W6 Disc IT Strategy in Difficult Economic Situations - Essay Example

IT Strategy in Economic Situations al Affiliation IT Strategy in Economic Situations Why might IT governance not remain consistent in periods of economic prosperity versus economic decline? IT governance could be considered challenging, especially within erratic economic conditions. The very nature of IT, in terms of assuming a fast pace in the development of applications and product offerings make governance equally difficult. As asserted by Atkinson & McKay (2007), IT actually drives productivity and growth in the economic sector; it boosts growth indirectly; it ensures that the economy runs at full capacity; it enables the allocation of goods and services efficiently; it enables the production of products and services of higher quality; and finally, it is a pronounced driver of innovation.

Likewise, the number of participants or organizations applying IT-related applications are greater during economic prosperity. As such, its governance within an economically prosperous status would be more challenging. On the contrary, in times of economic decline, IT governance still faces difficulties in areas such as the need to be cognizant of costs associated with support and sustenance of IT systems, updates, and adherence to policies and regulations that abide by privacy and confidentialty; as well as security of information.

In economic decline, the number of participants or organizations are perceived to decline due to tendencies for bankruptcies or financial losses. Thus IT governance issues are lesser, as compared to periods of economic prosperity.Are there any strategies that you would suggest, to cope with economic decline? The strategies that could be suggested to cope with economic decline include: (1) establishing a core competence or competitive advantage through “operating at a lower cost, by commanding a premium price, or by doing both” (Galliers & Leidner, 2013, p. 388); (2) enhancing operational effectiveness through the online medium; (3) establishing an effective strategic positioning stance; (4) designing strategies that complement and balance traditional marketing strategies with that of digital or online medium.

It was emphasized by Galliers & Leidner (2013) that “only by integrating the Internet into overall strategy will this powerful new technology become an equally powerful force for competitive advantage” (p. 402).ReferencesAtkinson, R., & McKay, A. (2007, March). Digital Prosperity: Understanding the Economic Benefits of the Information Technology Revolution. Retrieved from The Information Technology & Innovation Foundation: http://www.itif.org/files/digital_prosperity.pdfGalliers, R., & Leidner, D. (2013). Strategic Information Management: Challenges and Strategies in Managing Information Systems Fourth Edition.

Routledge.