The Role Of Information Technology In Organizations - Essay Example

The role of information technology in organizations Part one The role of information technology in organizations Balfour Beatty is an infrastructure company with its headquarters in Dubai and its centres around the world, notably in UK, Europe, Asia, Canada and major parts of the Middle East. The firm undertakes everything from financing, planning and design to construction, maintenance and support. The organization offers a range of services in a variety of portfolios such as infrastructure investments, construction and support services among others. Some of the investment services that the organization undertakes include the programme and project management, projects designs; while construction services such as building, civil engineering and support services such as upgrading and maintenance of water, gas and electricity. The organization has a strong culture, leadership and technical; competence it nits operations. The Balfour Beatty customers are mainly governments and large regulated bodies (p13). For instance, the medupi power project that the Balfour Beatty that have been undertaken by Balfour Beatty will increase the capacity by meeting its demand for electricity by the local consumers in South Africa. The project team consists of close to 9000 staff from UK, us and South Africa. As the report notes (annual report, p17) the 4800MW thermal power will create employment and aid help improve the living standards of the people in the region. Other projects include the Airports operator BAA project undertaken to renovate the airport terminals. The firm undertakes other services for government and other larger companies in multiple contracts Canada, India and most parts of Europe. Balfour Beatty uses a variety of means to indentify and communicate to their customers. Through identification of diverse factors that aid the company identify and therefore effectively reach out to their stakeholders, it lists several factors that help the firm establish its stakeholders. These factors include benefits to stakeholders, risks of their projects to the stakeholders, resources that stakeholders and the interest that stakeholders have in their projects. Through listings and surveys, they evaluate their stakeholders by plotting on the grids according to their power, interest, influence and accessibility on the projects. They carry out market surveys and by utilizing various tools such as questionnaire, online surveys, telephone calls and any available means that will reach their customers. The firm has a strong marketing, research and development department that employ a blue-sky technology in tracking their customers purchasing patterns, attitudes, changing needs, preferences and expectations and communicating their proactive responses in terms of decisions and progress to them in a timely and efficient manner. For instance, they use computerized systems for tracking the progress of their projects oversees such as those occurring in Canada and Europe. They also use management databases so as to constantly be in touch with their customers. As the CEO notes, the company takes great delight in its expertise in technology. This implies that most of their processes are automated. The firm uses computers and telephone lines in communications between different project teams to ensure that decisions are arrived at earlier and accurately. In order to differentiate itself and focus on core markets across the globe, the Balfour has invested heavily in the customer service by establishing the National operational centre in UK. This is due to the increased accounts and the then prevailing inconsistent management systems. Having being opened in April 2010, it has enabled the firm to integrate most of the administrative and management of the contracts together on one site. This implies that both the local management and the administration overseas share the best practice standardized and streamlined processes through a simplified information technology platform that has improved the customer service (Balfour Beatty Annual report, p21). As the report notes, a simplified information technology has reduced the risks, improved the efficiency and is delivering higher margins for the firm. The firm has a sophisticated database where it can effectively and efficiently communicate with customers- to identify, pinpoint and rapidly respond to their customers’ needs, check their loyalty, and rate their satisfactions levels, and constantly reviewing the quality and value of their services in relation to the customers’ expectations. As noted in the report; the management gets in touch with customers through a face-to-face discussion by its CEO and through a 24/7 hour service centres that answers and responds to customers queries. For instance, the Executive tours the projects and is able to meet most of their customers, who are mainly the governments and their respective representatives and in this process of discussions; they can establish their level of satisfactions and retention capacities. The company, in addition, has a well established customer and other stakeholder databases where their progress can be tracked, assessed and a right decision executed. In addition to delivering quality of service to its customers, the firm has a well instituted risk management committee. This team identifies the potential impact, puts up mitigation measures, monitors and reports the findings on the projects underway .The entire process is highly depended upon the developed information technology systems (p 58). Through risk management e-learning courses, both the executive and the staff have minimized the costs resulting from legal claims, debarment and improved the reputational damage. (p 57). The staff has also integrated the information technology in their routine procedure such as record keeping, simple calculations and other simple decision making that requires simple rule and regulations. This saves on time, improves on the morale of the staff and increases the general output of the firm in the long run ( Daft and Murphy p295). Part two Role of information systems in analyzing customer satisfactions In order to address the ever expanding markets