Role of Information Technology - Essay Example

Brief introduction of Information Technology and Systems and their role in turning corporate strategy into action. Views on application Information Technology and various areas of utilization of Information Technology by organizations in competitive business environment are enumerated together with the details of the sources of the schemes. As far the suggestion for recommending Information 'Technology for developing countries, the answer is indicated as "YES " and detailed justification appended to the statement. A detailed example is quoted for better appreciation of the Paper. The Paper concludes with a recommendation for implementation of Information Technology. 16 References are listed in a separate page at the end, as prescribed. Role of Information Technology Information Technology is for everyday and for everyone, more so for an organization doing business. But, technology is only a means to achieve a business end through service centric system landscapes. As the market becomes competitive, organization need to focus on stronger and more effective communication, by way of transmission of voice, video and data. Timely access to relevant critical data is crucial in today's competitive world. Proper document imaging, capture, indexing, searching, retrieval, archiving and record management are necessary. The system should be robust, simple, reliable, flexible, cost-effective, scalable, interoperable, sharable on need basis, secure and easy to use. Information generated by IT/IS has to be used for speedy suitable decisions for cost-effectiveness. This exercise will help the organization to achieve early materialization of break-even point by early realization of fixed costs and even reducing the marginal cost to increase the profitability of the organization by means of standardization, effective budgetary control, early visualization of future needs/threats, risk-analysis, and guiding the management to address vulnerability of opportunities, and control IT sources to proactively manage risk and keep business up and running, through optimal solutions and integrity of business critical operations, reduced storage costs, increase in productivity, lower transaction time, reduced business operating costs, reduced document retrieval time, faster and easier access to information across the enterprise, improved work flow efficiency, and access to database by management for effective decisions. "Information Technology involves computers, software, and services, but good IT synthesizes these elements with a concentration on how your organization can best meet its goals. Increasingly, the IT department is the hub of any company-and companies expect IT managers to accomplish a variety of tasks with limited resources." Thus, IT must use organizational and managerial skills to run the most effective program possible.(The Power of IT-Jan de Suttter) "The role of IT will differ depending on their organization's current business context: fighting for survival, successfully competing, or leading its industry by creating a vision for how technology can improve the business to creating clear and appropriate IT governance to building a leaner, more focused IS organization, to deliver on the promise of IT to yield real, measurable, and bankable results." ( The New CIO Leader-by MARIANNE BROADBENT AND ELLEN S.KITZIS) "IT leveling the playing field for smaller-size businesses: It is precisely because of evolving IT and business process-processing that mid-sized firms from all over the world compete now on a more level playing field. Suddenly, mid-sized and even small businesses have access to the same advantages that were once held exclusively by the larger, vertically integrated firms." (Farmer-owned ethanol and the role of information technology --Anthony Crooks and John Dunn) With the above views in the background, the Areas of utilization of Information Technology by organizations in competitive business environment are enumerated below together with the details of the authors of the schemes. "Systems Analysis and Design and management of production planning and control systems at advanced level. This includes forecasting, aggregate and master planning, capacity planning and management, inventory and replenishment systems, MRP/MRPII, JIT and OPT/TOC, systems design, implementation and design, customized to the complex manufacturing systems. This includes ascertaining Customer expectations, service and orientation, the management of resources and operations, the development, management and exploitation of information systems and their impact upon organizations, the development of appropriate business policies and strategies to meet stakeholder needs within a changing environment, effective qualitative problem solving and decision making skills, the ability to create, evaluate and access a range of options, together with the capacity to apply ideas and knowledge to a range of business and other situations, Qualitative skills including the ability to work with case studies, the ability to conduct research into business and management issues, either individually or as part of a team, including a familiarity with a range of business data and research resources and appropriate methodologies, effective