The Impact of the Information Systems - Essay Example

Individuals, governments, societies, and companies are now investing heavily in this sector because it has become fundamental in terms of competitiveness in the postmodern world. In a report, for instance, by the British Broadcasting Company, the European Union is dumping loads of investment in high-technology in the hopes of generating more technological advances. (BBC 2008) Technology implies something scientific in a broader definition of the word. But for the commercial and industrial world, technology means information technology – an all-embracing term that cover all aspects of information systems, technological or not, within a business.

The initial funding of 300 million euros for the European Institute of Technology in Budapest is a testament to such fact and the institution prioritizes IT project along with renewable energy. (BBC) The BBC report highlighted that in pooling the expertise of universities, research bodies and businesses, the institute will play a prominent role in the European Union’s strategy of promoting jobs, growth, and competitiveness. Because of what it does, technology is crucial to the business.

There are two main reasons: First, without effective use of technology, an organization cannot sustain any competitive position and, secondly, technology-driven innovation becomes the only viable route to long term growth. In integrating information technology, for instance, to the overall business strategy, the ability to lower cost and make profits are enhanced