Role of IT Managers in Organizations - Term Paper Example

Role of IT Managers in Organizations The IT manager has an important role to play in any organization if the firm is to acquire a strategic advantage over similar organizations in the industry. IT managers are charged with the responsibility of ensuring that relevant data from a variety of sources are compiled, processed and distributed to all the required destinations. Additionally, the IT manager uses Computer Based Information System (CBIS) to satisfy the Information needs of an organization, the employees, as well as the management functionalities. Further, they develop Query Systems, Modeling Systems, Analysis Systems, Decision Support Systems, Management Control, Strategic Planning and Operational Control (Anderson, Gottschalk & Karlsen, 2002). In most institutions including Magnum Enterprises, tasks placed under IT departments are usually structured into IT projects. IT managers are, therefore, sometimes known as IT project managers, since they undertake project-driven exercises. Whether the objective is to install, design or reengineer, Information Technology projects are always to a large extent propelled by aggressive deadlines and durations of regular change. To achieve their objectives, IT managers must identify resources and allocate them. Similarly, they must ensure that activities are organized in consonance with business and technical needs. Projects that IT managers work on always come in various forms. They range from feasibility studies, design projects, development projects, to implementation and upgrade projects (Anderson, Gottschalk & Karlsen, 2002). Mintzberg (1970) introduced the concept of management roles. Later, Jeong Kettinger and Lee pointed out the relevance of six roles from Mintzberg’s role topology. These are: leader, monitor, liaison, spokesman, and entrepreneur and resource allocator. The job of any manager consists of many roles and responsibilities at the same time. At some point, a manager may perceive some roles more important than others, depending on urgency and impact (Anderson, Gottschalk & Karlsen, 2002). As a leader, a manager must supervise the ongoing activities under his jurisdiction, hire and train staff members on a regular basis, organize and coordinate all the activities under his/her docket. He/she must also motivate the employees in order to achieve the organization’s objectives. This is usually a role considered internal to the organization of the manager. As regards resource allocation, an IT manager ought to learn the ways of allocating financial, human and informational in relation to the different forms of tasks within the organization. He/she should plan, coordinate, organize and control tasks and assignments (Anderson, Gottschalk & Karlsen, 2002). As an IT manager of Magnum Enterprises, I am both a spokesperson and entrepreneur. I am a spokesperson in the sense that I establish the organization’s contacts to areas outside MY own mandate. This is usually done by crossing the traditional departmental boundaries to participate in marketing, production and distribution. As an entrepreneur, the IT manager identifies the user’s requirements, and comes up with solutions which change business circumstances. To meet users’ requirements appropriately, an IT manager must ensure that the fast changing technical opportunities are fully understood, designed, planned and implemented so as to improve the operational efficiency of the organization (Anderson, Gottschalk & Karlsen, 2002). An IT manager must monitor the external business environment to be up to par with the appropriate day-to-day technical changes and composition. This can be achieved by collecting new ideas from sources which are external to the organization. These sources can be vendors, professionals and friends. It is from such sources that new and creative ideas are generated for the smooth running of the organization. Finally, an IT executive acts as a liaison between an organization and the external environment. This involves communicating and sharing ideas with stakeholders such as customers, suppliers and market analysts (Anderson, Gottschalk & Karlsen, 2002). Information Technology Administrators are today using Information Technology as a competitive weapon. An IT administrator has a heavy task of improving the operational efficiency and effectiveness of an organization. Rockart and Morton suggest that traditional Information Technology tools can be used as vehicles to achieving a competitive advantage. Leavittt’s organizational model indicates that these systems have impacts on the competitive performance of an organization through their personnel, management process and organizational structure (Treacy & Bakos, 1986). A proactive IT manager uses several techniques to identify areas of Information System applications, so as to support managerial process with Information Technology. The generation of techniques uses a solely operational perception of the firm, with the aim of enhancing efficiency and effectiveness of business processes. Proponents of this approach are Business Systems Planning (BSP), and Office Automation Methodologies (OAMs). The two methodologies provide ways of formally modeling the activities of the organization, in order to analyze the efficiency and effectiveness of an organization. The Critical Success Factor Methodology (CSF) is also used by an IT manager to identify the business objectives and casual success factors to improve a firm’s operational performance (Treacy & Bakos, 1986). . Many theorists have come to light in identifying the various ways an IT executive can use Information