The difference between IT And IS - Essay Example

?Introduction In the contemporary environment of advancing technology and globalization, dynamic strategies and exploiting knowledge and information become major enabling elements of competitive advantage (Argote & Ingram, 2000). Technology has redefined business dynamics with far reaching ramifications for businesses as well as for people at large. Balutis (2009) has emphasized that businesses need to address the challenges of technology and make them integral part of their business strategies. Indeed, technology has emerged as powerful tool of communication which must be innovatively exploited within organizations for creating a wider database of new opportunities and scope. Information system and technology are part of broader spectrum of knowledge application mechanisms that facilitate firms to explore new opportunities and maintain their niche position in the industry. The paper would therefore be discussing the role of information system and information technology in the knowledge management. Differences between Information system and information technology Cohen (1997, 2000) has contested that information system is very complex because it encompasses diversity of issues and concepts which are open to myriad interpretations. It is therefore an evolving process where environmental changes and scientific developments redefine contexts and mechanisms to give new meaning to an issue or defined paradigm. Drucker (1998) strongly asserts that access to information is the prerequisite element of success within firms. Information facilitates wide ranging knowledge about the existing and emerging paradigms of businesses which is exploited by them to gain market leverage. Most importantly, information greatly improves and improvises the work productivity of workers who are better informed and can make effective decisions (Johnson & Lederer, 2010). Thus, while information can be broadly described as collation of data into meaningful form, the information system is the mechanism of storing and manipulating the strategic business information for higher growth and efficient delivery of organizational goals and objectives (Phillip, 2007: Stonier, 1997.). Information technology, on the other hand, refers to all computing technologies that facilitate information dissemination. It encompasses collaborating tools of communication that are used by firms and people to gain knowledge and apply them within the business processes. The broader precinct of information technology facilitates selection, creation, application, integration and administration of computing technologies so as to meet the goals and objectives of businesses and provide firms with unique capabilities to meet new challenges (Melville et al., 2004)). Thus IT caters to the planning and management of various hardware and software products lifecycle so that technology can constantly meet the changing needs and requirements of the organization. Consequently, information system and information technology primarily differ in their objectives and the context of application. Information system helps develop database of information that is streamlined into defined format so as to acquire value for the user. The fundamental objective of creating information system is to ensure smooth flow of relevant information across people that would help them in making informed decisions for higher performance outcome (Reynolds, 2010). At the same time, information technology provides the facilitating platform of computing technology vis-a-vis hardware and software tools that facilitate networking and flow of information across people and places. Thus IT serves as a key mechanism to integrate various modules of information system regarding the various processes and spheres of business paradigms to produce the desired outcome of efficiency, quality, productivity and revenue or profit. Knowledge management and technology Knowledge management by organizational leadership is inherently linked to the tacit manipulation of informed choices (Bateman & Snell, 2008). The transfer of implicit and explicit knowledge is hugely critical aspect of growth which often serves as a catalyst of change. Knowledge management within organization becomes pertinent issue as sharing and transfer of implicit knowledge and competencies of workers across the group considerably impacts the capabilities of the organizations and provide it with competitive advantage. The technology therefore emerges as the mainstay for ensuring that information system developed by firms is able to transfer the knowledge across wider group of people. The organizations therefore creatively evolve new tools and mechanisms for networking of information that would help promote knowledge capabilities across its workforce for meeting new challenges (Ringberg et al., 2008). How IS in organization can be used as a tool to exploit implicit and explicit knowledge to gain competitive advantage: Case of Tata Steel Tata Steel has been an exemplary example of an industry which has used knowledge management as an integral part of its business strategy to maintain its competitive advantage. KM is used as intellectual asset that drives its growth strategy resulting in significant reduction of its production cost and increased profit (KM-Tata Steel, 2004). Its KM initiatives include sharing of experience, skills and knowledge across the company. The company encourages its employees to not only share tacit and explicit knowledge but also how it can be applied within business processes for higher productivity. It has made participation in KM program compulsory for its employees and has evolved new system of KM Index that monitors their contribution and involvement in the program. Workers are encouraged to share new ideas. The knowledge repository was created on its intranet where all employees shared their success and failures in projects. The knowledge communities on the KM site were aimed at bringing together like-minded people who would share their experience and learn from each other. The reward system included with the KM Index was important factor for motivated participation in the KM program. The knowledge repositories, both at the corporate level and the division level, helped to create a niche database of implicit and explicit knowledge that was used by workers to enhance performance outcome. The most important benefit of the KM initiative was that it not only reduced the production cost through utilization of existing knowledge but also helped it to develop database of new knowledge. KM therefore greatly enabled Tata Steel to develop unique capabilities that helped it to explore new opportunities of growth and maintain its competitive advantage. Conclusion The diversity of knowledge and its judicious exploitation within the organization is important ingredient of competitive advantage. As one of the most critical elements of organizational functioning, KM cohesively organizes the ideas, thoughts, opinion, observation, skills and cultural competencies of people into systematic format so that they can be used, modified and changed as per the need of the changing times. Watson, an eminent social scientist asserts that the precepts and concepts of knowledge are important tools that facilitate change and test the challenges of time (2008). Hence, KM helps create a facilitating information system to produce an environment of constant learning thereby, helping firms to maintain their niche market position, even in tough economic conditions. (words: 1093) Reference Argote, L. and Ingram, P. (2000) Knowledge transfer: A basis for competitive advantage in firms, Organizational Behavior and Human Decision Processes, vol. 82, no. 1, pp. 150- 169. Balutis, Alan P. (Spring 2009) Addressing the Technology Challenge, The Public Manager. Bateman and Snell. (2009) Management: Leading and Collaborating in a Competitive World, 8th edition, London: McGraw hill. Cohen, E. B. (1997) IS as an Evolving Field, Proceedings of the World Multi-Conference on Systemics, Cybernetics, and Informatics, Caracas, Venezuela, July 7-11, 1997, ed. by N. Callaos, C.M. Hoong, and E. Cohen. Cohen, E. B. (2000) From Ugly Duckling to Swan,. INFORMING SCIENCE: The International journal of an Emerging Discipline. 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