Strategic Information Technology Management - Essay Example

? Strategic Information Technology Management No: Institute Table of Contents Table of Contents 2 Abstract 3 Introduction 4 Development of the Role of ICT 5 Emerging Digital Economy 7 New Versus Old Ways of Strategic Thinking 7 Old Ways of Strategic Thinking 8 New Ways of Strategic Planning 8 Application of Theory 9 Structured Analysis 10 Creativity of Thought 11 Conclusion 11 Bibliography 12 Abstract In this report, I have discussed the impact of the development of ICT and the role of ICT, along with the role of emerging digital economy, strategic thinking and policy making by managers in a company. This report also gives the central analysis of old and new ways of strategic thinking. The practical implications of new strategic thinking and its structured analysis on a selected company. Moreover, it also gives a review of the creativity of the company in this developing area. Introduction The basic reason for writing this essay is to check the strategic thinking under the advanced and growing factors. Initially, computers were used by scientists for calculation; gradually they became a part of industries and in recent time they have been most commonly used by each and every sector of economy. The internet is the assemblage of different types of computer networks, which are linked with each other for the purpose of communication, to use the information and for performing many other different tasks. Electronic mail is a type of communication between two or many people anywhere in the world and through this mean of communication, a person can send a message or attachment to another within no time (Arveson 2004). Mobile phones are advanced means of communication and through this device a person can send a message to another person having this device and communicate by making calls. You can take your phone with you whereever you want to go. There are many other devices or ways of communication for delivering information from one place or person to another place or person. With the extended access to information and communication technologies, people are encouraged to use these technologies (Ogbomo & Ogbomo 2008). The selected company is named as UPS (United Parcel Service Inc) that initiated its business in United States in the year 1907 as a courier firm. Now, it has developed as a Multibillion Dollar Company and today, it is known as the top brands of the world. Besides a large courier and package delivery chain, they also give specialized transportation, investment and electronic business provisions. The company administers route of merchandise, resources and the related information around the globe on a daily basis (Camerer 2003). The company is able to run its business in more than 20 countruies. Development of the Role of ICT The information and communication technology sector is the main source for low income class in developing countries to fullfill their needs of communication and to acquire knowledge. But, it was not always a useful mean to get appropriate income. However, it has been in development phase for last 20 years. Now, it is playing a major role in the expansion of economic opportunities. In 1980s, the “universal access” was an aim but today, it has become a reality. At present, the information and communication technology segment holds Today the ICT sector holds “hardware, software, the internet, telephony, content, application and support services” (Haycock, Cheadle, and Bluestone 2012). Today, the information and communication technology sector has become the foundation of the current economical globalization and everywhere in the world the ICT sector greatly supports the economic sector. Here are the reasons. Reducing Transactional cost With the help of ICT sector, the transaction cost is reduced and productivity of sectors increases. Immediate Connectivity Through communication technology, companies can easily and quickly get connected to their clients and it is not only voice but video connectivity as well and all this is done with accuracy and transparency. Besides this, they also can send files and other sort of facts to each other (Yarger 2006). Substitute It works as the substitute of the ways of communication like parcel and post etc. It also provides substitutes of personal traveling to communicate with other person who is not bound to travel. Choice in Marketplace It increases the choice for the customer at markets who have information about a lots of things of their interest and they can buy what they want and search for that is not available at one place. Geographic Expansion It expands the geographical market to limitless boundaries. Information It gets information of all kinds, about everything you want to know or you get to know through the ICT. (Karmer, Jenkins and Katz 2007) Emerging Digital Economy With the help of ICT, our economy is becoming a digital economy as many people are making online transactions everyday. There are two aspects of the “digital economy,” Electronic commerce (corporate functions, which change dealings to the Internet) The information technology (IT) businesses that enable electronic business achievable. We were unable to predict that after five years, how many advancements will occur in the sector of information technology? Information technology can