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Management of information technology - Essay Example

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Investing in Information Technology is beneficial to any organisation. A study in the insurance sector with four years of historical data revealed that firms with the most most most improvement in organisational performance (operating expense to premium income) allocated a significantly higher proportion of their non-interest operating expenses to IT (Harris & Kats 1988, 1991)
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Management of information technology
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Download file to see previous pages The organisation at the very beginning will need to explore all avenues where electronic information systems are required to manage information better. All departments should be consulted to arrive at common consensus for the need. At various levels the thought process may come to a halt due to various factors. We shall identify and explore a few.
Management Issues - An organisation need to answer the question of management of the IT resource if it proceeds with the investment. An IT resource like a supply chain management software is required to be handled by a staff of experienced IT professionals who are also aware of the core business processes of the organisation. Failure to do so will result in incorrect reporting of information and ultimately lead to mismanagement.
Organisational Issues - At an organisational level investment in IT could bring out some structural as well as financial issues. An organisation will need to consider its core business requirements, investor interests and well as financial implications while considering a potential investment in IT.
Technological Issues - Technological issues if not planned for may derail an entire project at the implementation stage. Overlooking CTQ (critical to quality) parameters can result in doing more harm than good.

Let us now look at the various issues that may arise when an organisation may invest into IT.
At a management level, there may well be numerous issues. Lets look at a few which might be more common.
Administration - While an organisation may want the most sophisticated software available in the market, it however needs to answer management related questions before proceeding.
The organisation needs to see if it has the work force capacity to handle such a shift. Does it have the required people with necessary skill set to successfully implement and support the technology
If not then who would manage this technology
Many technology vendors have come up with their own solution to this issue since it is the most common and is certain to arise.
While most vendors would offer specialised training to an organisation's staff, few also offer to provide dedicated staff to the organisation for day to day administration of the product.
Organisations also recruit IT staff to manage the acquired product if the data is sensitive. For example an organisation would definitely would want to have an IT employee specializing in the technology in question if it is financial in nature or deals with the organisations product. If the product is unique in the market, maintaining a dedicated resource becomes all the more important.

Security Issues - "Managers, consultants, IT professionals and customers believe that they have finally discovered what makes organizations work: knowledge---that invisible force that propels the most successful companies to stock market values which far exceed the visible assets of their financial balance sheet". (Borghoff & Pareschi 1997, p.835)
Since technology investment deals with data which in the hands of certain individuals translates into Knowledge, protecting it is very important.
An organisation may answer the security management question by restricting access of the technology to individuals on a need to know basis. This will ensure that those ...Download file to see next pagesRead More
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