Information System Strategy - Research Paper Example

Information System Strategy College: Information System Strategy Introduction The term information technology refers to the amalgamation of the computer and communication equipment. It encompasses the management of information through the use of computers and the requisite software. Both hardware and software equipment are used for the purposes of storing, retrieving and manipulating information. Some common equipment employed towards the ends of managing communication information includes servers with operating system. The servers have a database and web serving software. These servers are then connected to each other and to the end uses through a network infrastructure. The use of IT has been found to have many significant benefits spanning across all types of businesses and also across all the departments in any organization. IT has proven benefits for managerial, staff and employees and greatly improves the production and services offered by all business. Information technology has been found to impact greater flexibility in obtaining the required information. Access to internet and communication facilities results to litheness in most services offered by firms. Education, consultancy and health facility can be offered anywhere. Versatility is also improved by use of information technology. Different products and services are now offered in different forms and the outcome is greatly enhanced. Simplicity, enhancing security, opening regional and international markets, fostering cooperation among employees, improving services and products produced, providing panels for feedback information, promoting sales and marketing, reduction of labour costs are some of the major advantages of information technology. This paper evaluates the effects of information technology on the main areas of a business. This involves improving accessibility of information to employees, continuation of business, enhancing information availability and changing of the organization structure (Thorp, 1999i). Distance doesn't matter Information technology enhances employee's collaboration with each other and also enables them to access information from any point in the world. Development in the IT sector have piloted and enhanced methods through which workers can access information through the intranet and the internet. Employees and members of staff can access company data through the use of broadband modem and to the desktop computer. This is coupled with the rapid development in methods of securing the network such that the information sent is private, secure and only accessed to those who have rights to view it. Mobile phones have also rapidly developed from the first generation phone to 3G (third generation) phone that have internet capabilities and multimedia services enabling workers to use their phone to access information. One such phone is the blackberry mobile phone that allows users to gain access to information from both the intranet and the internet. Black berry enterprise solution enables enterprises gain the wireless infrastructure that fosters cooperation among the employees, enhances the corporate culture and also inculcates adaptability and efficiency on the services offered by the firm. The use of mobile phone enables small and big firms gain pivotal managerial and product information for any type of business irrespective of its size. Security issues by the blackberry have developed to a point where two factor authentication is now been used towards a secure wireless network. Through the use of this phone, employees and members of staff can access customer updates, office information, inventory updates, billing reports and notification of imperative business events information wherever they are (blackberry, 2006ii). These technologies have been applied in many organizations. Doctors and nurses can access vital patient record and information through the use PDA connected to the hospital via a server. This enhances sharing of information by both the doctors, nurses and other people towards improving medical facilities (Miah, 1997iii). Workers of small micro enterprises can gain access to information via their mobile phone; medical workers can provide some medication tips via the internet eliminating their need to travel to remote location or areas prone to wars and other areas that are generally inaccessible. Mobile banking also enable workers from SMEs (small micro enterprises) performs numerous tasks. Workers in remote areas can get financial assistance through their mobile phone. Local entrepreneurs in Rwanda and Kenya have been greatly assisted by services offered by the information technology through their mobile phones (Gunnar et al, 2009iv; Michael and Craig, 2009v). In east Timor and Afghanistan, humanitarian workers are looking for ways to establish mobile phone solutions towards an effective distribution of resources to the two war-torn countries. According to Namchulvi (2003), E commerce which engrosses conducting business through the internet has enabled improved business decisions making process, accuracy in information transfer, improved productivity and quality of work as well as improving managerial activities. Two types of knowledge are important towards the employees. These are tactic and explicit knowledge. Tactic knowledge is held within the employees mind while explicit know-how is vested in books. Knowledge can be enhanced thorough the using of IT facilities which assist employees access information, process, store, retrieve and disseminate it. The time spent in gaining this information and manipulating it as well as storing it is significantly reduced through the use of IT tools which improves efficiency of these processes. Internet learning has greatly impacted knowledge on workers and has numerous advantages as compared to school/ institutional learning. E-learning, E-assessment, E-training and E-communication has many advantages especially on employed workers who have to save on time as well as gain mastery on the jobs they are performing (Guptavii, 2002). Services of public administration have also been greatly improved through the use of internet and mobile phones. IT has streamlined services offered by the public sector and many governments' institutions have been successful in delivering services to both the citizens and the employees. The Government should also consider performing two way business transactions (Garson, 1999viii). Agricultural services have also been greatly improved through the use of IT. Workers such as extension officers greatly rely on IT for financial services as well and evaluating the cost of products before offering advise to farmers. Mobile phones have been used extensively to offer these services (William, 1994ix). Business never stops According to riverbed technologies, businesses need to operate continuously due to the increasing number of customer as well as the operations