Management Information System - Coursework Example

Communications Technology Introduction Information technology is among the critical tools which managers use to adapt their organizations to changes constantly taking place in the marketplace. This comprises of the computer hardware, this being the physical equipment for inputting, processing and outputting activities in a given information system. The software is a collection of preprogrammed instructions which coordinate and control the computer hardware in the information system. The storage technology encompasses both the physical media and software used to organize data. Communications technology brings together the physical devices and software, and links different hardware pieces to facilitate the transfer of data between physical locations (Laudon & Laudon, 2014). This paper articulates the application of communications technology in the organization, evaluating the associated benefits and weaknesses from which conclusions will be drawn to inform on recommendations that would make organizations optimally benefit from the technology. Computers and equipment used for communication could be connected in networks to facilitate the sharing of images, data, voice, video or sound. The networks provide a link for several computers to facilitate the sharing of resources or data. This is the tenet upon which communications technology is built as given by Laudon and Laudon (2014). Grant and Meadows define communications technology as “the hardware equipment, organizational structures, and social values by which individuals collect, process, and exchange information with other individuals” (2014, 3). Thus, software, hardware and content are the core components of communications technology. Examples include mobile phones, tablets, radio and electronic mails among others, a majority of which have come to depend on the Internet as the platform to facilitate the exchange of information. They basically seek to facilitate the effectiveness of exchange of communication between the parties involved. The Benefit of Communications Technology to an Organization An organization that adopts communications technology in its operations increases its flexibility. Such an organization would have it easy accessing information immediately through telephones and other communication links which eliminate the need for business libraries and research staff, thus making decision-making fast. Managers of such organizations obtain the requisite information efficiently from their widely scattered employees. Moreover, the massive database of its customers purchasing records could be easily analyzed using communications technology, thus enabling the organization to tailor its production process in line with the unique set of requirements by its customers. Laudon and Laudon (2014) give the example of Levi Strauss which has designed an option called Original Spin in its stores, which uses communication technology to allow its customers to design their own jeans. This information would be transmitted from a personal computer over a network of the organization’s plants, enabling the production of the customized jeans on its lines that manufacture the other standard jeans. According to Atkinson and Stewart (2013), communications technology enables an organization to coordinate its activities such as keeping track of its inventories and processing bids even with a limited workforce. This makes such an organization increasingly capable of sensing and responding to changes in the marketplace, which eventually makes it able to take advantage of emergent opportunities. Communication technology enables an organization to redefine its boundaries thus gaining new avenues for collaboration. According to Laudon and Laudon (2014), communication technology gives an organization the ability to carry out businesses across its boundaries almost as effectively and efficiently as though it was taking place within the organization. The network of information systems enables such an organization to coordinate with organizations from across great geographical distances. Leveraging on the Internet, transactions such as purchase and payment orders across organizations could be easily executed. Additionally, businesses could share relevant data, mail messages and catalogs through networks. Such networked information systems create new efficiencies and relationships between an organization and its customers, suppliers or other organizations, thus redefining organizational boundaries. Toyota Motor Corporation provides a perfect example with its network with Dana Corporations, its supplier of major automotive components like engines and chassis (Laudon & Laudon, 2014). This network enables Dana to keep track of Toyota production, enabling it to ship components when required. Such inter-organizational collaborations and coordination yields greater efficiency thus providing customers with value and ultimately providing sustainable competitive advantage. Organizations that adopt communication technology stand to experience immense growth. The ability to collaborate with numerous stakeholders in its industry and efficiently gather relevant organizational data and market intelligence enables organizations that adopt communications technology to improve on production. Atkinson and Stewart (2013) back up this argument noting that in the US, UK, Germany, France and Canada, small firms that incorporated communications technology in their operations earned about 9% more revenue that their other counterparts that had no such initiatives. Communication technology drives innovation in an organization. The probability that a firm would develop a process or product innovation increases with the intensity of such an organization adopting communication technology approaches. For example, in German firms, broadband access increases the likelihood of the firms introducing a new innovation by 40% (Atkinson & Stewart, 2013). Such innovations make organizations realize improved and more efficient performance. Application Office automation systems have immensely benefitted from communications technology. As documented by Grant and Meadows (2014), these are systems which seek to improve employee productivity where there exists need to process information and data. They include systems that allow working from remote locations, without humans necessarily being physically present in organizations. Chukwu and Nneka (2012) give the example of e-Government as one of the ways through which communications technology has benefitted public administration with this regard. The government makes its services and information meant for the public available remotely by leveraging on communication technology. Such services would be provided without physical intervention of any human resource. Another key area where communications technology could be applied is in the transaction processing systems. TPS, as referred to as by Chukwu and Nneka (2012), are meant to efficiently and accurately process routine transactions. These include billing systems, purchasing and production systems and stock control systems among others. Laudon and Laudon (2014) observe that communications technology facilitates the execution of these transactions. The Internet has particularly made it possible to undertake such transactions with greater speed and efficiency. Finally, communications technology has a wide application in management information system, MIS. This entails internal sources of information, where MIS gathers data from systems used in processing transactions and summarizes such data into useful management reports (Laydon & Laudon, 2014). Communications technology provides systems for data gathering and analysis of these data into useful reports for the management. Furthermore, they