Running head 1
Organizationaltechnology, value and strategy
Therehas always been an uncertainty and debate on what we do not know andwhat we know on how information technology (IT) adds toorganizational performance despite its importance to managers, thepolicy makers and researchers. Recent studies to determine theconnection between information technology and organizationalperformance are conflicting on how they theorize key hypotheses andtheir interrelationships. We therefore develop a prototype of ITbusiness value based on the resource based view of a firm thatincorporates several aspects of studies into a sole structure.Following the research agenda, value of IT to an organization isdependent on both internal and external factors to a firm which mayinclude resources of a firm, trading partners and even competitorsnot assuming its macro environment.
Businessvalue, cost reduction, competitive advantage, economic impacts,efficiency, information technology, performance, productivity, value.
Organizationaltechnology, value and strategy
Theever dynamic world of technology is turning the world in a globalvillage. Organizations are equally taking advantage to advance intechnology. The most common types of technology in most organizationsinclude some of the following the most common is computers. Mostcompanies are now using desktop computers loaded with productivityoffice software packages allowing staff to analyze financialinformation, receive and send emails, sales presentations and severalother uses. Banker, R & Kauffman, R.J. (1988) Pp. 141-150.Organizations are embracing various software packages loaded tocomputers to provide specific functionality. The best and mostapplied software is Accounting Systems which keep track of everyexpense and revenue entries. Another is inventory control systems.For those businesses dealing in sale and purchase of goods they usethis software system to keep track of every inventory acquired andsold thus keeping running out of stock option at bay. The nextsoftware I can cite is customer Relationship Management Systems. Thissystem tracks a customer and notes the experience with your company.This helps in building relationships with customers by assemblinginformation the company collects on a certain client.www.smallbusiness.chron.com (167.html)
Differentorganizations are striving to create core competencies such aspotential access to a large variety of markets for end products,significant contribution to customer benefits of the end product anddiversification (difficulty of others to imitate), how does thedifferent types of technology aid in the creation of thesecompetencies. “Tools, devices and knowledge that mediate betweeninputs and outputs (process technology) and/or create new products orservices (product technology). (Rosenberg, 1972)”Pp. 440. Riskanalysis is the first competency IT creates and aids in. theidentification and management of risk is highly upheld by the varioussoftware packages for example the above mentioned Accounting Systemsand the inventory control systems. This aid in detecting some risksan auditor may miss to note for like misstatements. They also aid inunderstanding business risk and how it affects business strategy,www.aicpa.org/edu/func.Reporting competencies are also major among which technology aids in.Collaborating the scope of work and findings or recommendations.Communicating clearly and objectively the work done and the resultingfindings. Various forms of technology-mediated communication aid inensuring smooth flow of information up and down an organizationcommand chain. Emails, texting, instant messaging, social networking,blogging, video conferencing, tweeting and lots more forms ofcommunication which are IT backed of course play a major role in theeffective organization running. Bharadwaj, A.S. (2000), Pp. 169-196networking which allows for collaboration on reports, internet whichallows for static communication, wireless communications for examplephone and walkie-talkie talks, cloud computing which eliminates lossof data through system crashes are some of the examples cited byBharadwaj on how technology is used in organizations forcommunication. Designing technical architecture is also one of thecompetences that IT strives to upgrade. This competency tries to drawan effective way of a machine working without sacrificing ease ofcost or use thus providing customers with quality and easy to useproducts in reduced cost and less time.www.articles.techrepublic.com.
Organizationcultures are affected by both the faults and benefits of technology.Being a means for changing business environments to make them bestsuited for the inevitable business and human needs, technology has tohave a direct relation to culture. Barua, A., Kriebel, C. &Mukhopandyay (1995) Pp. 3-23. If a new technology is introduced to acorporate culture, the culture is bound to react in either a positiveor negative way thus its changed in the process. And therefore, astechnology develops so does a culture change.http://ignca.nic.in/ls_03019.htm.A good example is communication. In the current technologicallydriven world, employees communicate rapidly on real-time to customersand internally with each other. There is quick access to theinformation impacting a business and thus responding to issues isjust like reflex. Operation costs are reduced as employees can nowwork from different geographical locations thus increasing profitmargins. Technology also speeds up functioning of organizations forexample if a vehicle assembling plants is automated. Though despiteall the good technology also impacts organizational culturesnegatively a time for example privacy and security issues. Barney,J.B (1991) Pp.99-120.
Technologyoffers several opportunities of efficiency in an organization’sbusiness operations. This all the time has to do with time as it goes‘time is money.’ Therefore, IT allows for faster data processing,information retrieval, and with automation an organization can cut onthe number of employees. Debbie Dragon (2011). Thus technologyassures the right quantity and quality products within the requiredtime frame thus decreased expenses and increased profitability.Debbie D. (2011)
Despitethe challenges in unleashing the potential of information systems,managers should infuse it in business strategies as it is the leadingdriver in corporate growth. Jack Welch (1995). Different types oftechnology will aid a business to maximize profits and cut onexpenses. Though do not use technology just because you can, apply itright, save time and increase your bottom line. Debbie Dragon (2011)
Banker,R.D., and Kauffman, R.J. "Strategic Contributions of InformationTechnology: An Empirical Study of ATM Networks," NinthInternational Conference on Information Systems, Minneapolis,Minnesota, 1988, pp. 141-150.
Barney,J.B. "Firm Resources and Sustained Competitive Advantage,"Journal of Management (17:1) 1991, p 99–120.
Barua,A., Kriebel, C., and Mukhopadhyay, T. "Information Technologiesand Business
Value:An Analytic and Empirical Investigation," Information SystemsResearch (6:1) 1995, pp 3-23.
Bharadwaj,A.S. "A Resource-Based Perspective on Information TechnologyCapability and firm Performance: An Empirical Examination," MISQuarterly (24:1) 2000, pp. 169-196
DebbieDragon. “Business dictionary” 2011.
JackWelch G.E.’s 1995 annual report