change the approach of businessmen to do their business (Tapscott 1998). This evidence is remarkable: In the year of 1998, the Dell Company’s online sale of Computers grew to an extended amount of fourteen million dollars on daily basis, which accounts to twenty five percent of the business’s entire proceeds. In the quarter ending, the average of online sales was $18 million per day and the accounts of the business’s initial part’s revenue were 30 percent. In the first quarter of 1999, the gross sales of Travelocity.com got more than $128 million and an increase of 156 percent was recorded over the same period last year, 1.2 million new members were also registered (Henry, et al 1999). New Versus Old Ways of Strategic Thinking Strategic thinking can be used in any organization to search spiritual frame with a focus on advancement, through creativity and improvement. Mintzberg portrays strategic thinking as a diverse way of thinking, that utilizes perception and creativity with the conclusion being “an integrated perspective of the enterprise.” (Haycock, et al 2012) Many of the traditional strategic thinkers’ planned actions were altered. Following an extended and lower paced declination, the focus is diverted to the policy nowaday; the deliberate stretegy got legal position corresponding to the “demonstration orders of the organization” (Ups.com 2012). The stealth of the revolution has furnished mighty alterations regarding numerous organizations including Government cooperations as well as Non governmental organizations that have implemented “balanced scorecard approach” to planned administration (Ups.com 2012). Old Ways of Strategic Thinking 1. Administrative managers and employees visit a location that is far fomr the home town and spent a day or two there to sterigically plan the motives of the organization and plan how to achieve the organization’s goals. The plan includes the priorities of the organization. 2. It is considered that no or limited outside assistance is involved while planning the strategy. 3. A conventional scheduling cycle is about a duration of 5 years. Howver, it depends on the planer to short it to 3 years. 4. Innovation and major change is not to be expected to happen, as some higher executive mnagers are involved in the scheduling. New Ways of Strategic Planning Outside powers brought in to gain knowledge of best practices and provide professional facilitation. The scheduling process is shortened to 3 years. On the other hand, planning may be altered at any stage by recognizing a certain and important necesscity of the organization. All the administration and other employees may influence the planning process of the organization (Arveson 2004 ). Application of Theory The manager is supposed to accomplish a SWOT Analysis (Strengths, Weaknesses, Opportunities, and Threats analysis) to best know about making feasible use of strengths and best ways to reduce the organizational weaknesses. It has also come up with the opportunities, that company can get in future or have in present. Strategic management is a planning for the predictable and unpredictable environment. It is suitable for medium and large organizations as well for the smallest organization to face competition, by the implementation of appropriate strategies to achieve sustainable competitive advantage (Managementstudyguide.com 2008). For the purpose to achieve the associated goals, the manager has to adopt 4 steps which are as follows: 1. Environmental scanning is the process of collecting facts and weigh up the environment and its internal and external feature, which can plead with the organization. 2. Strategy formulation is the process of developing strategies to achieve the organizational goals. 3. Strategy implementation means that after analyzing the environmental conditions and making the suitable strategy to implement that strategy in that specific area from which the manager wants to generate specific objectives, goals or organizational purposes. 4. Strategy evaluation is the final stage of strategic management process, which concludes that after the implementation of strategy, the manager has to make sure that this strategy is suitable to achieve particular objectives for which, this strategy is designed. Strategic Management Theory says that to manage the company affairs effectively, managers need to do the SWOT analysis of their company and this can help managers to decide where the company is standing and when they need to apply new strategy and how to deal with it? SWOT analysis means that manager finds out the organization’s Strength, Weakness, Opportunities and Threats. Strategic management says that use your strength to achieve the organizational goals, do not ignore your weakness and overcome them, get the opportunities from the external environment and rise above against your threats (Sui, Daniel and Rejeski 2002). Structured Analysis In 1907, by keeping in view the great need of delivery and mass anger service in America, a 19 years old boy James E. A. took hundred dollars as loan and started “American Messenger Company” in Washington (Seattle). As per the boy’s words, the area requires the messengersservices as only some were operating at that time. At start, the company’s name the was well-suited and they delivered the packages, documents and food from restaurants