Strategy Methodology - Essay Example

Running Head: The impact of Economic Factors on the Development of IT Strategy Decisions at the Enterprise Level of the Organization UniversityDepartmentCourseSubjectDate Information technology has become a very important part of organizational strategic management in the modern world of business and governance. As such therefore organizations are investing heavily in IT strategy so as to attain a competitive edge and overcome the challenges associated with manual systems. It is therefore of great importance to have an understanding of IT strategy methodology and economic impacts on decisions of the same at organization level.

IT strategy involves a number of functional areas; processes- management of business processes, sourcing, management of service delivery and security aspects. Another area of functionality involves the organization i.e. the structure of the organization, budget and human resources. Other functional areas include operations, logistics and projects. Overall the IT strategy is composed of the infrastructure, applications and services to be supported by IT in the organization. As such the strategy is bound to be affected by many factors and more especially economic ones which are to be considered with a lot of care at the management levels.

It can be costly and budget intensive but in the ultimate deployment of information technologies enhances communication both internally and externally. It also enhances management and coordination of departments in the organization at a reduced cost. It is therefore very important to note that there exists a positive relationship between use of internet & intranets in organizations and profitability. IT encourages innovation and a decision making model which is more autonomous hence positively impacting on the profitability of the organization.

Economic factors therefore surely have a profound impact on IT strategy decisions at organizational levels and no organization will afford to ignore IT going forward in the business world. References1. Torben Juul Anderson. (2001). Information Technology, Strategic Decision Making Approaches and Organizational Performance in Different Industrial Settings. Journal of Strategic Information Systems 10 (2001) 101-109.