self-management in terms of time, planning and behavior, motivation, self- starting, individual initiative and enterprise"(http://www.nottingham.ac.uk/business/ug/N14805.html) PRODUCTIVITY PRODUCTS.: Web Timesheet is a web-based, easy to use time tracking solution, for generation of Real time graphical reports to provide insight into productivity. Email notifications encourage prompt submission of timesheets, with different approval paths to fit business. The scheme is flexible, easy even in multi-currency environment and facilitates Auto tax calculations, multi-client billing/invoicing options and can handle simple to complex (e.g., "California") overtime rules and the timesheets follow Government Defense Contractor guidelines, Integrates with Project Management, Accounting, ERP and Payroll systems. (http://www.replicon.com) Web resource:. Simple, High-level Resource and Project Scheduling is done through this software.,- Eliminate spreadsheets and complex scheduling methods and Intelligent Project and Resource Forecasting done - Helps View total costs and hours, allocation percentages and hours, and percent completed. Flexible Calendar Views, Real-time project and task schedules, resource schedules, and individual schedules are done through this software. .Centrally Manages Resource Pool, - identifies idle labor and schedule more work, Defines Resource Allocation Thresholds - Quickly determines which resources are over or under allocated for specific projects/ timeframes. Easily Manages an Unlimited Resource Pool, Views their skills and schedules (available, booked, and time off); and assigns the right resources to the right projects. The software Categorizes Resources - Create departments, locations, etc. and is Ideal for large organizations with many resources. It Integrates With Web Timesheet. Users, projects, and tasks can be easily transferred to Web Resource. http://www.repliconwebresource.com/ Web-time off: "Period Time Off (PTO) is an important benefit provided to employees for planned vacation and illness and can be critical to maintaining productivity and employee morale" Sarbanes oxley compliance of journal news."http://www.webtimeoff.com/ Integration of business processes in Web-based collaborative product development Hongxin Li A1, A1, Yushun Fan A1, Catherine Dunne A2, Paolo Pedrazzoli A3 A1CIMS-ERC, Department of Automation, Tsinghua University, 100084, Beijing, PR China A2CIMRU, National University of Ireland, Nun's Island, N/A, Galway, Ireland A3TTS, viale Lombardia 12, 20131, Milano, Italy "Abstract: Collaborative product development is a growing trend as companies seek worldwide opportunities to extend their market as well as small- and medium-sized engineering enterprises concentrate on their core competences. Internet and Web technology facilitates the information sharing and exchange among widely distributed collaboration partners, but the integration of business processes with the support of Web-based applications is the final goal because business processes represent the knowledge of how to reach the collaboration goals. The research results presented in this paper concern business process integration developed as part of the Europe - China project called DRAGON, which aims to develop an Engineering Portal to support collaborative product development. The reference business processes are extracted from the questionnaires completed by specially selected collaboration companies from Europe and China. The constraints, the needed functionalities of the engineering portal, of the whole collaborative product development process are analyzed with IDEF0. The emphasis in business process integration is put on the application of concurrent engineering principle and workflow management technology. Information integration is ensured by sharing a STEP-based product model and mapping STEP model to XML data. The solution for the coordination problem of a product development team is based on workflow management technology" (http://journalsonline. tandf.co.uk/(b4oe3c55ovw1hg455mm23545)/app/home/contribution.aspreferrer=parent&backto=issue,3,8;journal,3,60;subject,5,9) Planning and Control Cycle :"The P&C cycle moves from long term strategy to a plan for one year. During this year the execution of the plan is being monitored. The result feeds back into long term planning and into the budget plan for the year beyond. Long term strategy & Funding; Strategie Nota & Kadernota The Board of Executives decides on a long term strategy, which is updated every four years. This strategy is known as "Strategie Nota". Each year the funding of the faculties is evaluated on the basis of the government grant the EUR receives and the performance of the faculty concerned. The result is put down in a funding plan AKA "Kadernota".Budget plan; Begroting Each faculty will make a budget plan taking into account the funding they will receive and the external funding they expect to earn. Part of this budget plan is an activity plan that matches the long term strategy of the EUR. The budget plan of a faculty needs approval by the Board of Executives. The overall budget plan of the EUR, that results by consolidation of the budget plans of all units needs approval by the Board of Commissioners. Intermediate reports; Periodeverslagen" Twice