The Impact and Opportunities of Information Technology - Coursework Example

The Impact and Opportunities of IT By Author Date Table of Contents Executive Summary This report presents a detailed discussion on the impact of information technology different areas of life especially the opportunities and benefits achieved by the business organizations through the implementation of these technologies. In the past few years, the use of information technology has increased to an amazing extent in every walk of life. At the present, a wide variety of IT tools and applications are being implemented and used to carry out a number of tasks. In this scenario, the majority of business organizations and individuals are making best use of information technology. For instance, the Internet is most useful application of information technology that has not only modernized the entire world but also supported the implementations of a large number of other technologies. Additionally, the use of Internet for e-commerce and e-business has not only offered a large number of opportunities to business organizations but also modernized the way people carry out daily tasks especially shopping. In Australia, the use of information technology is always increasing and more and more business organizations and other industries are adopting internet for their business tasks. In the same way, another opportunity that IT has offered to businesses comes in the form of information systems. Now business organizations implement different kinds of information systems for carrying out a variety of tasks. There are many kinds of an information system and each kind serves a specific purpose for instance a decision support system is used in decision making and in the same way a management information system supports daily tasks of a firm. The basic purpose of this report is to discuss how business organizations and individuals are taking benefits of IT. This report also considers some of the important aspects such as outsourcing and usage ratio in the context of Australia. The use of IT Information Systems According to (Turban et al., 2005 p.18), an information system collects, processes, stores, evaluates, and distributes information for a particular function. Similar to any other system, an information system consists of inputs (such as instructions and data) and outputs (reports, calculations). It performs operations on the inputs by using technology like PCs and develops outputs that are delivered to users or to other systems by means of electronic networks (Turban et al., 2005 p.18). In addition, “the term information system can be described technically as a collection of interrelated components that bring together, process, store, and distribute information to carry decision making and control in an organization” Information systems keep and maintain information about important people, places, and things inside the corporation or in the set up surrounding it (Laudon & Laudon, 1999, p.7; Hoffer et al., 2007, p.429). Also, a management information system is a function or use of information system that offers for management oriented reporting. These reports are typically developed or produced on a predetermined schedule and come out in a prearranged structure (Whitten et al., 2000, p.47). According to (Whitten et al., 2000, p.47), a decision support system (DSS) is an application of an information system that offers the users with decision-oriented information when a decision-making state of affairs appears (Whitten et al., 2000, p.47). Also, a decision-support system (DSS) facilitates the management in the decision making by integrating information, suitable logical models and techniques, and easy to use interface into a single commanding system that facilitates unstructured or semi structured decision making. In addition, a DSS offers users with an appropriate group of tools, techniques and facilities for assessing key blocks of data (Whitten et al., 2000, p.47; Laudon & Laudon, 1999, p.468). Furthermore, a DSS is based on the fact that management information systems and transaction processing have previously collected the information required to offer information for unstructured decisions. The DSS offers the management with facilities to use that information and evaluate it to take a decision. Generally, a DSS offers one or more of the following types of facilities to the management: (Whitten et al., 2000, p.47) Resolving issues or decision-making opportunity (like exception reporting) Finding suitable solutions or taking appropriate decisions Finding the information required to resolve an issue or making a decision Evaluating decisions or of variables that will have an effect on a decision. Imitation of possible decisions and their possible outcomes. Benefits for the business organizations An information system can be used in different ways to facilitate management in decision making. Table lists uses of information systems in recognized corporations (Laudon & Laudon, 1999, p.468): Table 1. Examples of Decision-Support Systems Organization DSS Application American Airlines Price and route selection Equico Capital Corporation Investment evaluation General Accident Insurance Customer buying patterns and fraud detection Bank of America Customer profiles Frito-Lay, Inc. Price, advertising, and promotion selection Burlington Coat Factory Store location