to the home at that time. All the work was done by foot or use of bicycle, horses and wagons for long routes and outstations. In the year 1913, they brought outstanding alterations as they got the Model T Ford to deliver the parcels outstation. By the passage of time the company gained reputation and Charlie Soderstrom attached himself, his automobiles and knowledge with the company in 1916. As time passed, Seattle?s three largest departmental stores became regular customers of the company, turning the business greater than the Merchants Parcel Delivery in 1918 (UPS.com 2012). In the year 1919, the company reached California and Oakland and started working as “United Parcel Service”. In 1982, operations of Louisville air center got started. In 1985, international air service got started between US and six European countries. In 1988, FAA granted the authorization to UPS to operate its own aircraft for the delivery of the parcels. As time passed, the “UPS” grew to more than 175 countries from 104 countries to deliver packages and documents in 1989. In 1990, the UPS aircrafts made first scheduled flights to Asia (UPS.com 2012). In 1993, the UPS started “UPS Logistics Group” to givesolution to the management regarding the supply of goods and services. In 1994, “UPS” launched its official website UPS.com. In 1996, online tracking software was introduced by the company. In the year 2000, organization introduced a wireless device that is capable of finding the shipment, time of delivery and estimated cost to parcel in the United States territory. After this convenience, the demand of online tracking reached at six and half million daily. In 2001, company launched direct flights to China in affiliation with China Express. With the beginning of 2002, the company started functioning in Philiphines and introduced it as a hub connecting the Asia (UPS.com 2012). Creativity of Thought Creativity of thought is related to the changes or ideas which a mind wants to bring. A manager of an organization is a creative person that he introduced new strategies to achieve the goals and objectives of his organization this is his creativity of thought. Manager of an organization examines the environment whether internal or external and find a suitable situation for achieving the appropriate opportunity is all about the creativity of thoughts (Karmer 2007). Conclusion In this study, I have elaborated the concept of information and communication technology; their role in the development and the digitization of the economy and also about the new ways of strategic thinking. The role of a manager of UPS, for the development of company with the information and communication technology changes as to how the manager brings changes with the development of information and communication technology. This study concludes that everthing depends upon the creativity of thought of a manager, he can better evaluate as how instantly he accept the changes and respond in the context of that change. Bibliography Arveson, P (2004 ). The Revolution in Strategic Planning: Old Way - New Way.  [Online] Available at: http://www.balancedscorecard.org/BSCResources/ArticlesWhitePapers/OldWayNewWay/tabid/105/Default.aspx [Accessed: 9 Nov 2012]. Camerer, Colin F (2003). Behavioral Game Theory.  Behavioral Game Theory: Experiments in Strategic Interaction.. [Online] Available at: http://press.princeton.edu/chapters/i7517.html [Accessed: 9 Nov 2012]. Karmer, William J., Jenkins,B. and Katz, Robert S (2007). The Role of The Information and Communication Sector in Expanding Economic Opportunity. Cambridge: Harvard University. Haycock, K., Cheadle, A. and Bluestone, Karla S (2012). Strategic Thinking: Lessons for Leadership from Literature.Library Leadership and Management 26 (3/4): 1-23. Henry, D., Buckley, F., Gill, G., Cooke, S., Dumagan, J. and Pastore, D (1999). THE EMERGING DIGITAL ECONOMY II. Washington, DC: US Department of Commerce. [Online]. Available at: http://www.facom.ufba.br/com544/emerging_digital_economy_II.pdf [ Accessed 9 Nov 2012]. LaPorte, S (1999). The Emerging Digital Economy. [Online]. Available at: http://www.facom.ufba.br/com544/emerging_digital_economy_II.pdf [Accessed 8 Nov 2012]. Managementstudyguide.com (2008) Strategic Management - A Complete Study Guide. [Online] Available at: http://www.managementstudyguide.com/strategic-management.htm [Accessed: 9 Nov 2012]. Ogbomo, M. O., & Ogbomo, E. F. (2008). Importance of Information and Communication Technologies (ICTs) in. Library Philosophy and Practice , 1-4. Sui, Daniel Z. and Rejeski, David W (2002). Environmental Impacts of the Emerging Digital Economy: The E-for-Environment E-Commerce? Environmental Management Vol. 29, No. 2, pp. 155–163. [Online]. Available at: http://engineering.dartmouth.edu/~cushman/courses/engs171/eCommerceEmerging.pdf [Accessed 9 Nov 2012]. Tapscott, D (1998). Blueprint to the Digital Economy. [Online] Available at: http://dl.acm.org/citation.cfm?id=551651 [Accessed: 9 Nov 2012]. Ups.com (2012) UPS: About UPS. [Online] Available at: http://www.ups.com/content/us/en/about/index.html?WT.svl=Footer [Accessed: 9 Nov 2012]. Yarger, Harry R (2006). Strategic theory for the 21st century the little book on big strategy. Carlisle, PA, Strategic Studies Institute, U.S. Army War College. http://books.google.com/books?id=gvPeAAAAMAAJ. Read More