Information Technology Industry - Case Study Example

? I.T. Industry in Business Introduction In the information technology industry, a lot is involved in the application of computers and the telecommunication equipments in the administration of certain specific duties like storage of information, transmission, retrieval, and manipulation of data. In this regard, IT industry overlaps with very many other industries so that it can realize the needs of the customer and render its services more effectively, it works in close association with other industries like software, internet, e-commerce, telecom equipments, and electronics (Crookes, 2012). In business context, Information Technology Association of America (ITAA) has referred to IT as that industry that deals with the software application and their use in enabling the consumers’ needs be satisfied in what would be otherwise tedious through management of information systems (Crookes, 2012). This informs that IT is a very essential option for businesses today where technology has taken over in almost every operation. IT industry is thus involved in a number of activities which includes, software development and installation, network administration, planning and management of the life cycle of organization’s technology as well as maintaining, upgrading, and replacing the IT system of the organization where applicable. Transformation in the IT sector mobile computing, the cloud, and consumerism Because of the increasing demand on the service of IT, IT experts have responded by researching and coming up with those options that will satisfy the interest of those in need of the IT services. It is surprising that at times the pace at which IT is changing is faster the even the IT managers of business organizations have been left with no option but to discard their current options to embrace the new technology even if they have not fully exploited their previous option. In this reference, IT gurus have been advised to make consideration to standardized systems that will be embraced by all finally (Renkema, 2000). In this agitation, the IT experts have been advised to look into four cardinal areas when building a system standardization, simplification, integration, and modularity. Some of the changes that have been realized in IT includes, mobile computing, the cloud, and consumerism. Mobile computing Mobile computing has made it possible to use the small portable computing devises to connect to network systems, in some case, the wireless option enables these devices to access network and do all what they want be done through the internet, this is the consumerism trend that has been established of late (Kamal, 2007). The devices used in this case includes, laptops, notebook, palmtop, and tablet PCs Cloud computing Cloud computing involves the use of computing resources such as the hardware and the software in the delivery of services through a network system. Software as a Service and Software Oriented Architecture are option that are considered by cloud computing, they have become alternative option for the Enterprise Resource Planning which are all systems that are used by firms. Because of the complex system in the ERP, SaaS and SOA from cloud computing have brought a simpler system that is easier to maintain, cheaper and do not require much training to operate (Crookes, 2012). Cloud computing unlike the ERP can be customized as per the customers need without extra licensing fee and maintenance cost. This is because all applications in are supported by a single server operated by the designer. Cloud computing has then made it possible for SME (Small and Medium-Sized Enterprises) to adopt such IT systems because they are cheaper to operate and maintain (Crookes, 2012). Consumerism Is a transformation in IT industry that allows employees to use their personal devises to connecting with the corporate networks, in this sense, the employees use their smart phones and tablets to connect with the corporate system. This is contrary to the traditional system where the company maintained fidelity on their policies and employees were not allowed to access such systems. Consumerism has led to the technological phenomenon referred to as bring your technology (BYOT) or bring your own device (BYOD) (Neeb, and Santamaria, 2012). In this regard, companies have given a go ahead for employees to access their systems with their own devices and manage such issues as retirement benefits by themselves. This trend is worrying because it deprives the company of security and manageability. How they are affecting in work place and how IT does business in the work place With the changes realized in the IT industry, companies and businesses will have to fore go the need to hoard some information to the employees in the sense that they are allowed to access the companies system through their own system and partake on issues that relates to them like management of retirement benefits and other related issues. In this regard, companies will have to share much of their information with the employees, a thing that in the past was not guaranteed, company’s policies and strategic plans remained highly secretive, and they were done only with the knowledge of the top company officials (Dickens, 2005). In addition, the changes in IT in this case can be beneficial to the companies in that with the information shared with the employees that would translate into several people contributing in the management of the company. This would culminate into a situation where the many employees who are able to access the system will address useful information regarding certain measures taken by the company. The company will also be relieved of taking steps in managing employee’s