provide systems to relay such reports to the relevant management levels. This relates to the application of the technology in decision support where communications technology provides tools that assist in the gathering of relevant information to analyze possible options. This helps the management make appropriate decisions where uncertainty looms. Strengths of Communications Technology One of the key strengths of communications technology is cost savings. Moore (2012) argues that the cost of initial setup of communications technology infrastructure is prohibitive. However, once the technology starts operation, the resultant cost savings makes a significant economical sense to the involved organization. In fact, Atkinson and Stewart (2013) observe that the cost of using the technology declines with continued use. Furthermore, communications technology provides solutions to costly challenges associated with the traditional modes of communication such as loss of physical communication documents and the need to employ many employees for such fucntions. As such, the actual cost of using this technology ultimately benefits the organization economically. In the example of Original Spin technology documented by Laudon and Laudon (2014) which enables the production of customized jeans for customers, Levi Strauss incurs no extra cost running the technology, thus ensuring customer satisfaction at no extra cost. Thus, this communications technology saves the organization the cost of business transaction. Availability is another significant strength of communications technology. Communications technology infrastructure operates for as long as required. As such, it would be constantly available for use, even with no human intervention. This leverages on the automation capability of communications technology as documented by Laudon and Laudon (2014). The resultant efficiency makes it possible for organizations to respond to the needs of customers effectively. Speed and uniformity are products of communications technology in an organization. First, communication technology allows for high speeds of communication between people in an organization. This makes decision-making timely as information would be relayed in time. Moreover, communications technology brings forth a sense of uniformity in communications (Moore, 2012). This makes it easier to develop uniformity in communication systems for mass users, thus increasing the ease of communication among people. Communication technology fosters social interaction. The technology influences the socialization of people, allowing for networking in ways that previous technologies could not attain (Grant & Meadows, 2014). Such social networks allow free communication among people in an organization, thus fostering social bonds. As a result, this makes organizations foster interrelationship skills among employees, a critical component in boosting performance. Weaknesses of Communication Technology Despite the numerous benefits, communication technology also has limitations. Communication technology comes with intense architectural and infrastructural demands which make the undertaking costly. For communication technology to meet the technological and business demands of the digital firm in the modern business environment, the organization could be required to redesign its processes and infrastructure. Laudon and Laudon (2014) define communication architecture as the form that communication technology adopts in an organization to achieve its goals and functions. It refers to the design that the application systems use in organizational communication technology to serve the functional specialty at each level. The cost of such designs include that of computer software and hardware, data storage technology, human resource and networks needed to run the communication technology equipment. According to Moore (2012), communications technology comes at a cost, including infrastructural expenditure and cost of on-going expenses such as software upgrades, maintenance, training and network operations. The scholar gives the example of the broadband network set up by federal Communications Commission, FCC in 2008 at a cost of $40 billion. Thus, the technology is an expensive undertaking. Communications technology, just like other forms of technologies, transforms rapidly than organizations could keep at par. In spite of the massive investment in communication technology, organizations still fail to realize the expected benefits which bar them from becoming digitally enabled. According to Laudon and Laudon (2014), the capabilities of computer hardware and software have grown more immensely than organizations could apply and use them. To realize actual benefits from communication technology and take advantage of its capabilities, a majority of organizations need redesigning. These organizations need to come up with new business models, change organizational behavior and eliminate inefficiencies emanating from outmoded organizational structures. This makes it difficult for organizations to effectively become digital firms to enjoy the benefits of communication technology. Conclusion and Recommendations Communications technology is a significant form of technology to organizations which brings together organizational structures, the hardware equipment and organizational social values to allow the organization to collect, process and then exchange information within and without its boundaries. It has found wide application in office automation, transaction processing and decision support and management information systems. Cost savings, availability, speed and uniformity and social interactions are the major strengths of adopting communications technology in an organization. However, this could be a costly venture considering the architectural and infrastructural demands in addition to the need to constantly transform the technology to keep up with its currency. As such, understanding the cost and benefit of the communication technology adopted could prove the significance of adopting communications technology in an organization in the long run. In as much as the initial set up costs could be high, the ultimate cost savings from improved processes makes communications technology generally beneficial to an organization. Thus, organizations should invest in robust communication technologies, together with skilled personnel to ensure that the organization operates technology that serves the current and emergent purpose. Furthermore, employees should be constantly and appropriately trained to interact with communication technology systems so as not only to protect the organization from security and control breaches but also to ensure that such employees leverage on the technology to optimally execute their responsibilities. This way, an organization would reap maximum benefits from communications technology. References Atkinson, R. D. & Stewart, L. A. (2013, May 14). The economic benefits of information and communications technology. Washington, DC: The Information Technology and Innovation Foundation. Retrieved 18 November 2014 from http://www2.itif.org/ Chukwu, J. & Nneka, A. J. (2012). Information and communication technology (ICT) and its applications in telecommunications. Journal of Environmental Science, Computer Science and Engineering and technology, 1(3), 250 – 262. Grant, A. E. & Meadows, J. H. Eds. (2014). Communications technology update and fundamentals (14th ed.). Burlington, MA: Focal Press Laudon, K. & Laudon, J. (2014). Management information systems: Managing the digital firm (13th ed.). Boston: Prentice Hall. Moore, L. K. (2012, January 5). Funding emergency communications: technology and policy considerations. Congressional Research Service. Retrieved 18 November 2014 from http://fas.org/ Read More