Technology to create competitive advantage. The most distinguished and widely used approaches are the value-added chain analysis and the Porter’s framework for competitive analysis. Rockart and Morton introduced the utilization of value-added chain to describe in details the opportunities which arise from the use of Information Technology. The three forms of opportunities that IT administrators use are, which can create competitive advantage are; improving each value adding function, connecting with clients and suppliers to have influence on their switching costs, and creating new businesses by way of products or services. Enhancing Rockart and Morton’s efforts, Learmonth used a generic thirteenth function resource life cycle model to point out competitive opportunities (Treacy & Bakos, 1986). Porter championed the argument that competition in any industry is deeply rooted in underlying economic structures. To Porter, competition is more than a superficial engagement of moves and countermoves among the competing firms. The five main forces determining competition are: “rivalry among existing firms; threats of substitute products or services; threats of new entrants; and bargaining power of customers and the bargaining power of suppliers“ (Treacy & Bakos, 1986, p. 10). Thus to get the whole concept of competition, an IT manager must include, suppliers, customers, entrants and firms generating substitute products in the list of competitors (Treacy & Bakos, 1986). Using Porter’s model, Parsons identified six generic forms of opportunities that an IT executive uses to gain competitive advantage. These are: using value-adding-IT-based Information or service to increase customer’s switching costs; using IT-support systems to decrease a firm’s own switching costs against suppliers; using Information Technology to promote product innovation to maintain one’s status or bar potential substitutes; working with selected competitors using shared IT infrastructures; using Information Technology for labour, and using information technology to customers’ satisfaction (Treacy & Bakos, 1986). One of the most important roles that an IT manager does in any organization is developing IT strategies. I must therefore work with my six member team, employees, company executives, customers, suppliers and other stakeholders to formulate an IT strategy for the organization. The reason for inclusion of stakeholders in the strategy formulation phase is to align the plans with both the short term and long term goals of the organization. In developing an IT strategy the IT manager provides a vital support role for the organization’s Management Information Systems. This in turn provides a mechanism of managing an institution effectively. It executives therefore set up policies, procedures and actions to oversee database management and report creation in order to ensure timely delivery of services (Treacy & Bakos, 1986). As an IT manager, I must liaise with Rachel Heigl, who is Magnum’s C.E.O together with other company executives to develop an information system that provides decision makers with accurate information. This supports and improves the entire decision- making process by developing Decision Support Systems. At the highest level of authority within the organization, Decision Support Systems enable management to monitor the firm’s overall activities and provide information to other workers clients and the management team. To meet the present operational needs of an organization, the IT manager ensures that the infrastructures are available (Treacy & Bakos, 1986).. An IT administrator works with the organizations stakeholders to identify and assess risk vulnerability, so as to establish policies, procedures and actions that mitigate those risks. The assessments are done to locate all confidential clients and the firm’s information, any prospective internal and external threats to information, and the likelihood of occurrence of such threats. He/she also researches on the policies and procedures which can mitigate such threats. The risks assessment covers all IT risk mitigation functions such as security, business continuity and outsourcing (Treacy & Bakos, 1986). Since Information Technology has offered firma an opportunity to innovate and enhance already existing products and services, an IT manager works in liaison with other key organizational departments to increase product innovation. Information technology is today built into products to improve their values in the industry. In service industries such as banking, the technology is being put into use to provide a delivery channel for services (Wood, Volonino & Turban, 2012). In addition, Information Technology is used by IT managers to develop new and unique products and services, or in some instances differentiating them so as to gain a competitive advantage (Sutanto & Tanudidjaja, 2010). Customers and suppliers can be a competitive force if overlooked by an organization, as Porters puts it. Thus an IT manager works with other departments to develop a bargaining advantage against them. A sure and important technique to go about it is to offer unique and important services and information requiring idiosyncratic adjustments to the clients’ organization, making it more expensive to switch to competitors. Another way of locking in customers is providing previously unavailable unique information or service offerings which are of significance to them (Wood, Volonino & Turban, 2012). The higher the perceived importance to search information and services, and the more complicated and idiosyncratic the interface is for the client, the higher the cost of switching to