The Use of Information Technology for Strategic Collaboration in Business - Essay Example

Topic: Lecturer: Presentation: Executive Summary Information Technology has had a tremendous impact on the operations of businesses and organizations. This essay has discussed the impacts starting with a brief history of the various challenges that businesses faced before its introduction. The essay goes on to describe the benefits that have been accrued with the incorporation of IT to assist in various processes such as data entry and recording as well as office automation. Telecommuting has also been identified as an achievement that has enabled businesses especially those dealing with dissemination of information through radio and Television. Telephone and fax machines as well as internet have also been discussed along with other benefits that have facilitated the enhancement of business performance and profit maximization against expenditure. Introduction Information Technology has revolutionized the mode of doing business from the traditional methods which used manual systems to the more systematic and dynamic electronic systems that uses computers. These systems are applicable in almost all the perspectives of business and organizational operations and they can be said to have enhanced the productivity of employees as well as economizing on space, time and resources (Tanenbaum, 2003). IT is dynamic in nature and as such, it keeps on changing the meaning of time with respect to speed and output. This essay is a critical evaluation of the significance of Information Technology in businesses as well as its application in strategic collaboration between businesses. Uses of Information Technology Systems in an Organization Information Technology has revolutionized the mode of doing business as well as organizational activities. Before its introduction, major operations in organizations such as data entry and record keeping as well as file organization were conducted manually, processes that took a lot of time to complete and also which were tedious in nature (Tanenbaum, 2003). Manual spreadsheets which were used to store financial information for example employee working hours versus wages as well as income and expenditure were prone to human errors which could have resulted to financial losses due to unintentional and intentional exaggerations in figures by rogue financial officers for their own benefit. Manual filing systems also were vulnerable to intentional damage whereby employees would deliberately damage the records in order to conceal cases of embezzlement motivated by the knowledge that the files would not be tracked. There was also the possibility of defacement of records due to dust and other environmental factors. The filing systems which made use of physical files that were stored in filing cabinets made the process of retrieving data more time wasting and also encouraged corruption due to the fact that tracing a file concerning a single entity required going through a heap of other files which prompted employees to demand for favors from customers who came to request for such services (Tanenbaum, 2003). By doing so, they tarnished the organization’s reputation thus discouraging potential customers and investors. These problems have been solved by the incorporation of Information Technology in the operations of the organizations. Information Technology has replaced the manual systems through computerization of processes such as accounting whereby electronic spreadsheets are used to calculate and store financial records which can be protected from unauthorized access through the use of passwords. Data storage in computer systems has also solved the problem of access and defacement by enabling the storage of voluminous data which can be accessed just through a single mouse click (Tanenbaum, 2003). Data stored in computer systems does not undergo defacement due to its nature which is in form of soft copy, which allows multiple reproductions of copies of data without degrading its quality, a process that can be completed within a short period of time. This is in contrast with traditional methods of storing data which was in form of hard copies and which depreciated in quality over a period of time. IT is therefore essential for the organizations, which depends on the records in evaluation of performance that helps to show whether it is progressing or not. Information Technology has also helped in automating offices by reducing the amount of paperwork which as a result has helped in economizing on office space which allows a larger number of employees to work in a single office thus reducing the cost of renting more rooms to accommodate them (Hoffer, 2008). It has improved on the earlier filing cabinets which occupied a lot of office space making it almost impossible to accommodate more than five employees. In fact, some organizations rented special rooms which were used to store old files which kept on accumulating with time. IT has also helped to cut down the cost of employing extra staff for maintaining these records thereby reducing expenditure. Information Technology has also enabled organizations to enhance the performance of their employees through telecommuting (Gordon, 2001). Telecommuting is a process through which employees are allowed to work from their remote computers at home during their free time after which the completed assignments are sent directly to the organization’s database thereby increasing their productivity by ensuring that results are delivered in time as well as avoiding family conflicts which may arise due to delays at work place whereby employees would be forced to work for extra hours in order to finish their assignments. By doing so, employees may lack motivation and and proper concentration which would result to poor performance. Through connectivity, organizations have been able to conduct