and inventory mix National Gypsum Corporate planning and forecasting Southern Railway Train dispatching and routing Texas Oil and Gas Corporation Evaluation of potential drilling sites United Airlines Flight scheduling U.S. Department of Defense Defense contract analysis Developers of information systems struggle to make them more elastic as compared to management information systems and to provide them the capability to facilitate decision makers in various conditions. (Stair & Reynolds, 2003, p.439), also present a table that outlines various DSS applications (Stair & Reynolds, 2003, p.439): Table 2 Applications of DSS Company or Application Description Cinergy Corporation This organization developed a DSS to diminish lead time and endeavour needed to make decisions in buying coal. RCA This organization developed a DSS acknowledged as Industrial Relation Information System (IRIS) to assist in workers problems and conflicts. U.S. Army They developed a DSS to assist hire, guide, and instruct selected forces. The DSS makes use of the simulation that integrates what-if features. National Audubon Society This society developed a DSS known as Energy Plan (EPLAN) to measure the effect of U.S. energy policy on the atmosphere. Hewlett-Packard This is a computer corporation which developed a DSS acknowledged as Quality Decision Management to assist in improving the features of its products and services. Virginia The state of Virginia developed the Transportation Evacuation Decision Support System (TEDSS) to find out the most excellent method to evacuate people in case of a nuclear tragedy at its nuclear power plants. Benefits for the customers The implementations of these information systems allows business organizations to identify what services their customers like most and what services should they improve. These information systems allow business organizations to design services according to the customers’ needs and at the lowest prices. These information systems allow the customers to shop using the automated support systems and customer care services. Challenges In way of the successful implementation of IT especially the information systems organizations can face a variety challenges. For instance, it is costly to implement these systems; there can be some serious security threats such as theft of data and information. There can be a lot of need for the training in order to learn how to use and manage these systems. E-Commerce A lot of the ways business organizations and individuals perform their daily tasks and continue to exist in the twenty-first century are measured with the huge web of electronic networks that is normally acknowledged as the Internet (Turban, Leidner, McLean, & Wetherbe, 2005). In addition, the across-the-board existence of the Internet for performing transactions between sellers and buyers is the fundamental motive behind the development of electronic commerce or simply (e-commerce). According to (Laudon & Laudon, 1999, p. 25; Stair & Reynolds, 2003, p. 19), “electronic commerce is the process of selling and purchasing services and goods and products is carried out electronically by means of computerized business transactions over the Internet, networks, and other digital technologies”. In addition, e-commerce also encompasses the operations behind those business transactions, such as business marketing advertising, offering customer support, and processing payment. Additionally, by replacing old and rigid paper-based and manual techniques with electronic processes, and with advanced information flows in up to date and active manners, e-commerce does not only offer the business organizations a capability to accelerate the process of ordering, delivery, and payment for products, services and goods but also minimizes the operating and inventory expenditures of the organizations (Laudon & Laudon, 1999, p. 25). Moreover, the World Wide Web (WWW) has turned into a common platform for performing e-commerce, building and implementing latest tools and technologies for the organizations to communicate with each other and their customers. In simple words, e-commerce means carrying out business activities using the Internet (Norton, 2001, p. 371). Benefits of E-Commerce for Business Organizations To better understand the concept of e-commerce we can use an example of Amazon.com. It is one of the most flourishing and famous e-commerce stories around. In this scenario, when an internet user places an order at Amazon.com or even just visits this web site, this firm marks and displays a wide variety of online and e-mail advertisements to people interests. Another major benefit of e-commerce that Amazon Business has gained is its capability to connect with its associates. Moreover, like other businesses Amazon.com can quickly and completely integrate its communications with its associate retailers for instance Toys ‘R Us, Office Depot, Target, and others (Ray, 2004). Below some businesses are just a few examples of businesses making use of e-commerce for increasing their sales and promoting their businesses: Another useful example of an e-commerce business is Godiva Chocolatier (http://www.godiva.com/welcome.aspx). This organization created a very gainful and attractive web site that allows its customers to purchase and shop for chocolates. According to Kim Land, director of Godiva Direct, “this web site allowed them to generate a lot of revenue.” For instance, in only two years, their online sales had reached by more than 70 percent each year (Stair & Reynolds, 2003, pp. 17-18). There is another similar example of ALTA Energy (http://www.altaenergy.in/index.html), “which has a strategic alliance with XinTong, a R&D and Technology provider in which the two companies intend to work together to deliver affordable Alternative Energy solutions for global clients”. This firm also created an e-commerce platform to assist its partners and other companies buy oil, gas, and wholesale power using the Internet (Stair & Reynolds, 2003, pp. 17-18).  