A Framework Based on IT
Changing Technology and Applications
The purpose of employing any technology is to obtain an advantage over old ways of doing business.Individuals and organizations have shown tremendous initiative in finding ways to apply Information Technology.
Organizations can use technology to improve their operations, gain a competitive advantage, provide personal productivity tools for employees, and even change the very structure of the organization.
IT today is a vehicle for making substantial changes in organizations, markets, and the economy.
Areas to gain an competitive advantage using IT. Click the segments to read about the areas in which a competitive advantage can be gained using IT.
Inter – organizational Systems
Knowledge Worker Support
Today most transactions processing systems operate on-line. Transactions processing systems handle vast amounts of data.
Today companies create data warehouses that contain huge amounts of operational data; they try to discover useful information by sifting or mining this data.
Transactions systems are the backbone of many information systems in firms.
Information Technology can be used to support decision making in the organization as well as process transactions.
Managers running spreadsheet programs on their personal computers to decide whether to launch a new product or make a particular investment are using the computer for decision support.
Knowledge Worker Support
One of the great appeals of computers is the software available for personal productivity.
Office software such as spreadsheets, word processors and presentation software turn a PC into a manager's workstation.
Applications that tie two organizations together are known as interorganizational systems (IOS). Partnerships and strategic alliances are created and enhanced with interorganizational systems.
Interorganizational systems make possible virtual components in which a partner substitutes for some component of your company, such as using Federal Express to deliver your products instead of your own fleet of trucks.
One of the most exciting uses of technology is the support of group and cooperative work. When individuals in different locations need to communicate with each other to share information, a distributed network of personal computers with appropriate software can provide the coordination mechanism.
Key Technologies: Communications, Networking, and Databases.
The kinds of applications and systems described above rely heavily on three key technologies: communications, networks, and databases.
These technologies have developed rapidly during the last decade and are responsible for what you can accomplish with IT.
Much of the information and knowledge of organizations is now stored in machine-readable databases, huge repositories of all types of corporate information.
Networks tie together thousands of computers.
An Internet connection makes it possible to communicate with millions of people who are connected to the World Wide Web.
A More Contemporary Framework
The changing technology we have described enables the organization to develop applications to support all the tasks involved in managing the firm. Click the numbers to read about the key parts of this framework:
A focus on the organization as the most important component of the study of Information Technology.
The role of technology in supporting managerial tasks.
The pervasive nature of technology in the organization.
Information Technology supports individuals, workgroups, organizations, and linkages among organizations. Technology is used to help execute managerial tasks such as designing the organization, formulating corporate strategy, making decisions, and so on.
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