field research whereby they use their agents to evaluate the situations on the ground and report back in real time which has proven to be adequate especially in the field of journalism whereby every media house competes to deliver news as they happen (Gordon, 2001). This has been facilitated by the incorporation of the unguided media for information transmission such as satellite. It is through Information Technology that some radio and television stations have attracted much more audience than others especially by transmitting live football matches as well as other sporting activities, which has promoted their business. Without this technology, it would be difficult to pass valid information to the wider population especially in the rural areas where there is low economic power of individuals, which makes them incapable of purchasing newspapers and other print media frequently. Businesses and organizations have taken advantage of this technology whereby they use it to advertise their commodities through the various radio and television stations which attract wider audience than the print media. The impact of information technology in the business environment cannot be underestimated reason being that it has penetrated through almost all the business segments that since then cannot perform without it. Such are for example electronic commerce which has enabled businesses to capture global markets through online shopping and electronic money transfer (Reynolds, 2004). Online shopping has been facilitated by the internet technology which interfaces the customers with their suppliers. Through internet, a person is able to check on the details of the best company to quote goods from just by accessing their websites some of which are interractive in nature. It also makes it possible to chat with customers interractively even without having to prepare physical meetings. Businesses have benefited form IT especially those dealing with imports and exports (Reynolds, 2004). For example, a person from one country for example America can buy goods like cars or machinery from a dealer maybe who is in Japan or Germany depending on his choice. Quotation, cataloging and shipment details as well as clearing and fowarding does not necessarily require any travelling. As long as the customer has a personal computer at home which is connected to the internet, all these can be organized from the comfort of his home, including the payment which can be made using various globally accepted credit cards. Studying this, one is left to ask himself how business would be without information technology. How would such deals be accomplished? It is true to say that though it would still be possible to conduct businesses at international level, it would be a tedious process which would consume a lot of time which can be spent on other important tasks (Reynolds, 2004). For example, to purchase the machinery eg from Japan, one may be required to travel so as to meet with the customer or vice versa. That would in result be a more expensive process due to travel arrangements which could take a lot of time maybe while waiting for passports or visa to be processed. The flying time can be dedicated to other matters such as meeting with other CEOs to discuss business issues or marketing the business by attending business oriented meetings. Various systems have been developed which enhance the effectiveness of processes especially those related to accounting for example the Point of Sale system which enables tracking of sales as well as taking note of stock balances (Cordeiro, 2006). POS facilitates quick delivery of services especilly in supermarkets where there are many customers who expect to be served at the shortest time possible. It has also helped to tackle the ethical dilemma which involves employee theft who may take advantage of manual systems which may not disclose such theft in time thus leading to heavy losses. The internet has also become the major avenue for attracting potential customers who usually visit various websites in search of information and viable choices of suppliers (Reynolds, 2004). As such many organizations have benefited from the publicity that internet offers, which has enabled fair and active competition between various organizations. Almost all global organizations and companies have embraced this technology with the few that have not gaining less from the fact that the world is becoming one digital village whereby factors such as geographical locations does really matter anymore as long as there is internet connection. Though offline businesses are also growing at a fast rate, it has become inevitable for them to incorporate information technology to cope with their competitors who are using it to expand their market share (Reynolds, 2004). Thus when a person asks the question of whether IT matters, not only does he fail to acknowledge the fact that we are in a digital era but also fails to realise that IT is here to stay and as time goes by, more developments in the sector are going to be realized which will be more human in nature. In their functional capabilities, computers have almost imitated human ability such that organizations are now acquiring more of them than they are hiring human resources due to their nature which does not experience fatigue as humans do thus making them capable of working for more hours on the same task and at the same time producing similar quality products and at the same speed, as opposed to humans who are not capable of producing the same quality results over a long time. Data and information sharing is essential in the operations of an organization for it reduces the cost of acquiring facilities such as hardware and software for every individual. Through networking, it is possible to share resources such as printers whereby interconnected computers can make use of one printer (Checkland, 1997). Data