Benefits for Customers These e-commerce systems allow the customers to shop online and save a lot of travelling costs. In this way, the customers can shop from anywhere and compare the prices of products with others. Challenges A business organization can lose control over its web site. For instance, a hacker can hack the web site or there can be a variety of security attacks such as virus attacks. In addition, there can be a trust factor as the majority of people do not trust on web sites. The use of IT in Australia As we have seen the use of the Information Technology in different forms is increasing all over the world and Australia is not excluded in this list. In fact, the use of IT is continuously increasing in Australia with the passage of time. In this scenario, figure 1 demonstrates a detailed depiction of the IT usage a number of companies and industries are making in different forms. The research has shown that the basic intention of the companies behind the implementations of latest IT trends is to make use of the Internet for various purposes. The use of the Internet allows them to stay in touch with a large number of customers, communicate with them effectively and manage relationships with them in a profitable environment. In the past few years, the portion of Australian companies using the Internet in different ways has increased from 81% to 91% and the portion of Australian firms that have established their own web sites on the Internet has increased from 30% to 42%. These statistics include all kinds of businesses such as the Agriculture, IT industry, business firms, forestry and fishing industry. In addition, the image gives a detailed description of the firms with their sizes and number of employees they have. In this image, it is clearly shown that the majority of business organizations with more than 200 staff members have established their own web sites (94%), at the same time as more than a quarter (29%) of business firms having 0–4 staff members have a web presence. However, in the past few years, the proportion of business organizations making use of IT increased significantly all the way through industries. In this scenario, these statistics also show that all the business organizations dealing in IT or software development have already implemented or effectively making use of the Internet and latest IT tools and applications. Some of the important participants of these industries included Professional, scientific and technical services (97%) and financial and insurance services (98%). However, the lowest proportion of the IT usage was perceived in the industries such as food and accommodation services (that is approximately 74%). In the same way, other industries such as forestry, agriculture and fishing were perceived to use 83%. In addition, the majority of business organizations and industries have established their own web sites such as arts and recreation services (65%) and information media and telecommunications (58%), at the same time as forestry, agriculture and fishing and transport, postal and warehousing have shown the minimum proportions of industries with a web presence (11% and 22% respectively) (Australian Bureau of Statistics, 2013). Figure 1The use of IT in different forms in Australia, Image Source: (Australian Bureau of Statistics, 2013) The use of IT in Education In Australia, the use of the IT is not increasing only in business organizations but also government departments and other sectors such as education have also started making use of latest IT trends to provide support for their activities. For instance, in the Australian universities, teachers and students are encouraged to make use of ICT (information and communication technology) capability as they gain knowledge of ICT efficiently and suitably to access, create and communicate education related information and thoughts, solve problems and work in cooperation and collaboratively in all learning areas at school, and in their lives beyond school. At the present, the majority of Australian universities and educational institutions have established their own web sites and educational platforms in order to support learning and education related activities. In this scenario, the majority of educational institutions are making use of latest IT tools and applications to improve communication and collaboration between teachers and students. In fact, the use of IT applications to support educational activities is proved to be very successful in all the domains of education. In this scenario, the potential supports and encourages students and educators in learning how to make the most of the digital technologies accessible to them, adapting to new ways of doing things as