every year an intermediated report is being drawn, to see if the execution of the budget plans is as expected. These reports include a prognosis for the financial result of the faculty for the full year. These reports are known as "Periodeverslagen". Annual report; Jaarrekening & Jaarverslag" At the end of each year an overall financial report (Jaarrekening) and an overall non-financial report (Jaarverslag) are being drawn. From these reports the results of the year can be compared with planning and strategy. The annual report requires the approval of the Board of Commissioners. Feedback: Twice a year results are being discussed by the Board of Executives and the faculties. In March focus is on non-financial results and planning. In September the focus is on financial results and planning." http://www.eur.nl/english/office/feb/FEB_01c Driving Corporate Performance: "Driving corporate performance without a performance management tool is like driving a car on a foggy day without power steering or power brakes: low visibility, little control and real difficulty in changing directions. Although organizations are currently using performance management components such as financial consolidation and management reporting, planning and budgeting as well as dashboards, these applications are often disparate and heterogeneous, just like transaction management tools were characterized before the arrival of ERP.".. http://www.cartesis.com/management-solutions/management-planning-and-control.htm ERP and CRM for the Smart Enterprise.: Streamlines the order processing, Point-of-Sales customer commerce care, manages inventory, automates, provides customer, manage networks and more http://www.compiere.org/ Model Based control and optimization.: On line optimization is done by estimating Return On Investment..( Advanced Process Control and Information Systems for the process industries.Les A. Kane)http://www.elsevier.com/wps/find/bookdescription.cws_home/676898/description#description The Balanced Scorecard approach determines a business-oriented relationship between strategic Knowledge Management usage and IT strategy and implementation.(Strategies for information Technology governance-Wim Van Grembergen) Adaptive Memory programming: "A concept of adaptive memory programming (AMP) for grouping a number of generic optimization techniques used in combinatorial problems to enhance the computational capabilities that they offer for combinatorial problems encountered in real life in the area of production planning and control". .Adaptive memory programming- Emerging optimization techniques in production planning and control by Godfrey C Onwubolu (TheUniveristy of South Pacific,Fiji) http:// www.icpress.co.uk/books/ mathematics/p228.html Business Process Virtualization: "Business process virtualization (BPV) is the application of intelligent network-enabled automation to leverage what you already have-people, capital, and intellectual property-to achieve quantum improvements in productivity, profitability, and competitiveness. BPV includes the application of business intelligence, gleaned from the company's operations, to optimize business decisions. Information technology (IT) professionals need to divest themselves of the expense/overhead mind-set and accept the role of primary business enabler." Business Process Virtualization." The Role of Business Process Virtualization in Your Business. by Martha Young, Michael Jude Powerful IT structure for developing countries: It is strongly recommended in view of the following advantages.1. For identifying the tax-payers, assessment of tax and recovery of taxes from the citizens.:- The Government can use the IT and Systems to ensure tax remittance compliance at low cost and with little or no human intervention, which facilitates prompt collection of revenues for financing various activities of the government. 2. For evolving proper academic programs on need basis by constant interaction with industry, so that the human resources are properly put to use and the industry has suitable personnel for sustaining/augmenting growth. In the absence of the above, the government normally devises it's own academic programs drafted by academicians, and on pursuing such courses, the citizens may or may not find suitable employment, which results in higher rate of un-employment and the industry starving for Trained people for manning the production and control activities. 3. For Billing and recovery of Electricity, Telephone and Water bills.:- This will ensure promptness in billing and recovery at low cost as also ensuring that there is no incidence of incorrect transactions. Further, the defaulters can be easily identified by planning suitable exception reports which help the government to realize with minimum effort. 4. for proper maintenance of land records and monitor registrations.:- This can be done more effectively leaving no chance to human intervention, which is likely to cause delays and mal-practices. 