another resource. It proves paramount to note the ability of two resources to supplement each other in case of decreased benefits. The IT rate hence heavily relies on the characteristics and the pressure that the company can withstand. IT takes two forms of interactions being tacit and the explicit form, the other one is the non information technology strategy (Prakken, 84).
Discussion and justification of the stand
Despite the various collaboration that exists in information technology; there remains significant values of information technology towards business success that cannot be ignored. Organizations’ that employs the use of latest and technological measures reaps tremendous fruits from their jobs. Technology enables organization to produce effective and efficient products and services. Accelerated communication, reduced paper work due to electronic storage and records protection remain the key benefits of storing information in computerized system. Information technology relies heavily on computer packages. Today, most if not all organization has switched to the use of information technology. The availability of computerized works far and wide enables most organization adopt the system of computers (Sekar and Arun, 245).
Storage and protection of information
Information technology allows firms to electronically store information. The system proves as providing the office equipments with sufficient protection on their valued data. Patients and employees require a reliable system to assure them of the confidentiality of the information rendered to the employers. The only individuals allowed to view the programs are the practitioners’ relevant in the field and individuals on request. Functional storage systems include the virtual vaults. This system prohibits and bars hacker of systems from accessing and alterations of the information on site. The installation of security installed system ensures that employees’ data remains safe within the organization. The system also permits the process to stay up during technological strategies. The use of electronic security engineering ensures that; the records of valuable teams. New organizational employees require familiarization with such uniqueness to attend the safety of their products (Filipe et al, 58).
Automated Process
The business world requires attendance to considerably high work performance within a short span of time. The federal reserve bank in Francisco released a publication in the month of November, in the year 2000, asserting of the improvement realized when company’s adopts the use of information technology. The staff working for organizations with information technology applications tends to experience reduced workloads and efficiency in jobs delivery. The employees experience relief from the workloads that existed before the introduction of a computerized system. This implies that the employees can attend to other official duties while the computer runs their reports, tracks projects, manages their finances and creates queries (Sekar and Arun, 189).
Working Remotely
The information technology systems provide employees with an opportunity to work remotely. This means that employees can still work regardless of their location. The accessibility provides employees with an opportunity to improve on their productivity levels. This can be achieved as the employees can still deliver the job requirements even when absent (Filipe et al, 120).
Communication
The world of business relies heavily on communication. The managers provide information to the juniors and the employees alike provide information to the seniors. The use of information technology provides the company with the resources required to facilitate communication in the organizations. The IT department provides individuals with video conferencing equipments, emails, and internal chat rooms that allow employees to coexist as a team, continue with their businesses, and relay their intended information within the organization (Sekar and Arun, 212).
Despite the fact that competitive advantage is seen as a company’s level idea, researchers argue that business processes are the most pertinent business units. They further argue that business process determines the chance the business has to take advantage of their available resources. The available resources permit such business entities to execute their strategies. The varied performance results are influenced by the level of technology applied in a certain sector, and the accessibility to resource by a certain organization. The situation can also be caused by competitive parity of the organization. The use of rare and valuable materials forms a source of temporary competitive advantage while; the rare, valuable materials with a high cost of imitation provides an organization with a sustained competitive advantage. Imperfectly imitable resources results from the existence of isolated strategies like path reliance, casual complexity, social ambiguity, and team embodied skills (Filipe et al, 62).
In relation to IT practices, RBT asserts that Information technology tend to directs the strength of an organization to ensure competitive advantage through three ways. Firstly, the moment firms maintain the availability of rare, valuable, and costly IT resources, they have the competitive advantage required to participate and communicate information. The ability provides the firms with competitive advantage. The advantages apply even when the organization has no other source of competitive advantage required in the organization (Jeffers et al, 718).
The case provides IT resources with a chance to explain performance difference. Secondly, despite the fact that the organization source of competitive advantages does not originate from the IT resources, the resources can be utilized to yield the complete competitive potential to a non IT resource. The characteristics of the rare, value and costly to imitate principle and later on application of information technology might assist the firm in attaining the competitive edge. The results imply that; to realize an effective competitive edge the organization must adopt the IT and non IT practices. Thirdly, there are firms that make use of valuable, costly to imitate IT resources to attain their competitive edge. Such firms also enjoy the value of resources that are rare, valuable and costly to imitate. The firms end up enjoying a significant level of competitive advantage (Sekar and Arun, 254).
Conclusion
Despite the mixed feelings realized by the use of information technology, the use of information technology has both its positive and negative side. Use of technology especially computers reduces employment opportunities for individuals. The use of information technology can thus be said to reduce employment opportunities especially in the third world. The users of the recent technologies are vulnerable to hackers amongst other cyber crimes. Central information like organizational secrets can leak to competitors when the systems are not properly secured. This can be rectified by proper installation of protection devices in the system. Long hours working on a computer results into partial blindness; the situation culminates over time. This can be corrected by putting on the proper protective glasses when working on the computer. Working from home denies the employers a opportunity to supervisor the employees amongst other disadvantage. Despite the disadvantages attached to the use of information system, managers must ensure the use of latest technology with protective strategies to protect the organizational and employees interests. The use of informational technology has done more good than bad to most of the organization (Filipe et al, 88).
Works Cited
Carr, Nicholas G. Does It Matter?: Information Technology and the Corrosion of Competitive Advantage. Boston: Harvard Business School Press, 2004. Internet resource.
Filipe, Joaquim, Bernadette Sharp, and Paula Miranda. Enterprise Information Systems Iii. Dordrecht ; Boston: Kluwer Academic Publishers, 2002. Print
Jeffers, Patrick I., Waleed A. Muhanna, and Barrie R. Nault. "Information Technology And Process Performance: An Empirical Investigation Of The Interaction Between IT And Non-IT Resources." Decision Sciences 39.4 (2008): 703-735. Business Source Complete. Web. 14 Feb. 2013.
Prakken, B. Information, Organization and Information Systems Design: An Integrated Approach to Information Problems. Boston [u.a.: Kluwer Academic, 2000. Print.
Sekar, R, and Arun K. Pujari. Information Systems Security: 4th International Conference, Iciss 2008, Hyderabad, India, December 16-20, 2008 : Proceedings. Berlin: Springer, 2008. Print.