in both developed and developing economies, the firm has instituted a strong Decision Support Systems so as to serve its management, operations and planning levels of an organization with increased speed, accuracy and efficiency. It has enabled the company to undertake different contracts in a short time span due to decisions it makes using the system. It gets inputs from all interested stakeholders such as customers, shareholders, the community and even employees, process through an expertise and knowledge that lie in their human resources. This saves time and other resources, improving the quality of decisions and in turn improving the output of the firm (Alan et al, p4) For instance, as pointed out by the CEO, Ian Tyler, the firm has invested heavily in infrastructure so as to get a wider access to markets and customers (p 13). It has integrated all its elements and resources so as to reduce the interface and the delivery risks, to thoroughly understand the local language so as to nurture local customer relationships. This improves the strength and the relationship between the firm, customers and the community in general, which in turn improves image, profit margins and may minimize the resistances when the firm is undertaking projects in those regions. The decision support systems has promoted learning and training, increased speed and organizational control and in the end created a competitive advantage over their competitors (Daft and Murphy, p295) The firm utilizes a number of technologies such as internet, website, sophisticated consumer electronics, video conferencing, customer relationship systems, radio technologies in telephones lines and using of social media like facebook and twitter to advertise their services across the regions which it serves. The adoption of appropriate technology has enabled the firm to stay head of their business, gain reputation in their service delivery, and stay globally competitive. As pointed out in the company’s annual report (p14), the company is able to deal with complex customers and ever-changing markets. The main shortcomings of the firms technology is that due to different local languages used, the need for complex systems and ever-volatile customers needs, it still remains a challenge to build an infrastructure that a unified language system. This has made the company to decentralize some of their branches and outsource local staff so as to deal with the looming challenges of their adopted technology (Burlingame) The table below is a brief extract of data from the group’s financial statements showing the Balfour Beatty plc. Notes a) a indicates the profit from operations after the items and amortization b) after exceptional items and amortizations c) Is the adjusted basic earning per share. The graph below shows the revenue generation for Balfour Beatty for two consecutive years of 2009 and the year 2010. Group revenue id the Balfour Beatty company and its branches while the joint revenue is the Balfour Beatty and its parent company dutco. For more information, visit, their website (www.dutco.com) For more graphs and other extrapolations, visit the company’s annual report, 201, p2 Source: The Balfour Beatty, 2010 Annual Report, PP 49-55 Extract data from a pivot table showing the total number of ordinary shares Number of ordinary shares Name of Director As at Jan 2010 As at 31- Dec 2010 R M Amen 0 5000 M J Donovan 7142 10000 I G T Ferguson 0 25000 G E H Krossa 7142 7142 D J Magrath 62446 84258 S Marshall 7142 7142 A J McNaughton 45315 91253 A L P Rabin 257468 258651 G C Roberts 7142 7142 G H Sage 7142 7142 I P Tyler 315720 354096 R J W Walvis 14285 14285 P J L Zinkin 262596 286359 Data extracted from the profit and loss statement of Balfour Beatty plc showing how the pre-tax profit was progressing from year 2006 to year 2010. pre tax profit year profit £ (M) 2010 319 2009 265 2008 246 2007 200 2006 135 Conclusion and reflections Balfour Beatty Company has instituted a strong and vibrant information technology system in their value chain that has leapfrogged the quality of their products and services for their customers. Through technologies such internet, website, telephone lines and other decision support systems such as customer relationship systems, the firm has improve its speed and quality of decision made, gained a competitive advantage over its competitors and improves on the sales margins. It continues to enjoy reputation for its exceptional services. The firm has instituted six strategic plans in order to strengthen the market and customer focus. First, the firm has developed a focus on the customer needs and continues to tailor their services towards meeting customer needs. There is a focus on the markets with greatest opportunities such as investment in renewable energy, rail, waste infrastructure and increasing demand for integrated series. The firm has embarked on operational excellence and cost effectives in all its value chains through means such as automation of its services and a continuous training programs. The firm continues to strengthen core skills in diverse functional areas to ensure the firm becomes a global leadership in its industry by 2020. Lastly, the firm has continued to display leadership values in many areas of its business process such as human technical and financial management. This strategies have enabled the firm contain a hub of core competence which have enabled it survive, grow and realize profit margins even in adverse business environments. Through diversification, strategic alliances, concentration, infrastructure and talented workforce, the firm offers quality products and services. It also ensures long-term relationships between it and its customers, a competitive advantage it has sustained for many years. Work cited Alan L. et al. Forecasting and Management of Technology: New York: John Wiley & Sons, 2011. Balfour Beatty, Annual report. Dubai, Balfour Beatty Company. 2010. Burlingame, S. G.The Impact of Information Technology on Organizations: Implications for Organizational Integration and the Management of Information Technology. Sussex: Naval Postgraduate School Monterey CA, 1998.. Daft, J. and Murphy, H. W. Organization theory and design: Cengage Learning EMEA, 2010. Read More