of the firm. First, rapid technological changes in the provision of services and development of products necessitate business to operate continuously. This requires firm managers and product developers come up with modern products to sustain the firm in this global competitive environment. For a firm to gain competitive advantages it must produce goods and services that are up to date technologically and economically. This call for the use of IT tools to identify the competitors and customers of the firm, the customer needs and the advancement in technology and the competitor's strengths. This helps a firm establish competitive advantages. Technological advancement affects the continuity of any business as well as its complexity. For firms to gain competitive advantages especially when offering services. Information technology must be applied and used continuously. Feedback from customer from the global market enable a firm improve their services as well as the products offered. This enables a firm gain competitive advantage. Due to the distance from the firm to the customer, IT tools bring the world closer as responses from customer can be received by the firm. Health services can be offered around the clock and hospitals and their patients can benefit from them (Nick et al 1985x). Business can respond to client's orders on 24 hour basis. IT improves the advertising facilities, creates awareness and enables online transactions and feed back from the customers. This enhances the firm gain higher profits. Labour markets and outsourcing are also possible through the use of the internet and people can work round the clock. However, the aged people don't cope so well with recent advancement of IT (Kazunori, 2001xi). Business never stops on the internet and firm use this as a competition tool. Firms need to run continuously as the dynamics of the global market vary instantaneously. Fluctuation in prices, changes in stocks, futures and share prices as well as changes in major currency affects global organizations. Fuel prices also affect most product prices and the firm has to keep track of oil trends. It is important that firms continuously monitor the performance of various currencies to identify and determine the major trends in currency fluctuation. This helps identifying impeding risks and promotes profitability. IT enables firm to operate continuously. Firms dealing with automobiles, computers, mobile phones, software development experience a lot of turbulence, changes, flexibility, and technological advancement. The management needs to foster an environment for rapid identification of impeding changes and closely monitor the markets to reap from item sales. This calls for total time dedication on the internet and Information technology. Such firms have to stay updated every time on the current developments (Graham et al, 2006xii; David and Wrightxiii, 1999). Severe competition in the global environment necessitates information sharing and adopting strategies to enable the firm gain advantages over its competitors. The firms should be empowered with competencies that can enable it cope with high global competition. This call for firms being alert all the time. Industry must monitor the products developed and look for ways to enhance product differentiation as a means of marketing their brands in the most effective way. To get this knowledge firms require all year all day connectivity to the internet which provides this information (Moyixiv, 2003). Consumer's voice is the key to any company success. This voice is aired through the internet and products being requested by customers must be developed and supplied to them at the right time, quantity and quality. Firms must monitor customer utility, needs and wants regularly. Since the market is so diverse, IT tools need to be employed towards that end(Gomezxv & Melesse, 1998). Globalisation is a direct consequence of the development in the Information technology field. Globalisation has resulted in opening of foreign markets and new economies as well as very broad markets and huge customer bases at an international scale. Advertisements and creation of awareness of firm produces and services have greatly enabled trade. To manage the huge customer base in terms of supply and customer care services, the firm must stay logged on at all times (Fazlollahixvi, 2002). Technological advancement has brought about unpredictable changes in the market structure. This requires that business be at par with such changes and react accordingly to situation that have arisen. Businesses have heavily relied on IT on dairy basis to gain information and competences in order to react to these changes. Political consequences and environment that affect business can be identified and their effects being factored in the operation of business. Business outsourcing requires the identification of chances for business once they emerge. This requires that the company be versed with adequate sources of information both from the print media and the internet. Besides such outsourcing company need the IT facilities continually and on 24 hour basis (Meenakshixvii & Vani, 2007) 3. Application and data must be available everywhere but all in one place. Consolidating data is important towards the protection of information and the ability to track this information. There are two main types of information consolidation; these are physical and application consolidation. Physical consolidation details consolidation of servers and integration of data centers. Physical integration merges mainframes into a single agency and helps in archiving a unified, centrally managed operation which supports data storage and processing. Application consolidation merges disparate systems and redundant systems into a software program that is common to all systems. This reduces complexity, facilitates the organization and business processes, enables gathering of information and advocate for faster and efficient information sharing. Facilities such as accounting, payroll and communication can all be consolidated (Madeleinexviii and Lee, 2005). Consolidation of information has many benefits, some of these benefits include; Increased services: better services are offered through consolidation of IT services to central point or location. Improved security on the information system is also possible. Process such as authentication, intrusion detection and prevention as well as keeping records for all logs in a central database enhances the security of data and information flowing to the employees from the various servers. A distributed information system network is hard to manage and identify possible case of fraud, malicious access as well as detecting possible errors and intrusions (Seetharama,xix 1996). Consolidation allows for savings on the total amount spent on the IT equipment, security equipment and saving on the installation and maintenance costs. It also saves the company millions of