can also be sent from one work station to the other through the network which can also be accessed from any computer as long as it is connected to the organization’s server. Doing so reduces the cost of buying hardware such as removable storage devices which could promote the transmission of computer viruses which could result from employees using the devices on their infected personal computers. With respect to communication, Information Technology has enhanced the reduction of cost through the facilitation of video conferencing. This is a technology that enables online meeting whereby a person only requires to have a computer which is multimedia enhanced, with a camera, sound devices and an internet connection (Hennesy, 2006). Once everyone participating is fully settled and a connection is initialized, it becomes possible for them to hear and see each other on their computer screens. videoconferencing enhances time mangement especially where international management is concerned since it would be time consuming to organize and arrange board meetings, which could also be expensive due to travelling and accommodation expenses (Panko, 2008). Policy making and formulation of strategies, which are essential for business success can now be done easily with the touch of a button thanks to Information Technology. Communication within the organizations have also been enhanced due to the invention of telephones and fax machines which have replaced the traditional methods, which involved written communication through letters and which took a long time to be delivered. Such enhancements can be attributed to the availability of private switched telephone networks which provide connectivity within an organization thus reducing the cost of hiring multiple lines from the public swithched telephone networks which would be more expensive (Panko, 2008). The mobile telephones have also improved efficiency in communication through their mobility which makes it possible to reach the subscriber from wherever he is either for consultation or other business purposes. However, this technology has been associated with various shortcomings that has resulted to heavy loses in the organizations for example, the possibility of hacking which is the process through which unauthorized persons break into an organization’s network with the intention of stealing data and information, which they use to cause malicious damage to the integrity of the business (Tanenbaum, 2003). Businesses have lost a lot of money through hacking of financial details such as credit cards used to conduct online shopping, which are later used to commit fraud which leads to financial crises. Conclusion Information Technology has revolutionalized the mode of doing business, from the traditional methods which were slow and inefficient to the current systems which are almost an imitation of human capabilities. Traditional manual systems experienced various shortcomings such as vulnerability to destruction by environmental factors such as dust as well as defacement due to poor storage. With the introduction of computers, data storage and accessibility were enhanced due to their capability to store volumonous data which can easily be accessed just by mouse clicking on a command. Organizations have benefited from this technology in that it has also helped to economise on office space through office automation which has replaced physical files as well as filing cabinets which occupied large space. As a result, the cost of renting extra rooms for storing these files has been minimised as most of the paper work has been reduced. Information Technology has also enabled businesses and organizations to extend their markets into a global perspective through internet marketing as well as facilitating online shopping. Online shopping is the mode of doing business which does not involve travelling to the supplier’s physical location but instead, all the transactions are conducted through the internet. Technology has also enabled telecommuting in organizations whereby employees are allowed to work from their personal computers at home during their free time and send the completed asignments directly to the organization’s database. As such, prompt delivery of results especially to those companies that are in journalism has been enhanced. Data security has also been enhanced whereby it is now possible to protect it using passwords as well as through encryption. Encryption is the process through which data is encoded into a language that is understandable only to the sender and the reciever with the intention of reducing chances of having the data misused by hackers who may access it through illegal methods and who may use it to cause malicious damage to the organization. It would be therefore recommendable for businesses and organizations to ensure that they keep up with the dynaimic nature of IT since new systems are finding their way into the market and what matters most is the fact that in this digital era, those with the most sophisticated and updated systems have the ability to sustain their business productivity as well as gaining a larger market for their services. References Checkland, P., 1997. Information, Systems and Information Systems - Making Sense of the field. Wiley. Cordeiro, J., 2006. Enterprise Information Systems. ICEIS. Gordon, G., 2001. Telecommuting Success: A Practical Guide for Staying in the Loop While Working Away from the Office. Park Revenue Productions. Hennesy. J., 2006. Computer Architecture: a Quantitative Approach. 4th ed. Morgan Kaufmann Hoffer, J., 2008. Modern Database Management. Prentice Hall. Panko. R., 2008. Business Data Networks and Telecommunications. Prentice Hall. Reynolds. J., 2004. The Complete E-Commerce Book, Second Edition: Design, Build & Maintain a Successful Web-based Business. CMP. Tanenbaum, A., 2003. Computer Networks. Prentice Hall. Read More