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The challenges of realising benefits from ISIT - Essay Example

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This era has been termed as information age, mainly due to the amazing growth of technology that has changed the way people live. Whether it is advancement in medical sciences, innovations in engineering, or the greatest invention of twenty first century - the internet, technology has impacted every domain of life…
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The challenges of realising benefits from ISIT

Download file to see previous pages... It also provides information about the challenges businesses face to implement and operate information systems.
Information Systems (IS) and Information Technology (IT) are integrated into every area of organisations' business. A closer look at how IT and IS shape up internal and external environments in which businesses operate, is provided below:
With the advent of internet, the traditional business environment has shifted to the e-world. With business-to-business (B2B) and business-to-consumers (B2C), internet and e-commerce provides a market place free from geographical boundaries, where companies can buy and sell from virtually anywhere around the globe. This provides an opportunity to organistions to extend their reach and enhance their businesses. Internet and e-commerce is a direct benefit of technology adoption for business use.
As stated above, the entire world has become a single marketplace. To succeed in this market, companies merge and acquire other companies, enter into long term strategic alliances and partnerships with companies half way across the world, and develop business ecosystems that benefit both organisations. These moves require consistent and continuous communication, swift and speedy responses and strategy formulation capabilities, and face to face meetings between parties thousands of miles apart. This would not have been possible had it not for information technology. IT provides the necessary infrastructure to conduct video and teleconferencing, message transfers and 24x7 connectivity through satellite, telephones and internet.
Faster Business Cycles
Due to the advancement in technology, the business cycles for products and services have become faster. Companies can not wait for a long time to develop a product as competitors will almost always surpass. Information technology has provided the necessary speed, accuracy, and reliability to significantly reduce cycle times while enhancing the quality, comprehensiveness and timeliness of the product and/ or service.
Enterprise Resource Planning
The introduction of information systems having a large scope comprising of the entire organistion, has marked the beginning of enterprise resource planning systems or ERPs. An ERP is a software system that attempts to integrate all departments and functions across a company on a single computer system that can serve all those departments' particular needs (Koch, 2006).
Accountability and Transparency
Converting business operations on information systems allow the organisations ability to minimise risks of frauds, unauthorised access to sensitive data and information, and enhances internal control environment for the organisation.
Knowledge Management
Using the power of information technology, organisations can develop knowledge bases in form of intranet and electronic portals. This can be used as a central location to hold all the required policies, procedures, guidelines and other information necessary for workers to carry out their job responsibilities. In addition, it provides a platform that allows communication among all employees who can share views, obtain expert advice, and give feedback on the ...Download file to see next pagesRead More
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