It is no doubt that adoption of an IT strategy in business management is no longer an option in this 21st century. Information technology is a strategy used in maintaining a cutting edge competition in business. The use of technology in business organizations today goes beyond the daily running of a business organization. It has brought into focus the entire world of stake holders into a global table, where ideas, goods and services can be shared worldwide. This paper puts into consideration the merits that the use of technology has brought to the world of modern business practices. It also features the challenges that come along with the adoption of the use of information technology explaining why these demerits must be overlooked. It goes further to inculcate a culture of critical thinking in the minds of the people in the business world in regard to adoption of Information technology.
Vendor Selection
IT has benefited the world of business in the sense that it helps the Chief Executive Officers in vendor selection. This is possible since it is easy to identify the best of them depending on the information you are able to deduce about them through the help of IT. In other cases the business is able to keep a complete track of the pricing of various commodities in its line of production. It is therefore able to control its own prices accordingly. Moreover it enables addition or removal of services in relation of what is currently needed in the markets.
IT is able to assist managers write a scale system for their businesses. It in the marketing department for putting up applications that put out smart phones with modern mobile applications. This therefore aids in sending bills to the customers for services rendered. IT therefore becomes a very important partner for the business. It is also applicable in feeding boxes caring and also adds value to the services rendered. This is so important in the business purchase strategy.
Expense Reduction
In addition, information technology is less expensive. It is also faster to work with as compared to other strategies and is very reliable. The department of IT focuses on minimizing expenses and workload where it is possible. It reduces the number of people that are working in the organization. This is possible due to the use of high speed communication machines that are sophisticated and also due to the use of computers. This reduces the number of people since one is able to run multiple tasks at a go with the help of information technology.
Informed Decision Making and Customer Base Expansion
Every business organization, when planning their performance, they need to analyze all sources of data before making relevant decisions. This is essential in order to optimize all their processes and plan while having their future in mind. To achieve this they require IT since it’s the major source of information. The internet is the major source of vital data for any business department. IT enhances administration and management of the business. When strategizing they are able to make informed decisions which leads to skyrocketing of their profits. Productivity is achievable with use of less effort and methods used are reasonable.
IT has led to a closer person to person interaction with regard to business and market expansion. This is most commonly with the consumers, businesses which have got this kind of communication to respond consumer inquiries about orders placed on the company website. This makes the level of consumers attended to in an hour to double electronic methods of communication therefore encourage new consumers to join a company.
Communication
Use of IT networks makes it possible to have an effective communication outside the business and within the business. This is due to the use of instant messages and emails. It enhances interaction between the clients business. Their collaboration is in turn improved. IT has brought about globalization and use of electronic commerce. This has given room for the businesses to expand globally, locally and most of all internationally. This bridges the distance between clients and the business. It also saves time and has also reduced language barriers. New innovations have come up due to IT. In return businesses are able to strategize on how to produce a wide range of good which are of greater quality.
Challenges
However, Business technology in communication has created security issues. Although these challenges cannot be ignored, they should not prevent any modern organization from adopting use of information technology. Adoption of IT strategy when comes with own shortcomings. Executives who are not well informed may make decisions with information from their sales people or sometimes from magazines. This is due to the belief that the use of software will increase revenue by increasing number of new customers. In some cases revenues increase but in few cases the costs incurred outdo the benefits. In this relation it is therefore viewed terms of a commodity where an increase in the spent dollars may o necessarily have a direct correlation with an increase in the business results.
The information sent via this technology are often vulnerable to hackers or other individuals who are not supposed to access that information. The security issues can create legal liabilities if customer personal information has been accessed illegally through the business technology. Company must therefore create internal controls to safeguard information for inappropriate actions by the company employees. This will keep the information safe and the employees will be secured. The employees may also feel it’s impersonal if they only receive message only from their managers or other employees through the email. Emails create confusion requiring employees to seek more information than normal as compared to personal communication.
It infrastructure are expensive and require trained personnel. This requires the company to purchase software, servers, computers, modems or other hardware. This may also be required to replace the equipment in a few years to maintain the relevance. This also requires the company to employ an individual who is well equipped with the maintenance of these computers and handling repairs. This option is more costly than employing a dedicated information technology employee. Business companies that have got personal IT experience difficulty to train older employees to use business communication technology. They may find it hard or difficult to understand the technology and the work processes. The company also is involved in spending much capital to train these people and spend a copious time. Hiring practices need to be adjusted to ensure new potential members who are aware and able to use the communication technology.
Conclusion
The use of IT in any kind of business cannot be ignored. It’s therefore a strategy most executives and business managers should adopt for all their overall management of business. Its challenges cannot be ignored either and modalities to eradicate these challenges must be adopted. Executives should ensure they are informed about everything happening in the world of business before they make their decisions. I agree they should all adopt an IT strategy is an effective tool for management that will aid any kind of business strategy. IT changes once views on technology and sets out a path of new discovery in business enabling managers to harness the benefit of other technologies. It is very indispensable for an organization to be able to know everything happening in the outside world of business and the way to do this lies in adopting an IT based strategy. This however comes with its own challenges not severe enough to prevent its adoption.
Work Cited
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2. Deloitte Consulting. (2008). Eliminating Roadblocks to IT & Business Alignment .Retrieved from http://www.cio.com/sponsors/031504deloitte/complete.pdf 0n 20th October 2012
3. Allan Holmes (2007, January 1) “The ROI of Alignment”. CIO Online. Retrieved from http://www.cio.com/article/27969/ on 20th October 2012
Pijpers, V., Gordijn, J., & Akkermans, H. (2008). Business strategy-IT alignment in a multi-actor setting: a mobile e-service case. Retrieved from http://www.cio.com/article/29456 on 20th October 2012
4. The business school for the world.( 2012)The global information handbook retrieved from http://www3.weforum.org/docs/Global_IT_Report_2012.pdf on 20th October 2012