technologies evolve and limiting the risks to themselves and others in a digital environment. Without a doubt, these modern IT applications and tools can be customized according to the varying needs of students and teachers as they are automated and fast, interactive and multimodal as well as they provide an excellent support for the quick communication and distribution of educational data and knowledge to a wide variety of audiences and its adaptation in different contexts. They transform the ways that students think and learn and give them greater control over how, where and when they learn (Australian Curriculum, Assessment and Reporting Authority, 2013). Outsourcing Trends With the increasing usage of IT all over the world, there has also emerged a trend known as outsourcing. This trend allows the business firms especially the software development firms to outsource some or all of their business tasks to other business. In this scenario, this process allows the firms to outsource the difficult tasks to a firm that has sufficient resources to manage it effectively. This trend allows a firm to save a lot of cost that they would otherwise need to spend on hiring additional resources to process these tasks. At the present, the majority of firms are outsourcing their some or most of IT related tasks to other firms. In this scenario, Australian organizations are set to carry on outsourcing more of their technology infrastructure and software applications according to new research. The research has shown that more than 75% of business firms have already outsourced some of their processes; at the same time as more than 85% firms have already outsourced some of their infrastructure. The research has shown that Australia has long been believed to be a grown-up IT market for outsourcing, for the reason that here business leaders and chief information officers establish this path including: being able to access resources not otherwise available, reducing costs and being able to increase output on demand (Clarke, 2013). Without a doubt, Australia is known as a leading country in IT sector and there are a number of emerging trends related to software and IT industries in Australia. These factors also affect the outsourcing trends of Australia. In the past few years, game development outsourcing has increased by 437%, mobile app development by 258% and engineering and technical design by 276%. On the other hand, other quickly changing trends that Australians organizations are outsourcing consist of recruiting and human resources/payroll, which both grew by 227%, and legal which grew by 267%. However, the basic intention of recruiting human resources takes place for IT sectors or software development (Powell, 2013). Conclusion The economic and societal influences of information and computer technology is undeniable, growing efficiency and competence and fostering novelty in all areas of life and industries such as defense, medicine, communications and entertainment. However, in order to make sure that computing systems carry on performing twice in capability and performance in coming few years, the information technology producers need to take some serious steps and make major transformations in computer software and hardware. In addition, the business organizations need to manage the technology shift by allocating sufficient funds to IT and computing research and development of similar computing power which presents a clear path forward progress of corporate and business. Moreover, in order to support parallel computing for broader use, new programs and algorithms, operating systems, programming models and computer architectures will be necessary and researchers should pay attention to this area. At the present, information technology is playing a significant role in every walk of life. The majority of business organizations are making use of the latest tools and technologies in order to compete and survive in this ever-increasing competitive environment. This paper has presented an overview of the role that information technology is playing is today’s business environment. The advancements of information technology will never stop and it will continue playing a significant role in our lives. This research has highlighted how a technology shift is happening and how an organization can deal with such technology shifts. This paper has also discussed some of the latest trends and evolutions those are supportive of business and organizational practices in the context of Australia. References Australian Bureau of Statistics, 2013. USE OF INFORMATION TECHNOLOGY. [Online] Available at: http://www.abs.gov.au/ausstats/abs@.nsf/Lookup/by%20Subject/1301.0~2012~Main%20Features~Use%20of%20information%20technology~174 [Accessed 10 September 2013]. Australian Curriculum, Assessment and Reporting Authority, 2013. Information and Communication Technology (ICT) capability. [Online] Available at: http://www.australiancurriculum.edu.au/GeneralCapabilities/Information-and-Communication-Technology-capability/Introduction/Introduction [Accessed 09 September 2013]. Clarke, T., 2013. Technology outsourcing 'will continue to increase'. [Online] Available at: http://www.smh.com.au/it-pro/government-it/technology-outsourcing-will-continue-to-increase-20130430-2iow1.html [Accessed 04 September 2013]. 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