4. Exercising effective regulation on various business/economic activities carried out in the country.:- This activity can ensure that the citizens are given proper services/supplies by Trade for the money's worth and the Trade does not make undue gains from business. Compliance of various Government regulations by the Trade also are monitored which results in better revenue realization by the Government. Else, it is a major activity for the Government to ensure this. 5. For Balanced regional development:- Since the facilities are standardized and provided at all places all the regions can flourish at the same pace leaving no chance for underdevelopment of any particular regions. 6. For Effective use of manpower:- Manpower/Human Resource is planned and occasions of idle manpower are minimized. 6. for electronic delivery of all government services like licenses, permissions:- This ensures prompt and proper service to the citizens leaving no opportunity for delays/manipulations. 7. facilitate e-learning : - Improves literacy at a low cost, and for organizing and can reach out to remote places , which in turn helps exploitation of students by educational institutions in cities. 8.Tele-medicine :- Providing Medical facilities is a basic responsibility of the government. To reach out maximum citizens at low cost. Telemedicine is a best medium as the services of doctors are better utilized 9.As a medium to publicize the programs of the government to enable the utilize the same for general economic development of the nation. In the absence of a powerful medium, such programmes may not reach all citizens inspite of the government spending enormous amount of funds on various schemes to the citizens. 10.Inter-departmental coordination is better done (as in ERP) for effective governance/management. 11.Transparancy in public administration can be achieved. Example of "Best Practice:Integrated Management, Planning, and Control for Assembly System " "To handle the enormous quantity of paperwork involved with the management, planning, and control of aircraft manufacturing, Northrop Grumman developed and implemented a computer-based system. This system enables managers, engineers, technicians, and operators to access an abundance of drawings; work instructions; engineering and quality assurance data; visual aids; schedules; and knowledge at their Workstations. The heart of the system is the Integrated Management, Planning, and Control for Assembly (IMPCA) system. The computer-based IMPCA system provides on-line, assembly planning data to the factory host and throughout the shop floor; critical-path job assignments to assembly mechanics; quality assurance acceptance and defect reporting to operators; defect routing through the disposition process, the Material Review Board, and the engineering liaison; and total visibility to management on an individual product status and cost basis. Northrop Grumman developed the IMPCA concept as a result of an Air Force Integrated Computer Aided Manufacturing initiative in 1981. The initiative called for a system design that could provide a paperless factory environment for assembly processes. The Naval Air Systems Command later awarded Northrop Grumman an Industrial Modernization Incentives Program (IMIP) project to further refine and demonstrate the system. When the IMIP phased out at the completion of the project in 1985, Northrop Grumman elected to continue the project on an interim basis in 1986. As a result, the company now has a fully implemented, all-up production system which functions throughout the factory floor. The IMPCA system was designed to serve as a total final assembly, factory floor control system which provides on-line, 100% up-time service. The systems hardware consists of Tandem NONSTOP II and TXP processors programmed in COBOL, which operate with relational-type databases. The users system is menu/message-driven and employs an option method for changing screens. Today, the IMPCA system is ported to a client/server environment which uses Hewlett Packard servers and Xterms as well as PCs, allowing single terminal access to all systems and data needed for final assembly processes. The system is programmed in C language with Oracle RDBMS serving as the database management system. The IMPCA system provides total integration of data between all user groups. The five main users of the system are Manufacturing Engineering, Industrial Engineering, Manufacturing, Quality Assurance, and Engineering Liaison. There are 120 screens available to the user through the following subsystems of the IMPCA C/D and IMPCA E/F systems: General provides the user with capabilities of maintaining employee identifications and security assignments; employee electronic stamp data; and certification and qualification information. Each employee who uses IMPCA is assigned to a department type and specific access levels within each subsystem which controls the users rights to perform transactions on each screen. Other screens include updating electronic stamp passwords, assigning user access to screens, help screens, display audit trail data, organizational structures, and issue announcements. Manufacturing Engineering provides the user with an on-line, real-time Tandem assembly planning system with interfaces to the IBM host by automatically uploading planned assembly line, Bill of Material requirements to the Material Requirements Planning (MRP) system on the host. Other screens include status of assembly line operation orders; automatic generation of orders per shop operating schedules within the IMPCA system; electronic