dollars which could have been incurred in management of the diverse IT network. State corporations and agencies have started adopting methods to consolidate information towards reducing the cost of the information management system. Running and operating consolidated data centers has been found to save government billions of dollars. The resulting savings from these processes enable this money to be pumped back to the business and can be used to improve the business. Consolidation improves the delivery of services by businesses and governments. Governments are particularly able to serve their citizens by the creation of single point of data entry for multiple services that are offered by different and diverse agencies. Consolidation has also been found to impact on the organization decision making process. Timely data and accurate information enable business solution be identified and implemented on time. This is a direct result of implementing data consolidation techniques (Dewanxx, 1997). Through the simplification of networks and standardizing of systems, it is possible to monitor data flow and upgrade the system from the resulting savings since the upgrade is done only to a few systems. It is possible for companies to invest towards improving their existing IT system which results to efficient, effective and reliable data systems that all lead to the success of the business in the competitive world. 4. Knowledge must be harnessed Management of knowledge and information system is vital towards archiving the benefits of information technology. Management of data and information is the key to the success of any organization as this data aid in deducing conclusive information that improves business strategies and structures. Management of information encompasses the combination of indispensably human input towards the decision making process and the technological resources. Data comprises of mere facts collected from organizations, business transactions and activities. This data must be manipulated to yield results that can pioneer changes towards enhancing services by any company. Knowledge management therefore involves the collecting of information or creative mining of information from diverse sources for the purposes of identification of business opportunities from the synthesized information (Raisinghanixxi, 2000). The framework for knowledge management comprises of the flowing major steps; information gathering or harvesting, filtering of the collected information, configuration of the information, dissemination the knowledge and its consequent application. These fields are explained as; Information harvesting; this involves harnessing the information from various sources. Some information may be collected within the firm while some may be harnessed from outside sources. When collecting such information firms have to consider sources that have information on the competences required by that specific firm. Information technology plays an important role in that it is possible to access major sites deemed to have vital information that can be used by the firm in developing competencies as well as well as educating its workers and the employees working within the organization. Information filtering: collecting information and filtering of this information should go hand in hand. This ensures that the collected information will pay off and is useful. Again, IT tools are requisite for this process and they help in archiving the required goals. Through cross-examination of the knowledge, it is possible to evaluate and determine valuable information and its scope. It is important that technological and human resources being employed towards identification and management of this knowledge (Goldxxii et al, 2001). Configuration of information collected is then done to identify its usefulness. After configuration, the information is then dissmenitaed. Proper dissemination is important to enable the firm gain competitive advantage. Information technology and advancement in the computer field greatly enhance this process. Information management enables information sharing across the organization boundaries and is greatly improved by proper IT structures. By consolidation the information, the central database can be accessed by most of the employees and managerial staff and major decisions can be made with ease. Software developed to enhance this processes has been applied in most organization and the results have positive effects. By using the knowledge in the most effective way, it is possible for the business to attain competitive advantages as well as archive other goals such as product and service development as well as improving of managerial and customer care services. There is no second class enterprise citizen Organization culture and structure are vital towards the development of any organization and assist in inculcating business ethics which in turn influence the long term survivability of the business. Rapid development in the field of information technology has greatly influenced both the organization structure and culture. Traditional information and decision making process was meant only for top level management. The decision would then trickle down towards the low level managers and supervisors and lastly to the employees who would implement the decision. In the same manner, communication from the employee level would be forwarded upwards up to the management level. This took a long time and inefficiency resulted. With the advert of information technology more flat organization structure in contrast to the traditional structure has resulted. Instead of having many layers in the management structure, very few managerial layers are common today with managers being able to communicate with the employees and the supervisory and assistant managerial post be replaced by team leaders. Information technology influences the decision making process. Due to changing business environment requiring faster changes in the decision making process, traditional methods of decision making cannot be used in the information technology era. This necessitates workers make some quick decisions. It is also possible for the management to receive communication from the employees about a given situation and they can act on it. Information culture, which is the principles and values that affect the way an organization deals with information, affects organizational structure and culture. Information technology has piloted major changes in the office structure. Open rooms with all managerial staff working under roof and in one room is a common phenomena today. Reorganization of offices reduces the company costs and has also provides an opportunity for decentralizing companies administrative structures. It has been found out that information technology decentralizes corporate structures though in some instances it may centralize the system (Marshallxxiii and Phil, 2004). Annotated bibliography Read More