competitors’ products and services. This makes them permanently locked in (Sutanto & Tanudidjaja, 2010). In an unbroken value-added chain, every supplier of raw materials is another supplier’s customer. As a result, the chance to gain bargaining mileage can be pursued by one’s suppliers to the firm’s benefit, unless techniques are developed to avoid the challenges. To this effect, an IT manager can use two methodologies; device ways of dodging dependence on information and services controlled by suppliers, and develop an effective electronic marketplace between the firm and its suppliers. In so doing, an organization will have effectively reduced the strong bargaining power of its suppliers in the industry (Sutanto & Tanudidjaja, 2010). One of the most important and widely known duties that an IT manager does is to improve the operational efficiency and effectiveness of the organization. By leading a team of IT experts in and out of the organization, an IT manager analyses, designs and implements systems which are regarded as monumental in speeding up the organization’s operational efficiency. Some of the systems which are often put into use are Transactional Processing Systems and Office Automation Systems. Such systems speed up the operational efficiency to the extent that they can become industry innovations which can be used as a competitive advantage. To enhance operational efficiency, an IT manager finds ways of identifying the loopholes of a given organizational structure and the processes so as to seal those gaps with innovations (Ronen & Coman, 1995). IT managers also develop competitive strategies for utilizing synergies of customers and suppliers of raw materials to focus on opportunities for better coordination and cooperation. Such cooperative information systems enable to integrate information-related functions without interfering with the legal boundaries of the parties involved. It is through effective coordination that activities can be made more efficient to the advantage of all stakeholders. To realize coordination, information systems that combine functional areas in two distinct and unique firms can be developed. For instance, an IT manager can combine the production planning system of a firm with the order entry system of suppliers so as to reduce the amount of inventory in the stages and the turnaround period for new orders (Ronen & Coman, 1995). Policy formulation is an integral role played by IT executives to avoid constraints. Coman’s top-down methodology for defining IT policy is in line with the TOC top-down model. Information Technology is an important instrument in achieving certain specific strategic objectives. The model highlights three dimensions namely; the organizational dimension which spans from a mission down to the individual IT project, the product life cycle dimension which begins with the initiation of a product through its development, maintenance and eventual termination, and the professional IT dimensions covering its disciplines of hardware and software infrastructures, telecommunications and database management systems (Ronen & Coman, 1995). IT experts employing the TOC model to Information Technology always commence by coming up with a goal for the IT department. Analysis of the organization is always done as a prerequisite because IT is an instrument considered as subordinate to the institution. The IT executives usually begin by noting down the company’s mission, describing measures of performance and locating the system’s challenges or constraints. What then follows is the implementation of TOC’’s seven step constraints identification and problem solving methodology (Ronen & Coman, 1995). With the widespread growth of knowledge as an important business resource, IT managers have been forced to play the role of analyzing the information which make up their business. As a result, the field of knowledge management has arisen. Since Information Technology has engendered the easy collection, retrieval and distribution of information within and out of the organization, firms have made use of Computer Based Information Systems to enhance integration and sharing of knowledge. In that regard, IT administrators ought to face the uphill task of making decision on the kind of Information System tools to put into use in Knowledge Management Initiatives (Ronen & Coman, 1995). To conclude, whether we call them IT managers, IT Executives, System Administrators or IT Experts, these Individuals’ roles are the heart of organizational success. They can make or cripple an organization. A good C.E.O must therefore learn to take heed to their advices and suggestions. References Anderson, S.E, Gottschalk, P., & Karlsen, T.J. (2002). Information Technology Management Roles: A Comparison of IT Executives and IT Project Managers. Hawaii International Conference on System Sciences, 1-8. Retrieved from http://www.proquest.com Ronen, B., & Coman, A. (1995). Information Technology in Operations Management: A theory- of- constraints approach. Israel Institute of Technology, 1403-1416. Retrieved from http//www.ebschohost.com Tan, Y.C.B., Sutanto, J., Tanudidjaja, F., & Kankanhalli, A. (2010). Role of Information Technology in Successful Knowledge Management Initiatives. Science Drive 2, 1-12 . Retrieved from http//www.ebschohost.com Treacy, E.M., & Balakos, Y.J. (1986). Information Technology and Corporate Strategy: A Research Perspective. MIS Quarterly, 107-119. Wood, R.G., Volonino, L., & Turban, E. (2012). Information Technology for Management: Advancing Sustainable, Profitable Business Growth. Wiley Global Education. Retrieved from http://www.books.google.com Read More