profiles; in this case, the employees will be able to manage their own profile in the company on issues related to their compensation, remission of certain statutory fees, and the management of retirement benefits. The company previously did all these when the revolution in IT was not widely acknowledged as it is today. IT in return enables business to have information in a timely manner, it is able to connect the company with the prospective customers and widen their marketing strategies without much physical activities (Dickens, 2005). Through IT also, companies are able to manage most of the information related to the company and have synthesized information from all quarters relating to the company. Data storage, analysis, and interpretation are also essential parts of a business that IT considers pertinently. Position Regarding Carr’s Article; IT does not Matter and Future Strategic Value of IT After a careful reading of the Carr’s article on IT to business, I concur with him in more than just one reason that IT has since become an integral mode of doing business but not so unique to be considered as a tool for strategic importance. Carr argues that IT has become so common that its role in strategic matters have since diminished and that for it to remain a strategic tool, the investment, and management of the IT will have to change drastically in the individual businesses (Carr, 2003). Therefore, one would ask why IT no longer exists within the strategic tools of a business while it plays pivotal role in the business and has revolutionized several ways of going about business like accounting, marketing, data management, and inventory management among other things that it does. The response would be simple, why should any business tool be considered contributing to the strategy of the business? It is only when the tool can be manipulated to be so unique to a business that other business remain ignorant of it thereby giving it a competitive advantage. This is not the situation with IT today, every business and firms can have access to all the provision of IT and no single business can claim to be using IT to its advantage than the rest. Carr goes ahead to inform that if a business toll is to be considered strategic; it should be a proprietary technology and not an infrastructural technology. The distinction between the two is that proprietary technology is one that is singly owned by a company for example if a pharmaceutical company holds a patent on a specific compound that is used as a basis in a family of drugs, this will be the only possible advantage to it and no other company can enjoy that. It is therefore logical for the company to consider the use of the patent as a strategic tool for the business because no other company has that idea and technology (Carr, 2003). For the infrastructural technology, these technologies are available for all the businesses and they have equal opportunity to enjoy them at will thus they are non-strategic-they are not peculiar to any of the businesses. An example in this case is the use of railroad; every business can use it for their convenience and this is the case with IT today. IT has therefore become just an essential requirement in a business for the purpose of competition and it has no strategic importance, in such cases argues Carr, the risks that comes with such scenarios is given priority than the possible advantages that can be achieved. For the firms to use IT as a strategic tool in the future, they have to device methods of making it serve their own interest that is unique to other competitors and to make it a competitive advantage over others, to make it a strategic tool. In this regard, IT has become just a necessity to warrant a worthy competition on common areas like accounting, marketing, supply chain management, and data management (Carr, 2003). IT still harbours several potential that needs to be identified by the businesses so that if they explore them, they become strategic to them and can have a mileage in competitiveness with other companies that still relays on the universal role of IT. Conclusion For IT to remain a strategic tool in business, the IT professionals and experts must explore a way in which IT can be used in different firms differently in which it brings an added advantage to the business and thorough which the business can get advantage over the rest. Today, nearly all business firms have considered heavy investment in IT, and considering the IT investment by firms from 1980s, it has exponentially increased such that it is noticeable that firms have taken a keen interest in IT for their future business operations. Unlike in the initial stages in 1960s where IT was a competitive tool for a business, today, IT is ubiquitous and all the firms have equal opportunities to do what is within the scope of IT including e-commerce. In the context of strategic tool, IT must be revolutionized in the respective companies such that the assistance it gives remains the company’s secret in business for gaining a competitive edge. References Carr, N. (2003). "IT Doesnt Matter." Harvard Business Review. Retrieved from http://hbr.org/2003/05/it-doesnt-matter/ar/1 Crookes, D. (2012). Cloud computing. Leamington Spa, UK: In Easy Steps Ltd. Dickens, H. (2005). Governance of the extended enterprise bridging business and IT strategies. Hoboken, NJ: John Wiley & Sons. Kamal, R. (2007). Mobile computing. New Delhi: Oxford University Press. Neeb, C., and Joseph, S. (2012). How the consumerization of technology is affecting your IT strategy. Norwood, Mass.: Books24x7.com. Renkema, T.J. W. (2000). The IT value quest how to capture the business value of IT-based infrastructure. Chichester: John Wiley & Sons. Read More