work instructions; electronic accessory serial number record requirements; change alerts; process plans; correspondences; procedures; and capabilities to modify and track operation orders. Industrial Engineering provides the user with an on-line, precedence planning capability that allows critical and alternate paths of manufacturing to be identified to the system, and identifies the order in which the jobs are to be performed. The system also provides cost and schedule status; time standards; and status on major assembly tooling. Manufacturing provides the user with the automatic assigning of mechanics and their work assignments; assigns work to individuals based on skill levels; captures actual hours expended performing individual tasks; and provides electronic buy-off capabilities. Quality Assurance provides the user the ability to buy off various types of electronic documents; tracks nonconformance reporting and corrective action routings; provides graphics capabilities, automatic notification and electronic call boards; and maintains history of record capture and storage.Expansion of the IMPCA systems capability includes Workstation access to: IBM Mainframe provides access to the MRP system (C/PIOS); inventory maintenance and display; requirements and replenishment; and engineering change order status. Netscape Intranet provides access to automated documents and manuals; IMPCA report viewing; Assembly Process Work Instructions; program data and information; master schedules and calendars; Materials and Processes specification lists; and visual aids. Labor/Attendance Network System provides access to attendance inputs, labor inputs, and manager/employee approvals. Tool Management System provides access to tool inventories; tracking and location; issue and receipt; and surplus. Plot Access Request Capability provides access to documents associated with engineering drawings, engineering orders, product release documents, and tool engineering inputs. Unigraphics provides access to the main drafting system for major assemblies; drawing maintenance and viewing; installation simulations; and 3-D solid models. Control and Release System provides access to drawings from engineering vaults; executes Unigraphics for drawing maintenance and viewing; and releases drawings from in-work to vaults. Statistical Process Control provides access to process statistics information; views histograms, control, probability charts, and data for various time periods; and provides and customizes process performance reports.Northrop Grummans IMPCA system is one of the most complete systems available. The B-2, F/A-18, and Boeing 747 fuselage assemblies have all been produced by using the IMPCA system to monitor and document assembly progress. Nearly 500 F/A-18 C/D fuselage assemblies and ten F/A-18 E/F fuselage assemblies have been produced using the IMPCA system. In January 1997, Northrop Grumman completed the expansion of its systems capabilities to include Workstation access to the IBM Mainframe; Netscape Intranet; Labor/Attendance Network System; Tool Management System; Plot Access Request Capability; Unigraphics; Control and Release System; and Statistical Process Control." http://www.bmpcoe.org/bestpractices/internal/north/north_18.html Conclusion: Information Technology and systems play vital role in better organization of business enterprises.Information Technology is recommended for developing countries to organize various activities in a more effective way at an affordable cost. References. 1. The power of IT- Jan de Sutter 2. The role of CIOs--The New CIO Leader by MARIANNE BROADBENT AND ELLEN S.KITZIS 3. IT leveling the playing field.-Farmer-owned ethanol and the role of information technology Anthony Crooks and John Dunn 4.Systems Analysis and Design and management of production planning and control systems at advanced level. http://www.nottingham.ac.uk/business/ug/N14805.html) 5.Web TimeSheet http://www.replicon.com/ 6. Web resource http://www.repliconwebresource.com/ 7. Web Time-off "http://www.webtimeoff.com/ 8. Integration of business processes in Web-based collaborative product development http://journalsonline.tandf.co.uk/(b4oe3c55ovw1hg455mm23545)/app/home/contribution.aspreferrer=parent&backto=issue,3,8;journal,3,60;subject,5,9; 9.Planning and control cycle. http://www.eur.nl/english/office/feb/FEB_01c 10. Driving Corporate Performance. http://www.cartesis.com/management-solutions/management-planning-and-control.htm 11 ERP and CRM for the Smart Enterprise http://www.compiere.org/ 12.Model based control and optimization. - Advanced Process Control and Information Systems for the process Industries. By Les A. Kane. 13. The Balanced Scorecard approach -Strategies for information Technology governance- by Wim Van Grembergen) 14.Adaptive memory programming- Emerging optimization techniques in production planning and control by Godfrey COnwubolu (TheUniveristy of South Pacific,Fiji) http://www.icpress.co.uk/books/mathematics/p228.html 15. Business Process Virtualization. The Role of Business Process Virtualization in Your Business by Martha Young, Michael Jude. 16.Example of Best Practice : Integrated Management, Planning, and Control for Assembly System http://www.bmpcoe.org/bestpractices/internal/north/north_18.html Read More